COEUR d'ALENE - The director of financial aid at North Idaho College was arrested Wednesday for allegedly offering students grant money in exchange for sexual favors.

Joseph M. Bekken, 36, of Coeur d'Alene, faces five possible felony charges: attempted misuse of public funds, attempted procurement of prostitution, burglary, using a computer in a scheme to defraud, and bribery.

Bekken has been the financial aid director at NIC since 2010.

Coeur d'Alene Police Sgt. Brandon McCormick said the investigation, which began Jan. 8, is still ongoing to determine how much money, if any, was spent in the alleged scheme or if any students were victimized.

According to McCormick, Bekken, who is married with three daughters, allegedly posted an advertisement in the "casual encounters" section on Craigslist.

That advertisement was spotted by members of the sex crimes unit of the Spokane Police Department, who tipped off the local Federal Bureau of Investigation.

McCormick said the FBI contacted NIC School Resource Officer Gus Wessel to set up a sting operation.

"At that point we didn't know who posted the ad," McCormick said.

Investigators created fake student bank accounts and contacted the Craigslist poster. Through email exchanges, detectives were able to arrange a meeting with the poster after he deposited $587 into one of the fake accounts.

McCormick said police finally learned the identity of the poster on Feb. 2, when Bekken showed up at the meeting location. At that point detectives interviewed him and let him go.

However, NIC immediately terminated Bekken and the investigators spent a week going through his emails and computer records to determine the extent of the alleged crimes.

On Wednesday they arrested Bekken on suspicion of the five felonies.

"I am grateful for the knowledge and training of our staff, which resulted in a swift and decisive response to this incident," said NIC President Joe Dunlap, in a prepared statement.

The investigation is still ongoing, McCormick said.

"We are looking into another possible transaction that was $2,400," he said, adding there may be other transactions and victims.

Kootenai County Prosecutor Barry McHugh said the county will review the case and present charges at Bekken's arraignment today.

Coeur d'Alene Police Chief Lee White issued a statement Wednesday afternoon commending Wessel's work on the case. Wessel works as a school resource officer at NIC, but he is also a Coeur d'Alene Police Officer.

"The relationship between the police department and North Idaho College has proven extremely valuable to ensure the safety and well-being of the campus and the community as a whole," White said in the statement.