- Associated Press - Wednesday, June 27, 2018

JACKSONVILLE, Fla. (AP) - Two suspended members of Jacksonville’s City Council have pleaded not guilty to federal fraud and money laundering charges.

The Florida Times-Union reports 37-year-old Katrina Brown and 56-year-old Reginald Brown entered their pleas earlier this week in Jacksonville federal court. They were indicted by a grand jury last month on a combined 38 counts. They each face up to 20 years in federal prison if convicted at their September trial.

The indictment says Katrina Brown obtained millions of dollars in U.S. Small Business Administration loans to expand her family’s barbecue business and create local jobs.

Instead, federal prosecutors say she and Reginald Brown incorporated two businesses they used to submit fake invoices to their lender for services the businesses had not provided.

The indictment says Reginald deposited the reimbursement checks into the businesses’ bank accounts.



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Information from: The (Jacksonville) Florida Times-Union, http://www.jacksonville.com

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