Two members of Jacksonville’s City Council have been indicted by a federal grand jury for fraud and money laundering.
U.S. Attorney Maria Chapa Lopez said Thursday that 37-year-old Katrina Brown and 56-year-old Reginald Brown each face up to 20 years in federal prison if convicted for a combined 37 counts.
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.
Lawyers for both defendants planned a news conference later Thursday afternoon.