Accused Jacksonville City Council fraudsters maintain innocence, September trial expected

Jacksonville City Councilmembers Katrina Brown and Reggie Brown were in federal court Monday afternoon for their arraignments.

At least for now, the defendants, indicted on fraud charges, are presenting a united front. Both maintained their innocence in court. And, for now, their cases won’t be separated.

Less than a month ago, the now-suspended Democrats were dealt a 61-page indictment detailing a conspiracy to defraud, spread out over 38 counts. Councilwoman Brown was named in 37 charges; Councilman Brown in 33. These charges could add up — at least in theory — to hundreds of years in prison and millions of dollars in fines.

The alleged conspiracy boils down to Katrina and Reggie Brown secreting Small Business Administration money with questionable transfers and, in the case of money that went through two companies registered to Councilman Brown (“RB Packaging” and “A-Plus Training and Consulting”), fraudulent invoicing.

The $2.62 million Small Business Administration loan from 2011 was intended to fund a BBQ Sauce Plant owned and operated by Katrina Brown family members. The project never got off the ground to the degree expected.

(Additionally, companies associated with the sauce concern got roughly $600,000 in grants and loans from the city of Jacksonville, via a 2011 bill that Reggie Brown voted for (Katrina Brown was not yet on the Council).

Fifty-six permanent jobs were to be created per the economic development deal; none were.

In addition to conspiracy to defraud, the two face a combined 13 counts of mail fraud, 13 counts of wire fraud, six counts of illegal monetary transactions (money laundering charges, all of them involving checks of over $20,000), two counts of attempted bank fraud (trying to secure a loan using forged information), two false statements to a federally insured institution, and a fraudulent 1040 form.

Cumulative potential penalties for Katrina Brown: 720 years and a $12 million fine. For Reggie Brown: 601 years and an $8.275 million fine.

Both Browns assert their innocence and have court-appointed lawyers, each having declared a financial need. Brown’s former paid lawyer said that financial need was proof all the money borrowed went into the business.

Ahead of the hearing, we asked Councilwoman Brown if she maintained her innocence and if she expected Councilman Brown to turn on her.

As was the case when we asked her over the course of years about the BBQ sauce plant and the controversy with the government money that seemingly went to nothing when she was on Council, she offered no comment.

Meanwhile, Gov. Rick Scott is mulling a list of replacements for the two Democrats on the Council. There is a very good chance he may choose Republicans for the traditionally Democratic seats.

The case is slated to be on the September trial calendar, with defense lawyers citing the burden of a “massive amount of discovery.”

There are 25,000 documents for the Browns’ barristers to peruse, per the U.S. attorneys representing the federal government. That discovery will be provided July 2, with a July 31 deadline for motions, including a potential motion to sever trials between the two Browns.

An August status conference is the next date of note for this trial.