Two former city officials in Florida have been convicted of fraud and money laundering.
Federal court records show that jurors in Jacksonville found 39-year-old Katrina Brown and 57-year-old Reginald Brown guilty Wednesday on multiple charges. The former Jacksonville City Council members are scheduled to be sentenced Jan. 27. The government is seeking forfeiture of more than $750,000.
Prosecutors say 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, investigators say she and Reginald Brown, who is not a relative, incorporated two businesses they used to submit fake invoices to their lender for services that the businesses had not provided.
An indictment says Reginald Brown deposited the reimbursement checks into the businesses’ bank accounts.