Former Jacksonville City Council members Katrina Brown and Reginald Brown were found guilty Wednesday in federal court of multiple counts of fraud, money laundering and conspiracy.
They were individually found guilty of making false statements to a federally insured financial institution and failing to file a federal income tax return., according to Daily Record news partner WJXT-TV 4.
After deliberating for two days, the 12-member jury found Katrina Brown guilty on all 37 counts against her. Reginald Brown was found guilty on 33 counts, but was found not guilty of one count of aiding and abetting mail fraud.
Sentencing is scheduled for Jan. 27 in the U.S. District Court.
The charges were related to Katrina Brown's family barbecue sauce business in Northwest Jacksonville that received more than $3 million in government loans and a city grant.
The government charged that the Browns, who are not related, conspired to defraud the government by creating shell companies and false invoices that were paid and then diverting the funds for their personal use.
On May 23, 2018, a federal grand jury returned a 38-count indictment against Katrina Brown and Reginald Brown.
Count 1 of the indictment charged both defendants with conspiring to commit mail and wire fraud. Counts 2-14 charged both defendants with aiding and abetting mail fraud.
Counts 15-27 charged both defendants with aiding and abetting wire fraud. Counts 28-33 charged both defendants with money laundering.
Counts 34 and 35 charged only Katrina Brown with attempted bank fraud. Counts 36 and 37 charged only Katrina Brown with making false statements to a federally insured financial institution.
Count 38 charged only Reginald Brown with failing to file an IRS Form 1040 federal income tax return.