** Scroll to the bottom of this story for trial highlights**
"Where is the money coming from and going to?" That was the focus of Thursday's federal corruption trial involving former Jacksonville City Council members Katrina Brown and Reginald "Reggie" Brown, no relation.
In great mathematical detail, the government argued that the two used federal funds for personal use, which totals to about $2.6 million.
According to the indictment, Katrina Brown received around $2.6 million in a loan from the U.S Small Business Administration and half a million dollars in grants and loans from the city. Loans and grants for the creation of a manufacturing plant with the promise of 56 jobs. No jobs were ever created.
Katrina Brown and Reginald Brown were indicted in May of 2018 by a grand jury on conspiracy, mail and wire fraud. Together, both Browns face 38 counts.
Hours of testimony Thursday were highlighted by an FBI special agent and forensic accountant who talked about bank withdrawals and deposits between Katrina Brown and Reggie Brown’s companies.
Prosecutors argued a handful of transactions were misspent and were supposed to be tied to business.
FBI Forensic Accountant Kyle Stevens, who is legally blind, spent more than three hours on the stand with the help of a machine to identify multiple cash and ATM deposits into accounts tied to both defendants.
The government has already called over a dozen witnesses.
Late afternoon Thursday, loan underwriters testified that Katrina Brown submitted fraudulent bank statement in 2015 to obtain a loan, which was ultimately denied.
Bank representatives also testified that those fraudulent bank statements showed $30,000 more than was actually in Katrina Brown's account.
The bank representative will return to the stand Friday to finish questioning from the government. A special agent with the IRS is set to round out the government’s witness list. The government expects to rest their case by late Friday morning.
At that point, Katrina Brown would start to present her witnesses.
DAY FOUR HIGHLIGHTS:
- Katrina Brown arrived at 8:45 a.m. in a light-colored SUV that she has been seen in the last three days. She responded to reporter questions “no comment on the case.”
- Reggie Brown arrived at 8:34 a.m. walking alone across Hogan Street to the Federal Courthouse.
- Testimony of an FBI special agent who explained several transactions at the core of wire and mail fraud charges wrapped-up Wednesday’s proceedings. The agent will be the first on the stand Thursday.