Katrina Brown and Reginald Brown entered pleas of not guilty Tuesday to dozens of federal fraud charges.
U.S. attorneys allege the suspended City Council members, who are not related, used a group of businesses to siphon money from a federal loan and a city-backed loan and grant using as a front a failed barbecue sauce plant in Northwest Jacksonville owned by Katrina Brown and her family.
Both are charged with one count of conspiracy to commit mail and wire fraud, 26 counts of aiding and abetting mail and wire fraud and six counts of aiding and abetting money laundering. Katrina Brown also faces two counts of attempted bank fraud and two counts of making false statements to a federally insured financial institution.
Reginald Brown is additionally charged with failure to file a personal income tax return for 2014.
Monday also was the first time Katrina Brown appeared alongside her court-appointed attorney, Darcy Galnor of Boyle & Galnor.
Reginald Brown appeared with his federal public defender, Thomas Bell.
U.S. Magistrate Judge James Klindt set several deadlines for the case before it goes to trial under the supervision of U.S. District Judge Marcia Morales Howard.
Attorneys for the government have until July 2 to provide Katrina Brown and Reginald Brown’s legal teams with hard drives containing an estimated 25,000 documents tied to the indictment.
The attorneys for the accused have until July 31 to enter any motions to suppress or dismiss the case.
Klindt set another status hearing for 2 p.m., Aug. 20.
The tentative trial date is Sept. 4, although that is likely to be pushed back several months.
The government also entered an unopposed motion for protective order to shield some documents from public view during the discovery period.
“In light of the fact that the government’s anticipated production contains not only personally identifiable information of the defendants, but also third parties, there is good cause for the Court to enter the proposed protective order,” it reads.
Katrina Brown faces up to 720 years in federal prison and a $12.25 million fine. Reginald Brown could face 601 years behind bars and a $8.275 million fine. The government is seeking forfeiture of $754,613.10.
On June 1, Gov. Rick Scott suspended Katrina Brown, who represented District 8, and Reginald Brown who represented District 10.
After the hearing Monday, both Galnor and Bell declined to comment alongside their clients.
When asked if he had a message for his constituents, Reginald Brown said “keep supporting me.”