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Daily Record FINANCIAL NEWS &

FRIDAY, JUNE 1, 2018

VOL. 105, NO. 139 • ONE SECTION

35¢ www.jaxdailyrecord.com

Council members indicted Federal charges against Katrina Brown and Reginald Brown include conspiracy to commit mail and wire fraud related to failed barbecue sauce venture.

KATRINA BROWN

REGINALD BROWN

 Council member has represented District 8 since 2015.

 Council member has served District 10 since 2008.  He faces a maximum penalty of 601 years in prison, a $8.275 million fine, five years supervised release and a $3,325 special assessment fee.

 She faces a maximum 720 years in prison, a $12.25 million fine, five years supervised release and a $3,700 special assessment fee.

By David Cawton Staff Writer A federal grand jury handed down a 38-count indictment of City Council members Katrina Brown and Reginald Brown on charges that include conspiracy to commit mail and wire fraud, the Department of Justice announced Thursday. The 60-page indictment, filed May 23 and unsealed Thursday, centers on several Katrina Brown-owned

businesses – Basic Products LLC, CoWealth LLC, A Plus Training and Consulting LLC and RB Packaging LLC – as well as a failed barbecue sauce venture funded with city-backed and private loans and grants. Reginald Brown is listed as a principal for A Plus Training and RB Packaging, which were formed in 2013 and 2014. U.S. Attorney for the Middle District of Florida Maria Chapa Lopez said in a news release that both are being 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. According to a news release, each faces up to 20 years in federal prison for the conspiracy count and for each count of aiding and abetting mail and wire fraud, and up to 10 years for each count of aiding and abetting money laundering. INDICTED

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Southeastern Grocers completes bankruptcy reorganization Winn-Dixie’s parent company restructures, will continue to operate about 575 stores. By Mark Basch Contributing Writer Southeastern Grocers LLC said Thursday it has emerged from bankruptcy and completed its financial restructuring, about two months after filing a prepackaged Chapter 11 reorganiza-

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tion plan. The company’s plan, which had approval of most of its creditors before it filed its Chapter 11 petitions March 27, was confirmed by a U.S. Bankruptcy judge in Delaware on May 14. Jacksonville-based Southeastern said it decreased its debt

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levels by about $600 million, including the exchange of $522 million in debt for equity. T h e co m Hucker pany has not disclosed who is receiving the equity shares, who will now be the owners of the company. Southeastern will continue to

operate about 575 supermarkets under the Winn-Dixie, Bi-Lo, Harveys and Fresco y Mas banners in seven states after the reorganization. The company operated 704 stores when it filed for bankruptcy, when it announced plans to close 94 stores and sell off others. The reorganization leaves Southeastern with “an optimal store footprint that is well-posi-

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tioned to thrive in the competitive retail market,” CEO Anthony Hucker said in a news release. “With a stronger balance sheet, we will continually improve the shopping experience for our customers and communities, including nearly 100 store remodels and new store concepts just this year,” he said. mbasch@jaxdailyrecord.com

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