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Wednesday, May 14, 2008

Chattanooga City Councilman charged with laundering money in drug case

Chattanooga City Councilman John “Duke” Franklin was charged in federal court today with conspiracy to launder money, conspiracy to obstruct justice and lying to federal officials.

Mr. Franklin, 49, faces a maximum of 20 years on the money-laundering charge and up to five years for each of the two other charges.

Mr. Franklin frowned while U.S. Magistrate Bill Carter read the charges against him but otherwise was calm and unemotional in court. Judge Carter said he expects to set bond sometime today and that Mr. Franklin will be going home afterwards.

Staff Photo by Meghan Brown -- City Councilman John "Duke" Franklin Jr. was led in handcuffs this morning at Finley Stadium during an apparent law enforcement roundup.

Eight others are charged in indictment that includes Mr. Franklin. Among the charges are possession with intent to distribute more than 5 kgs (11 pounds) of cocaine.

According to the indictment, the charges stem from March 5 when Hamilton County sheriff's deputies pulled over a car driven by Michael Kelley. Deputies found $69,500 in cash with Mr. Kelley, the indictment says.

The money was intended to buy cocaine, federal agents say, but Mr. Kelley told deputies the money was a loan from a friend.

Mr. Kelley then went to Perry Lawrence, who agreed to write a loan document saying he legitimately loaned the money to Mr. Kelly, the indictment says. The loan document then was taken to Mr. Franklin, who had it notarized for the date of Feb. 12, according to the indictment.

Mr. Kelley and Mr. Lawrence also are being indicted on federal charges, the indictment states.

Attorney Marty Levitt was in court today on Mr. Franklin's behalf and told the judge that he expected to be hired to represent the councilman.

See tomorrow's Chattanooga Times Free Press for full coverage.

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