Former Chattanooga Councilman Franklin, 9 others face new indictment

The federal trial of former City Councilman John “Duke” Franklin Jr. and others charged with drug and money-laundering crimes is expected to be rescheduled because of a new indictment handed down late Wednesday.

“The new indictment will change the trial date,” said defense attorney Marty Levitt, who represents Mr. Franklin.

Mr. Franklin and his co-defendants pleaded not guilty May 27 to charges stemming from a federal drug-related roundup earlier the same month. U.S. Magistrate Judge Susan Lee originally scheduled their trial for Aug. 5.

Now Mr. Franklin — charged with money laundering, conspiring to obstruct justice and providing false statements to federal officials — must appear in court with his co-defendants July 9 to have the charges read to them from the new indictment, which supersedes the previous one.

Authorities expect the defendants to plead not guilty again.

The charges remain the same, but a 10th co-defendant has been named.

Chattanooga accountant Ronald Goodwin, like Mr. Franklin, is accused of helping co-defendant Michael Kelley conceal the origin of money that authorities say was intended to buy drugs.

Mr. Goodwin is charged with money laundering, conspiring to obstruct justice and providing false statements to federal officials. He has not yet been arrested, authorities said.

The May 14 drug-related roundup, in which authorities arrested 42 people, has been called an “impact case” by Assistant U.S. Attorney Scott Winne because those involved allegedly had significant dealings in the local cocaine trade.

According to the new 13-count indictment, Mr. Goodwin met with Mr. Kelley at Celebrity Tax Service to discuss the March 5 police seizure of $69,500 from Mr. Kelley’s car. After the meeting, the indictment states, Mr. Kelley solicited and received at least two personal checks in the amount of $8,000 intended falsely to represent investments in his business and to justify a claim for the return of the money.

Mr. Kelley told the people who wrote the personal checks that they would never be cashed, according to the indictment.

When asked by federal investigators about the meeting, Mr. Goodwin said he never met with Mr. Kelley, the indictment states.

Authorities claim Mr. Franklin’s involvement began when he, too, helped cover up the money’s origin by arranging for a falsified loan document.