Chattanooga Contractor Indicted for Fraud and Money Laundering
| U.S. Attorney’s Office February 02, 2011 |
CHATTANOOGA, TN—Anthony Dowlen, 50, of Chattanooga, was indicted on January, 25, 2011, by a federal grand jury sitting in Chattanooga, Tenn. The 14-count indictment charges Dowlen, a Chattanooga contractor and real estate developer, with interstate transportation of fraudulently obtained money and money laundering.
Dowlen made his initial appearance on Monday, January 31, 2011, before a U.S. Magistrate Judge in Chattanooga. He was released on bond. The trial of the case is set for April 4, 2011, before U.S. District Judge Curtis L. Collier.
The indictment alleges that Dowlen falsified records to defraud a partnership, d/b/a Colony Limited Partnership, of advances intended to finance the construction and development of real estate in Hamilton County. Dowlen did not fully pay his subcontractors for work they had performed and misapplied funds that should have been used to pay them. He also falsely represented to some purchasers of his homes that he needed additional funds to complete the projects. Dowlen allegedly misapplied funds obtained under false pretenses to pay for personal expenses, including but not limited to, trips, vacations, antique automobiles, and gifts.
Dowlen allegedly committed money laundering by conducting monetary transactions with criminally derived proceeds in amounts over $10,000. Each of these transactions constitutes a separate violation of the money laundering statute.
If convicted on all counts, the defendant faces a total of 140 years in prison and $3.5 million in fines. The maximum penalty for each violation of the interstate transportation of fraudulently obtained money statute is 10 years in prison and a $250,00 fine. The maximum penalty for each count of the money laundering statute is 10 years in prison and a $250,00 fine. The court may also order restitution to any victims of the fraud.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Brooks represents the United States.
The public is reminded that an indictment is a form of accusation and is not evidence of guilt.
The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.