February 02, 2011 3:09 PM

http://www.newschannel9.com/news/dowlen-998239-money-laundering.html

Anthony Dowlen, 50, of Chattanooga, has been by a federal grand jury. 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 first court appearance on Monday 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 transaction constitutes a separate violation of the money laundering statute.

If convicted on all counts, Dowlen faces a total of 140 years in prison and $3.5 million in fines. The court may also order restitution to any victims of the fraud.