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DC Council Chairman Kwame Brown, Charged With Bank Fraud, Is Expected To Resign Today Or Tomorrow

8:20 PM, Jun 6, 2012   |    comments
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WASHINGTON (WUSA) -- DC Council Chairman Kwame Brown is expected to resign either later Wednesday or Thursday, reports 9News Now's Bruce Johnson, after being charged with bank fraud. If that happens, sources say DC council member Mary Cheh would be the interim chair. 

Brown left the Wilson Building through a scrum of reporters and photographers. His staffers screamed and police officers shouted. Brown finally stopped and said only that he would have more to say tomorrow.

DC Councilmembers Vincent Orange and Phil Mendelson are reportedly already courting votes to replace Brown and fill the remainder of his term.

Councilmember Jim Graham said he was "distraught," but hope the climax of the year long investigation of Brown would finally lift the pall that's hung over the city. Still federal prosecutors continue their investigation of DC Mayor Vincent Gray.

Brown allegedly overstated his income by tens of thousands of dollars to get loans for boat and house from Industrial Bank, according to the indictment.

Councilmembers heard from Brown in a session they closed over the objections of reporters.

The information filed in court against Brown alleges: 

"From on or about August 19, 2005, through on or about August 30, 2007, in the District of Columbia, Kwame R. Brown knowingly and willfully devised a scheme and artifice to defraud Industrial Bank, N.A., and to obtain moneys, funds, credits, assets, securities, and other property owned by, and under the custody or control of, Industrial Bank, N.A., by means of materially false and fraudulent pretenses, representations, and promises...

It was a part of the scheme and artifice that, in conjunction with loan applications submitted to Industrial Bank, N.A., for a home equity loan and to purchase a boat, Kwame R. Brown provided to Industrial Bank, N.A., falsified documents that overstated Kwame R.Brown's income by tens of thousands of dollars."

Wednesday, Chairman Kwame Brown held private talks at the Wilson Building with colleagues and staff. Sources told Johnson that Brown is expected to announce his resignation. Brown's staff is already packing up their belongings Wednesday afternoon.

This news comes a day after Brown denied breaking the law and shoved a WTOP reporter for asking about the federal investigation against him.

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If you're wondering about the DC Council succession plan, according to the Home Rule Charger legislation:

"To fill a vacancy in the Office of Chairman, the Board of Elections and Ethics shall hold a special election in the District on the first Tuesday occurring more than one hundred and fourteen days after the date on which such vacancy occurs, unless the Board of Elections and Ethics determines that such vacancy could be more practicably filled in a special election held on 6 the same day as the next general election to be held in the District occurring within sixty days of the date on which a special election would otherwise have been held under the provisions of this paragraph. The person elected Chairman to fill a vacancy in the Office of Chairman shall take office on the day in which the Board of Elections and Ethics certifies his election, and shall serve as Chairman only for the remainder of the term during which such vacancy occurred. When the Office of Chairman becomes vacant, the Council shall select one of the elected at-large members of the Council to serve as Chairman and one to serve as Chairman pro tempore until the election of a new Chairman."

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