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Top Washington official charged with fraud

Kwame Brown is accused of lying about his income on a loan application
Kwame Brown is accused of lying about his income on a loan application
JACQUELYN MARTIN

The municipal governance of the world’s most powerful city suffered a humiliating setback last night after Washington’s council chairman was charged with fraud.

Kwame Brown, the second most senior official in DC politics, resigned soon after he was formally charged with fraudulently deceiving a financial institution.

His resignation compounds the city’s reputation for political corruption and gross mismanagement after the criminal cases of three other local political figures who have appeared in court in the past six months.

Earlier this year, Harry Thomas Jr, another former member of the council, pleaded guilty to embezzling more than $350,000 (£226,000) in government funds. He was sentenced to three years in prison.

Two campaign aides for Vincent Gray, the mayor of DC, entered guilty pleas to federal crimes last month which related to illegal payments that were made to an opponent during the last mayoral campaign.

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Mr Brown is accused of overstating his income by tens of thousands of dollars on applications submitted for a home equity loan and for a boat.

Federal authorities had also been investigating Mr Brown for alleged financial improprieties in his 2008 campaign, but the charge laid against him yesterday is purely concerned with his personal financial dealings.

“I have made some very serious mistakes in judgment for which I will take full responsibility,” he wrote in a letter of resignation to the council. “I have behaved in ways that I should not have. I was wrong and I will face the consequences of that conduct.”

Mr Brown, who is fond of referring to himself in the third person, was considered to be next in line to become mayor after Mr Gray, who was his predecessor in the role of council chairman.

The native Washingtonian was elected to the council in 2004 before replacing Mr Gray as chairman last year. He attracted criticism almost immediately when he was forced to return a lavishly customised Lincoln Navigator that he had designed personally when it emerged that it was costing the taxpayer almost $2,000 (£1,200) per month.

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Mr Gray said he could not have imagined the scale of impropriety. “I’m shocked by the news; I am disappointed and saddened,” he said. “I served with him my entire time on the council. Never would I have imagined something like this would occur.”