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Thursday, Sept. 4, 2008 , 12:00 a.m.

Chattanooga: Franklin took drugs from co-defendant, prosecutors charge

Former Chattanooga City Councilman John P. “Duke” Franklin Jr. told federal investigators he was supplied with cocaine for two years free of charge by an alleged drug dealer, according to a federal court filing.

Mr. Franklin, who is charged with money laundering in a sweeping federal drug case, said he received the drugs from co-defendant Michael Kelley, according to the filing. At least once, the hand-over took place at the Chattanooga Metropolitan Airport, the filing states.

“(Mr. Franklin) told agents that he had been receiving cocaine from Michael Kelley for over two years. ... The United States would use these statements against Franklin at trial,” wrote Prosecutor James R. Dedrick in the filing.

“I think it was just personal-use amounts of cocaine,” said Marty Levitt, Mr. Franklin’s attorney, on Wednesday night. “Since he’s been arrested, he’s passed all his drug tests, as is required for all people who are going to stand trial.”

Mr. Franklin and five codefendants pleaded not guilty in May to all charges stemming from a drug-related roundup earlier in the month.

He is charged with money laundering, conspiring to obstruct justice and providing false statements to federal officials. Prosecutors have accused Mr. Franklin of directing Mr. Kelley to someone who would back date and notarize a loan document in order to justify the presence of $69,500 seized from Mr. Kelley’s vehicle on March 5.

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PDF: Federal Indictment

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Mr. Levitt said Mr. Franklin never received amounts of drugs large enough for resale, and he has since “dealt with whatever issues he might have had.”

The drug possession allegation came as defense attorneys were trying to sever Mr. Franklin’s case from that of his co-defendants, asserting that he was connected to the case only through the document forgery charges, but prosecutors, in filings, said there was more linking Mr. Franklin to the case.

Filings allege Mr. Franklin took possession of the drugs at the same time he was representing District 5 on the Chattanooga City Council. He resigned June 3.

Mr. Dedrick wrote that Mr. Franklin and Mr. Kelley could be tried separately, but that if Mr. Kelley resolves his case short of a trial, Mr. Franklin again should be tried with his co-defendants.

The case now is scheduled for trial Oct. 15, and it was unclear how severing the cases might impact that date.

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