Updated Friday 10A with comments from Lineberry's attorney
A federal grand jury has indicted Mark Lineberry, developer of the troubled Hotel Indigo downtown, for fraud, money laundering and conspiracy.
According to an indictment posted Thursday, Lineberry and Delaina Thompson — his partner in 1st Trust Title — face charges of defrauding a financial institution, as well as wire fraud, mail fraud, money laundering and conspiracy.
The federal charges are the culmination of a dispute which began in the fall of 2010  when BB&T and Federal National Title Insurance alleged Hotel Indigo and 1st Trust were co-mingling assets and holding back money dued to their lenders and insurers.
The grand jury alleges Lineberry and Thompson commited as much as $9.25 million in fraud.
Specifically, the grand jury charges the pair with communicating — as 1st Trust — that payments were being made on the loan and into escrow when, in fact,