WSMV Channel 4 Hotel Indigo co-owner faces federal indictments

Hotel Indigo co-owner faces federal indictments

One of the men who owned a Nashville boutique hotel finds himself facing federal criminal charges. A grand jury handed up indictments against the co-owner of the Hotel Indigo.

David Lineberry faces nine counts, including conspiracy, money laundering and fraud, that allegedly amounts to $9.25 million.

And this case involves not only Lineberry, but also his business partner in 1st Trust Title Company, Delaina Thompson.

The indictment essentially argues the pair communicated they were paying their mortgage loan on the property, when they were not.

Furthermore, the indictment argues Lineberry's lender, BB&T, had no idea he controlled the hotel property and the title company and that the money intermingled.

As for the property, the Hotel Indigo went into bankruptcy protection in December 2010 and wound up with new owners.

But, Lineberry is still part-owner of the Hotel Indigo on West End Avenue and also has other legal trouble.

His business partner is suing him, arguing he diverted $2 million from renovations and instead used it for his personal benefit.

Channel 4 reached out to Lineberry at his office Thursday in Mt. Juliet, but no one answered the phone.

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