The Dutchess County developer who launched Vineyard Commons in Highland but later declared bankruptcy will be arraigned in federal district court in White Plains today, Tuesday, according to U.S. Attorney's Office spokesman Herbert Hadad.

Michael Barnett of Hopewell Junction is accused by federal prosecutors of taking kickbacks and inflating invoices as part of a scheme to fraudulently obtain loans insured by the U.S. Department of Housing and Urban Development.

He has been indicted on 31 counts of conspiracy; wire fraud; mail fraud; false statements in loan and credit applications; engaging in monetary transactions in property derived from specified unlawful activity; and false statements, according to court papers filed by U.S. Attorney Preet Bharara.

Troubles with Barnett's property development projects were brought to light by Journal investigations in recent years. Attempts to reach Barnett were unsuccessful....