Brown Tax Business Closed After Soddy Daisy Family Lived Large On Investors Money

Tuesday, November 13, 2012

An involuntary bankruptcy has been filed against the longtime operator of a Soddy Daisy tax business, and a string of investors are coming forward saying they are owed millions of dollars.

Acquaintances said Jack E. Brown and his family lived a lavish lifestyle in recent years, while promising investors a guaranteed return of at least 15 percent on money placed with him.

Brown's tax office on Dayton Pike closed abruptly last week. A sign on the door says it was due to health reasons.

The petition filed in Chattanooga Bankruptcy Court names Brown and Brown Tax Service and lists some of those owed money from an alleged pyramid scheme.

The list includes:

Carl Wayne Hixson and Michael Eric Hixson,  Soddy Daisy $480,000

James R. Raulston Soddy Daisy $167,000

Randy Raulston Soddy Daisy $30,000

Carl Wayne Hixson Soddy Daisy $100,000

Pamela Hixson Soddy Daisy $40,000

Leonard and Janice Thompson Rockwood $30,000

Mary Cunningham Rockwood $400,000

Teresa Hagler Rockwood $24,000

Several investors said Brown gained their trust over many years of doing their taxes. They also knew that he was a leading member of the Church of God. A number of the investors are from church groups.

One woman said Brown, from doing her taxes, learned that she had gained a large amount of money from an inheritance. She said that years ago he got her to place some of the money in an annuity with an established national firm. She said that seemed a sound investment.

Then, last year, she said he approached her with an idea to make much more of a return with her money - a guaranteed 15 percent. She said she agreed to take her money out of the annuity. She was sent a check from the national company with a warning that there was a large penalty for early withdrawal and tax consequences. She said Brown told her he would get the penalty waived and that her earnings the first year would more than pay the taxes.

She said she agreed to sign the check over to Brown. She said she never got any kind of documentation or paperwork - just his word.

The woman said at first she received regular payments on the "investment," then the doors of the business suddenly closed.

Acquaintances said several members of the Brown family, including son Jason, are involved in the business.

They said they live in a gated complex just south of Sale Creek with two large homes. They said the property includes a "barn" that has a swimming pool, gym and theater. The property has extensive fencing.

Acquaintances said that when Jason Brown divorced and remarried "the family flew down to a Caribbean Island for the wedding."

Jack Brown has been hospitalized recently and is in declining heath, acquaintances said.  

 

 

 


PHOTOS: Back The Blue Walk

A group of family and friends of law enforcement. along with active and retired police officers, showed their support for law enforcement Saturday afternoon. They took part in the Back the Blue Walk from Ross's Landing to Coolidge Park. (click for more)

Upcoming City Council Agenda For Tuesday

Here is the upcoming City Council agenda for Tuesday: I. Call to Order. II. Pledge of Allegiance/Invocation (Councilman Gilbert). III. Minute Approval. IV. Special Presentation. V. Ordinances – Final Reading: ECONOMIC AND COMMUNITY DEVELOPMENT a. An ordinance to amend Chattanooga City Code, Part II, Chapter 26, Section 26-33, Outdoor Fee Changes to ... (click for more)

Olympic Events On The Ocoee River Made History – But It Wasn’t Easy

It started with a simple “what if” question while Atlanta officials were working on a bid to host the 1996 Summer Olympic Games.  A group of amateur kayakers from the city began asking themselves: “What if Atlanta’s bid is successful? Then where would the Olympic whitewater canoe and kayak races be held?”  To some of the members of that group, the answer was obvious. ... (click for more)

Roy Exum: Don’t Kick A Man’s Neck

From the minute my brothers and I each became cognizant, my dad started teaching us the rules of becoming a man. Dad was from deep in Mississippi and he’d been taught a lot of life’s secrets from his father. These lessons have been passed for generations and, the older I have become, I’m convinced a lot of them were borne from The Sermon on the Mount. Our favorite, back in the ... (click for more)

Chattanooga FC Shocked By Sonoma In NPSL National Semfinal

A Will Roberts goal in the sixth minute assisted by Juan Hernandez looked like it would be enough Saturday night in the NPSL National Semifinal match at Finley Stadium.   Unfortunately, the visiting Sonoma County Sol would score two late in the game to earn a 2-1 win.   Sonoma had very few chances in the 90 minutes of play before a crowd of 12,251 which is second to ... (click for more)

Randy Smith: Some SEC Games To Watch This Fall

We're a month away from college football's opening weekend. While I'm still pondering my annual pre-season picks, I have noticed a few "must see" games in the SEC this season. And while I say "must see" games, they will all likely have serious implications as to how the final standings will shape up. September 3rd : Alabama vs Southern Cal in Arlington, Texas.  ... (click for more)