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.  

 

 

 


Walker County Arrest Report For June 19-25

Here is the Walker County arrest report for June 19-25: DUNN            KENNETH     EUGENE        W/M    34        Officer EVANS          DUI, FAILURE TO OBEY TRAFFIC CONTROL ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ARNOLD, KENNETH ROGER  3711 CLIO AVE CHATTANOOGA, 37407  Age at Arrest: 53 years old Arresting Agency: Chattanooga DOMESTIC ASSAULT --- BALL, JONATHAN N  10208 WYATT LANE SODDY DAISY, 37379  Age at Arrest: 27 years old Arresting Agency: Hamilton County VIOLATION OF PROBATION ( ... (click for more)

Exempt Volunteer Fire Departments From Procurement Policies - And Response (2)

The Hamilton County Commission just grouped a bunch of departments together in an attempt to reign in the CVB. I haven't spoken to any commissioners, but I truly believe it was unknowingly. By mandating that all non profits that receive 25 percent of their revenue follow county procurement policies, they might as well have padlocked all local volunteer fire departments. We expect ... (click for more)

Roy Exum: The Deadly ‘Holy Trinity’

If you have grown tired and calloused to America’s horrifying opioid epidemic, please consider what the epidemic has become. A report last week found that, in the United States, emergency room cases including opioid abuse jumped a staggering 99 percent between 2009 and 2014. It is believed that last year over 60,000 Americans died from drug overdoses and – far worse – more than ... (click for more)

Chattanooga Continues Hot Second-Half Start With Two 6-0 Wins Over Pensacola Sunday

Game One Sunday Andy Wilkins had three hits and two RBI, and Dereck Rodriguez allowed just two hits over six innings as the Chattanooga Lookouts beat the Pensacola Blue Wahoos 6-0 in the first game of a doubleheader on Sunday. Rodriguez (1-0) struck out six and walked two to pick up the win. Up 1-0 in the fourth, Chattanooga added to its lead when LaMonte Wade hit a two-run ... (click for more)

Cleveland High School Selects Joey Knox As Head Wrestling Coach

Cleveland High School has selected Joey Knox as the next head coach for the Blue Raider Wrestling program.  Coach Knox has been with the wrestling program as an assistant since 2013.  During his assistant coaching tenure, the team has secured six Team State Championships, including five individual State Champions and 20 State Medalists.    Cleveland High ... (click for more)