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.  

 

 

 


Attic Of House Near Graysville Road Catches Fire

The attic of a house near Graysville Road caught fire on Friday evening. At 6 p.m. the Chattanooga Fire Department responded to a residential structure fire at 8709 Oak View Dr.. Fire crews arrived at 6 :07 p.m. T he homeowner stated that everyone was out of the house and that there was a fire in the attic. The homeowner said that they had smelled something burning ... (click for more)

Corker’s Bipartisan Iran Nuclear Agreement Review Act Becomes Law

Senator Bob Corker, chairman of the Senate Foreign Relations Committee, issued the following statement after the president signed the Iran Nuclear Agreement Review Act of 2015 into law. The bill, which passed the Senate 98 to 1 and the House of Representatives 400 to 25, requires congressional review of any final nuclear agreement with Iran before the president can waive sanctions ... (click for more)

Don't Make A Mockery Of Memorial Day - And Response

We're told Memorial Day is the day to honor those who made the ultimate sacrifice in order that we, as Americans and others around the world, might live free, unshackled (invisible or otherwise) and without oppression. But how is that so when so many in America continue to be denied those freedoms? Others whose family and friends made the ultimate sacrifice? Their surviving families ... (click for more)

Roy Exum: Chincoteague Mourns ‘Dude’

In the span of a person’s life, there are some things that simply can’t be explained to be totally understood. And of all the spectacles I have ever personally witnessed, one of the best is that day in late July when they “pen the ponies” at Chincoteague Island, Va. I’m serious. Over 50,000 people watch every year as volunteer “Saltwater Cowboys” swim the wild ponies to the mainland ... (click for more)

Baylor Beats GPS 6-4 For D-II Softball Title

MURFREESBORO – Oh, what a difference a year makes. The GPS Bruisers came through the losers bracket a year ago and beat Baylor twice after losing the first five times they played, but those two were the biggest as it gave the team in blue a state D-II softball championship. The situation was similar a year later, but the results a bit different as the Lady Red Raiders beat ... (click for more)

Dickson County Ousts Ooltewah, 6-5, In Epic 12-Inning Thriller

MURFREESBORO, Tenn. – For Ooltewah, more heartbreak followed heartbreak. After a tough loss to Wilson Central on Thursday, the Lady Owls fought furiously with Dickson County in an epic 12-inning marathon Friday before the Lady Cougars’ Keely Buchanan laced a game-winning single up the middle to end  the game and Ooltewah's masterful season. Dickson County, which lost ... (click for more)