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.  

 

 

 


Government Officials Respond To Prime Minister Benjamin Netanyahu’s Speech To Congress

Israeli Prime Minister Benjamin Netanyahu addressed a joint session of the U.S. Congress on Tuesday.  Senator Lamar Alexander said, after attending,  “Israel is one of our greatest allies, and our relationship is especially critical during these dangerous times in the Middle East. It’s important for Congress and the American people to hear from such strong ... (click for more)

Dalton Police Department To Assist Norfolk Southern Police With Trespasser Abatement

The Dalton Police Department will be assisting the Norfolk Southern Police Department with a trespasser abatement initiative on Wednesday and Thursday.  The effort in Dalton is one of six such initiatives that the NSPD is planning in different areas of the country. The program is intended to raise awareness of the dangers of trespassing on railroad property and reduce instances ... (click for more)

Tennessee Deserves Better Health Reform - And Response

Tennessee needs health care reform. Expanding Medicaid under the Affordable Care Act, or "Obamacare," was not the best solution for Tennesseans. That is why the vast majority of Tennessee legislators never publicly supported the plan defeated in a special legislative session in February.   It is important to distinguish health care from health insurance. As one physician ... (click for more)

Roy Exum: Our Insult To Israel

I am deeply saddened that over two dozen members of Congress – all Democrats – will be boycotting a speech by Benjamin Netanyahu, the Prime Minister of Israel, when he speaks in Washington tonight. I am also offended that the President of the United States will not receive Netanyahu prior to the speech – a customary gesture on such occasions – because he claims it is too close to ... (click for more)

Tre Tiller's 22 Leads Central To Region 3-AA Basketball Championship

There just must be something about playing basketball at Chattanooga State that makes the Central Purple Pounders click. Especially when the opponent is the Brainerd Panthers. Facing Brainerd for the fifth time this season and second at Chattanooga State on Monday night, the Purple Pounders defeated the Panthers for the third time. The latest conquest may have ... (click for more)

Flames Golfers Finish Seventh In Las Vegas

LAS VEGAS – The Lee University men’s golf team placed seventh in a field of 16 teams at the Las Vegas Desert Classic. After posting a round of 302 on Sunday the Flames finished with a 301 on Monday and will return to Cleveland with a 603 total in the 36-hole event staged at the Palute Golf Club-Snow Mountain. The University of the Redlands (Calif.), placed by ... (click for more)