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.  

 

 

 


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: BAILEY, JOYCE MARIE  2702 E 39TH STREET CHATTANOOGA, 37407  Age at Arrest: 39 years old Arresting Agency: Chattanooga CRIMINAL TRESPASSING THEFT OF PROPERTY (UNDER $500) --- BATES, JEREMY M  707 PARK AVE CHATTANOOGA, 37403  Age at Arrest: 36 years old Arresting Agency: Chattanooga ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: AARON, STEVE LYNN  2518 CRESCENT CLUB DR HIXSON, 37343  Age at Arrest: 50 years old Arresting Agency: East Ridge DOMESTIC ASSAULT DOMESTIC ASSAULT --- AKINS, JAVORIS  7604 STANDIFER GAP RD CHATTANOOGA, 37421  Age at Arrest: 20 years old Arresting Agency: Chattanooga DRIVING ... (click for more)

Parking Discrimination Downtown

Many taxpayers who reside in Chattanooga (but outside Chattanooga's core) feel left behind when it comes to neighborhood paving, sidewalks, policing, streetscaping, street sweeping, public transportation, and other services. Some think most tax dollars are spent on downtown and not in their neighborhoods. It's not as if they can't vicariously experience the largesse of downtown. ... (click for more)

Roy Exum: One Nameless Ghost

One hundred years ago the United States was at war. The most intense fighting during World War I was on what was called The Western Front. The Germans wanted to invade France from the north and in order to do it, they had to push through Flanders province in Belgium. It has been described as a hell unequalled in raw hand-to-hand combat, In just four months on Flanders fields, ... (click for more)

Smokies' Hurlers Limit Lookouts To Four Hits Sunday In 5-1 Win

The Lookouts drew six walks, but only managed four hits in their 5-1 loss to the Tennessee Smokies Sunday in front of a crowd of 5,356 fans at AT&T Field.    Chattanooga's loss drops them to 22-28 through 50 games in the Southern League North Division. Tennessee starting pitcher Brad Markey was lights out early for the Smokies, carrying a no-hitter into ... (click for more)

Tennessee-Georgia All-Star Football Classic Set For Saturday at CCS

The 13th Annual Tennessee-Georgia All-Star Football Classic, presented by Great Clips, is scheduled for 7 p.m. Saturday June 4 at Chattanooga Christian School in Chattanooga. Tennessee defeated Georgia 38-14 last June at McCallie School in Chattanooga. It was Tennessee's fourth consecutive victory in the series that dates back to the first game held at Ridgeland High in ... (click for more)