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.  

 

 

 


Uses For Discarded Glass To Be One Of Focuses Of Green/Spaces City Recycling Grant

Finding possible uses for discarded glass will be one of the focuses for Green/Spaces under a $40,000 grant from the city related to recycling. Justin Holland, city public works director, said glass is "the most challenging" aspect in recycling at this time due to the lack of markets for recycled glass. Green/Spaces is "to launch an expansive educational marketing campaign ... (click for more)

Fort Oglethorpe Arrest Report For Sept. 16-22

Here is the Fort Oglethorpe arrest report for Sept. 16-22: 09-15-2016 Robert Edwin Gaylor, 48, of 255 Allen Street, Summerville arrested for contempt of court. Tyler Robert Abercrombie, 22, of 86 Loach Drive, Rossville arrested on an outstanding warrant. 09-16-2016 Brandon Walter Seib, 33, of 38 McBride Drive, Chickamauga arrested on charges of driving ... (click for more)

Something Beautiful Happened Monday Night - Not The Debate

Monday, Sept. 26, our first presidential debate happened; no minds were changed.  Yet something beautiful and important happened.  The Atlanta Falcons, my team, played the New Orleans Saints.  Instead of some irrelevant, broad based, screw America protest, the opposing teams locked arms in unity. I was impressed. I have been a Falcon Fan since 1971 when WMOC AM ... (click for more)

Roy Exum: Arnold Palmer’s Greatness

This is hardly meant to be flippant but I’d be willing to bet I’ve been in the presence of more great people than anyone you know. I’ve never ranked them, or ever dared to wonder who was the greatest, such as Muhammad Ali or Elvis Presley, but there are two traits that those who reach the highest pinnacle have in common. First, not a one of them was any good at what made them famous ... (click for more)

Vols' Dobbs, Barnett Grab SEC Player of Week Honors

BIRMINGHAM, Ala. – Tennessee quarterback Joshua Dobbs is the SEC Offensive Player of the Week and end Derek Barnett the SEC Co-Defensive Player of the Week. This week's honor marks the first time this season that a Vol has earned SEC Offensive Player of the Week. Dobbs was the last UT player to win the award in Week 6 of 2015 following his performance in the Vols' ... (click for more)

Craine, Ribeiro Named SoCon Players Of The Week

Two University of Tennessee at Chattanooga football student-athletes were named Southern Conference Players of the Week, following the Mocs' 41-21 win over Samford on Saturday.  Seniors Derrick Craine and Henrique Ribeiro both earned recognition from the league office announced today. Craine rushed for a career-high 222 yards on 23 carries with two touchdowns in the win. ... (click for more)