U.S. Trustee Has "Substantial Number Of Questions" For Soddy Daisy Tax Advisor Jack Brown

Friday, January 4, 2013

The U.S. Trustee's office says it has "a substantial number of questions" for Soddy Daisy tax advisor Jack E. Brown, who is alleged to have taken over $10 million from clients to invest and left them holding the bag.

Samuel K. Crocker, the United States Trustee for Region 8, said in a motion in Chattanooga Bankruptcy Court that Brown ought to be subject to questioning despite his medical condition.

Brown's physician, Dr. Joe Watlington, said he is in ill health and confined to a nursing home.

He said Brown could answer questions at his bedside, but it would require an ambulance and a stretcher to take him to a hearing in Bankruptcy Court.

On Dec. 13, Brown's attorney filed a motion seeking to excuse his appearance from the meeting of creditors.

The motion claimed that Brown has fully cooperated with the trustee assigned to the bankruptcy case in identifying and gathering together assets and financial records "consistent with his rights under the 5th Amendment of the Constitution."

Trustee Jerry Farinash later denied that he has gotten full cooperation from Brown and his wife and son.

U.S. Trustee Crocker said there is the possibility of Brown taking part in the meeting by phone. He said his staff is willing to travel to the nursing home for an interview there.

U.S. Trustee Crocker said, "The debtor filed schedules stating he owes unsecured creditors over $10 million. Additionally, allegations have been made by an attorney representing several creditors that the debtor has been operating a Ponzi scheme for several years. Allegedly, the debtor solicited funds from investors in the Soddy Daisy community by promising the investors a large return on their investment via the debtor’s execution of a promissory note.

"Further, based on the debtor’s own sworn answers on his Schedule E, the debtor owes a number of individuals in the Soddy Daisy community millions of dollars. The U.S. Trustee believes that these numerous creditors will likely want to attend the meeting of creditors and ask the debtor about his dissipation of over $10 million.

"Finally, the U.S. Trustee has a substantial number of questions for the debtor, and his family members, regarding the receipt and use of millions of dollars in “investor” funds. Excusing the debtor from attending the meeting of creditors and the Rule 2004 examination at the Courthouse is agreeable. However, the debtor should have to appear in some form, telephonic or one-on-one, to answer questions related to his assets and liabilities."


Walker County Arrest Report For Jan. 9-15

Here is the Walker County arrest report for Jan. 9-15: KEETON        MICHAEL      PHILIP           WM     30        Officer VANDYKE   POSS OF METH, POSS OF MARAJUANA LESS THAN 1 OZ, GIVING FALSE INFORMATION ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ARRIS, DANIEL LYNN  42 CARRIAGE HILL SIGNAL MTN, 37377  Age at Arrest: 44 years old Arresting Agency: TVA POSSESSION OF CONTROLLED SUBSTANCE --- BARTRUM, COLTON PRINCETON  1521 THRASHER PIKE HIXSON, 37343  Age at Arrest: 25 years old Arresting Agency: Hamilton County AGGRAVATED ... (click for more)

The Tax Assessor's Sneak Attack On Dual Taxpayers

State law requires a reappraisal of properties every four years. The Tax Assessor's Office has always been responsible for that task. A state law was passed several years ago that allows the cost to shift to individual towns and cities that lie within Hamilton County. Just because the tax assessor can legally abuse dual city/county taxpaying property owners doesn't mean he should. ... (click for more)

Roy Exum: Sleep, Kelly’s On Watch

As the most intense week begins in President-elect Donald’s Trump’s ascent to become the most powerful man in the world, it is now strikingly obvious he has surrounded himself with the greatest collection of leaders to ever fill a Presidential cabinet. Each is a proven winner, be it in business, the military, or national affairs. Last week a confirmation hearing were heard for ... (click for more)

Lady Hawks' Massengill Verbally Commits To Lady Vols

Hamilton Heights’ Lady Hawks defeated Providence Day, out of Charlotte, North Carolina, 62-38 behind a 30-point effort by Amber Hunt in the Music City Classic at Whites Creek High School and a few hours after junior Jazmine Massengill announced she had made a verbal commitment to the Tennessee Lady Vols. The same teams met in the day’s final contest and the Hawks rolled to ... (click for more)

MLK King Of The Court Tips On Monday At UTC

The inaugural Waffle House MLK King of the Court event presented by CABC will be held on Monday. This event features 10 teams in five games. The event will be held at Maclellan Gym on the campus of UTC.  It was created to help grow the excitement and exposure of basketball in the greater Chattanooga area while celebrating a great American hero, said officials. This ... (click for more)