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."

John Wilson To Autograph New Hiener Photo Book Of Historic Chattanooga On Tuesday At Zarzour's

John Wilson, publisher of Chattanoogan.com, will autograph the new historic photo book being published by Chattanoogan.com on Tuesday at Zarzour's Restaurant from noon until 2 p.m. Paul Hiener's Historic Chattanooga Photos features a wide range of interesting old Chattanooga pictures ranging from the Civil War to local personalities. Mr. Hiener, a longtime Chattanooga printer ... (click for more)

Dalton Woman Found Guilty Of Second-Degree Murder For Not Getting Medical Treatment For Child Who Died

A Dalton woman has been found guilty of second-degree murder in a case in which authorities said she failed to take her ill child for medical treatment and the child died. Catarina Castro-Moran, 22, formerly of 526 Whitener Dr., Dalton, was found guilty Monday morning on the murder count as well as second-degree cruelty to children following a week-long trial that began last ... (click for more)

October Is Breast Cancer Awareness Month

Picture a sold-out baseball game at Wrigley Field or Nationals Park packed with 40,000 fans. That image represents roughly the same number of women and men who die from breast cancer each year.  In Tennessee alone, an estimated 900 women will die from the disease in 2016. It is a sad statistic, but there is some good news: thanks to early detection and improved treatments, ... (click for more)

Roy Exum: The Testerman Forum

I badly misjudged how long it would take me to do my “early voting.” I was in-and-out in no time so I got to the Hamilton County School Board’s agenda meeting well enough beforehand to have an “educational forum” with board member David Testerman. If you haven’t noticed, forums and summits and “community enlightenment” groups are the new rage and, as my friend David laughed, “They ... (click for more)

After Productive Open Week, Vols Eye Gamecocks

KNOXVILLE, Tenn. --  Tennessee football coach Butch Jones, Josh Malone, Colton Jumper, Ethan Wolf and Emmanuel Moseley spoke to reporters at a weekly press conference. No. 18 Tennessee (5-2, 2-2 SEC) is coming off of its bye week and next face South Carolina (3-4, 1-4 SEC) on Saturday at Williams-Brice Stadium with a 7:15 p.m. ET broadcast on ESPN2. ... (click for more)

Notre Dame Draws Top Ranked Greeneville, CCS Opens With Madison Magnet

For the second year in a row, Notre Dame drew the top-ranked Greeneville in the opening round of the TSSAA Class A/AA state tournament.  Notre Dame is scheduled to play Greeneville on Wednesday at 8 p m. (EST)  in Murfreesboro. CCS will play Madison Magnet in the first round on field #1 at 7:30 p.m. (EST) . CCS and Greeneville met in the state championship game ... (click for more)