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

Friday, January 04, 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."


PHOTOS: Funeral Of Luther Masingill

For video by Ben Cagle click here , here and here . (click for more)

Barbara Sue Perdue Greer Charged With Coercion Of A Witness

Barbara Sue Perdue Greer has been arrested for coercion of a witness. Members of the Bradley County Sheriff’s Department’s Criminal Investigation Division filed the charge and took Ms. Greer, 40, of Cohulla Road, Southeast, into custody.  Reports indicate Ms. Greer is a defendant in a pending case, and her actions toward a witness in that case led to the charge.  ... (click for more)

Tom Dugan Was A Good Man

Tom was my boss for most of my 36 years at Carta.  At the ceremony where I was awarded my 30-year service award, Tom said, "Don disagrees with 85% of my decisions, but I wish I had 80 more employees just like him." This kind of indicates our relationship. When I asked him to help with my plans for a reunion for the group of Veterans that I served with in Vietnam, he quickly ... (click for more)

Roy Exum: A Veterinarian’s Horse Sense

I suspect you’ve heard by now that a doctor in New York City, who volunteers with “Doctors Without Borders,” just got back from the African nation of Guinea on October 17 – last Friday – and on Thursday tested positive for the deadly Ebola virus. Luckily, he came in actual contact with only a few people but he reportedly rode a subway, took a taxi, went on a three-mile run and ... (click for more)

Chattanooga Holds Off Mercer For Big SoCon Win

If you wanted to see a lot of offense in a college football game, then you should have been at Finley Stadium Saturday afternoon. Playing in front of an announced crowd of 10,763 on a spectacular fall day, the Chattanooga Mocs took advantage of an offensive explosion as they improved to 4-0 in the Southern Conference and 5-3 overall with a 38-31 victory over the Mercer Bears. ... (click for more)

CCS, Notre Dame Win State Soccer Sectionals, GPS Advances To State Semifinals

It was a District 7A/AA sweep on Saturday in girls state soccer sectionals.  Notre Dame hosted Boyd-Bucahan and won 1-0 and CCS traveled to Grace and won 2-1.  In Class AAA, East Hamilton hosted Oakland and lost 1-0. In the quarterfinals of the Division II state tournament, GPS hosted Hutchison and earned a 2-0 win.  CCS and Notre Dame will play in the state ... (click for more)