Soddy Daisy Tax Advisor Jack Brown Has Heart Episode As He Is About To Be Quizzed On Missing Millions

Tuesday, January 8, 2013

Soddy Daisy tax advisor Jack E. Brown had a heart episode on Tuesday morning as he was about to be quizzed about millions of dollars in missing funds taken from investors, officials said.

Jerry Farinash, trustee in Brown's forced bankruptcy, said he and Brown's attorney, Tom Ray, were at his hospital room when Brown indicated he was having heart trouble. He said a nurse was called and she conducted tests to confirm that his heart was acting up. Trustee Farinash said he decided to halt the planned questioning session.

He then headed to the basement of Bankruptcy Court where an overflow crowd of angry Brown investors awaited him.

Trustee Farinash said he will try again to quiz Brown on Jan. 29, but he said attorney Ray has already told him that Brown will give his name and then start "taking the Fifth."

One upset creditor asked if Brown continues to stay mum will the government "waterboard" him. Another said, "There will be lots of volunteers to hold him down." 

Trustee Farinash said Brown did repay some investors, and he said there are cases where individuals got back their investments and full interest. He said in one month Brown had payouts of over $35,000. However, investors, who say Brown promised them returns of 15 percent or more, say they are owed millions of dollars. The claims in the case add up to more than $12 million.

Those in the room said they wanted to know if criminal charges are going to be brought against Brown, his wife, Janet, and son, Jason. Several said that Janet and Jason Brown were intimiately involved in the transactions.

U.S. Trustee Bill Sonnenberg said that is up to either the Hamilton County District Attorney or the U.S. Attorney's Office.

One creditor said, "Jack's got Janet and Jason protected. He knows he's going to die, and we're all going to lose."

Another said Jack Brown often would put him off with excuses, but would always "tell me not to worry and that he loves me." 

Trustee Farinash said he knows there is a federal probe underway. He asked those in the group to "be patient."

He said he has gone through the home of Jack Brown, but did not find "a little black box" or a backpack full of promissory notes" that creditors said he and Jason made references to.

The trustee said he has not had access to the home of Jason Brown, who lives on the same compound.

Trustee Farinash said Brown had a mnor interest in Legacy Funeral Home, but he did have ownership of a day care center and owned the property where another day care center is operated. He said a Brown check cashing place was closed earlier.

He said an auction is planned in March of vehicles and farm equipment. He said he did not know when the house will be sold. He said some of Brown's holdings are heavily mortgaged and it would not make sense to sell those.

The Brown "investment" activity dates to 2000 or before, he said.

The trustee said in such "Ponzi" cases that there is often little left to pay unsecured creditors. He said in this case he expects that they will at least get some amount when everything is gathered in and computed and all the claims are settled.

Trustee Farinash said it was the largest gathering of creditors he has seen at Bankruptcy Court.

 

 

 


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ALLEN, DEBORAH GEAN  3112 DODSON AVE CHATTANOOGA, 374061834  Age at Arrest: 66 years old Arresting Agency: Chattanooga ASSAULT RESISTING ARREST OR OBSTRUCTION OF LEGAL PROCESS --- BREWSTER, TIMOTHY RAY  1069 SNYDER LOOP GRAYSVILLE, 37338  Age at Arrest: 35 years old Arresting ... (click for more)

Fort Oglethorpe Arrest Report For May 12-18

Here is the Fort Oglethorpe arrest report for May 12-18: 05-12-17 Robert Terrell Day, 25, of 7310 Standifer Gap Road, Chattanooga arrested on charges of driving under the influence of alcohol, driving while license revoked and open container. Alexis Dane Arterburn, 20, of 6783 Sawtooth Drive, Ooltewah arrested on a charge of underage consumption. Allen Lamar Jordan, ... (click for more)

Life For Our Ancestors In 1890

May 26-27 is the 1890’s Day Jamboree in Ringgold. I encourage any reader to attend and enjoy that wonderful community. I love having grown up in Northwest Georgia and celebrating our veterans, including both of my grandfathers who served in WWII.  But I also want to describe how the 1890’s were for my ancestors, living here in a singularly turbulent time. Based on, among ... (click for more)

Roy Exum: Governor Haslam, Please!

AN OPEN LETTER TO GOV. BILL HASLAM … Greetings to you, my friend. You know with one more year on the course we have sailed during your two terms as the leader of our state you will go down as one of the greatest governors we have ever had. It stands to reason you eye Lamar Alexander’s Senate seat, but whatever you do it will be hard to replicate your service to Tennessee and ... (click for more)

State Baseball Roundup: Blue Tornado Win 5-1, Get Shot At DII-2A Title

LEBANON, Tenn. – McCallie right-hander Jackson Mathis saved his very best performance for his swan song. Mathis, a senior who has decided not to pursue an extension of his baseball career while attending Auburn University, threw a four-hitter at Briarcrest on Wednesday night and led the Blue Tornado to a 5-1 win and into the TSSAA Division II-AA state championship game. ... (click for more)

Baylor Gets Offensive In Softball Win Over St. Benedict

MURFREESBORO – The two-time Division II defending state softball champion Baylor looks ready to challenge for another title. The Lady Red Raiders spotted St. Benedict an unearned run in the first inning, but came back strong to prevail by a 12-1 final in six innings. Wednesday’s win, Baylor’s 25 th against three losses, sets up a winners bracket final with arch-rival GPS, ... (click for more)