New Lawsuit Says Jack Brown Son Was Given Lavish Bonuses, Housing Allowance

Tuesday, February 19, 2013

A new lawsuit filed in Bankruptcy Court says Jason Brown, son of Soddy Daisy tax advisor Jack E. Brown, was given lavish "bonuses" and a "housing allowance" in addition to a $52,000 salary while "investors" were being plucked of millions of dollars in a Ponzi Scheme.

Attorney Jerry Farinash, trustee in the Jack Brown involuntary bankruptcy, is asking that a hold be placed on property and personal holdings of Jason and Kimberly Brown. They live on the Brown family compound north of Soddy Daisy.

He said the more than half a million dollars in bonuses paid to Jason and Kimberly Brown came from proceeds of the scheme in which "investors" were promised high returns.  

The trustee is also asking that Jason and Kimberly Brown be ordered to pay $11 million in punitive damages.  

Attorney Farinash said Jason Brown got a $26,400 housing allowance even though having a residence was not a requirement for his job at Brown's Tax Service. He said Jason Brown has no formal education in accounting and is "not a licensed accountant of any kind."

He said Jason Brown handled some of the promissory notes given to tax clients who agreed to hand over their money to the family.

The trustee said some of the Ponzi Scheme proceeds were used to finance a lavish wedding for Jason and Kimberly in 2010.

He said Jason Brown got at least $163,000 in bonuses prior to his marriage to Kimberly. He said earlier records on bonuses are not available.

After their marriage, he received bonuses adding up to $225,000.

The bonuses ranged from $1,500 in some months to $24,000 in January 2011, $43,000 in February 2011, $34,000 in April 2011 and $68,000 in April 2010.

The money was deposited in a joint account for the couple at Community National Bank.

The lawsuit says the bonuses were not reported to the IRS.

Attorney Farinash said Jason Brown has liquidated some of his assets for attorney fees. He said he should not be allowed to dispose of more of his property, but it should be held for creditors.


Jordan Ternes, A Fugitive Wanted In 2 States For Child Rape, Is Captured In Bradley County

Bradley County Sheriff Eric Watson announced the capture of a fugitive wanted in two states.   Bradley County detectives, working with the United States Marshal’s Service, took Jordan William Ternes into custody on Monday, at a residence in the area of Lake Forest Middle School. Ternes was wanted in Florida and Washington for child rape. He was booked into the Bradley ... (click for more)

Senator Brian Kelsey Holds Hearings On Criminal Justice Reform

Senator Brian Kelsey (R-Germantown) is presiding over hearings on Tuesday on reforming the criminal justice system in Tennessee. "We must keep the public safe and hold offenders accountable in a way that protects taxpayer dollars,” said Senator Kelsey. “Tennessee has not comprehensively evaluated the criminal justice system in over twenty years. We can learn from other states ... (click for more)

Dirt Decision At Camp Jordan May Come Back To Haunt East Ridge Councilmen

Wow. I thought the arrival of Bass Pro Shop would help bring East Ridge back to a position of prominence in the Chattanooga area, but the Council proved otherwise last night.  To the council - There is a reason that the developers want that dirt: It's valuable . You currently own it and the developer wants it. Bass Pro has already agreed to set up shop. They were going ... (click for more)

Roy Exum: Goodbye To My Scooter

The month of August turned out to be unkind, with my dog, my favorite aunt and my magnificent mother all dying within three weeks’ time. As I finally begin to push out the three newest dents in my soul, my habit has been to write something akin to a goodbye note to those I have loved. I’m not ready for Aunt Martha and Mother yet – not by a stretch -- but I remembered Scooter with ... (click for more)

Baylor Ends Big Week With Win Over GPS

The Baylor volleyball team probably doesn't get many days off during the week in midseason, but they earned a day off on Tuesday following a long and successful stretch in the last eight days. The Lady Red Raiders, won 10 of 11 matches in the last eight days, including a big win over arch-rival GPS on the road Monday night.  As a result, coach Sarah Lail urged her girls ... (click for more)

UTC's Hudson Named Special Teams Player Of The Week

University of Tennessee at Chattanooga senior Tommy Hudson is the Southern Conference Special Teams Player of the Week, the league office announced today.  Hudson scored twice in the Mocs 42-6 win at Austin Peay on Saturday .  Hudson returned three punts for 65 yards, including a 58-yard touchdown in the third quarter.  That added to his 33-yard receiving ... (click for more)