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.


Woman In Bradley County Severely Burned After Going Back In Burning House For Pets

Two people were injured in a house fire in Bradley County on Friday.   Shortly before noon, Bradley County EMS responded to a reported house fire on Hancock Road.   Two ambulances and a shift commander responded. Initial reports were that there were two people injured. When EMS crews arrived, Bradley County firefighters were performing resuscitative ... (click for more)

Goldon Dunn, 77, Was Victim In Wreck Near Northgate Mall

The man found dead in his car after veering off Hixson Pike near Northgate Mall was 77-year-old Goldon Dunn.   The vehicle with the driver still inside was found shortly after 5 a.m. on Thursday. Police said w hile traveling southbound on the 4850 block of Hixson Pike the driver went off the road to the left and hit some bushes and a wooden fence. O ... (click for more)

Chattanooga Has Always Been A Battleground Between Good And Evil

From the thousands slain in nearby Chickamauga Battlefield during the Civil War…  To the launching point of the Cherokee Indian’s Trail of Tears…  To the lunch counter sit-ins led by Howard School students — the only high school student sit-ins in the nation — during the Civil Rights Movement…  To Walter Cronkite calling the polluted Southern industrial town ... (click for more)

Roy Exum: Our 92-Year-Old Victim

It is with great pride, and far greater relief, that I can report a “caretaker” is far different than a “boyfriend.” A story out of Memphis earlier this week morphed into a virtual fireball that had such power it appeared on the front page on a London newspaper and other news outlets all around the world when it was reported by the Associated Press a 28-year-old man had assaulted ... (click for more)

Baylor Girls Lose In State Basketball Semifinals, 69-61

NASHVILLE -- The third time wasn't the charm for the Baylor Lady Red Raiders. Facing the Brentwood Academy Lady Eagles in the semifinals of the D-II Class AA girls state basketball tournament at Lipscomb University, Baylor came up short for the third time this season against the Lady Eagles by a 69-61 final score. It was a see-saw affair with seven ties and 13 lead changes, ... (click for more)

UTC Men Edge VMI in Double Overtime, 86-82

The Chattanooga Mocs picked up a crucial road win in thrilling fashion, 86-82 in double overtime, at VMI. Chattanooga improves to 21-9, 14-3 in the Southern Conference, while the hosts fall to 11-17, 7-10 in league play. “It wasn’t pretty by any stretch of the imagination,” coach Will Wade said. “Good teams find a way to win, and we found a way to win. These were two highly motivated ... (click for more)