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.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ANDERSON, KEVIN MICHAEL  1056 PINEVILLE ROAD CHATTANOOGA, 37405  Age at Arrest: 34 years old Arresting Agency:  VIOLATION OF ORDER OF PROTECTION OR RESTRAINING OR --- BALTIMORE, MICHAEL JUNIOR  3217 6TH AVE CHATTANOOGA, 374071536  Age at Arrest: 59 years old Arresting Agency: ... (click for more)

Severe Storms Rake Chattanooga Area; Flash Flooding Possible

Severe storms raked through the Chattanooga area on Saturday. Sale Creek was one of the hardest hit areas. Storm damage on Cooper Road included two crushed cars. Trees were on homes and railroad tracks that are the main line between Chattanooga and Cincinnati. Cooper Road is near Lake Chickamauga. There was also damage along Providence Road at Sale Creek. ... (click for more)

No Tax-Supported Entity Should Get Secrecy In Spending

A shadowy situation has emerged in Chattanooga with an organization that manages millions of taxpayer dollars with no transparency and such a surprising disregard for accountability that one wonders what it would take to wake up elected officials who are supposedly in charge. Welcome to the Chattanooga Area Convention and Visitors Bureau, whose lawyer threatened to sue the ... (click for more)

Roy Exum: Is Dr. Edwards The One?

Just hours after the chairman of the Hamilton County School Board emailed a list of 14 candidates on Friday afternoon to be considered as the next Superintendent of the 42,000-student system to the other board members, Dr. Nakia Edwards, an Assistant Commissioner with the Tennessee Department of Education, became the early “common sense” favorite. And, at first glance, she has ... (click for more)

Lookouts Double Header Cancelled Sunday Due To Heavy Rains

The Lookouts have announced that Sunday's(4/23) double-header has been postponed due to inclement weather, unplayable field conditions and impending forecast.   The team will make up these contests as part of two double headers, one  on Monday  and one  on Tuesday .  Both double headers will start at  5:15 p.m.  and will consist of ... (click for more)

UTC Track Completes In War Eagle Invitational

University of Tennessee at Chattanooga sophomore Haley Morris (Lenoir City, Tenn.) topped her personal best in the women’s 3000 meter Steeplechase over the weekend at the War Eagle Invitational.   Morris finished fourth in the steeplechase with a time of 11:48.74, edging her previous top time set in the finals of the 2016 Southern Conference championships.   Also ... (click for more)