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 - And Mug Shots

Here is the latest jail booking report from Hamilton County: AKRIDGE, JERTERRIUS MARSHAWN 6317 TALLEDEGA AVENUE CHATTANOOGA, 37421 20 Chattanooga THEFT OF PROPERTY EVADING ARREST RESISTING ARREST OR OBSTRUCTION OF LEGAL PROCESS RECKLESS ENDANGERMENT POSSESSION OF CONTROLLED SUBSTANCE ANTONIO, MICAELA 2001 E. 28TH ST. CHATTANOOGA, 37407 31 Hamilton ... (click for more)

Fort Oglethorpe Arrest Report For Nov. 14-20

Here is the Fort Oglethorpe arrest report for Nov. 14-20: Eric Brandon Carden, 22, of 192 Madgabend Road, Rossville was arrested November 13 on charges of driving while license suspended and operation of unregistered vehicle.   Michael James Dodd, 42, of 94 Cross Street, Fort Oglethorpe was arrested November 14 on a charge of shoplifting.   James ... (click for more)

Don't Allow Us To Be Overrun By People Who Do Not Belong Here - And Response (6)

Thank you, Senator Corker, for your clear, concise evaluation of the president's attempt to bypass Congress and personally and independently establish national policy that violates our current immigration laws.   Our long-standing failure to enforce our laws to control illegal immigration across our southern border has made this country less safe and ... (click for more)

Roy Exum: Our Tubman Goat-Roping

Every spring there comes a bright day on the ranch when the straw-boss decrees a goat-roping should take place. What really happens is the veteran cowboys arm the greenhorns with some lariats late in the afternoon and take them to the pen that holds some Billy goats. This is before they get into bigger beasts -- horses and cattle – yet what appears to be easy most certainly is not. ... (click for more)

Missouri Hangs On, Turns Back Tennessee, 29-21

(Story will be updated) KNOXVILLE, Tenn. – Missouri pin-pricked Joshua Dobbs’ bubble of invincibility Saturday night at Neyland Stadium. The nationally ranked Tigers drove a stake in Tennessee’s heart with Matt Mauk’s 73-yard touchdown pass to Jimmie Hunt in the fourth quarter, held Dobbs in check most of the night and beat the Vols, 29-21, before 95,821 fans on a chilly ... (click for more)

Mocs Win Big Over Furman, Undefeated In Conference Play

The University of Tennessee at Chattanooga football team put a cherry on top of its 2014 regular season with Saturday’s 45-19 win at Furman (3-9, 2-5 SoCon).  The victory gives the No. 9 Mocs (9-3, 7-0 SoCon) its first ever undefeated Southern Conference slate and its first nine-win season since 1979. Junior quarterback Jacob Huesman led the way with 257 passing yards ... (click for more)