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.

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