Federal Charges Brought Against Janet Brown In Connection With Soddy Daisy Ponzi Scheme

Thursday, February 20, 2014

Federal charges have been brought against Janet Brown in connection with a Ponzi scheme that resulted in the loss of over $12 million by a host of investors.

A bill of information was filed against Ms. Brown on a charge of bankruptcy fraud.

She has agreed to plead guilty and is facing up to five years in prison and a fine up to $250,000.

Her husband, Jack Brown, died last September. The Browns operated Browns Tax Service for many years in Soddy Daisy.

A large number of Brown tax clients said Jack Brown began offering to invest their money for them at an extremely high rate of interest. Then the tax office suddenly closed and the investors found they would not be paid. A group of them forced the Browns into bankruptcy.

The charge is that Janet Brown lied during a bankruptcy hearing when she was asked by Trustee Jerry Farinash if she was holding any more jewelry. She said she was not. However, three days later she turned over to her attorney, Tom Ray, a large bag of jewelry that was appraised at $25,000.

The plea agreement says, "The defendant testified at a meeting of creditors, under oath, that she did not have any additional jewelry (assets) hidden. That testimony occurred on April 16, 2013. The exact questioning was as follows: Jerry Farinash, the Chapter Seven Trustee, asked the defendant "have you turned over to me all of the jewelry that you own on the date that this involuntary bankruptcy was filed against you except for the three pieces that you just told me about?" Brown's answer was "yes." The three excepted pieces consisted of a golden wedding band, a high school ring and Janet Brown's mother's ring. Three days later, on or about April 19, 2013, the defendant turned over to her lawyer, Tom Ray, a bag containing a large amount of jewelry. Ray in tum relinquished the bag of jewelry to the trustee, Jerry Farinash. During the meeting of creditors, the defendant affirmatively stated that she had disclosed and relinquished all of her jewelry, when in fact she had not turned over the jewelry, and she had knowingly failed to do so. The jewelry was subsequently appraised and it has an approximate value of $25,000. As part of this plea agreement, the defendant admits that she knowingly concealed the aforementioned bag of jewelry in an attempt to hide the jewelry from the bankruptcy trustee and the bankruptcy court."

 The plea agreement says, "The defendant agrees to disclose fully all assets in which the defendant has any interest or over which the defendant exercises control, directly or indirectly, including those held by a spouse, nominee, or other third party."

Ms. Brown is represented by attorney Mike Little.


Many Waldens Ridge Scenes Featured In Stokes Picture Book

A number of early views of Waldens Ridge are among the rarities found in the Stokes Photo Collection. There are many photos of the roads up the mountain showing streetcars, wagons and early autos. There are scenes at Rainbow Lake, Falling Water Falls, Signal Point and other scenic spots. Several photos are included of the Signal Mountain Hotel. The more than 700 photos ... (click for more)

Man Shot At Apartments On Tunnel Boulevard Wednesday Afternoon Dies; 2 Juveniles Shot At Rec Center On Oakwood Drive With Suspects In Custody

A 24-year-old man who was shot at the apartment buildings at 404 Tunnel Blvd. on Wednesday at 1:21 p.m. has died. He was identified as Kenny Breylon Hall. Residents said they heard multiple shots fired.  Witnesses said they saw multiple suspects fleeing the scene on foot behind the complex.  Later Wednesday, two people were shot at the Washington Hills Recreation ... (click for more)

Chairs Cost How Much?

Many times while growing up, I would go to the store with my parents. More often than not, I would see something I wanted, and ask my parents to buy it for me. More often than not, they said no. “Why?” I asked. “Son, money doesn’t grow on trees.” That’s a phrase I’m sure many of us have heard more than once over the course of our lives. However, I have since learned that they were ... (click for more)

Roy Exum: My Dear Friend Luther

One sunny morning in June years ago, the renowned radio icon Luther Masingill was on his way back to the WDEF studios on South Broad Street when he stopped for a red light and noticed a young couple in a car idling next to his familiar light blue Ford pickup. “What caught my eye was a buck-toothed boy eating a banana in the back seat,” he explained in an aside to that day’s lunchtime ... (click for more)

Signal Mountain Stays Alive In State Volleyball

SMYRNA, Tenn. – As the old saying goes, It ain’t over til it’s over. That appears to be the philosophy for the Signal Mountain volleyball team as they beat the Harpeth Lady Indians in the opening match here at Stewarts Creek High School in the second day of the state tournament. Contrary to other reports in Chattanooga, the Lady Eagles had a letdown in their second match on ... (click for more)

South Greene Ends Boyd-Buchanan's Bid For State Volleyball Title

MURFREESBORO, Tenn. – Tears flowed like spill waters through the Chickamauga Dam locks. Players sobbed. Mothers cried. Grandmothers, as well. It was a tough ending to Boyd-Buchanan’s volleyball season. The Lady Bucs (33-16) fell to South Greene, 3-2, at Blackman High School and was eliminated from the TSSAA Class A state tournament on Thursday. The set scores ... (click for more)