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.


Severe Storms In South May Create Holiday Travel Chaos

AccuWeather reports rain and thunderstorms, some capable of producing severe weather, will affect much of the South from  Tuesday  into Christmas Eve.   Despite this week being the first week of winter, it may seem like spring in the South for a day or two. The rain and storms will be spawned by a Christmas Eve storm as it gains strength and begins ... (click for more)

Tennessee To Join Lawsuit To Challenge Obama’s Executive Action On Immigration

Tennessee Attorney General Herbert Slatery on Monday notified the appropriate parties that the state will join a lawsuit brought by attorneys general and governors from 24 other states to challenge the president’s recent executive action on immigration. Mr. Slatery said, “Our office has carefully considered whether to join this lawsuit and concluded that it is in the best interest ... (click for more)

Please Don't Close The Piccadilly Cafeteria At Hamilton Place - And Response

Oh, no. The Piccadilly Cafeteria at Hamilton Place is closing.  Its last day is Christmas Eve.  I will miss the great food they have there but most of all I will miss their servers, cashiers and waitresses.  They are all so friendly and accommodating.  They make it like it’s a home-style restaurant. I sure wish there was some way that Hamilton Place and ... (click for more)

Roy Exum: 10 Tasks For This Week

In 1993 a 95-year-old man named William Snell created a list called “Life’s Little Instructions.” His list has swirled around in the Internet ever since and it is, indeed, a delightful checklist to keep us focused in the right direction. Curiously, when I read over it this past weekend, it dawned on me that if each of us would try to accomplish just 10 items on Mr. Snell’s list ... (click for more)

UTC Cagers Host UAB Tonight at McKenzie Arena

UAB’s talented point guard Nick Norton has been at three schools in three years. Before one prematurely concludes the 19-year-old can’t find a home for his basketball talents, it should be noted that his dad, Randy Norton, – the current UAB women’s basketball coach - has something to do with the “let’s get out the GPS and see where we go next” lifestyle. Nick, a true freshman ... (click for more)

Hawks Defeat Riverdale, 55-43, For Rhea Title

EVENSVILLE, Tenn. – Hamilton Heights had a chance to win the boys and girls title in the Rhea County Holiday Hoops tournament Saturday night. The Hawks delivered. The Lady Hawks came up short. Once-beaten Hamilton Heights, getting pivotal back-to-back 3-pointers by Silas Adheke and Joan Duran in the final two minutes and sterling efforts by Ezekiel Balogun and Abdulhakim ... (click for more)