Chattanooga Businessman Brown Indicted In Manhattan In Payday Loan "Ripoff"

Tuesday, August 12, 2014
Dr. Steve Steele and Carey Brown at 2012 press conference
Dr. Steve Steele and Carey Brown at 2012 press conference

Carey Brown, a former used car salesman in Rossville who made millions of dollars in numerous business including payday loans, has been indicted on usury charges in Manhattan along with associates Ronald Beaver and Joanna Temple.

Beaver was arraigned on Monday and released on $100,00 bond.

Brown and Ms. Temple were set to be arraigned later this week.

Prosecutors said the loans, which were often in small amounts, were at up to 300 percent interest and generated overseas.

In 2012, Brown was among those at a press conference at Miller Plaza announcing a new Chattanooga-based Covenant Values Foundation that was pledging to make $1 billion in grants to worthy causes.

Brown, who appeared with Dr. Steve Steele, said, "Covenant Values Foundation is making a Billion Dollar Pledge. Our goal is to give $1 billion in grants to support people in need. Through this monumental pledge, which can only be made with God's participation, we commit to making a marked difference and aim to inspire others to a lifetime of giving."

The first grant was presented to On Point, a youth development program that helps teens abstain from risky behavior. A $25,000 grant was coupled with a pledge to match up to $100,000 in new money donated to the organization during April.

The same matching pledge was made to five other Chattanooga area charities: the Community Kitchen, the Dawson McAllister Association which has a teen suicide prevention outreach, Precept Ministries, Teen Challenge and Tennessee Temple University.

Brown attended Tennessee Temple, and he said while he was a student there and living "in the projects" that he had a $300 car that frequently caught on fire. He said a mechanic fixed the car and he was able to sell it for $450. He said he went to an auto auction in LaFayette to buy a second car and then began turning vehicles. He finally opened his Rossville lot and then expanded to other lots with an offer to finance the vehicles.

At the time, Brown had ownership interest in more than 14 businesses, including ACH Federal, AREA203 Digital, Credit Payment Services, Support Seven and Terenine Technology Solutions.

He said he had the idea of utilizing his call center, marketing and technology departments as stand-along firms that offer their services to ministries and others.

Dr. Steele earlier founded Kingdom Site Ministries, a language translation and video technology solutions company that links people throughout the world.

Hugh Maclellan was listed as an advisor to the foundation.

Dr. Steele said the foundation was geared to be a central point where philanthropists can give knowing the money will go to worthy causes.

Brown said he was led to have a giving spirit by the example of the founder of the Hersey company. He grew up near the Hershey plant.

The Brown companies laid off hundreds of employees last year as the investigation moved forward..


 


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ADDISON, STEVEN ALLEN  1109 MCDONALD DRIVE CHATTANOOGA, 37421  Age at Arrest: 39 years old Arresting Agency: Hamilton County DRIVING ON REVOKED, SUSPENDED OR CANCELLED LICENSE SPEEDING FELONY EVADING ARREST --- ANTHONY, JAMES LEE  2714 NORTH ORCHARD KNOB AVE CHATTANOOGA, 37406  ... (click for more)

Couple Charged In String Of Hold-Ups At Local Convenience Stores

Police have charged an Athens, Tn., man and his girlfriend with armed robberies on two successive days at Lee Highway convenience stores as well as one in East Ridge and two in Catoosa County, Ga. The spree by Payton Chase Cleveland, 22, and Bailey Kristen Roddy, 20, of Ringgold came to an end with their arrest in Chattanooga on Sunday. Police said Cleveland pulled a pistol ... (click for more)

Tennessee Business Expansions On Rise Across State

In 2016, Tennessee was named State of the Year for Economic Development by Southern Business & Development Magazine based on project totals and the variety of industries that invested in the state and created jobs. To a great extent, Bradley and Polk Counties have benefited from that investment.   From February 2015 to February 2016, Cleveland/Bradley County led the ... (click for more)

Roy Exum: My Life With 007

I was 13 when the first of 24 James Bond movies came out and, at a time when my sap was just beginning to rise, I will never forget Ursula Andress stepping out of the sea wearing that white bikini. Our hero walks over to the dripping Honey Ryder – that was her name in “Dr. No” – and she says in the Swiss accent, “Are you looking for shells too?” And the first classic reply of thousands ... (click for more)

McCallie Edges Briarcrest 1-0 On Costo's Sacrifice Fly In Seventh

MURFREESBORO, Tenn. – McCallie’s Corbin Brooksbank and Briarcrest’s Connor Shamblin locked up in an old-fashioned pitcher’s duel Tuesday night in the TSSAA Division II-AA state baseball tournament. Through six innings there wasn’t a crooked number to be seen on the scoreboard. Brooksbank, a Vanderbilt signee, stopped the Saints on five hits. Shamblin went into the seventh ... (click for more)

GPS Erupts To Blast Briarcrest, 10-0, In D-II Softball

MURFREESBORO – The GPS softball team seemed to be in some kind of lethargic funk at the start of their game with the Briarcrest Lady Saints, but they finally got their act together in time for a 10-0 six-inning win in the opening round of the Division II state softball tournament at Starplex Field No. 3 Tuesday evening. The Bruisers had cruised to a doubleheader sweep of Harpeth ... (click for more)