Federal Judge Sets Contempt Of Court Hearing For Longtime Quarterback Club President Doug Dyer

Monday, January 9, 2017

Federal Judge Travis McDonough has ruled that longtime Chattanooga Quarterback Club president Doug Dyer should be prosecuted for contempt of court in connection with a fraud case in which he is charged.

Judge McDonough said Dyer violated terms of a court-ordered asset freeze by distributing certain stock to investors.

He said Dyer would go on trial for contempt on April 3.

Attorneys for Dyer said the stock issue was a "misunderstanding" and said it benefited the alleged fraud victims and not Dyer.

Judge McDonough said, "Preliminary Injunction did not proscribe only actions that 'benefited' Defendants or Relief Defendants. The purpose of the Preliminary Injunction, of course, was to preserve the status quo, not simply to deprive Defendants and Relief Defendants from further benefit from allegedly fraudulent actions. Defendants have forfeited to the Court their authority to take such actions, regardless of whom Defendants believe the actions benefit. The Court cannot overlook the violation of its Preliminary Injunction, especially in the context of this case and the facts presented concerning Defendant Dyer’s conduct.

"Because Defendant Dyer chose to change the status quo in a manner that cannot be cured without significant difficulty, if at all, the only effective way to adequately address his violation of the Preliminary Injunction is a criminal contempt proceeding." 

Judge McDonough also denied a motion for relief from the asset freeze.

The judge also said, "Despite the millions of dollars allegedly received from investors, Defendants acknowledged at the August 31, 2016 hearing that they have insufficient assets to satisfy the disgorgement Plaintiff seeks."

His ruling says, "Defendants represent that on October 25, 2016, Dyer sent two documents to the Executive VP of Fision Corp. (“the Irrevocable Stock Power and Corporate Resolution for Sole Signing Officers”) that needed to be signed in order to effect the distribution of Fision stock to Scenic City F-10 VIII investors. (Id. at 3.) They also represent that on November 4, 2016, Defendants and their counsel met about the need to disburse the Fision stock. Defense counsel represents that Defendants misunderstood that Dyer could proceed with directing that the stock be disbursed and that, on November 9, 2016, Dyer called the Executive VP of Fision Corp. and instructed him to issue the shares." 

The Securities and Exchange Commission last July announced that it had won a court-ordered asset freeze to halt "an ongoing fraud by two former Chattanooga brokers with disciplinary histories who allegedly raised more than $5 million from investors without using the money as promised." One was the 56-year-old Dyer and the other was James Hugh Brennan III, 67.

The SEC said Dyer and Brennan sold purported shares in eight similarly named companies to more than 240 investors nationwide since 2008 without ever registering the stock as they promised.  Instead, according to the SEC’s complaint, Brennan and Dyer transferred investor funds into their personal accounts or those belonging to their wives. 

The action says over a five-year period that Carole Johnston Brennan received $30,000 of the funds and Alison Ford Dyer received $286,000. Ms. Dyer was also active in the Quarterback Club and would send out Facebook notices about the meetings.



Upcoming City Council Agenda For Tuesday

Here is the upcoming City Council agenda for Tuesday: I. Call to Order. II. Pledge of Allegiance/Invocation (Vice-Chairman Oglesby). III. Minute Approval. IV. Special Presentation. V. Ordinances – Final Reading: PLANNING a. 2018-035 Ronnie Rothwell (R-1 Residential Zone to E-RD-2 Residential Detached Zone). An ordinance to amend Chattanooga City ... (click for more)

Latest Bradley County Arrest Report

Click  here  for the latest Bradley County arrest report. (click for more)

A Tribute For My Brother – Sgt. Jonathan Gardner, U.S. Army

Seven years ago today, my family and I found out that my brother, Sgt. Jonathan D. Gardner, was seriously injured by a roadside bomb, (explosively formed penetrator - EFP), while on a mission in Kuwait. The EFP went through the bottom of his seat and put a softball size hole in his upper thigh. The doctors said that if the bomb had entered the Humvee an inch to the right, he ... (click for more)

Roy Exum: The Black Telephone

If you have never seen one in an antique store you wouldn’t know that the first telephones were contained in a not-so-small wooden box that had a snout-looking mouth piece and a separate speaker that you would hold on your ear while you talked. This was many years ago when phones were fun as compared to today’s tiny cell phones that rudely interrupt us from the task-at-hand both ... (click for more)

Tankersley One-Hitter Leads Silverdale Past CCS

Silverdale had beaten Chattanooga Christian by a 7-0 final in a   softball game at CCS a few weeks ago, but the Lady Chargers were hoping to turn the tide after allowing just two earned runs in that earlier game. Things didn’t turn out as planned for the Lady Chargers Thursday evening at Silverdale. The Lady Seahawks are a really good hitting team and they showed it ... (click for more)

Fulmer Gets 4-Year Contract As Vols Athletic Director

University of Tennessee Chancellor Beverly Davenport announced Thursday that Director of Athletics Phil Fulmer has signed a four-year contract. Fulmer took over as UT's Director of Athletics on Dec. 1, 2017.   "Phillip has been a great partner over the last four months and I commend him for the work he has done with our student-athletes, coaches and staff," Davenport ... (click for more)