SODDY DAISY, TN. (WRCB) -- Last week a Dayton attorney took action against Jack Brown with Brown's Tax Service in Soddy Daisy, by filing a motion to appoint an interim trustee to his properties. On Tuesday that same attorney filed an order to speed up the process.
Court documents claim Jack Brown took more than $4 million from investors.
"It's different when you involve your friends in business. It isn't always a good idea because you're probably going to be less likely to ask tough questions," attorney Jerry Tidwell says.
Court documents claim the Browns used investment money for their own pleasure.
Channel 3 found out a shed, a barn and nearly 12 acres of land owned by Brown was appraised at $177,000. Records also show one of the homes on the property was appraised for nearly $450,000.
"If the federal government or the state government can prove that proceeds from an illegal business like a Ponzi scheme were used to buy the buildings from the businesses, they can seize the physical property," Tidwell says.
However, it may be more than just personal property. According to records, Jack Brown currently owns a building that houses Hamilton Hearing in Soddy Daisy. The man who runs the business says he sends a monthly rent check and has never had a problem.
It may be awhile before we know how deep this reported scheme goes. For now the investigation is ongoing.
"What they're doing is they're chasing the money. They have white collar crime specialists who chase the money and are experts at it. They might be able to get to it quicker but it's not unusual for the federal government to spend a year investigating someone," Tidwell says.
Sunday, May 19 2013 8:47 PM EDT2013-05-20 00:47:12 GMT
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