By Jonquil Newland, Weekend Today Anchor/Reporter - bio | email
CHATTANOOGA, TN (WRCB) -- Some of Jack Brown's creditors met in the basement of Bankruptcy Court Tuesday morning and were able to ask Brown questions including, what happened to their money?
"Over the years we had allowed virtually every dollar we had to be taken in and used," says investor, Bruce Majors.
Majors and his wife, Patricia, walked away from Brown's creditors meeting with little hope they'll ever see any of the more than $200,000 they invested with him. They planned to retire with it.
"Now we'll live on fixed incomes," says Majors.
During the meeting Brown answered questions via telephone since he is still in the hospital. He told Bankruptcy Trustee Jerry Farinash and creditors he used the money given to him by investors to pay off other creditors.
He also planned to invest the money into stock via E-Trade but admits he began losing money in 2010, about a year after his health took a turn for the worst.
"I would like to think that we will get a lot of the people a lot of the money back. I'm just not hopeful that's going to happen," says Farinash.
Farinash says more than $10 million dollars in claims is still owed to creditors. His priority is to find every asset available.
"I don't think all of the money was lost via investment. I certainly think that money was used for other things," Farinash says.
It may be awhile before we know all the players involved. The Majors are choosing to stay as positive as possible.
"I really don't believe Jack started this as a scam. I think he just got in deeper than he meant to and things just got out of hand," says Majors.
Farinash says Brown's wife, Janet, also has a meeting with creditors. Its scheduled for mid April.
Tuesday, July 29 2014 5:09 AM EDT2014-07-29 09:09:31 GMT
(WRCB) - Good Tuesday. We will take a break from summer as below average temps will be with us through the rest of the week. Today will be even nicer than yesterday. Our high will reach 82 under mostly sunny skies. Dew point values are in the mid to upper 50s which indicates fairly dry air as well.More
(WRCB) - Good Tuesday. We will take a break from summer as below average temps will be with us through the rest of the week. Today will be even nicer than yesterday. Our high will reach 82 under mostly sunny skies. Dew point values are in the mid to upper 50s which indicates fairly dry air as well. More