Millions of dollars feared missing in Brown's Tax Service case

Millions of dollars feared missing in Brown's Tax Service case

November 15th, 2012 by Ellis Smith in Local - Breaking News

Soddy-Daisy tax preparer Jack E. Brown

Photo by John Rawlston/Times Free Press.

A trustee was appointed today in U.S. Bankruptcy Court in Chattanooga for the Brown's Tax Service case, in which millions of dollars invested by Soddy-Daisy retirees are alleged to be missing.

Chattanooga attorney Jerry Farrinash, former trustee for ex-auto dealer Joe Prebul, is tasked with accumulating and taking possession of Soddy-Daisy tax preparer Jack E. Brown's remaining assets.

Former customers of Brown's Tax Service have accused him of running away with millions of dollars in savings that he had promised to invest on their behalf with returns of up to 15 percent.

Brown has between 21 and 30 days to contest the involuntary bankruptcy petition, which was filed by Dayton attorney Rebecca Hicks on behalf of eight clients.

All together, Hicks' clients have lost $1.27 million to a man who friends describe as a "day trader."

Brown owned "eight to ten" properties, Farrinash said, including several that had businesses attached.

According a handful of properties tracked by the Hamilton County Assessor of Property, Brown's properties are worth about $750,000.

See tomorrow's Times Free Press for more.

Contact staff writer Ellis Smith at esmith@timesfreepress.com or 423-757-6315.