Janet Brown gets 1-year sentence for fraud

Janet Brown gets 1-year sentence for fraud

June 19th, 2014 by Staff Report in Local - Breaking News

Janet Brown, wife of deceased Soddy-Daisy Ponzi schemer Jack Brown, will spend a year in federal prison for admittedly concealing assets during bankruptcy proceedings associated with a $12 million Ponzi scheme.

She pleaded guilty to one count of bankruptcy fraud for withholding $25,000 in jewelry from bankruptcy trustee Jerry Farinash, which carries a sentence of 12 to 18 months in jail with no possibility of parole.

Victim who lost their life savings to tax preparer Jack Brown alleged that he promised high returns for investing their money but ran a classic Ponzi scheme, paying off new investors with money from earlier victims and raking off huge sums to fund a lavish lifestyle.

Jack Brown was never charged in the case and died last year

In a bankruptcy hearing last year, Janet Brown invoked her Fifth Amendment right to remain silent and avoid self-incrimination 61 times.

Read the complete story in Friday's Times Free Press.