When his business ventures collapsed in September, embattled Chattanooga accountant Jonathan Frost put his Chestnut Street office complex on the market for $10 million.
Potential buyers balked, wary of the price and possible legal battles, Frost’s real estate agent said. But in November, according to public records, a newly-created firm connected to Frost’s father acquired the mortgage on the property’s main lot from the bank.
At some point, records show, Frost went into default on this and another loan controlled by his parents, and the property went into foreclosure. Late last month, according to deeds filed with the county, it was acquired at an auction for $5.8 million — by Frost’s parents.
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Chattanooga accountant Jonathan Frost’s parents end up with his Chestnut Street property
The transaction shapes the fate of a major asset controlled by Jonathan Frost, whose money and property are of interest to the clients, investors, creditors and a business partner who have accused the accountant of various breaches of trust and are seeking collectively tens of millions of dollars in damages from him and connected firms.