Chattanooga businessman Jonathan Frost is subject to a nearly $6 million court judgment after a company he co-owned, the Well Fund, accused him of fraud.
The damages come after a Hamilton County judge ruled in favor of the Frost business partner who, on behalf of the fund they both had a stake in, accused Frost of fraudulently siphoning off company funds. The judge made the ruling by default, as neither Frost nor most of his co-defendants disputed the accusations in court.
Whether Frost can or will ultimately pay that amount remains an open question. When his separate accounting firm, Croft & Frost, collapsed in September, a human resources staffer told employees Frost had no money, to explain why they would not receive promised cash.
But the decision marks the partial resolution of one of the roughly dozen lawsuits brought in recent months against the Chattanooga businessman, who stands accused of various forms of fraud and incompetence and who as of February was under a federal criminal investigation.
(READ MORE: Chattanooga accountant Jonathan Frost faces federal criminal investigation)