The parents of former Chattanooga accountant Jonathan Frost have asked a judge to dismiss a fraudulent transfer claim against them, saying their purchase of their son’s foreclosed properties was aboveboard.
Frost’s accounting firm, Croft & Frost, closed abruptly in September 2023, and he has been accused by clients and investors of fraud. His license has been revoked.
Stacy Strobl of Tennessee and Brian Harding of Illinois filed a federal lawsuit last year accusing Frost, partner Paul Croft and others of defrauding investors out of millions of dollars.
Their lawsuit made a fraudulent transfer claim against Frost’s parents, Steven and Lisa, claiming there were “numerous badges of fraud” on the transaction in which the accountant’s Chestnut Street building, called The Easy, came into the hands of his parents. The Frosts bought it through a foreclosure auction, and the lawsuit alleges the ownership transfer was part of Frost’s effort to shield his assets from creditors.