Look Who it Was Random video

Investment Advice for 1st Time Investors

172 views · Published 16 November 2012 · 2:32 · Indexed 27 October 2026

Channel: WTVC NewsChannel 9 · 2012 · News & Politics

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By Jerry Askin  We're learning more about a Soddy Daisy man accused of operating a Ponzi scheme, ripping investors out of more than  million.Victims tell us Jack Brown collected investments from people, telling them he was affiliated with an insurance company that we've confirmed Brown was terminated from.  The court documents we obtained point out clearly the allegations against Jack Brown.An attorney, Rebecca Hicks filed the records last week, alledging  Brown,  stole more than  million from local investors. Kenneth Rannick is a Chattanooga bankruptcy attorney and knows all about scams done by investors."Here's a local guy promising 15% for substantial sums of money, that's obviously a red flag," says Rannick.Jack Brown is the owner of Brown's Tax Service in Soddy Daisy, but told investors he also worked as an insurance agent on the side. The documents say Brown operated a ponzi scheme which has now collapsed. It also accused Brown of never investing any money on behalf of any creditor, because he doesn't hold a license to do so.Many of the possible victims we talked to say Jack Brown told them he worked as a rep for Allianz Life insurance company. But when we called, a spokesperson there told us Jack Brown was fired back in September of 2009.We've also learned Brown allegedly used the money to purchase assets for himself and family members. Now, there's an involuntary petition filed in bankruptcy court to try and get those investors back their money.We called Brown's attorney, he declined to comment. But, Bankruptcy attorney Kenneth Rannick hopes this will be a lesson learned for future investors. "He should have given a private placement memorandum, there should have been some security filings done," says Rannick.There's a court hearing Thursday morning at 10:30am to discuss appointing a trustee for this case.  We'll keep you all posted on Jack Brown's response and the hearing.

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