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Brown Admits to Ponzi Scheme

248 views · Published 27 March 2013 · 2:21 · Indexed 22 October 2026

Channel: WTVC NewsChannel 9 · 2013 · News & Politics

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By Jerry Askin  For the very first time, creditors heard from the man accused of running a local ponzi scheme. Jack Brown was on the phone from his hospital bed, during the scheduled creditors meeting Tuesday morning in bankruptcy court. Brown owned up to taking money from investors, giving some of that to other investors, and then spending the rest like he pleased.Jack Brown has been sick for several months. Tuesday he was well enough to take part in the court process.We certainly didn't expect to lose it all, but we did, says Bruce Majors.Bruce and Patricia Majors invested their life savings with Jack Brown  -- over $200,000.We depended on it for our retirements, and we now we'll live on a fixed incomes, says Bruce Majors. They've sadly come to realize they'll likely never see their money again. He was taking money from Peter to pay Paul, says Patricia Majors. Brown admits he began handing out promissory notes as early as 1989.  But, Tuesday, had no clue how much he now owes in promissory notes.Brown said he deposited investors money in what's called an E-trade account, but would occasionally write checks to himself.  He also says he made money from the tax service, two daycares centers, and a few other properties he owned.I don't think all of that money was lost via investments. I certainly think that money was used for other things, says trustee Jerry FarinashAfter hearing Brown's testimony Tuesday, trustee Jerry Farinash says he still has concerns. We're concerned we haven't found all of the assets, we're concerned where all of the money went, there's a lot of money that's missing, says Farinash.Bruce Majors has some sympathy for Jack Brown. I really don't believe Jack started this as a scam, I think he just got deeper into it than he meant to, and things just got out of hand, says Majors.There's a meeting scheduled for April 16th for Janet Brown, the wife of Jack Brown, for her involvement in the alleged ponzi Scheme.

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