Nationwide Securities Scam Linked To East Texas Murder-Suicide - KLTV.com - Tyler, Longview, Jacksonville |ETX News

4/22/05-Tyler

Nationwide Securities Scam Linked To East Texas Murder-Suicide

A scam across the nation, that bilked senior citizens out of millions, has been linked to a murder- suicide in East Texas.  66-year-old Jack Arnold Brown of Tyler has admitted to conspiracy to commit mail and securities fraud.   Authorities said he and a partner pocketed money from East Texans, claiming they were investing in residential property in Lindale.

One of those who invested is a couple from Smith County, who was found dead last September.
61-year-old George Freeman was in his car, dead from carbon monoxide poisoning.
His 73-year-old wife, Jo, was inside the couple's home, found shot to death.  George Freeman left a note saying he was distraught after investing most of his life savings in Brown's company.

In a signed court document, Brown said, "I agreed to knowingly and willfully employ a device, scheme, or artifice to defraud, and, to obtain money or property."

He faces a maximum of five years in prison and he and his wife will have to pay restitution to all the victims.

U.S Attorneys said what it all boils down to is Brown and his partner, lied, cheated and stole.
"The restitution is mandatory," said Assistant U.S. Attorney Arnold Spencer. "There are really very few bars to the restitution order. We were able to forfeit his house, his car, any jewelry, any personal assets."

The Securities and Exchange Commission has also filed a lawsuit against Jack Brown.
Authorities said at least $7 million was taken from 50 East Texas victims.

Maya Golden reporting, mgolden@kltv.com

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