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Date: 10-27-2024

Case Style:

United States of America v. Christopher C. Brown

Case Number:

Judge:

Court: The United States District Court for the Western District of Tennessee

Plaintiff's Attorney: The United States Attorney’s Office for Memphis

Defendant's Attorney:

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Description:

Memphis, TN criminal defense lawyer represented the Defendant charged with $5.9 Million Insurance Fraud Scheme

Cordova Man Sentenced in Connection with $5.9 Million Insurance Fraud Scheme



Christopher C. Brown, 47, of Cordova, Tennessee, was sentenced to 27 months in federal prison and ordered to pay $5,214,302.00 in restitution after his conviction related to a multi-year scheme to defraud four insurance companies. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the sentence today.

While operating a music recording business on Monroe Avenue in Memphis, Brown made claims to Main Street Assurance Company for alleged losses of over $340,000 due to water damage and a purported burglary at the business location. Main Street paid Brown’s claims. Brown then obtained insurance coverage for the same business location from Markel Corporation. Brown made a claim to Markel for $2,840,000 for alleged fire damage to the location, and the claim was honored.

Brown then formed a limited liability corporation named Tattooed Millionaire Entertainment (TME). This action allowed Brown to apply for insurance coverage without disclosing his previous insurance claims. Through TME, Brown purchased a second Memphis property at Rayner Street which had previously housed a well-known recording studio known as the House of Blues. Brown obtained insurance coverage for the Rayner property and music recording business from Hanover American Insurance Company. Brown later filed a claim with Hanover for purported damages from an arson fire that damaged the Rayner property, and Hanover paid him $2,200,000 on that claim.

During this time, Brown also obtained vehicle insurance from Progressive Insurance on a 1985 diesel bus. He later filed a claim with Progressive alleging that the bus had been stolen. Progressive paid Brown $109,580 in settlement of that claim.

In Brown’s claims with the four victim insurance companies, Brown made false statements and representations. This included the submission of fake or altered documents to the companies.

In September 2023, Brown pled guilty to mail fraud. On October 17, 2024, United States District Court Judge Samuel H. Mays sentenced Brown to 27 months of incarceration followed by 2 years of supervised release and ordered him to pay $5,214,302.00 in restitution. There is no parole in the federal system.

Acting U.S. Attorney Fondren said, “Insurance fraud schemes like this cheat honest companies and their policyholders. These schemes also raise the cost of insurance for everyone and make it harder for people to obtain needed insurance in the first place. Whenever fraud like this occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable for such crimes of dishonesty.”

Inspector in Charge Tommy D. Coke, U.S. Postal Inspection Service, Atlanta Division, said, “This defendant misused the U.S. Mail to defraud four insurance companies of millions of dollars. I believe this sentence will send a message that this type of crime is serious and let criminals know that our agency will continue to hold them accountable for their actions.”

This case was investigated by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Shelby County Sheriff’s Office.

Acting U.S. Attorney Fondren thanked Assistant United States Attorneys David Pritchard and Tony Arvin who prosecuted this case on the government’s behalf, as well as the law enforcement partners who investigated this case.

Outcome:

Defendant was found guilty and sentenced to 27 months in federal prison and ordered to pay $5,214,302.00 in restitution

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