Misuse of Brown money alleged

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AIKEN - One of James Brown's former trustees narrowly avoided being held in contempt of court Monday, but David Cannon was warned not to sell off any of his assets amid allegations that he might have misappropriated millions of the late singer's money.

Cannon  Special
Special
Cannon

New accusations lodged against him Monday morning assert that he mishandled at least $7 million, charges that weren't answered during a lengthy court hearing in Aiken County.

Instead, Mr. Cannon is expected to testify in a hearing set for Nov. 15 to explain where the millions of dollars went that his former counterparts - the court-appointed attorneys and lawyers representing Mr. Brown's children - say is missing.

Mr. Cannon resigned last month from his position as one of three trustees settling Mr. Brown's estate after initial accusations surfaced. On Aug. 10, he repaid $350,000, but his attorneys said that he might not be able to pay another $400,000 the court ordered on Monday.

Mr. Cannon would not comment after the court hearing.

On Monday, Judge Jack Early ordered Mr. Cannon:

- Pay $370,000 within 10 days for a loan Mr. Brown received against his royalties.

- Give the court $30,000 within 20 days to possibly cover attorney fees incurred when he failed to comply with a court order to turn over financial and legal documents.

- Turn over personal and business financial records within 20 days.

- Deliver deeds and ownership documents for property he or his wife owns in South Carolina and Honduras, and for companies he owns.

Judge Early stopped short of freezing Mr. Cannon's assets, but did ban him from selling off property, saying that he was troubled by the allegations made Monday.

"That is a most serious belief that my special administrators have, and it concerns me greatly," Judge Early said.

Judge Early also gave the court-appointed attorneys, special administrators Adele Pope and Robert Buchanan, the OK to sue anyone against whom they have evidence of misappropriating estate assets.

Monday's hearing, which lasted about four hours, was attended by at least two-dozen attorneys, the remaining two estate trustees, Mr. Brown's children and disputed fourth wife and his newly discovered daughter, LaRhonda Petitt.

Neither Ms. Petitt nor Tomi Rae Hynie Brown had any major arguments presented in court, and the paternity of Mrs. Brown's son, James II, did not come up.

Since Mr. Brown's death on Christmas Day at age 73, his estate has been embroiled in court battles with children fighting to have the trustees removed, Mrs. Brown suing for a share of the estate and questions of James II's paternity coming up.

Neither Mrs. Brown nor James II were included in the singer's will. Nor was Ms. Petitt, who was only recently confirmed to be one of at least three children fathered by Mr. Brown out of wedlock.

Concerned that all the legal fighting would drain a trust Mr. Brown created to educate needy children in South Carolina and Georgia, the singer's minister, the Rev. Larry Fryer, filed to intervene on behalf of the children.

Judge Early has not yet ruled on that motion, but said Monday he is going to allow attorneys general offices in both South Carolina and Georgia to intervene as the law allows.

C.H. Jones Jr., the senior assistant attorney general for South Carolina, said they will watch over the trust and make sure it receives the money that is supposed to fund the schooling.

Reach Sandi Martin at (803) 648-1395, ext. 111, or sandi.martin@augustachronicle.com.

Comments (23) Add comment
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Reality
3
Points
Reality 09/25/07 - 02:51 am
0
0
The lawyers will get it all

The lawyers will get it all before it is over.........

patriciathomas
44
Points
patriciathomas 09/25/07 - 04:15 am
0
0
You called it Honest. It's

You called it Honest. It's the one thing the children, courts and trustees seem to agree on.

Brad Owens
5223
Points
Brad Owens 09/25/07 - 06:27 am
0
0
There is more than 27 million

There is more than 27 million missing according to what I heard yesterday in court. 22 million was loaned against royalties. 1o million was taken out and was to be invested into Morgan Stanley, only 5 million made it to the brokerage. 5 million disappeared right there. Then the brokerage turned the 5 million into 12 million but now there is only $500 in that account. So that is 17 million missing, PLUS the other 12 mil that Cannon claims was spent through James Brown Ent. That is a grand total of around 27 million on that one amount of money. Somewhere between the 7 mil that he has admitted and the 27 mil that is gone lies the truth. Crooks stole Mr. Brown's fortune.

iletuknow
7
Points
iletuknow 09/25/07 - 06:49 am
0
0
Poor Mr Brown. The only thing

Poor Mr Brown. The only thing people wanted of him was his money.He should have spent it before he died. This is a lesson to anyone late in life that has money laying about.

DeborahElliott2
4
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DeborahElliott2 09/25/07 - 06:49 am
0
0
The trustee is BUSTED!! He

The trustee is BUSTED!! He spent it all before it even went to court!!

lady_alessandra
3
Points
lady_alessandra 09/25/07 - 07:11 am
0
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I have a good imagination,

I have a good imagination, but I can't imagine I'd know how to just blow $27 million and nobody be the wiser.

WarEagle
0
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WarEagle 09/25/07 - 07:17 am
0
0
I really can't understand how

I really can't understand how the majority of people with M.O.N.E.Y can let someone scam them of their money. Granted maybe Mr. Brown was not the smartest of people, but surely he should have kept a better eye on his earnings. I really feel somewhat sorry for his family and hope they can atleast find out where the M.O.N.E.Y went. Rest in Peace Mr. Brown. It's in the courts now.

pofwe
5
Points
pofwe 09/25/07 - 07:57 am
0
0
Cannon ain't no funk man. But

Cannon ain't no funk man. But he knows about the "Good Foot." He got up on it!

InChristLove
22486
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InChristLove 09/25/07 - 08:17 am
0
0
I'm curious, if this trustee

I'm curious, if this trustee was dishonest, what about the other trustee's?

Augusta Mom
1
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Augusta Mom 09/25/07 - 08:50 am
0
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Do we really need to even

Do we really need to even ask? I suspect they all stole from him.
This is a prime example of "getting your affairs together and keeping them in order". You just never know when your time is coming....Mr Brown didn't expect to go when he did. What a royal mess he left for his family and the courts to sort out. I hope there will be enough left when this is settled to at least go to his grandchildren, but I truely doubt it. To think this man worked all those years....for this mess!

Great
0
Points
Great 09/25/07 - 09:19 am
0
0
You can bet your bottom

You can bet your bottom dollar, more crooks are in the trustee's house....Education is a key to success.......Can't trust other people to manage YOUR money!!!!

charles yonce
0
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charles yonce 09/25/07 - 09:29 am
0
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you've got to remember that

you've got to remember that mr. brown was an entertainer, not a cpa.he trusted his people apparently.this is what happens when you have under educated people being manipulated by "educated" people, it's a no win situation.brown should have been closer to his children,so they could watch his back better. i hope that as much of his money is possible is returned,and spread out to those who deserve it.

Newsreader
11
Points
Newsreader 09/25/07 - 10:12 am
0
0
Mr. Brown was an excellent

Mr. Brown was an excellent entertainer, I hope that is the legacy that remains to honor him. However, he was a terrible business man. He prefered to give it away, but others stole from him and are continuing to do so. I cannot believe that $27mil is gone and it was only one trustee. Mr. Brown's family knew these "trustees" were crooks, and they have asked them to be removed or monitored from the start. The $5mil turned into $12mil, then the greedy took that too. I hope that the courts fix the problem before it is all gone. I hope that the family can come to some agreements regarding their portion and that the kids that Mr. Brown wanted to benefit from his trust fund get a chance to have the education he never got. Hopefully, some of them will learn how to manage money and take over the supervision of the fund money.

MyOpinion2
5
Points
MyOpinion2 09/25/07 - 10:33 am
0
0
I hope these crooks are made

I hope these crooks are made to do jail time, plus pay back every cent.

sjgraci
3
Points
sjgraci 09/25/07 - 10:37 am
0
0
Follow the money, it's in

Follow the money, it's in Honduras, off-shore bank accounts, and other people's names.

jrock1956
0
Points
jrock1956 09/25/07 - 10:48 am
0
0
This type of scamming is

This type of scamming is happening right now! It's been happening for years and will continue to happen. I have heard of sports stars, movie stars, entertainers, grandmothers and every race creed and color. It all boils down to to who you trust. Invest your money with a reputable firm and avoid single partner law firms and CPA's. The temptation is too great and there are no checks and balances when dealing with small firms.

kiddspur
2
Points
kiddspur 09/25/07 - 10:57 am
0
0
Can't you just good ole James

Can't you just good ole James hollering I feel good -- look at the mess I left behind!!!!

Honden
2
Points
Honden 09/25/07 - 12:27 pm
0
0
It's not like Mr Brown was

It's not like Mr Brown was ever any good at paying his own bill's. He was a pain in the rear to do business with when it came time for him to pay.

tigger 2
0
Points
tigger 2 09/25/07 - 12:35 pm
0
0
james brown was like a host

james brown was like a host of other entertainers, he trusted the wrong people. Look at elvis, john lennon, paul mccartney and so on...SAD....

watching
0
Points
watching 09/25/07 - 01:01 pm
0
0
Cannon has amitted that he is

Cannon has amitted that he is a crook by stealing brown's $$$; the judge should have frozen all of his assets!! Pat Thomas, you have ALWAYS been one of the most critical of anyone caught breaking the law...especially blacks. Why did you choose to give Cannan a pass? Is he a friend or family member?

anonymous1
0
Points
anonymous1 09/25/07 - 11:14 pm
0
0
I've known David Cannon for

I've known David Cannon for years.
I'm surpirsed by this.
The "honduras" connection for him is a medical clinic that has kept people there alive and protected in a land without roads or running water.

neversurprised
0
Points
neversurprised 09/26/07 - 09:29 am
0
0
Judgement DAY will come and

Judgement DAY will come and all evil will be accounted for, yours, mine, and theirs.

EdithPiaf
2
Points
EdithPiaf 09/28/07 - 08:27 pm
0
0
Looks like he had you fooled,

Looks like he had you fooled, too, "anonymous1"... ya gotta admit that medical clinic is a pretty good cover up lol

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