Civil lawsuit claims Greeneville attorney mishandled funds

GREENEVILLE — A civil lawsuit filed with the Greene County Circuit Court alleges that Greeneville-based attorney Crystal Jessee fraudulently converted funds from a law firm trust account in her late husband, Thomas Jessee's name.Crystal Jessee currently represents Hawkins County in several opioid lawsuits and recently applied to be the Hawkins County attorney. She was appointed as executrix of Thomas Jessee's estate by the Chancery Court of Greene County.The lawsuit was filed July 6, 2023, by Avery Cawood, who was described in the suit as a long-term friend of Thomas Jessee since 1971.The complaint states that it holds the estate of Thomas Jessee and his law firm "responsible for fraudulently converting funds from the law firm trust account." It also "seeks recovery of funds that the estate unlawfully paid to Heritage Community Bank in a fraudulent scheme to deprive estate creditors of estate assets."The lawsuit seeks $207,542.22 in compensatory damages and more than $1.12 million in punitive damages.Defendants in the lawsuit include Crystal Jessee in her role as executrix of the estate, as an attorney for the estate of Thomas Jessee and individually; Heritage Community Bank; Thomas Jessee LLC doing business as Jessee and Jessee Attorneys at Law and Whittney N.L. Good as an attorney for the estate of Thomas Jessee.The Tennessee Secretary of State administratively dissolved the Jessee & Jessee law firm Aug. 30, 2022.Gregory Brown, a Knoxville attorney representing Crystal Jessee, said in a statement that Jessee plans to defend her character."To borrow a phrase, leaders like Crystal Jessee do not avoid, repress or deny conflict, but rather see it as an opportunity," Brown said. "Here is an opportunity to show, publicly, not only that her character is not touchable by this plaintiff and his attorney. It is also an opportunity for someone who has done so much for other people seeking remedies under the law to take advantage for herself of some of the remedies afforded to people when claims and allegations are brought without adequate investigation, not based in facts and law."Thomas Kilday, who represents Heritage Community Bank, said they plan to file an answer to the suit."An answer has not yet been filed on behalf of the bank," Kilday said, "but an answer will soon be filed which will demonstrate that the bank and bank officers conducted themselves in the subject transaction in an eminently proper manner and no wrongdoing of any kind occurred on the part of the bank and its officers."Good could not be reached before the publication of this article.The lawsuit states that on May 14, 2021, Thomas Jessee spoke with Cawood about providing $100,000 for a short-term real-estate investment loan. Cawood agreed, and the $100,000 was deposited into the Jessee & Jessee Law Firm Trust Account at First Tennessee Bank.In June 2021, Thomas Jessee bought a residential property on Phyllis Circle in Talbot, Tennessee, for $205,000. He also applied for a real estate investment loan through Heritage Community Bank in the amount of $206,494.68.The lawsuit claims that Thomas Jessee never used Cawood's funds for real estate investment and instead used the money to pay personal expenses and credit card bills.After Thomas Jessee died July 23, 2021, the lawsuit states that Crystal Jessee sold the Phyllis Circle Property but misidentified it on the official paperwork. Heritage Community Bank never filed a claim against the estate.The civil lawsuit alleges several different causes of action against each defendant. The causes of action against Jessee included breach of contract, conversion, legal malpractice, fraudulent misrepresentation, fraudulent concealment, fraudulent conveyance, conspiracy to defraud, breach of fiduciary duty and unjust enrichment.Causes of action alleged in the complaint against Heritage Community Bank included conversion, fraudulent concealment, fraudulent conveyance and conspiracy to defraud.Causes of action alleged in the complaint against Heritage Community Bank included fraudulent concealment and conspiracy to defraud.To view the full lawsuit, view the online version at timesnews.net.