A former Knox County Trustee’s Office staffer had access to insider information when he paid $3,732 for two lots with unpaid taxes, then flipped them eight months later for $67,000, Knox News has discovered.
Knox News reported April 17 the purchase by Jason Dobbins demonstrates how a lack of guardrails in the trustee’s office opens the door for staffers to profit off purchases of properties with delinquent taxes.
An email obtained by Knox News since our April 17 report published shows Dobbins was told on May 10, 2024, the properties were scheduled for sale by the county in a tax sale, the annual auction the county runs to clear properties with delinquent taxes.
The email from trustee’s office staffer Tanner Raley to Dobbins lists the two properties among a “prospect list” of 366 properties for the 2025 tax sale, which has not yet been scheduled. Two months later, Dobbins and a partner, John Lacy, bought the properties.
There are thousands of delinquent properties every year, and it’s up to the trustee’s office to winnow the list to a manageable 150 or so for a public auction, or what the county calls a tax sale. The properties assessed for potential sale and ultimately included in the tax sale are at the trustee’s discretion.
Dobbins was fired April 14 hours after Knox News contacted his boss, Trustee Justin Biggs, to ask Biggs why the trustee’s office was spending more than county rules allow for hotel rooms and using trustee-leased vehicles for personal use. Knox News also asked to talk to Biggs about an ongoing investigation into the trustee’s office by the state’s watchdog agency, the Tennessee Comptroller of the Treasury.
Dobbins told Knox News the actual price of the property, with taxes included, ended up being between $5,000 and $6,000, though the property and county and city taxes verified by Knox News totaled $3,732. Dobbins did not provide confirmation of additional costs.
“I didn’t use any of my money to buy it so when John (Lacy) wanted to sell it − because it was going to be way above our knowledge to develop − I told him I would assign any and all proceeds to him,” he said in a text message.
In a statement to Knox News, comptroller spokesperson John Dunn said investigators are aware of Knox News’ reporting and are “certainly interested in some of the information that’s been shared.”
Dobbins wanted to build duplexes on the property
In December, five months after buying the properties, Dobbins was trying to capitalize on his investment by building on the lots. He went to the Knox Planning office to learn about zoning designations for the properties on Wise Hills Road near Chapman Highway.
On Dec. 19, 2024, Knox Planning assistant planner Jake Beaumier responded to Dobbins in an email.
“Good morning Jason, Here you can find the City Use Matrix, which displays permitted and reviewed uses for city zoning,” Beaumier wrote. “Your properties are zoned RN-1 (Single Family Residential Neighborhood), and so you would require a Special Use approval from the planning commission to develop a duplex on either lot.”
Former Knox County Trustee’s Office staffer Jason Dobbins paid $3,732 for two properties on Wise Hills Road he knew could be included by the county in a delinquent tax auction, then flipped them for $67,000 eight months later.
“Like I was saying earlier, with the size of these lots you do have a case for using them for duplexes, but this is not a guarantee,” he continued. “The future land use designated to this area by the City’s One Year Plan is LDR (Low Density Residential) which does support duplexes as a special use, however, Wise Hills is classified as a local road and may not lend itself towards this use.”
Dobbins replied, thanking Beaumier for the information. He did not try to build on the lots, selling them instead in March.
Knox News previously reported there had been no record of the county paying for any title work for the property Dobbins purchased, a step that would typically mean the property was being prepped for a tax sale.
Officials say process shouldn’t benefit county staffers
Former trustee Ed Shouse, who served from 2014-2022, told Knox News he never had to deal with his employees purchasing properties with delinquent taxes or in a tax sale.
“It never crossed my mind in the eight years and six tax sales (COVID-19 bumped some) to get something and identify something you could get at a great discount and sell it for a profit,” he said.
“Nobody from the office or real estate prospector would do it. Obviously, it could happen, but it never was on my radar screen.”
Scott Griswold handles the auction in his role as the county clerk and master, the office that oversees chancery court. He said he doesn’t allow his employees to purchase properties in county sales, including tax sales.
About the comptroller investigation into the Knox County trustee’s office
An investigator from the comptroller’s office was in Knox County earlier this month to interview trustee’s office staff. Additionally, sources with direct knowledge of an internal audit conducted by the county say it was turned over to the comptroller.
The comptroller’s investigation into misuse of taxpayer money has centered on Biggs’ office for using taxpayer dollars to pay for upgraded rooms and access at high-end hotels, as well as personal use of county vehicles.
Biggs and his staff incurred $4,716.59 in costs that exceeded the county rate for hotel rooms.
Additionally, the office is paying the leases for six new Chevrolet Silverado 1500 pickup trucks equipped with four-wheel drive. In the five years of the lease agreement, the trustee’s office will pay $397,968 for the trucks, $200,000 more than taxpayers would have paid for the typical vehicles used by other county offices.
Biggs frequently travels in the trucks, according to GPS data reviewed by Knox News, but he shouldn’t because he receives an annual travel allowance from the county worth $4,999.80.
Dobbins was fired after Knox News started asking questions
Dobbins was the trustee’s office director of operations when he purchased and flipped the properties. He was fired April 14 hours after Knox News posed questions to his boss, Biggs, about how the trustee’s office was spending more than county rules for hotel rooms and using county-leased vehicles for personal use.
A county-leased truck parked daily at Dobbins’ home address was frequently driven on weekends, according to GPS data reviewed by Knox News, and that same truck was used to take a 290.3-mile-round trip to Bristol, Virginia, on Nov. 15. County policy restricts take-home vehicles from being driven outside Knox County, let alone outside the state.
A copy of a “Notice of Termination/Separation” for Dobbins that was provided to Knox News by the county listed “policy violations” as the reason for termination.
The document was signed by Biggs and dated April 14. Dobbins was paid $92,815 as of April 1, according to county records.
Tyler Whetstone is an investigative reporter focused on accountability journalism. Connect with Tyler by emailing him at tyler.whetstone@knoxnews.com. Follow him on X, formerly known as Twitter, @tyler_whetstone.
This article originally appeared on Knoxville News Sentinel: Knox County official had insider information on property sales