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Tennessee business ordered to pay $3.6 million to customers

A Tennessee business owner was ordered to pay millions of dollars after failing to deliver wooden custom flags to customers nationwide.
Credit: WSMV

NASHVILLE, Tenn. — A judge’s order for a Tennessee man to pay $3.6 million dollars to his former customers is a bittersweet ending to an ordeal that has impacted an estimated 23,000 people nationwide, many of them veterans.

Sweet -- because the judge’s ruling found Justin Scott liable for all the wooden custom flags his northwest Tennessee company never delivered to customers who paid for them in advance. Bitter -- because he told News4 Investigates in 2021 that he didn’t have any remaining money.

“It’s just really a big disappointment, and in a way, heartbreaking,” said Tessa Walsh, a North Carolina woman who paid $460 for a custom wooden flag for her husband and never received it.

Since 2019, News4 Investigates has been following Justin Scott and his company, we found he made a sizeable down payment on three cars, purchased two four-wheelers and spent $25,000 on landscaping at his home.

While Scott did not return our calls or emails this week for comment, in 2021, he told us that he made those purchases before he started falling behind on orders.

“How much do you accept for what’s happened with these flags?” asked News4 Investigates in 2021.

“One hundred percent. I fully understand that there are people that didn’t get their product. And that hurts my heart,” Scott said.

“Do you have the money to pay anything back to these people?” asked News4 Investigates.

“Absolutely not. My wife and I have nothing of value. Everything we have has been sold or liquidated,” Scott said.

“So how can you ever make this right?” asked News4 Investigates.

“Whatever I do for a job, I’ll give it all up,” he said.

News4 Investigates asked the Attorney General’s Office, who will attempt to collect the money if there is a likelihood that customers will actually see any money.

“We’re doing everything we can to get some of that restitution, as much of it as we can,” said Samantha Fisher, communications director for the Attorney General’s Office.

This story was originally reported from WSMV in Nashville.

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