A 42-year-old man was sentenced to 10 years in jail on Might 26 for allegedly defrauding greater than a dozen buyers in a fancy swindle. The six-year scheme raised over $1 million. A few of the cash was spent playing at casinos, prosecutors mentioned.
Sean T. Johnson, often known as Shawn Johnson, who final resided in Dallas, was sentenced by federal District Court docket Decide Richard J. Leon in Washington, DC.
After the jail time period, Johnson shall be positioned on supervised launch for 4 years.
Traders Misplaced Life Financial savings
Johnson should additionally pay restitution to victims of the scheme. Most victims misplaced their life financial savings, ruined their credit score rating, and went into foreclosures or chapter due to the fraud, prosecutors mentioned.
The plot passed off between September 2012 and October 2018. Johnson was arrested in October 2018. He has been in custody since his apprehension.
In 2019, Johnson pled responsible to 1 depend every of wire fraud and aggravated id theft.
Primarily based on a federal inquiry, prosecutors allege Johnson misled victims into investing into nonexistent entities. Johnson additionally lied about relationships with celebrities, his web value, and different issues to encourage the investments, based on an announcement from Washington, DC US Legal professional Matthew M. Graves.
Along with spending the proceeds in casinos, Johnson used the cash to buy luxurious vehicles, designer garments, drinks at nightclubs, and tickets to sporting occasions, Graves mentioned.
Gross sales Pitch Tailor-made to Investor
Johnson additionally allegedly posed as a rich investor and profitable businessman, the assertion provides. Johnson different his method relying on the character, gender, and life-style of the sufferer, Graves mentioned. However there have been some similarities in his gross sales pitch.
The rip-off nearly all the time started with the defendant flashing cash close to the sufferer, name-dropping superstar buddies who have been buyers in his ventures, speaking up his enterprise acumen, and providing to assist his buddies turn out to be rich, like him,” Graves claimed within the assertion.
To persuade the buyers, Johnson wore costly designer garments, bragged about his wealth, and claimed he owned costly homes, prosecutors mentioned.
He even got here up with “promissory notes” that detailed investments. He allegedly promised to pay again the quantity listed within the promissory notes.
The FBI’s Washington, DC subject workplace and statements by victims of the swindle have been key in convicting Johnson, Graves mentioned.