Johnson, who was arrested on June 11 while he was changing planes on his trip back to Costa Rica, will now have to possibly face the loss of his home and other assets from non-payment.
U.S. District Judge Roger Hunt in Las Vegas, in an order dated Friday, noted “inconsistencies” and a “suspicious” transaction in denying the request by Johnson.
Hunt, in his order Friday, wrote: “Johnson is not entitled to monies that would continue funding a fiscally irresponsible lifestyle.”
The judge also questioned the home loan payment, saying the home was “mortgaged through a suspicious and possibly fraudulent transaction.”
Hunt questioned assertions Johnson was broke and that he’d been living off of his wife’s savings.
He noted Johnson’s recent spending – including for he and his family to travel back and forth from Utah to Costa Rica — has far exceeded his wife’s $130,000 in savings that Johnson maintains is depleted.
“Several additional inconsistencies lead the court to believe that Johnson has access to additional assets,” Hunt wrote in his order, noting Johnson in a court declaration had failed to mention rental income from a home in Santa Monica, Calif.
Hunt said that with the FTC likely to prevail in its lawsuit against Johnson, allowing Johnson access to funds held by the receiver would reduce the amount of money the FTC can return to harmed consumers. – Source”
The June 10, 2011 lawsuit against Johnson by the United States of America, alleges Johnson crafted a complex set of companies that were primarily designed to:
- Sell software for securing government grants to pay for personal expenses;
- Provide access to search engine based money-making schemes; and,
- Sell membership in programs associated with other core products.
The complaint also identified a website I’ve written about before, BadCustomer.com which attempted to blacklist and extort money from consumers that had initiated valid chargebacks with their credit card companies regarding his products.
You can read the entire complaint against Johnson, here.