Texas Man Indicted in Ponzi Scheme Case, Falsely Touted Connection to NBA
On April 11th, 2024, the Department of Justice (DOJ) announced that Timothy France Johnson—a man from West Texas—has been indicted by a federal grand jury on investment fraud charges. Mr. Johnson is accused of operating a multi-million Ponzi scheme that falsely touted a connection to the National Basketball Association (NBA). In reality, the investment was not connected to the NBA at all. The DOJ contends that he took in at least $3 million in investor funds on false pretenses. Here, our Miami Ponzi scheme attorney discusses the investment fraud charges in more detail.
Federal Indictment: Ponzi Scheme
The United States Attorney’s Office for the Western District of Texas brought securities fraud Timothy France Johnson, 61 of El Paso. A federal grand jury has indicted Mr. Johnson on ten criminal counts, including seven counts of felony wire fraud and three additional counts related to engaging in financial transactions involving unlawfully obtained property. Notably, the defendant is accused of orchestrating a multi-million dollar Ponzi scheme.
An Overview of the Ponzi Scheme
A Ponzi scheme is a fraudulent investment scam that promises high rates of return with relatively little risk to investors. The scheme generates returns for earlier investors by acquiring new investors. In effect, funds are transferred around to make it appear as if there are legitimate gains. Timothy France Johnson is accused of operating a Ponzi scheme using three companies:
- BOLO Entertainment LLC;
- BOLO Sports LLC; and
- Shoot N’2 Sports LLC.
According to the allegations raised in federal court, Mr. Johnson defrauded approximately 30 investors out of a collective $3 million. He claimed to be a third-party promoter for NBA pre-season games and persuaded investors to provide investment funds for business opportunities related to these events. However, none of the funds were actually used to promote NBA games as promised. Instead, the money was shuffled around to keep the Ponzi scheme afloat. At least $1 million in investor funds were also reportedly siphoned off by Mr. Johnson for personal use.
Investors Have a Right to Take Action
Investors who fall victim to Ponzi schemes have the right to seek justice. By definition, these fraud schemes—which pay returns to earlier investors with funds collected from newer investors—will collapse when there are not enough new investors. At some point, all Ponzi schemes run out of new victims. Immediate action is needed to preserve as much of the remaining funds as possible so that investors can get justice. An experienced Ponzi scheme losses lawyer can help.
Contact Our Miami Securities Fraud Lawyer for a Confidential Case Review
At Carlson & Associates, P.A., we fight for investor rights. If you or your loved one suffered losses in a Ponzi scheme, our attorneys are here to protect your rights. Recovering compensation for a Ponzi scheme can be complicated. The right attorney can make a big difference. Contact us today for your strictly private consultation. We handle Ponzi scheme fraud cases in South Florida and beyond.
Source:
justice.gov/usao-wdtx/pr/el-paso-man-indicted-alleged-multi-million-dollar-ponzi-scheme
