El Pasoan indicted for alleged multi-million dollar Ponzi scheme
Update: ABC-7 has learned that Timothy Johnson is the estranged brother of El Paso mayoral candidate Renard Johnson.
Renard Johnson provided ABC-7 with the following statement.
"Like the rest of the public, I learned recently that my estranged brother has been indicted. I have not seen or spoken to him in many years. I have full confidence that our judicial system will resolve these allegations."
Renard Johnson
EL PASO, Texas (KVIA) -- A federal grand jury indicted 61-year-old El Pasoan Timothy France Johnson for his alleged running of a multi-million dollar Ponzi scheme.
Court documents allege that Johnson ran BOLO Entertainment LLC, BOLO Sports LLC, and Shoot N'2 Sports LLC. He is accused of defrauding thirty investors by taking their money and falsely claiming he would "promote pre-season NBA games," according to court officials.
Johnson's charges include seven counts of wire fraud and three counts of engaging in monetary transactions in property derived from specified unlawful activity.
"The indictment alleges Johnson collected more than $3 million in investor funds, using approximately $1 million of the deposited investment funds to pay fake investment profits to other clients and using the remainder of the investment funds for personal use," court officials stated Thursday. "He’s alleged to have never disclosed the misappropriation or the extent of the losses of the investors’ funds."
Johnson could face up to 20 years in prison for each of the wire fraud charges and 10 years in prison for each of the transaction charges if convicted.
