Achieve Community: Kristine Johnson, Can You Say Criminal Investigation??

achieve-community-logoDefendant Kristine Johnson has filed two interesting Motions yesterday, one a Joint Motion requesting the authority to transfer funds, and the second a Joint Motion to Seal further filings so that Defendants Troy Barnes and Work With Troy Barnes, Inc. do not have access to them. It seems there may be trouble in paradise.

One very interesting revelation in the Transfer of Funds motion is this:

2. Contemporaneously with the civil proceedings in this case, Ms. Johnson is a target of a federal criminal investigation by the United States Attorney’s Office for the Western District of North Carolina.

This Motion goes on to say that these “criminal authorities” had approached Ms. Johnson’s attorneys regarding the voluntary transfer of over $800,000 associated to both the ongoing criminal and civil investigations.  Because these funds “derive directly or indirectly from any investor”, and are located in Hong Kong. Due to the Preliminary Injunction, Ms. Johnson cannot execute a voluntary transfer without violating the Preliminary Injunction.

Hence the Joint Motion from Ms. Johnson and the SEC to relax the injunction on a one time basis

to permit the funds transfer from the “ipayDNA.info” account, to which she has access, to a pre-arranged bank account located in the United States, such that authorities will be able to freeze and potentially seize the funds as part of their on-going criminal investigation.

Ms. Johnson shall not execute the transfer of funds from the ipayDNA account until such account has been established, and she has received the express written permission of undersigned counsel for the Securities and Exchange Commission to transfer the funds.

The second filing is this:

Because of the nature of the proceedings referenced in the parties Joint Motion for Authority, the parties’ interests, as well as that of other entities not party to the motion, at this time substantially outweighs the public’s interest in open proceedings. If not sealed, it is possible that the relief sought by the parties’ Joint Motion could be stymied by adverse interests.

Defendant Kristine Johnson and the SEC respectfully request that the Joint Motion and any subsequent order be restricted only to the filing parties – Defendant Johnson and the SEC – and the Court. Specifically, the parties request that Defendants Troy Barnes and Work With Troy Barnes, Inc., not have access.

These two filings are on the Files Website, Doc 28 and 29.

Leave a Reply