Asheville – Lawyer for local Airbnb business owner convicted of $3.5 million in federal loan fraud says bank or other lender didn’t lose money as a result of crime he committed .
Claims on behalf of defendant Sean Thomas Johnson were filed in the U.S. District Court in Asheville on Sept. 8 by attorney Noel Ting.
Charlotte’s Ting was responding to a July 19 motion by federal prosecutors to allow a monetary judgment of up to $3.5 million against Johnson. That was after he pleaded guilty to taking loans intended for primary housing and veterans and instead using them for short-term vacation rentals, often called “Airbnbs” after the online platform.
“The parties agree that he and his co-conspirators have received at least 16 loans from financial institutions totaling more than $3.5 million and acquired in connection with the purchase of real estate,” Tin said. I’m here.
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“At the same time, however, neither the factual documents nor the pre-judgment report identified any financial losses to the lender. So far as the defense is aware, the actual loss in this case is nil.”
Johnson has achieved near-celebrity status as a kind, hardworking handyman and local entrepreneur. However, many of his real estate deals say they went bankrupt, and in 2019 he had his real estate license revoked.
On March 25, he began pleading guilty to loan fraud. In another case, Stearns, west of Asheville, is facing state charges for assaulting a man with a machete after an encounter on May 28 at his cove. Johnson went to court on September 8 for that Class A1 misdemeanor.
After the assault charges, U.S. probation officers recommended not altering Johnson’s pre-trail release, which included a $25,000 unsecured bond.
In addition to financial penalties for fraud, you can face up to 30 years in prison. However, Johnson told the Citizen Times that his plea bargain is for up to six years.
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Federal prosecutors, who typically do not comment on ongoing cases, declined to discuss details of the plea bargain. After sending a message, I received an out of office auto reply. Leah Bantavani, a spokesperson for the Western District of the North Carolina U.S. Attorney’s Office, did not immediately respond to the email.
In a July 19 complaint, federal prosecutors said the $3.5 million sum was a conservative calculation of fraud amounting to “the very type of case in which punishment in the form of monetary penalties is essential.” rice field.
Loan-purchased properties are “essentially out of reach” for additional loans, refinancing, foreclosure, bankruptcy, and straw owners created by or recruited by Johnson. Mr. Johnson refused a settlement that used alternative monetary penalties or other property, they said.
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In a Sept. 8 filing, Tin asked the court to wait until it decides on the prosecutor’s $3.5 million claim. He again pointed out that the loan had been repaid through refinancing and denied Johnson had put the property “out of reach.” Ting said the sentence was “significantly disproportionate to the crimes for which Mr Johnson pleaded guilty” and violated constitutional protections against excessive fines.
U.S. District Court Chief Judge Martin Leidinger has yet to set a date for a ruling.
Fraud is Johnson’s second federal conviction. In 2010, he was found guilty of forgery. He was imprisoned until his May 3, 2011, according to the Federal Prison Service website.
Fraud incidents in other regions:
Joel Burgess has been with WNC for over 20 years covering political, government and other news. He has written award-winning articles on a variety of topics, from gerrymandering to police use of force. Any tips? Contact Burgess at jburgess@citizentimes.com, 828-713-1095, or on Twitter @AVLreporter. Please support this kind of journalism by subscribing to Citizen Times.
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