Federal inmate Gets 18 More Years for Bogus Involuntary Bankruptcy Petitions Filed Against Warden, Prison Officer

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Federal inmate Gets 18 More Years for Bogus Involuntary Bankruptcy Petitions Filed Against Warden, Prison Officer

The following press release was published by the U.S. Department of Justice, Office of the United States Attorneys on Sept. 9, 2019. It is reproduced in full below.

The prison sentence for one inmate at the U.S. Penitentiary in Marion, Illinois, just got a lot

longer. Kurt F. Johnson, 56, who was due to be released in 2028, was sentenced earlier today to

serve an additional 216 months behind bars for filing fictitious, involuntary bankruptcy petitions

against federal prison officials. Johnson was convicted of the charges after a three-day jury trial

in Benton, Illinois, last year.

The evidence at trial established that, in January 2018, with the assistance of persons outside the

prison, Johnson succeeded in filing false involuntary bankruptcy petitions against the prison

warden and an officer at the prison. The bogus petitions alleged that each victim was indebted to

Johnson in the amount of $20 billion, owing to a judgment Johnson claimed to have obtained from the

International Court of Justice (also known as the World Court). As part of the scheme, Johnson

purportedly canceled $1 billion of the supposed debt and then filed forms with the Internal Revenue

Service showing the canceled debt as unreported income for his victims.

The mere filing of the fictitious claims resulted in both victims receiving solicitation letters

from credit counseling services and loan companies based upon their supposed bankruptcy. Once the

fraud was discovered, the United States quickly moved to seal the proceedings to prevent further

damage to the victims’ reputations.

At trial, the United States presented evidence that Johnson has a history and pattern of harassing

judges, court personnel, and Bureau of Prisons employees through the filing of fictitious claims.

Johnson eschewed appointed counsel and represented himself at the trial, testifying in his own

defense that he genuinely believed the World Court had awarded him a default judgment for

$20 billion on account of his placement in the prison’s Communications Management Unit. The jury

deliberated for approximately 40 minutes before returning guilty verdicts on all four counts.

“Kurt Johnson broke the law trying to harm those who enforce it," U.S. Attorney Steven

D. Weinhoeft said. “His sentence sends an unmistakable message to all criminals who would lash out

against the men and women who work within the justice system: you will be prosecuted to the fullest

extent of the law."

Johnson’s sentence also includes a three-year term of supervised release.

Johnson won’t begin serving his 18-year sentence until he finishes serving the last decade of a

300-month sentence he previously received for an unrelated fraud conviction in the Northern

District of California. His underlying crime involved a nationwide debt elimination scheme that

raked in over $6 million.

“I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners who serve on the

Southern District of Illinois Bankruptcy Fraud Working Group for their strong commitment to

combating fraud and abuse in bankruptcy cases, as evidenced by this prosecution," stated Nancy J.

Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). The U.S. Trustee

Program is the component of the Justice Department that protects the integrity of the bankruptcy

system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10

is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria,

Illinois.

The case was investigated by the FBI, with substantial assistance from the Federal Bureau of

Prisons. Assistant U.S. Attorneys Michael J. Quinley and William E. Coonan prosecuted the

case.

Source: U.S. Department of Justice, Office of the United States Attorneys

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