DALLAS: A federal grand jury has indicted a 41-year-old Dallas man for allegedly defrauding banks and private lenders of more than $20 million through a years-long loan fraud scheme.
Garrett Douglas Johnson was charged on August 19 with five counts of bank fraud and one count of wire fraud, according to the U.S. Attorney’s Office for the Northern District of Texas.
Prosecutors allege that between 2018 and 2024, Johnson used falsified financial records, inflated revenue figures and fabricated trust-account balances to secure millions of dollars in loans. He allegedly failed to disclose existing debts while claiming that millions of dollars were held in law-firm-managed trust accounts.
According to the indictment, Johnson presented himself as the owner, manager or partner of several companies, including Federal Employee Services, American Select Partners, Marina Del Rey, Hard Knox Holdings, Hilyard Capital, Sloan Ventures, 30Days Holdings, Jet Texas Oil, Jett Holdings and Blue Duck Energy.
Loans Exceeding $40 Million
Prosecutors allege that Johnson obtained more than $40 million in loans, primarily from FDIC-insured banks. Investigators say he used proceeds from new loans in part to repay earlier obligations, fund unrelated business ventures and make other payments.
The indictment cites several alleged instances of fraud:
- In August 2020, Johnson allegedly obtained a $1.5 million loan from Texas Capital Bank after claiming he had more than $6.6 million in a trust account.
- In December 2021, he allegedly secured a $9.23 million loan from Happy State Bank for marina improvements but diverted millions toward oil and gas investments.
- In April 2022, he allegedly secured a $6.5 million revolving line of credit by falsely claiming American Select Partners had more than $9 million in accounts receivable.
- In December 2022, he allegedly obtained a further $1 million extension on the credit line using additional false financial information.
- In July 2022, he allegedly secured a $5 million loan for 30Days Holdings based on similar claims involving trust accounts and receivables.
- In another alleged scheme, Johnson persuaded an individual lender to wire $2.5 million by falsely claiming the money would be used to purchase a partner’s stake in Blue Duck Energy.
The indictment further alleges that Johnson transferred more than $100,000 into a personal account to make payments to the IRS.
Up to 30 Years in Prison
If convicted, Johnson faces a maximum sentence of 30 years in federal prison for each bank fraud count and up to 20 years for the wire fraud charge. Prosecutors are also seeking forfeiture of property allegedly connected to the offenses.
The FBI’s Dallas Field Office investigated the case. Assistant U.S. Attorney Chad E. Meacham is prosecuting the case.
Important: The charges are allegations contained in an indictment. Johnson is presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
