DALLAS - A federal grand jury has indicted a 41-year-old Dallas man for allegedly executing a long-running, multi-million dollar bank and wire fraud scheme that defrauded financial institutions and private lenders out of more than $20 million.
Garrett Douglas Johnson charged
Garrett Douglas Johnson was charged Aug. 19 in a six-count indictment returned in the Northern District of Texas. The charges include five counts of bank fraud and one count of wire fraud.
U.S. Attorney Ryan Raybould announced the charges Thursday, stating that Johnson repeatedly falsified financial records to secure loans.
What they're saying:
"As alleged, Mr. Johnson repeatedly falsified his financial records to obtain millions in loans, inflicting significant losses on banks and private lenders," Raybould said. "This conduct strikes at the integrity of our banking system and financial markets, institutions that are foundational to North Texas’s rapid economic expansion and its emergence as a national center for the financial industry."
Bank and wire fraud
The backstory:
According to the indictment, Johnson held himself out as an owner, manager, or partner in at least 10 business entities across Texas and Oklahoma, including Federal Employee Services, LLC; American Select Partners, LLC; Marina Del Rey, LLC; Hard Knox Holdings, LLC; Hilyard Capital, LLC; Sloan Ventures, LLC; 30Days Holdings, LLC; Jet Texas Oil, LLC; Jett Holdings, LLC; and Blue Duck Energy, LTD. Johnson maintained residences in Dallas, as well as Kingston and Edmond, Oklahoma.
Federal prosecutors allege that between 2018 and 2024, Johnson obtained more than $40 million in total loans, primarily from FDIC-insured institutions like Texas Capital Bank, Happy State Bank, American National Bank & Trust, and Gateway First Bank, by submitting falsified financial records, overstating revenue, and fabricating trust account balances. He also allegedly concealed substantial existing debt while claiming millions were held in nonexistent law firm trust accounts.
The indictment outlines several specific fraudulent transactions:
- August 2020: Secured a $1.5 million loan from Texas Capital Bank after falsely claiming to hold over $6.6 million in a trust account.
- December 2021: Obtained a $9.23 million loan from Happy State Bank intended for marina improvements, but instead diverted millions to buy oil and gas interests.
- April 2022: Obtained a $6.5 million revolving line of credit by misrepresenting that American Select Partners held over $9 million in accounts receivable, later securing a $1 million extension in December 2022.
- July 2022: Secured a $5 million loan for 30Days Holdings using similar false claims.
- Private Lender Fraud: Induced an individual to wire $2.5 million based on false assurances regarding purchasing a partner’s stake in Blue Duck Energy that was not actually for sale.
Prosecutors allege Johnson used new loan proceeds to pay off previous fraudulent debt, fund unrelated business ventures, and transfer more than $100,000 into a personal account to pay the IRS.
What's next:
If convicted, Johnson faces up to 30 years in federal prison for each bank fraud count and up to 20 years for the wire fraud count. The government is also seeking property forfeiture tied to the alleged offenses.
The FBI’s Dallas Field Office investigated the case. Assistant U.S. Attorney Chad E. Meacham is prosecuting.
An indictment is an accusation, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
The Source: Information in this article is from the U.S. Attorney's Office, Northern District of Texas