Charles E. Johnson Jr.

Last updated

Charles E. Johnson Jr.
Lafayette High School (Kentucky) yearbook "Marquis '79", page 177 (cropped to Charles Johnson).jpg
Johnson in his 1979 high-school yearbook
Born1961/1962(age 62–63)
Other names"Junior"
Employer PurchasePro
Criminal charges
Criminal penalty
  • Nine years imprisonment
  • Ten months imprisonment
Criminal statusIn custody as of May 2023

Charles E. Johnson Jr. (born 1961/1962) is the founder of PurchasePro, who was later convicted of criminal fraud in his management of the company.

Contents

Personal life

Born in 1961or1962, [1] Charles E. Johnson Jr. grew up in Lexington, Kentucky. There, he attended Lafayette High School and was on the school's 1979 championship basketball team. [2] He later played basketball in college. [3] Johnson is also known by the diminutive "Junior". [3] [4] [1]

PurchasePro

Johnson founded PurchasePro in 1996, [5] which had a peak market worth of US$1.2 billion in the late 1990s, though went bankrupt in the early 2000s. [2] In May 2001, Johnson was forced out of the company by its board of directors; at the time, he was the defendant in 17 pending lawsuits. [6]

Crime

In January 2005, Johnson was indicted in the Eastern District of Virginia on charges of inflating the appearance of PurchasePro's revenues by using backdated contracts and falsified financial records (the Securities Exchange Act of 1934, § 10(b) and Rule 10b-5). At his first trial (US v. Johnson), [7] Johnson was represented by Preston Burton of Orrick, Herrington & Sutcliffe. [3] After providing Burton with fraudulent email evidence, the attorney withdrew from the case, [4] resulting in a mistrial. [3]

He later faced a bench trial [4] in Alexandria, Virginia. On May 15, 2008, Judge Walter D. Kelley Jr. found Johnson guilty of criminal conspiracy, obstruction of justice, securities fraud, and witness tampering. Johnson was arrested by the Federal Bureau of Investigation on May 16 at his $915-million home in Summerlin, Nevada, [1] and was sentenced to nine years imprisonment and ordered to pay restitution of $9.7 million (equivalent to about $13.7M in 2023). [2]

After his release from prison, while under supervised release, Johnson violated his parole conditions by gambling in 2019, despite having paid little of his restitution. He was sentenced to ten further months imprisonment and re-placed on supervised release under the U.S. Probation and Pretrial Services System. [2]

In August 2022, a federal grand jury indicted Johnson for failing to provide the Probation office with required financial information; he faced up to five further years in prison. While out on bail and prohibited to leave the Eastern District of Kentucky, he was proven to have been gambling at the Hard Rock Casino Cincinnati in February 2023. His bond was revoked on April 14, he was arrested in Minnesota on May 3, and he was imprisoned in the Sherburne County, Minnesota jail to await federal authorities. [2]

Related Research Articles

Sanjay Kumar is the former chairman and CEO of Computer Associates International, from 2000 until April 2004.

<span class="mw-page-title-main">Rod Coronado</span> American animal rights and environmental activist

Rodney Adam Coronado is an American animal rights and environmental activist known for his militant direct actions in the late 1980s and 1990s. As part of the Sea Shepherd Conservation Society, he sank two whaling ships and destroyed Iceland's sole whale-processing facility in 1986. He led the Animal Liberation Front's Operation Bite Back campaign against the fur industry and its supporting institutions in the early 1990s, which was involved in multiple firebombings. Following an attack on a Michigan State University mink research center in early 1992, Coronado was jailed for nearly five years. He later admitted to being the sole perpetrator. The 1992 federal Animal Enterprise Protection Act was created in response to his actions. The operation continued with a focus on liberating animals rather than property destruction. Coronado also worked with Earth First.

Richard Marin Scrushy is an American businessman and convicted felon. He is the founder of HealthSouth Corporation, a global healthcare company based in Birmingham, Alabama. In 2004, following an investigation by the Federal Bureau of Investigation (FBI), Scrushy was criminally charged by the U.S. Securities and Exchange Commission (SEC). Scrushy was charged with 36 of the original 85 counts but was acquitted of all charges on June 28, 2005, after a jury trial in Birmingham.

<span class="mw-page-title-main">Diane Kroupa</span> American attorney (born 1955)

Diane Lynn Kroupa is an American attorney who served as a federal judge of the United States Tax Court from 2003 until 2014. Kroupa previously was the Chief Judge of the Minnesota Tax Court. Following her criminal conviction in U.S. District Court for a tax-related crime, she was sentenced to 34 months in prison. She has since been released from prison.

Barry Quentin Word is a former American football running back for the National Football League (NFL).

A U.S. Securities and Exchange Commission and U.S. Attorney probe into trading in the shares of ImClone Systems resulted in a widely publicized criminal case, which resulted in prison terms for businesswoman and television personality Martha Stewart, ImClone CEO Samuel D. Waksal, and Stewart's broker at Merrill Lynch, Peter Bacanovic.

Title 18 of the United States Code is the main criminal code of the federal government of the United States. The Title deals with federal crimes and criminal procedure. In its coverage, Title 18 is similar to most U.S. state criminal codes, which typically are referred to by names such as Penal Code, Criminal Code, or Crimes Code. Typical of state criminal codes is the California Penal Code. Many U.S. state criminal codes, unlike the federal Title 18, are based on the Model Penal Code promulgated by the American Law Institute.

August Byron Kreis III is an American neo-Nazi leader and convicted child molester. He was a member of the Ku Klux Klan (KKK), the Posse Comitatus, and Aryan Nations.

William "Bill" Shannon Lerach is an American disbarred lawyer who specialized in private Securities Class Action lawsuits. The $7.12 billion he obtained as the lead plaintiff's attorney in the case against Enron is currently the largest sum ever recovered in a group of securities class-action lawsuits in U.S. history. In 2007 he pleaded guilty to obstruction of justice and was sentenced to two years imprisonment. In 2009 he was disbarred from practicing law in California. As part of the settlement, Lerach would not cooperate as a witness and his law firm would be protected from any further prosecution. Over the course of his career, it has been estimated that Lerach recovered upward of $45 billion on behalf of defrauded investors. Lerach has stated that about 85% of his cases were brought due to insider trading, which he described as “footprints in the snow.”

<span class="mw-page-title-main">Michael J. Bransfield</span> American bishop, former convicted sex offender

Michael Joseph Bransfield is an American prelate of the Roman Catholic Church. Bransfield served as bishop of the Diocese of Wheeling-Charleston in West Virginia from 2005 to 2018.

The Attorney General of Virginia's climate science investigation was a civil investigative demand initiated in April 2010 by Virginia Attorney General Ken Cuccinelli, who rejects the scientific consensus on climate change, for a wide range of records held by the University of Virginia related to five grant applications for research work by a leading climate scientist Michael E. Mann, who was an assistant professor at the university from 1999 to 2005. The demand was issued under the Virginia Fraud Against Taxpayers Act in connection with claims by Cuccinnelli that Mann had possibly violated state fraud laws in relation to five research grants, by allegedly manipulating data. No evidence of wrongdoing was presented to support the claim. Mann's earlier work had been targeted by climate change deniers attacking the hockey stick graph, and allegations against him were renewed in late 2009 in the Climatic Research Unit email controversy but found to be groundless in a series of investigations.

<span class="mw-page-title-main">Troy Kelley</span> 10th Auditor of Washington

Troy Xavier Kelley is an American attorney, businessman, politician, and convicted felon who served as the 10th Washington State Auditor from 2013 to 2017, and is a member of the Democratic Party. He is a lieutenant colonel JAG officer in the Washington National Guard. Kelley was a member of the Washington House of Representatives, representing the 28th Legislative District from 2007 to 2013. In 2017 he was convicted of multiple counts of possession of stolen property, making false declarations in a court proceeding and tax fraud.

<span class="mw-page-title-main">Vladislav Horohorin</span> Hacker and credit card trafficer

Vladislav Horohorin,, alias BadB, is a former hacker and international credit card trafficker who was convicted of wire fraud and served a seven-year prison sentence.

<span class="mw-page-title-main">Rick Gates (political consultant)</span> American political consultant (born 1972)

Richard William Gates III is an American former political consultant and lobbyist who pleaded guilty to conspiracy against the United States for making false statements in the investigation into Russian interference in the 2016 United States elections. He is a longtime business associate of Paul Manafort and served as deputy to Manafort when the latter was campaign manager of the Donald Trump presidential campaign in 2016, and after under Kellyanne Conway.

<span class="mw-page-title-main">Joe Biggs</span> American felon and former Proud Boys organizer (born 1980s)

Joseph Randall Biggs is an American veteran, media personality, organizer of the Proud Boys, and convicted felon for his participation in the January 6 United States Capitol attack.

<i>United States v. Elizabeth A. Holmes, et al.</i> Criminal fraud case

United States v. Elizabeth A. Holmes, et al., was a United States federal criminal fraud case against the founder of now-defunct corporation Theranos, Elizabeth Holmes, and its former president and COO, Ramesh Balwani. The case alleged that Holmes and Balwani perpetrated multi-million dollar wire-fraud schemes against investors and patients. Holmes and Balwani each had their own jury trial.

Michael B. Faulkner, known as by his pseudonym CygonX is an American business executive, author, and convicted cybercriminal. He is the founder of Crydon Capital.

Corruptly obstructing, influencing, or impeding an official proceeding is a felony under U.S. federal law. It was enacted as part of the Sarbanes–Oxley Act of 2002 in reaction to the Enron scandal, and closed a legal loophole on who could be charged with evidence tampering by defining the new crime very broadly.

Reginald Cornelius "Neli" Latson is an intellectually disabled African American man with Asperger's syndrome who became the subject of national media attention after he was arrested in 2010. Latson was approached by a sheriff's deputy while waiting outside a library, and the interaction turned into a fight, in which the deputy was injured. He was sentenced to prison, followed by a regiment of mental health treatment programs. While in a group home, Latson was arrested after another altercation with an officer and returned to prison. In prison, while on suicide watch, he was placed in solitary confinement for nearly a year. Disability and civil rights organizations argued that the corrections system was causing Latson's mental health to deteriorate, and that racial bias influenced how he was treated in prison. They lobbied for clemency, and he was given a conditional pardon in 2015, and then a full pardon in 2021.

References

  1. 1 2 3 Edwards, John G. (May 26, 2008). "Former PurchasePro boss faces prison time". Las Vegas Business Press . Vol. 25, no. 21. p. 15. ISSN   1071-2186.
  2. 1 2 3 4 5 Estep, Bill (May 5, 2023). "Lexington native convicted of fraud involving a billion-dollar company is back in jail" . Lexington Herald-Leader . ISSN   0745-4260. Archived from the original on May 5, 2023. Retrieved September 17, 2023.
  3. 1 2 3 4 Johnson, Carrie (November 11, 2006). "Mistrial Called in Online Ad Fraud Case". The Washington Post . p. D01. ISSN   0190-8286. OCLC   2269358.
  4. 1 2 3 Kang, Cecilia (May 16, 2008). "Ex-PurchasePro Chief Found Guilty of Fraud, Obstruction". The Washington Post . p. D01. ISSN   0190-8286. OCLC   2269358.
  5. Spangler, Todd (June 2005), "Out of the Graveyard", Baseline, no. 45, pp. 24–25, ISSN   1541-3004
  6. Soat, John (May 28, 2001). "IT Confidential". InformationWeek . No. 839. p. 90. ISSN   8750-6874. 'We need to rein in the autonomy on the marketing side,' the Sagent spokeswoman says. 'Some of our people get aggressive.'

Further reading