Corona, CA – A California man was sentenced to 6 years in prison for his role in a $3.7 million advance fee scheme and tax evasion, a Grimy Times investigation has uncovered.
Shannon Johnson, 51, a former Maryland resident, was sentenced by Chief U.S. District Judge Deborah K. Chasanow to serve 6 years in prison, followed by 3 years of supervised release. As part of his sentence, Johnson must forfeit $3.7 million and cooperate with the Internal Revenue Service (IRS) in determining all taxes owed for tax years 2002 through 2009.
Johnson’s scheme, which operated from 2006 to 2009, targeted businesses and individuals, promising them millions of dollars in financing in exchange for substantial advance banking fees. However, Johnson never provided the promised financing, instead using the money to support his lavish lifestyle, which included the purchase of luxury cars, private jets, and a $3.5 million residence in California.
Johnson’s wife, Yvette, also played a significant role in the scheme, opening bank accounts and conducting financial transactions using proceeds obtained from their business activities. The couple’s relationship with pastors, ministers, and religious-based organizations was also used to sell themselves as philanthropists on a humanitarian mission.
Despite receiving approximately $3.7 million in advance fees from individuals and businesses, Johnson never provided the promised financing. Instead, the Johnsons used the money to fund their lifestyle, including the purchase of Bentley, Mercedes Benz, and BMW automobiles, the leasing of a $3.5 million residence in California for $18,000 a month, travel on private jets, and the funding of the mortgage on their Laytonsville residence.
The Johnsons also evaded taxes on millions of dollars in income earned from the advance fee scheme. They admitted to filing individual tax returns for tax years 1998 through 2001 using false Forms W-2 to fraudulently generate a total of $66,097 in refund claims; evading the payment of their 2002 through 2006 corporate and individual taxes totaling $98,220; and evading the assessment of their 2007 through 2009 taxes.
Shannon Johnson’s bail was revoked in September 2013 after the court found that there was probable cause to believe that he attempted to commit another fraud while on pre-trial release for the pending charges in this case.
Yvette Johnson, 52, of Corona, California, previously pleaded guilty to her participation in the fraud scheme and is awaiting sentencing.
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Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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