Sacramento Attorney Scott Norris Johnson Indicted for Tax Fraud

Sacramento attorney Scott Norris Johnson, 57, of Carmichael, is staring down federal prison time after a grand jury indicted him on three counts of making and subscribing false tax returns. The charges, announced today by U.S. Attorney McGregor W. Scott and Principal Deputy Assistant Attorney General Richard E. Zuckerman, expose a years-long scheme to dodge tax obligations tied to thousands in lawsuit settlements.

Johnson owned and operated Disabled Access Prevents Injury Inc. (DAPI), a legal services corporation he used as a vehicle for a relentless litigation campaign. First through DAPI, then through a law firm, Johnson filed thousands of lawsuits across the Eastern District of California, naming himself as plaintiff in nearly every case. The suits, filed under the Americans with Disabilities Act of 1990, the California Disabled Persons Act, and the California Unruh Civil Rights Act, generated substantial settlements and awards.

Under federal law, specifically the Small Business Job Protection Act of 1996, income from lawsuit payouts is taxable unless it compensates for personal physical injury or sickness. Prosecutors allege Johnson lied on his returns, materially underreporting the income he pulled in from those settlements. For tax years 2012, 2013, and 2014, Johnson and DAPI paid little to no federal income tax by falsifying their financial disclosures.

The IRS Criminal Investigation unit cracked the case open after tracing the flow of money from settlements to Johnson’s accounts. Investigators found a pattern of deliberate omission and misrepresentation, painting a picture of a legal operator using the civil justice system not just to litigate—but to profit off the grid. The indictment suggests Johnson treated court awards as untaxed windfalls, not reportable income.

Now, Johnson faces the full weight of federal prosecution. Assistant U.S. Attorney Katherine T. Lydon and Trial Attorney Tim Russo of the Justice Department’s Tax Division are handling the case. If convicted on each of the three counts, Johnson could be sentenced to up to three years in prison and fined $250,000 per count. Any sentence will reflect statutory factors and the Federal Sentencing Guidelines, which weigh the severity and scope of financial crimes.

The charges remain allegations. Scott Norris Johnson is presumed innocent until proven guilty beyond a reasonable doubt. But the indictment marks a sharp fall for a man who weaponized disability access laws for profit—now accused of betraying the very system that enabled his gains.