DALLAS - A Dallas man has been indicted on federal fraud charges accusing him of using falsified financial documents, nonexistent trust accounts and inflated revenue figures to obtain more than $40 million in loans from banks and private lenders.
Garrett Douglas Johnson, 41, was charged Aug. 19 in a six-count federal indictment 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.
Johnson maintained residences in Dallas and in Kingston and Edmond, Oklahoma, and represented himself as a manager, owner or partner in numerous businesses, 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, prosecutors said.
According to the indictment, Johnson carried out the scheme from 2018 through 2024, obtaining loans by submitting financial documents that overstated revenue and included fabricated trust-account balances.
Prosecutors allege Johnson frequently failed to disclose substantial existing debts while claiming he had millions of dollars held in law firm-managed trust accounts that did not exist.
Johnson allegedly obtained more than $40 million in loans, much of it from FDIC-insured financial institutions, including Texas Capital Bank, Happy State Bank, American National Bank & Trust and Gateway First Bank.
The indictment accuses Johnson of using proceeds from new loans to repay earlier loans obtained through fraud and diverting other money into unrelated business ventures. Prosecutors also allege he transferred more than $100,000 into a personal account to make a payment to the IRS.
Among the transactions detailed in the indictment is a $1.5 million loan Johnson obtained from Texas Capital Bank in August 2020. Prosecutors say Johnson falsely represented that he had more than $6.6 million in a trust account.
In December 2021, Johnson allegedly obtained a $9.23 million loan from Happy State Bank that was intended to fund marina improvements. Instead, prosecutors say he diverted millions of dollars into oil and gas investments.
The indictment also accuses Johnson of obtaining a $6.5 million revolving line of credit in April 2022 after falsely representing that American Select Partners had more than $9 million in accounts receivable. He allegedly obtained another $1 million extension on the credit line that December through additional misrepresentations.
In July 2022, prosecutors say Johnson obtained a $5 million loan for 30Days Holdings using similar claims about trust-account balances and accounts receivable.
Johnson is also accused of convincing a private lender to wire $2.5 million based on representations that the money would be used to purchase a partner's interest in Blue Duck Energy. According to the indictment, Johnson knew the ownership interest was not actually for sale.
If convicted, Johnson faces up to 30 years in federal prison on each bank fraud charge and up to 20 years on the wire fraud charge. Prosecutors are also seeking forfeiture of property traceable to the alleged offenses.
The FBI's Dallas Field Office investigated the case. Assistant U.S. Attorney Chad E. Meacham is prosecuting.
An indictment contains allegations and is not evidence of guilt. Johnson is presumed innocent unless proven guilty in court.
