Achieve Community SEC case status update (June 2015)
As part of the civil case against her, Kristi Johnson was required to hand over detailed accounting records to the SEC.
Johnson refused, citing the fifth amendment which permits her to ‘not act as a witness against herself in any proceeding involving a fine, penalty, or forfeiture‘.
Last week both Johnson and Troy Barnes filed their respective formal responses to the SEC lawsuit against them, unfortunately with much of the same.
Kristi Johnson’s reply was filed on the 1st of June and states:
Defendant Johnson has been advised that she is a target of a Federal criminal investigation encompassing the matters alleged in the Complaint.
As such, her formal reply to all seventy-two points in the SEC complaint was:
Ms. Johnson declines to answer in the exercise of her Constitutional privilege to not act as a witness against herself in a matter involving a possible fine, penalty, or forfeiture.
Troy Barnes response was entered onto the case docket on the 2nd of June. In it, Barnes simply replies:
Defendant asserts his Fifth Amendment rights in answering this allegation.
Barnes is representing himself in the matter, which appears to have landed him in hot water.
Despite her exhaustive history of investing and recruiting new investors into multiple Ponzi schemes, Mendenhall claims she “had no knowledge of anything illegal” when she joined Achieve Community.
The merits of Mendenhall’s request to attach herself to the SEC’s case have yet to play out, with a status conference held on June 3rd to discuss the matter.
Also on the agenda was a lack of a response to the SEC’s civil complaint against defendants Work With Troy Barnes Inc and Achieve International LLC.
No one has entered an appearance on their behalf and they may not proceed pro se.
Barnes had been ordered to appear at the hearing via telephone, but did not make an appearance.
Thus it was ordered that
- Work With Troy Barnes Inc and Achieve International LLC show cause as to why default judgment should not be entered
- Troy Barnes show cause as to why he should not be held in contempt for failure to comply with a court order and
- discovery in the case be stayed until the next conference
The next status conference in the case has been scheduled for July 7th.
Update 20th June 2015 – Troy Barnes, Work with Troy Barnes and Achieve International LLC ordered to show cause before July 2nd.
Barnes is up for contempt, with WWTB and Achieve International facing default judgement.
As far as I know, the hearing on the matter is still scheduled for July 7th.