Timothy France Johnson, 63, of El Paso was sentenced on Friday, October 23, to 51 months in federal prison and ordered to pay a money judgment of $3,148,094.48. The U.S. Attorney’s Office for the Western District of Texas says Johnson ran an 11-year Ponzi scheme that told investors their money would fund NBA preseason game promotions. Prosecutors say he also promised returns with zero risk.
What the sentence and the $3,148,094.48 judgment cover
The U.S. Attorney’s Office for the Western District of Texas announced the sentence the same day it was handed down. Johnson drew 51 months, which is four years and three months, and a money judgment of $3,148,094.48. The office says the case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Shane Romero and Chris Skillern.
Johnson was charged in April 2024 with seven counts of wire fraud and three counts of engaging in monetary transactions in property derived from specified unlawful activity. He pleaded guilty in March 2026 to the seven wire fraud counts. The release names the seven wire fraud counts as the ones he admitted and does not describe what became of the other three. Sentencing came about seven months after the plea, and one financial question is still open.
That open question is restitution, the money a court orders a defendant to repay victims. The U.S. Attorney’s Office says a restitution hearing is separately scheduled for November 19. The $3,148,094.48 figure is the judgment entered at sentencing. It is not the restitution amount, and the release does not present it as the total investors lost.
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How a promise to promote NBA preseason games ran for 11 years
According to the U.S. Attorney’s Office, Johnson presented himself as a third-party promoter of NBA preseason games and told investors their money would pay for those promotions. Prosecutors say the games were not where the money went. The office describes the operation as a Ponzi scheme that lasted more than a decade.
The office says Johnson fabricated contracts and financial statements to make the deals look real. He also guaranteed what the release calls “zero-risk” returns. Paper that looks like a signed contract and a clean statement is what lets a promoter keep asking for more, year after year.
In a Ponzi scheme, money from newer investors is used to pay earlier ones. The U.S. Attorney’s Office says that is what happened here, and that Johnson also spent investor money on personal expenses. The office says he solicited more than $3 million and refers to numerous victims without giving a count.
The length matters. Eleven years spans a long run of payments to earlier investors, which is how such schemes look real from the inside. The release does not describe who the investors were or how they were found, so nothing in it says how the pitch spread.
Why a judgment and restitution are two different numbers
A money judgment is part of the sentence. It sets an amount the government can pursue from the defendant. Restitution is a separate ruling about what victims are owed, and the court has set that for a hearing on November 19, after the sentencing.
For investors who put money in, that hearing is the date to watch. The U.S. Attorney’s Office has not announced a restitution figure, a fund or a claims process. Anyone who believes they invested with Johnson has no payment to apply for yet on the record the office published.
FBI El Paso Field Office Acting Special Agent in Charge Aida Reyes said in the release that “the sentencing today represents the final step toward accountability and justice.” U.S. Attorney Justin R. Simmons said Johnson “carried out his Ponzi scheme for over a decade.” Neither statement gives a repayment date.
The pitch that gave this scheme away, and how to report one
The Securities and Exchange Commission’s investor education site, Investor.gov, lists the same promise as a red flag. It tells readers to be highly suspicious of any “guaranteed” investment and skeptical of returns that stay positive regardless of market conditions. Higher returns, it says, come with more risk.
Investor.gov adds other warning signs that fit a scheme dressed up as sports promotion. Most Ponzi schemes involve unlicensed sellers or investments not registered with federal or state regulators. Trouble getting paid back is another sign, and promoters may answer it by offering even higher returns to keep people in.
Anyone who suspects they were pulled into a scheme like this can file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov. The center says to file even when unsure a complaint qualifies. It also says it will never directly contact a person asking for information or money.
Written records matter in these cases. Emails, wire confirmations, contracts and any account statements show what was promised and what was sent. Anyone who invested should keep them together and in date order.
Put money into a promoter’s zero-risk deal?
A scheme that ran 11 years shows how long a promise of zero risk can hold before anyone checks. For an investor, the proof is in the paperwork: what was sent, on what date, and on what promise. Without it, a report to the FBI or a restitution claim starts weak.
The Senior Fraud Defense & First-Hour Recovery Kit puts that paperwork in order. It includes the first-hour recovery plan and a fraud evidence and report log, and Part 3 explains what each kind of report actually does.
More Financial Reading
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- 15 Places to Find Your Share of the $4.25 Billion States Give Back
- 15 Steps to Stop the Scams That Took $7.7 Billion From Seniors
This article was produced with AI assistance and edited for accuracy against the sources linked above.
