Complaint Review: Privatebankruptcy.com bankruptcyfirst.com CSave.net

The following appeared in the Salt Lake Tribune on April 17, 2005:

Dairy farmers and other agricultural operators may be vulnerable to swindlers because they often are looking for unconventional ways to finance or upgrade their businesses. Utah Farm Bureau CEO Randy Parker said that when banks approve loans, they pass up land or equipment assets and consider cash flow for assurance that payments can be made.
"Since milk prices have dropped, some dairymen are looking at alternative ways to get loans," he said. "Right now, conventional financing is difficult to get."
The Delta family losing its dairy "proves that anyone, no matter what their occupation, can fall victim to securities fraud," said Francine Giani, executive director of the Utah Department of Commerce. "We urge investors to contact the Division of Securities or Consumer Protection before turning over their hard earned money."
- Dawn House


Two disbarred attorneys face sentencing in a securities scam that cost a Delta family its dairy, which had been in business for 20 years.
"I worked three jobs straight out of high school trying to build the dairy," said Ronald Myers, who was victimized in the dairy scheme. "Blink once and you can lose everything."
A. Paul Schwenke and Jamis M. Johnson had posed as Salt Lake City lawyers, even though Schwenke had been disbarred in 1993 and Johnson in 2002 for mishandling clients' money. The two men were arranging a deal with Myers and his son-in-law, James Young, to refinance farm loans on more favorable terms and provide investment money to upgrade the family's Milk-King dairy in Delta.
During a 2002 business meeting, Schwenke and Johnson claimed they had access to $10 million from people lining up to invest in their new company, American-Dairy, state investigators say.
Schwenke and Johnson told the farmers that if they would sign over their dairy, they would receive 200,000 shares of American-Dairy. The former attorneys promised that their company would be going public within six to 24 months, making each share worth at least $5, giving the family a return of $1 million from their shares.
But on Oct. 4, 2000, two months after the farmers signed the agreement, Schwenke took out a $50,000 loan using the Delta dairy as security. By December, the loan was in default and the land was sold.
Weeks earlier, Schwenke told the farmers he had money to buy 200 cows if Young would have them shipped to the dairy. The cows arrived but had to be returned because Schwenke had not paid for them, according to charging documents. And Young was stuck with a $70,000 bill to feed the cows during the two months they were at the dairy.
By that time, Young and his father-in-law had no money to operate the dairy, and lien holders took a John Deere Tractor and a Schuler Vertical Mixer as payment. Young said he had nothing left because he had already invested his family's life savings in the dairy.
During that initial business meeting in Fillmore, prosecutors say, the disbarred attorneys failed to disclose that Schwenke had unpaid federal tax liens totaling $450,000 and Johnson owed federal and state taxes of nearly $2 million. Nor did the two disclose that both had civil judgments and outstanding lawsuits alleging fraud in connection with transferring property titles, according to charging documents.
"We loved the farming way of life, and hoped to pass along the dairy to our children," said Young, who now works in a power plant. "We've tried to move on, but we'll never financially recover. It's been devastating."
On April 4, a Fillmore jury convicted Schwenke of one second-degree count of securities fraud. He is to be sentenced on May 21.
Schwenke, 55, is serving up to 20 years in Utah State Prison for securities fraud in another scam. In August 2005, he was convicted of giving a Heber couple 234,000 shares of phony stock in exchange for the deed to their home. Schwenke used the property to secure a $100,000 loan and then defaulted on payments. Prosecutors said he failed to reveal to the couple that he had been disbarred for defrauding a client out of $100,000.
And on March 7, a 4th District jury convicted Johnson of securities fraud, a second-degree felony, in the dairy scam. Johnson told the farmers that he was a securities expert when presenting the deal to finance the family's dairy business. Johnson, 55, is to be sentenced on May 7.
For their part, the family seriously doubts ever getting restitution from the disbarred attorneys, and they aren't eligible for any help from the state's Victim Reparation Fund, including counseling, because the loss of their farm is not considered a violent crime.


I think you should try to contact authorities in Utah once again. These people need to be kept off the streets. They are as dangerous as any arm burglar.

although the scam was true I did however finish my case..no help from them .

I also was a victim of this scam.

I sent them $500.00 on a bank cashiers check on they depsoited in their acocunt with Zions First National Bank on 08/17/05 (which I still have as evidence).

They emailed me a few times and confirmed by email (which I have as evidence) they my payments was receive as well but then gave me the run around and the phones were disconnected.

I researched and found out that the registered agent (usually the owner) of National Sentry Corporation was Jamis M Johnson. Their corporation status was listed as "Expired" and was delinquent with the Utah Department of Commerce as of 01/20/2005. Their continuing to do business as National sentry Corp in Utah after 01/20/2005 was illegal in of itself.

Upon search for Jamis M Johnson I found out he was disbarred in Utah by Honorable Timothy R Hanson, Third Judicial District Court on September 14, 1999 for violating Rules 1.15(a),(b) and (c) (Safekeeping Property) of the Rules of Professional Conduct. The court found that he "intentionally misappropriated client funds" and the Jamis M Johnson "converted his clients funds for his own use" (as quoted form www.utahbar.org/barjournal2000/html/march_2001_7.html)

I filed a complaint (OPC File No. 05-0725) with the Utah State Bar Office of Professional Conduct on September 9, 2005. I received a reply from Margie Wakeman, Assistant Counsel on October 4, 2005 that "We have, as of yet, been unable to locate Mr. Johnson, and therefore must decline to prosecute this case, at this time"

(I was unaware that merely being unable to be located would prevent criminal prosecutions from taking place. Maybe I should start robbing banks in Utah and as long as I don't give my address to the authorities they won't bother with prosecuting me - sure)

I also notified the police in Salt Lake City and in St George Utah they refused to even take a report claiming they lacked jurisdiction because I am in California despite the fact that the check deposited in to a bank in their jurisdiction and the suspect is IN their jurisdiction - I would think they would have a concurrent jurisdiction over this complaint.


Other possible addresses and phone numbers for the perpetrator Jamis M Johnson

1408 Military Way
Salt Lake City UT 84103-4455
Tel. 801-364-2477 (disconnected as of 9/9/05)

220 S 200 E, Ste 110
Salt Lake City UT 84111
(no phone listed)

352 Denver Street, Ste 304
Salt Lake City UT 84111
(no phone listed)

P.O. Box 287
Heber UT 84032
Tel. 435-602-2291
Fax 435-654-9992

* Robert Schwenke ( Robert@privatebankruptcy.com ) is listed to this address and not sure if was an employee or a co-conspirator in the fraud scheme.

I would recommend other victims to also file complaints with the Utah State Bar at...

www.utahbar.org/forms/consumer_assistance_request.html


The local law enforcement authorities

Salt Lake County, Utah District Attorney
2001 South State Street S3500
Salt Lake City Utah 84190
Tel (801) 468-3300
Fax (801) 468-2985
www.districtattorney.slco.org



U.S. Government Agencies (federal) that may have jurisdiction for federal offenses regarding this matter


Federal Trade Commission...

https://rn.ftc.gov/pls/dod/wsolcq$.startup?Z_ORG_CODE=PU01

or www.ftc.gov and click on "file a complaint" in the consumer section.




U.S. Attorney in Utah...

Brett L. Tolman
185 South State Street, Suite 400
Salt Lake City, UT 84111
(801)524-5682 (801)524-6924


Utah office for the Federal Bureau of Investigation...

FBI Salt Lake City
Suite 1200, 257 Towers Bldg.
257 East, 200 South
Salt Lake City, Utah 84111-2048
saltlakecity.fbi.gov
(801) 579-1400


Additionally if you mailed your payment though the U.S. mail they may also prosecute for mail fraud especially since they were using a post office box to commit their crimes. Any other victims should also file a complaint with the U.S. Postal Inspection Service...

http://www.usps.com/postalinspectors/fraud/welcome.htm

http://www.usps.com/postalinspectors/fraud/MailFraudComplaint.htm

It appears Jamis M Johnson already victimized other people when he was a practicing attorney until he was disbarred. I sure he has a new scam he is running now to con more people. Con artist like this usually dont go away until they are brought to justice.

I am sure there are MANY more victims of this guy out there. The more complaints filed the more likely it is that some law enforcement agency may take action eventually and get this guy(s) where the belong... in jail or least convicted.

There is no question that you are getting ripped off, but I am sure you can find an attorney to handle your case for a lot less than $1200. In California, I routinely handle Chapter 7 cases for $600-$800 plus the $209. I think it is more important to get the case on file 10/17/05 than it is to worry about any claims you have agains this website. When you file, make sure you list he claim against the website and have your attorney ask the trustee to "abandon" the claim you have so you can file in small claims after the BK is over.