Donald M. Johnson, appearing before Porter Superior Court Judge Jeffrey Clymer on Monday via video from the Porter County Jail, said he “screwed up” when making a restitution payment to his fraud victims last week, mistakenly making the payment three days late when notified by the probation department.
Johnson, 59, of Porter, had a $40,000 payment due on Oct. 21, part of the restitution plan for the many victims of his real estate fraud schemes for which he owes $604,500.
“I know the payment was three days late but I made the next payment eight months early,” Johnson, wearing an orange jail jumpsuit, told Clymer of the additional $5,000 he paid, which isn’t due until June.
Johnson made a $45,000 payment on Thursday according to online court records, which also reflect that so far, he has paid $58,031 in restitution to his victims.
Clymer, who long ago lost patience with Johnson in court as his real estate fraud case lurched to a resolution, called Johnson’s statement “an admission with an explanation.”
Missing the payment, regardless of why it happened, set off a chain of events that included a warrant for Johnson’s arrest being issued the afternoon of Oct. 23, and police busting down the door of a rural Porter County home the evening of Oct. 24 after a search for Johnson.
Johnson, who said in court Monday that he was at his parents’ house at the time of his arrest, racked up a Level 6 felony charge of obstruction of justice for Thursday night’s allegations.
Johnson claimed he didn’t forget to make the payment but thought it was due on Oct. 25, since the next payment is due on June 25. He called the missed payment “a stupid mistake.” He said he’s “working non-stop” to earn the money to pay his victims and move forward.
Clymer ruled an evidentiary hearing on whether to revoke Johnson’s probation will take place at 11 a.m. Friday in his courtroom.
“But you will remain in jail without bond until the hearing,” Clymer said, as Johnson appeared visibly dismayed on the video feed from the jail.
“When you paid $40,000, you proved to me that you’ll pay it to stay out of jail,” Clymer said.
Johnson said he didn’t know there was a warrant for his arrest and questioned how he would know that.
“Police knocking on your door,” Clymer responded.
Johnson repeated that he didn’t know there was a warrant out for his arrest before Clymer cut him off.
“I strongly suggest you stop talking about that because it could be used against you in the obstruction case,” said Clymer, who entered a preliminary plea of not guilty on the obstruction charge on Johnson’s behalf.
Johnson said he’d be ready for the next hearing because “I have to get out of here to fulfill my obligation to the court,” he said.
Clymer said he “strongly suggested” that Johnson hire an attorney. Johnson has run through a series of attorneys, represented himself, and then was appointed a public defender until Clymer determined in court that Johnson was not indigent and therefore didn’t qualify for one.
His most recent attorney withdrew from the case on Ocr. 22, according to online court records.
Special Deputy Prosecutor David Rooda deemed Johnson a flight risk since he owns numerous properties “and rather than surrender himself willingly to the court, he refused,” Rooda said, adding that while there’s no evidence that Johnson is a danger to the community, he was out on bond when he was charged with obstruction of justice.
If convicted on the obstruction charge, Clymer said Johnson could face six months to 2.5 years in the Department of Correction. He was sentenced to four years of probation in the fraud case and, if his probation is revoked, will be remanded to state prison for that time period.
In addition to missing the restitution payment, other factors in revoking Johnson’s bond include his failing to notify the probation department when he filed a new business with the Indiana Secretary of State’s Office on Aug. 2, according to court filings, and his recent arrest on the obstruction charge.
Porter Police arrested Johnson Thursday night at his parents’ residence in the 300 East block of County Road 400 North with the assistance of the Porter County Sheriff’s Department and Indiana State Police.
Johnson was charged with obstruction of justice because he allegedly “concealed his person and refused to surrender to law enforcement while knowing he was a fugitive from justice,” according to charging documents signed off by Rooda.
Johnson decided to plead guilty in October 2023 in the securities fraud case, less than three weeks before his trial. Clymer reluctantly accepted the plea in January.
Under the terms of that agreement, Johnson agreed to plead guilty to one count of broker-dealer registration violation, a Class C felony. The additional 14 counts against him were dismissed as terms of the plea.
Johnson agreed to pay $604,500 in restitution to six victims of his real estate schemes, even though his guilty plea involved one victim. The amount owed to the victims ranged from $19,000 to $242,500. He also was sentenced to serve four years on probation.
The allegations against Johnson go back to 2007 and include multiple victims who, according to charging documents, lost hundreds of thousands of dollars in real estate investments gone bad when they did not get the returns they were promised and couldn’t get back the money they put into the deals.
Charges against Johnson were filed in March 2014. He was initially charged with 14 counts related to securities fraud, Class C felonies at the time. Two months later he was charged with one count of forgery, also a Class C felony, and two counts of theft, Class D felonies, in a related case.
An appellate court ruling trimmed that to 15 counts after determining that the statute of limitations had run out for one of the victim’s claims but the rest of the charges could stand.
alavalley@chicagotribune.com
