A Dallas businessman has been accused of using falsified financial records to secure more than $40 million in loans through a scheme that prosecutors allege defrauded lenders of over $20 million.
Garrett Douglas Johnson, 41, was charged on August 19 after a federal grand jury returned a six-count indictment. The charges include five counts of bank fraud and one count of wire fraud.
Johnson, who maintained residences in Dallas, Texas, as well as Kingston and Edmond, Oklahoma, allegedly presented himself as an owner, manager, or partner of multiple businesses. According to prosecutors, he operated a yearslong fraud scheme between 2018 and 2024 by applying for loans with falsified financial statements, inflated revenue figures, and fabricated trust-account balances.
Investigators state that Johnson occasionally claimed millions of dollars were held in law firm trust accounts as collateral when those accounts did not exist. The indictment also alleges that he failed to disclose existing debts when applying for additional financing.
Johnson allegedly obtained the loans from FDIC-insured institutions, including Texas Capital Bank, Happy State Bank, American National Bank & Trust, and Gateway First Bank.
The indictment alleges that Johnson used proceeds from newer loans to cover obligations from earlier loans obtained through the scheme. He also allegedly diverted funds to unrelated business ventures and transferred more than $100,000 into a personal account to pay the IRS. The indictment seeks the forfeiture of property connected to the alleged offenses.
If convicted, Johnson faces a maximum sentence of up to 30 years in federal prison for each count of bank fraud, and up to 20 years for the wire fraud charge.
