A federal judge in Alabama set a trial date of December 5, 2016, for the Securities and Exchange Commission's case against Achieve Community. Judge Karon Owen Blackburn of the U.S. District Court for the Northern District of Alabama issued the scheduling order on August 20, 2015, detailing the path forward for the alleged Ponzi scheme.
The court established several deadlines leading up to the trial. Parties must finalize any joinder of parties or amendments to pleadings by October 5, 2015. Fact discovery is scheduled to conclude on May 20, 2016. Expert discovery and all dispositive motions will cut off on August 19, 2016. Affirmative experts need to be named by June 20, 2016, and rebuttal experts by July 22, 2016.
Achieve Community, co-founded by Troy Barnes and Kristi Johnson, operated as an alleged matrix-based Ponzi scheme. The SEC accused the company of promising investors substantial returns, often up to $8,000 per month, for recruiting new members into a tiered compensation structure. These returns reportedly came from new investor funds rather than legitimate business activities, a hallmark of pyramid schemes.
Achieve Community co-founder Troy Barnes did not appear for or participate in the August 20 scheduling conference. Court minutes specifically noted that Barnes "needs to participate in good faith with parties and counsel involved in this case in the future." This directive came despite Barnes previously telling the court he intended to "do the right thing" and "do everything [he] can to move forward in helping this case."
Such non-cooperation can complicate litigation, potentially leading to default judgments or procedural delays. The SEC often seeks to ensure all named defendants are actively engaged, particularly in complex financial fraud cases where asset recovery and investor restitution are primary goals. Defendants failing to adhere to court orders risk further sanctions, including contempt charges.
Meanwhile, the SEC filed a request for an exemption to the asset freeze specifically for Kristi Johnson. Johnson, the other co-founder of Achieve Community, sought permission to sell a vehicle currently frozen under court order. The agency's filing asked the court to allow Johnson to sell the car and deposit the proceeds into her criminal attorney's trust account.
Asset freezes are standard tools in SEC enforcement actions against alleged Ponzi schemes. They prevent defendants from dissipating assets that could eventually be used for investor restitution. Courts sometimes grant limited exemptions for essential living expenses or legal fees, provided the request is justified and does not unduly deplete the frozen funds. The need to liquidate personal assets for legal representation often signals the severe financial strain defendants face in such high-stakes litigation.
A Trial Preparation and Final Pretrial Conference is slated for November 18, 2016, at 1:30 p.m. The actual jury trial, projected to last seven days, is scheduled to commence on December 5, 2016, at 8:30 a.m. This timeline extends the legal proceedings significantly, pushing the resolution of the SEC's claims more than a year out from the August 2015 scheduling.
Investors with concerns about Achieve Community can contact the SEC's Office of Investor Education and Advocacy for information on financial fraud recovery.