A joint motion filed on April 18th by all parties in SEC vs. Achieve Community requested the U.S. District Court for the Northern District of Alabama to vacate the December 5th trial date. The motion cited judicial efficiency, noting the ongoing criminal proceedings against defendants Troy Barnes and Kristi Johnson, which were anticipated to go to trial in late 2016.

Judge R. David Blackburn Jr. approved the request on April 20th. This action administratively closed the civil case, clearing all scheduled dates from the court's calendar. The clerk received instructions to close the civil action "subject to reopening for good cause," meaning the case will reactivate once the criminal matters conclude.

Achieve Community operated as a multi-level marketing program. It solicited investments in what it claimed were automated foreign currency exchange, or forex, trading operations. The Securities and Exchange Commission, or SEC, alleged the scheme was an unregistered offering of securities and a fraudulent Ponzi operation. Participants were encouraged to "invest" funds and recruit new members, earning commissions from their downline's contributions. The SEC's complaint, filed in October 2015, accused Troy Barnes, the program's founder, and Kristi Johnson, a prominent promoter, of orchestrating the scheme.

Kristi Johnson has already entered a guilty plea in her criminal case. Her sentencing remains on hold, pending the outcome of Troy Barnes' criminal trial. Barnes' trial was scheduled for the May 2016 term, though no precise date has been announced.

The SEC's civil enforcement action now sits in limbo. Criminal charges typically take precedence because they involve the potential for imprisonment and require a higher standard of proof, "beyond a reasonable doubt." Civil cases, in contrast, seek monetary penalties, disgorgement of illegal profits, and injunctions, operating under a "preponderance of the evidence" standard. Allowing the criminal case to proceed first prevents defendants from having to choose between testifying in a civil proceeding and potentially incriminating themselves in a concurrent criminal matter.

Once the criminal trials finish, and the SEC is prepared to resume its pursuit of civil penalties and restitution for investors, the court will likely reopen the case. The administrative closure provides a mechanism for the court to pause proceedings without dismissing the underlying claims. The SEC aims to recover funds for investors who lost money through the alleged scheme, a process that can only fully advance after the criminal justice system has run its course. The U.S. Attorney's Office for the Northern District of Alabama continues its prosecution of Barnes.