Revealed in a recently filed motion in the SEC’s case against Achieve Community reveals that Kristi Johnson is the subject of a DOJ criminal investigation in North Carolina.

But it’s not the confirmation of an investigation that’s interesting about the motion, so much as what it’s asking for.

As part of the SEC’s civil case against Achieve Community,
a preliminary injunction was granted last month
.

Carrying over from a previously granted temporary injunction, both saw Kristi Johnson prohibited from transferring any Achieve Community investor funds she might have access to.

Enter DOJ investigators into the picture, who on February 27th approached Johnson about doing just that.

So says a Joint Motion filed by Johnson’s lawyers and the SEC on the 27th of February itself:

On the afternoon of Friday, February 27, 2015, the criminal authorities approached Ms. Johnson’s attorneys about the possibility of Ms. Johnson voluntarily transferring funds associated with both the on-going criminal and civil investigations from an “ipayDNA.info” processing account used by the Achieve Community that is still within her control.

The account is believed to be located in Hong Kong and, as such, creates obstacles for reach by authorities with search and seizure powers.

As of February 26, 2015, this account was believed to have funds in amounts in excess of $800,000 in United States currency.

For those unfamiliar with the processor, iPayDNA were brought in to accept deposits from Achieve investors after
Payoneer terminated the company’s ewallet services
.

Shortly after iPayDNA were hooked up the Achieve backoffice,
reports of credit card fraud from Achieve investors
began to surface.

Whether that comes up later in the ongoing criminal investigation remains to be seen, but for now attention is focused on the $800,000 iPayDNA accepted from Achieve investors.

Due to the injunction against her, Johnson is unable to transfer the funds in question – even if it’s the DOJ asking her to do so.

Leave from the court to transfer the funds is required, hence the filing of a Joint Motion asking for permission to do so being filed on the 27th.

In order to assist the authorities’ efforts to freeze and possibly seize a substantial amount of United States currency, Ms. Johnson, jointly with the United States Securities and Exchange Commission, requests that the Court relax the preliminary injunction issued in this case, on a one time basis, to permit the funds transfer from the “ipayDNA.info” account, to which she has access, to a pre-arranged bank account located in the United States, such that authorities will be able to freeze and potentially seize the funds as part of their on-going criminal investigation.

Left unsaid, and this is the interesting part, is what Johnson is getting in return for her cooperation.

Far be it from me to point out the stupidity in not assisting the DOJ with a criminal investigation, but I’d be willing to be the house on Johnson’s lawyer

🤖 Quick Answer

Who is Kristi Johnson and what legal issues does she face?
Kristi Johnson is a subject of a Department of Justice criminal investigation in North Carolina related to the SEC's civil case against Achieve Community. She has been prohibited by preliminary injunction from transferring investor funds, following allegations connected to the company's financial operations.

What was the purpose of the SEC's preliminary injunction against Johnson?
The SEC's preliminary injunction, granted in the Achieve Community case, prohibits Kristi Johnson from transferring any company investor funds to which she may have access, restricting her control over financial assets during the ongoing civil litigation and criminal investigation.

When did DOJ investigators contact Johnson regarding fund transfers?
DOJ investigators approached Kristi Johnson on February 27th regarding the potential transfer of Achieve Community investor funds, prompting a joint motion filed by Johnson's legal representatives and the SEC on the same date to address the investigation

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