Troy Barnes, a defendant in a Securities and Exchange Commission case, faces potential contempt of court charges for his continued refusal to cooperate with legal proceedings. In June, Barnes claimed ignorance of legal processes and financial inability to secure counsel, prompting a court order for his full participation going forward.

The SEC filed a proposed scheduling order on July 31, 2015, detailing Barnes' ongoing non-compliance. The filing states Barnes informed SEC counsel he would not participate in a Rule 26(f) conference scheduled for July 7, just days after he pledged to assist the case. Barnes also failed to respond to emails seeking his input on the scheduling order.

This contrasts sharply with co-founder Kristi Johnson, who is working through her attorney. The SEC alleges Barnes and Johnson defrauded investors in The Achieve Community (TAC) by promising extraordinary returns of 700 percent, generated by a "triple algorithm." They marketed TAC as a stable, long-term program offering "limitless" returns. In reality, the SEC contends, TAC operated as a Ponzi and pyramid scheme, paying early investors with funds from new participants.

The SEC is seeking permanent injunctions against future violations of federal securities laws, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties. The absence of a damages claim is likely linked to a separate criminal filing against Johnson by the Department of Justice, which carries potential jail time and significant fines. A criminal case against Barnes is anticipated.

To build their case, the SEC plans to present evidence from payment processors, investigative findings, and financial records. Johnson has agreed to preserve relevant emails.