The prison sentence for one inmate at the U.S. Penitentiary in Marion, Illinois, just got a lot 

longer. Kurt F. Johnson, 56, who was due to be released in 2028, was sentenced earlier today to 

serve an additional 216 months behind bars for filing fictitious, involuntary bankruptcy petitions 

against federal prison officials. Johnson was convicted of the charges after a three-day jury trial 

in Benton, Illinois, last year.

The evidence at trial established that, in January 2018, with the assistance of persons outside the 

prison, Johnson succeeded in filing false involuntary bankruptcy petitions against the prison 

warden and an officer at the prison. The bogus petitions alleged that each victim was indebted to 

Johnson in the amount of $20 billion, owing to a judgment Johnson claimed to have obtained from the 

International Court of Justice (also known as the World Court). As part of the scheme, Johnson 

purportedly canceled $1 billion of the supposed debt and then filed forms with the Internal Revenue 

Service showing the canceled debt as unreported income for his victims.

The mere filing of the fictitious claims resulted in both victims receiving solicitation letters 

from credit counseling services and loan companies based upon their supposed bankruptcy. Once the 

fraud was discovered, the United States quickly moved to seal the proceedings to prevent further 

damage to the victims’ reputations.

At trial, the United States presented evidence that Johnson has a history and pattern of harassing 

judges, court personnel, and Bureau of Prisons employees through the filing of fictitious claims. 

Johnson eschewed appointed counsel and represented himself at the trial, testifying in his own 

defense that he genuinely believed the World Court had awarded him a default judgment for

$20 billion on account of his placement in the prison’s Communications Management Unit. The jury 

deliberated for approximately 40 minutes before returning guilty verdicts on all four counts.

“Kurt Johnson broke the law trying to harm those who enforce it,” U.S. Attorney   Steven

D. Weinhoeft said. “His sentence sends an unmistakable message to all criminals who would lash out 

against the men and women who work within the justice system: you will be prosecuted to the fullest 

extent of the law.”

Johnson’s sentence also includes a three-year term of supervised release.

Johnson won’t begin serving his 18-year sentence until he finishes serving the last decade of a 

300-month sentence he previously received for an unrelated fraud conviction in the Northern 

District of California. His underlying crime involved a nationwide debt elimination scheme that 

raked in over $6 million.

“I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners who serve on the 

Southern District of Illinois Bankruptcy Fraud Working Group for their strong commitment to 

combating fraud and abuse in bankruptcy cases, as evidenced by this prosecution,” stated Nancy J. 

Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). The U.S. Trustee 

Program is the component of the Justice Department that protects the integrity of the bankruptcy 

system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 

is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, 

Illinois.

The case was investigated by the FBI, with substantial assistance from the Federal Bureau of 

Prisons. Assistant U.S. Attorneys Michael J. Quinley and William E. Coonan prosecuted the

case.

 

 

A federal inmate housed within the Communications Management Unit (CMU) at the U.S. Penitentiary in Marion, Illinois has been found guilty of filing fictitious involuntary bankruptcy petitions against federal prison officials. Kurt F. Johnson, 55, was convicted by a jury after a three-day trial in Benton, Illinois. The charges against Johnson were originally brought in a four-count federal indictment returned in July 2018.

The evidence at trial established that, on January 8, 2018, with the assistance of persons outside the prison, Johnson succeeded in filing false involuntary bankruptcy petitions against the prison warden and an officer at the prison. The bogus petitions alleged that each victim was indebted to Johnson in the amount of $20 billion, owing to a judgment Johnson claimed to have obtained from the International Court of Justice (also known as the World Court). As part of the scheme, Johnson purportedly canceled $1 billion of the supposed debt and then filed forms with the Internal Revenue Service showing the canceled debt as unreported income for his victims.

The mere filing of the fictitious claims resulted in both victims receiving solicitation letters from credit counseling services and loan companies based upon their supposed bankruptcy. Once the fraud was discovered, the United States quickly moved to seal the proceedings to prevent further damage to the victims’ reputations.

At trial, the United States presented evidence that Johnson has a history and pattern of harassing judges, court personnel, and Bureau of Prisons employees through the filing of fictitious claims. Johnson eschewed appointed counsel and represented himself at the trial, testifying in his own defense that he genuinely believed the World Court had awarded him a default judgment for $20 billion on account of his placement in the CMU. The jury deliberated for approximately 40 minutes before returning guilty verdicts on all four counts.

Johnson is currently serving out the last decade of a 300-month sentence for an unrelated fraud conviction in the Northern District of California. His underlying crime involved a nationwide debt elimination scheme that raked in over $6 million.

Sentencing is set for January 3, 2019, at 10:00 a.m. at the federal courthouse in Benton. By statute, Johnson could receive as much as 20 additional years in prison, which may be imposed to run consecutively to the time he is already serving.

"I am grateful to U.S. Attorney Weinhoeft and our law enforcement partners who serve on the Southern District of Illinois Bankruptcy Fraud Working Group for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by this prosecution," stated Nancy J. Gargula, U.S. Trustee for Southern and Central Illinois and Indiana (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana, and Peoria, Illinois.

The case was investigated by the Federal Bureau of Investigation, with substantial assistance from the Federal Bureau of Prisons. Assistant United States Attorney Michael J. Quinley is prosecuting the case.