Fraudster Asheville Airbnb business owner denied public defender, for now

Joel Burgess, Asheville Citizen Times
Updated ·4 min read
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ASHEVILLE - An Airbnb business owner convicted of bank fraud and facing hundreds of thousands of dollars in a government seizure has been denied a public defender by a federal judge, for the time being.

Shawn Johnson, 38, of Asheville, pleaded guilty in 2022 to fraudulently obtaining $3.5 million from lending institutions to finance a short-term rental business. He is now awaiting sentencing, which combined with a June guilty plea of firearm possession by a felon would bring a maximum of 40 years in prison, though he is expected to face a shorter sentence.

Prior to any prison sentence, U.S. Chief District Court Judge Martin Reidinger for the Western District of North Carolina in Asheville ruled that $500,000 in Johnson's property can be seized by the government. Prosecutors are now seeking to add $152,000 in funds to the seizure, according to Oct. 26 court documents.

"These funds are properties constituting or derived from proceeds that Defendant obtained directlyor indirectly as the result of fraud, and/or are substitute property," Assistant U.S. District Attorney Benjamin Bain-Creed said in the motion for the forfeiture.

A federal judge has denied as premature a motion from convicted bank fraudster Shawn Johnson to appoint public defender to help with his appeal.
A federal judge has denied as premature a motion from convicted bank fraudster Shawn Johnson to appoint public defender to help with his appeal.

Johnson, who is being held in the Transylvania County jail, is seeking to stop the forfeiture by appealing the money ruling to the 4th Circuit Court of Appeals. He was free on bond until a judge found he violated release conditions, including selling property and seeking the services of a sex worker out of state.

Johnson attempted to make the appeal without the help of his attorneys, sending a handwritten "pro se" note last month, but on Oct. 21 he sent another note asking for the court to appoint a public defender.

On Oct. 31, U.S. Magistrate Judge Carlton Metcalf denied the request as premature, saying the appeal is not technically valid because the district court is still dealing with the case.

"The 4th Circuit has noted that the district court has not yet entered judgment in this case and has advised that it will treat Defendant’s September 15, 2023 Notice of Appeal as filed as of the date the district court enters its judgment and will docket the appeal following entry of judgment," Metcalf said.

The latest filing on the case was the government's Nov. 1 presentencing investigation report that is sealed to the public.

The Citizen Times reached out to Johnson's current attorney Thomas Amburgey.

Prosecutors have said that Johnson used different businesses to manipulate his assets. In the latest forfeiture motion, Bain-Creed, the assistant U.S. attorney said Johnson used myriad North Carolina business entities to purchase and finance real properties, including both real properties that constitute or derive from fraud proceeds and real properties."

"Although these business entities bore many names, they all bore the same hallmark of total ownership by Defendant and total control by Defendant personally or Defendant and his agent,Julie Nash. This motion identifies for forfeiture the funds derived from real properties titled to these entities, as well as funds derived from the sale of tiny houses," Bain-Creed wrote.

Shawn Johnson, 38, of Asheville, pleaded guilty in 2022 to fraudulently obtaining $3.5 million from lending institutions to finance a short-term rental business.
Shawn Johnson, 38, of Asheville, pleaded guilty in 2022 to fraudulently obtaining $3.5 million from lending institutions to finance a short-term rental business.

The latest identified funds are $90,000 from the foreclosure sale of 24 Apogee Drive, currently held at the Buncombe County Clerk of Court; $8,000 from the foreclosure sale of 648 Sand Hill Road currently held at the clerk of court; $13,000 from the sale of 99999 Sand Hill Road currently held in the trust account of attorney Sean Devereux; and $40,000.00 from the sale of tiny houses also held in Devereaux's trust account, the filing said.

Johnson is also facing charges in Buncombe County District Court for allegedly assaulting a man with a machete and letting chickens run loose.

More than a decade before the gun and fraud guilty pleas, Johnson was sentenced to 16 months in federal prison for counterfeiting. After that, he appeared to turn his life around, becoming known as a hard-working handyman and a celebrated entrepreneur, owning dozens of short-term vacation rentals.

But some doing business with him began to complain, saying he had bilked them out of money. In 2019, he had his real estate license permanently revoked after the N.C. Real Estate Commission determined he had kept money earned by Airbnb owners whose property he managed.

Joel Burgess has lived in WNC for more than 20 years, covering politics, government, and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force. Got a tip? Contact Burgess at jburgess@citizentimes.com, 828-713-1095, or on Twitter @AVLreporter. Please help support this type of journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: Fraudster Asheville Airbnb owner denied public defender, for now