We were approached by Shawn Johnson with a piece of property and a house he had for sale in October. As we began the negotiating process I was able to assist Shawn Johnson in getting one of his previously disgruntled clients back to the closing table. Johnson insisted that I get the [email protected]% 0f $356k. He told me that in order to pay me I would have to "technically be an employee." I filled out the appropriate paperwork.
On December 19, after having to chase him down, he cut me a check for the comission owed on the close of the land only... 1.5% of 100K. The amount should have been $1500, but he "withheld taxes". My check was in the amount of $1200. I was then instructed not to do anything further with the clients I had returned to him.
In early March of as we were nearing the close of our property, myself and our broker sat down with Shawn Johnson and he, at that time, agreed to pay the remaining $1555 due me. I still had not received a W2 for the $1500 owed and paid partially.
Between the months of 1/05 to current, I have been told by his other employees and clients currently in the building process with Shawn Johnson that A) Employees are not being paid. B) Employees had not received W2 forms up to two weeks ago. C) Clients who were promised homes to be completed "within three to four months" were still looking at very little work being done 6 months later. One client reports that when they contacted Shawn Johnson's suppliers to get the status of their order After NUMEROUS attempts to contact Shawn with zero response) they found that no order had been placed. Shawn Johnson threatened the client with legal proceedings, fines in excess of 75K, and claimed breach of contract as grounds. These tactics have been used on most of Shawn's clients.
On March 25th we closed on our property. It was an FHA loan, therefore Shawn Johnson had to supply proof that an FHA home warranty was in place. He provided that "proof", however after I contacted the warranty company regarding a roof problem I learned that the Warranty Company still had not received payment from Shawn... 2 months later!
Shawn Johnson claimed that our Property Taxes would amount to apx. $1200, and that money was escrowed into the contract. After researching that, I discovered that we are paying the taxes on 160 acres and TWO homes owned by Shawn Johnson. I have learned that our ACTUAL tax bill will be around $700 for 2005. It was less in 2004.
Since the closing on our property, our broker has attempted to contact Shawn Johnson more than 20 times in a period from April 8th to current, with a response on June 1. His response was that I was conning him, he wasn't about to pay me a dime according to his employment contracts, and since I am threatening to file suit against him he owes me ZERO.
The total amounts he owes me: $1555 remaining comission
$ 300 taxes he took out
$ 560 overage paid to him
Total: $2415
On June 2, I filed a fraud report with the IRS. If I am not paid immediately, I will take whatever legal avenues are available. This guy is a snake and a thief! Hope he gets something out of this Sunday's sermon!
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