Greenwich dealer pleads guilty to laundering money stolen from client's estate
David L. Johnson faces up to 20 years in prison and is scheduled to be sentenced October 30.
Law and Crime
A Greenwich antiques dealer pleaded guilty July 21 to a federal money laundering charge, admitting he laundered proceeds stolen from an elderly client whose estate he managed.
David L. Johnson, 66, entered the plea before U.S. District Judge Sarah F. Russell in New Haven, court records show. He is scheduled for sentencing October 30 and faces up to 20 years in prison.
Johnson pleaded guilty to a single count of money laundering, one of five felony counts a federal grand jury returned against him. After sentencing, prosecutors will move to dismiss the remaining four counts, documents show.
Urgent Matter previously reported that Johnson was charged in December with money laundering, interstate transportation of stolen property and three counts of engaging in monetary transactions derived from unlawful activity.
He had pleaded not guilty and later sought a hearing to question his mental competency. It is unclear why Johnson changed his plea.
Paid subscribers can read the full plea document.
Court Documents: David L. Johnson’s plea agreement
Court records from U.S. District Court for the District of Connecticut.
Adam Schrader
Johnson operated an antiques business, Antique Treasures, and an auction house, Greenwich Auction, both based in Stamford, records show. He also controlled entities called Cache Art and Cache Spa.
On October 23, 2018, Johnson became an agent under a power of attorney for the victim, an elderly, wealthy man who required extensive medical care, the plea documents show. The power of attorney stated that Johnson "MAY NOT use [the victim's] property to benefit himself."
The same day, the victim signed a will naming Johnson the executor of his estate and the trustee of his revocable trust. Johnson was not a beneficiary. The victim died on August 27, 2020, at 87.
From November 2018 until at least April 2023, Johnson embezzled from the victim and his estate, according to a stipulation of facts he signed as part of the plea, obtained by Urgent Matter.
He wrote unauthorized checks to himself or to businesses he or his wife controlled, converted checks, withdrew funds and paid one of his own credit cards directly from the victim's bank accounts, the stipulation says.
In one instance, the federal government issued a $436,529.68 tax refund to the victim's estate for 2019. The check was made out to "% Dave Johnson" at the victim's home address. Johnson deposited it into his personal checking account that November, the stipulation says.
Two months later, Johnson bought an $87,580 cashier's check drawn on those funds and made payable to Fidelity Investments, the transaction underlying the money laundering count. He knew the purchase was meant to conceal the source of the stolen money, the stipulation says.
Dealer accused of theft seeks mental competency hearing
David L. Johnson, 66, was indicted by a federal grand jury in December.
Adam Schrader
The indictment said the thefts exceeded $960,000. The plea stipulation puts the total loss to the victim and his estate at about $2.17 million. Johnson has paid $1,143,662.88 in restitution and owes an additional $1,025,056.36, documents show.
Prosecutors and Johnson disagree over how his sentence should be calculated.
The government contends Johnson obstructed justice, which would place his guideline range at 97 to 121 months and disqualify him from a reduction for accepting responsibility. Johnson disputes the obstruction and argues for a range of 63 to 78 months. Under the plea agreement, he gave up his right to appeal any sentence of 121 months or less.
Prosecutors are also seeking supervised-release conditions that would bar Johnson from serving as a power of attorney, trustee or executor for anyone else without a judge's approval.
Johnson had sought to avoid trial on competency grounds. In a January motion, his attorney, Philip Russell, wrote that Johnson suffered cognitive decline after being punched in the head during a February 2023 assault and had lost the ability to run his business or assist in his defense.
The motion also stated that an expert for the opposing side in related civil litigation had found Johnson to be "malingering."
The court ordered a psychiatric evaluation by Dr. Franklin Brown, whose report was filed under seal in May, records show. Russell withdrew the competency motion at a status conference days later, and Johnson pleaded guilty two months after that.
The case was investigated by the IRS Criminal Investigation division.
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