EL PASO, Texas (KFOX14/CBS4) — An El Paso man has pleaded guilty in federal court to running a long-running Ponzi scheme that prosecutors say was built on claims he would use investor money to promote NBA preseason games.

Timothy France Johnson, 63, pleaded guilty on Friday to seven counts of wire fraud, according to the U.S. Attorney’s Office for the Western District of Texas.

Johnson faces up to 20 years in federal prison on each count.

According to court documents, Johnson began soliciting investments around Feb. 9, 2009, and continued through about May 14, 2020.

Prosecutors said he told investors he would use their money, as a third-party promoter, to obtain venues and fund marketing and promotion for NBA preseason games. He provided investment agreements promising a guaranteed return and represented the investments had “zero risk.” Authorities said he also gave victims fraudulent investment statements and other fraudulent contracts and letters to support a claimed connection to the NBA.

An FBI investigation found the investments were not used to pay for NBA preseason games or promotion, but instead were used to make payments to earlier investors, withdrawn as cash, or spent on other non-business-related expenses, according to court documents, officials said.

Court records describe several victims and transactions, including one investor who participated for about five years. That victim wired $15,000 to Johnson on April 24, 2014, after Johnson said an investment between a minimum $12,500 and maximum $25,000 was required. After the preseason, Johnson contacted the investor to say how much money was made and to persuade the investor to “roll the money over” into the next season’s games, records state. The same investor later made an additional $20,000 investment on June 28, 2018.

On April 8, 2019, that victim signed an investment agreement with Johnson’s company, BOLO Sports & Entertainment LLC, stating the victim would invest $50,000 in an NBA preseason game played by a specific NBA team. The contract guaranteed the return of the initial $50,000 investment plus a percentage of the net revenue from the game. Records indicate the victim wired $50,000 on April 9, 2019, and sought to invest another $50,000 just over a week later. Another investment agreement was signed, and the funds were wired on April 17, 2019, according to court documents.

Johnson also told another victim there would be a 33% return on investment and “zero risk” because the games were insured if something went wrong or if ticket sales did reach the breakeven point, according to court documents. He claimed he had been organizing NBA games since the late 1980s to early 1990s. That victim invested $100,000 with Johnson in 2019 and signed an investment agreement guaranteeing a 100% return on the investment plus any additional profit, records state. Shortly after, Johnson offered the victim a chance to invest $60,000 in a second preseason game, and the victim wired the money.

After the investments, Johnson discussed with victims the possibility of them acquiring his business, according to court documents. Prosecutors said Johnson provided two victims with tickets to the NBA preseason game in which they had allegedly invested and told them they would meet with NBA and team executives to discuss the business and learn more about the sports and entertainment industry. The investors attended the game with Johnson but did not meet with any executives, according to court documents.

A third victim invested $75,000 with Johnson over the 2019 and 2020 NBA preseasons, court records state. A financial analysis of Johnson’s accounts showed none of the invested funds were used to pay the NBA, NBA teams, venues, or any other apparent promotion-related expenses, according to court documents.

Johnson was charged in April 2024 with seven counts of wire fraud and three counts of engaging in monetary transactions in property derived from specified unlawful activity. He pleaded guilty to the seven wire fraud charges.

RECOMMENDED: Border Patrol agent indicted over alleged choking handcuffed detainee in Dona Ana County

Sign up to receive the top interesting stories from in and around our community once daily in your inbox.