Commissioner Enters Order Against Georgetown Promoter of Fraudulent Medical Investment

The order names Johnson and his businesses, Recovery Management International and Advanced Wellness Services, LLC, DBA WellnessTech Health^TM.

Advanced Wellness was the “exclusive distributor” of medical devices referred to as WellnessTech Systems.  Advanced Wellness and Johnson touted WellnessTech Systems, claiming they are “the most advanced early screening system for use by Primary Care physicians.”  The WellnessTech Systems purportedly permitted physicians to test patients of critical risk factors in a “10-minute, non-invasive test.”  Johnson claimed physicians would test patients for these critical risk factors during annual appointments.

Advanced Wellness and Johnson began offering investments in the WellnessTech Systems to Texas residents.  They were afforded the opportunity to invest $50,000 in the scheme.  After purchasing an investment, Johnson claimed the WellnessTech Systems would be placed with physicians, the physicians would be trained to use the products to test their patients.  Investors were passive and not responsible for managing or servicing the WellnessTech Systems, or billing for their use.

The pitch was lucrative.  Johnson promised investors a return of 20 percent of their investment per year over a term of two years, paid on a monthly basis.  He also promised Advanced Wellness would pay $5.00 to investors whenever a physician used the WellnessTech System to test a patient, and predicted the aggregate payment of these returns could yield an additional profit of $15,000 to $18,000 per year over a term of five years.

The Enforcement Division began investigating the scheme and determined that Advanced Wellness and Johnson were engaging in an illegal securities offering.  The Enforcement Division directed Johnson to cease and desist offering the investment.  Johnson thereafter promised to cease and desist offering the investments.  His promise was a sham.  On the same day Respondent Johnson met with the Enforcement Division, Advanced Wellness and Johnson again illegally offered investments in the WellnessTech System.  Commissioner Iles then entered an emergency cease and desist order to stop the scheme.

Johnson concealed significant information from potential investors, including information relating to the considerable risks associated with the WellnessTech Systems and the ability of Respondent Advanced Wellness to actually satisfy its promised payment of returns.

The case was litigated at the State Office of Administrative Hearings.  Joe Rotunda, Division Director, and Jeramy Heintz, Attorney, represented the Enforcement Division.  The docket number is SOAH Docket 312-19-3969 and the order number is ENF-20-CDO-1815.