D. Johnson files additional lawsuit over $3M loan

RSS

Dustin Johnson expanded his legal proceedings this week involving a $3 million loan he made last year to a former financial advisor.

Johnson, who is playing this week’s BMW Championship, filed a second lawsuit on Wednesday in U.S. District Court in Georgia against Tony Adams and his firm, Alliance of Financial Professionals (AFP).

In the suit, Johnson claims Adams, a Georgia-based accountant, and AFP breached their fiduciary duty, committing professional negligence and malpractice.

According to the complaint, Adams and AFP advised Johnson to loan Nathan Hardwick and the Morris Firm $3 million. Last October, Johnson filed a separate lawsuit against Hardwick and the Morris Firm claiming RICO and conspiracy violations.

In Wednesday’s filing, Johnson claims that in July 2014 Hardwick contacted AFP to assist in the investigation into the Morris Firm’s financial affairs, and that in August 2014 Adams attended a meeting where a $5.9 million shortfall in the Morris Firm’s escrow accounts was confirmed.

Despite that knowledge, Johnson said Adams advised him to loan Hardwick and the Morris Firm the $3 million.

“Based on this investigation and at the time Johnson made the loan, Adams and [AFP] knew or should have known that the Morris Firm may not be willing or able to repay Johnson the $4 million (the original $3 million loan along with 12 percent interests) he was promised as a return on the loan,” the lawsuit claims.

“Johnson would not have relied on Adam’s approval had he known that Adams’ loyalties were divided among Johnson, Hardwick and the Morris Firm and it’s other owners [Mark and Gerard Wittstadt].”

Johnson is seeking punitive damages from Adams and AFP.