Category Archives: Legal status

Galt’s Gulch Chile Investors Win Another Legal Battle

Turn of the Screw: GGC Recovery Wins Appeal, Turns Up Heat on Con Man Ken Johnson

Last year, the Galt’s Gulch Chile Recovery Team, using Josh Kirley’s contract, entered into arbitration with Inmobiliaria Galt’s Gulch to receive restitution and penalties based on its inability to fulfill its obligations.

On May 18 2016, the arbitrator found in favor of The GGC Legal Fund and awarded us a $1.3 million claim on Inmobiliaria Galt’s Gulch. Inmobiliaria GG then appealed the decision.  The basis for the appeal was that the arbitrator showed gross negligence and immoral behavior with his decision, a ridiculous claim but the only avenue open for an appeal.

Mario Del Real

Chilean Swindler Mario Del Real
Is that a smile, or a grimace?

On November 17, the Appeals Court published their decision. The justices rejected Mario Del Real’s challenge to arbitrator Walker’s finding in favor of the legal fund. The award of $1.3 million in restitution and penalties stands.

We can’t overstate the importance of this decision. Not only will we have a substantial lien on the GGC properties, but the basis for the arbitration award and the subsequent Appeals Court ruling will bolster our criminal cases.

In his appeal, Mario Del Real representing GGC stated that former developer Ken Johnson was not the legal representative of Inmobiliaria Galt’s Gulch when he signed Josh’s contract and accepted his funds. Both the arbitrator and now the Appeals Court  reject that this invalidated our claim of restitution. The decision reaffirms that as an agent of Inmobiliaria Galt’s Gulch, Johnson represented the company.

In addition to this arbitration, The GGC Legal Fund has a criminal case against Johnson based on Josh’s contract. We are accusing Johnson of a felony violation of the Urbanism and Construction Act when he did not purchase a bond or insurance to protect Josh’s investment as required by law. Johnson will likely claim that he was not the company legal representative and therefore not responsible for buying the insurance or bond. That defense was just blown out of the water.

Here is the link to the text of the Appeals Court decision. Note the final sentence:

“Por estas razones, se rechaza el recurso de queja interpuesto en lo principal de fojas 51, con costas, por estimarse que no hubo razón plausible para deducirlo.”

Translation: For these reasons, the appeal is rejected, with costs, because it is considered that there was no plausible reason to submit it. [Emphasis added.–Ed.]

In other words, the appeal was harassment, pure and simple.

GGC Recovery Team logo

Btw, Johnson has been spending his time lately posting all over social media that we lost our arbitration, and that all our criminal cases have been thrown out of court. Yet again, Li’l Kenny Fraudster proves to be an abject liar.

We are wondering when the “libertarian community,” who often claims to hate liars, will recognize this fraud for what he is and support the GGC Recovery Team. We’re not holding our breath.