TO BE PUBLISHED 

Suptriur (Court uf 

2014-SC-000288-K 

SETH JARAD JOHNSTON 

[DATE 

MOVANT 

V. IN SUPREME COURT 

KENTUCKY BAR ASSOCIATION RESPONDENT 

OPINION AND ORDER 

Movant, Seth Jarad Johnston, KBA No. 91030, 1petitions this Court to 

resign under the terms of permanent disbarment. The Kentucky Bar 

Association (KBA) has no objection to Johnston's motion. Movant was 

temporarily suspended pursuant to SCR 3.166(1) 2on October 31, 2013. 

1Movant was admitted to the practice of law in Kentucky on October 14, 2005, 

and his bar roster address is 250 W. Main Street, Suite 300, Lexington, Kentucky, 

40507. 

2SCR 3.166(1)provides that: "Any member of the Kentucky Bar Association 

who pleads guilty to a felony, including a no contest plea or a plea in which the 

member allows conviction but does not admit the commission of a crime, or is 

convicted by a judge or jury of a felony, in this State or in any other jurisdiction, shall 

be automatically suspended from the practice of law in this Commonwealth. "Felony" 

means an offense for which a sentence to a term of imprisonment of at least one (1) 

year is authorized by law. The imposition of probation, parole, diversion or any other 

type of discharge prior to the service of sentence, if one is imposed, shall not affect the 

automatic suspension. The suspension shall take effect automatically beginning on 

the day following the plea of guilty or finding of guilt by a judge or jury or upon the 

entry of judgment whichever occurs first. The suspension under this rule shall remain 

in effect until dissolved or superseded by order of the Court. Within thirty (30) days of 

the plea of guilty, or the finding of guilt by a judge or jury, or entry of judgment, 

whichever occurs first, the suspended attorney may file a motion with the Clerk of the 

Supreme Court of Kentucky setting forth any grounds which the attorney believes 

justify dissolution or modification of the suspension." 
I. BACKGROUND 

Movant entered a guilty plea in the U.S. District Court for the Eastern 

District of Kentucky in the matter of United States v. Seth J. Johnston, Case No. 

13-CR-00142-JMH to the following criminal charges contained in an 

information filed by the U.S. Attorney's office: two counts of mail fraud (18 

U.S.0 § 1341); one count of wire fraud (18 U.S.0 § 1343); one count of 

obstruction of justice (18 U.S.0 § 1512(k)); one count of distribution of 

controlled substance analogues (21 U.S.0 § 846); and one count of Tax Fraud 

(26 U.S.0 § 7201). The maximum cumulative sentence for these offenses 

includes imprisonment for up to forty-five years and fines of up to 

$1,350,000.00. Movant had not been sentenced on the charges as of the date 

of the filing of this petition. At present, although the KBA is investigating all of 

the offenses, the Inquiry Commission has not yet returned formal disciplinary 

charges. 

II. KBA FILE 21299 

KBA File 21299 relates to Count 1 and Count 3 of the information. 

charges. Count I charged that Movant committed mail fraud in connection 

with a lawsuit brought in the wake of the well-known, and notorious, Fen-phen 

litigation to recover funds wrongfully diverted from the Fen-phen plaintiffs. 

Movant devised a scheme to divert to his own personal accounts, $14,963.05 

that his firm collected for the Fen-phen clients. 

Count III of the information charged Movant with committing wire fraud 

by devising a scheme by which he fraudulently gained access under false 

pretenses to a bank account of his associate, Angela Ford, and stole money 

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from her. Movant used that money to cover amounts he had stolen from 

clients, and which he had diverted to his personal use,. including his role in a 

conspiracy to illegally distribute synthetic marijuana as set out in Count 5. 

Movant acknowledges that the foregoing facts would support disciplinary 

charges for violations of SCR 3.130-8.4(b) (criminal act reflecting adversely on 

lawyer's honesty, trustworthiness or fitness as a lawyer in other respects) and 

SCR 3.130-8.4(c) (conduct involving dishonesty, fraud, deceit or 

misrepresentation). 

III. KBA FILE 21600 

KBA File 21299 relates to Counts 2, 4, 5, and 6 of the information. 

Count 2 alleged that Movant had committed mail fraud in connection with his 

representation of the Estate of Cecil Rowlett. Movant defrauded the residual 

heirs of the estate by hiding estate assets and diverting to his own benefit, and 

to the benefit of the executor of the estate, Brett Rowlett. In furtherance of his 

scheme, Movant misrepresented the value of the cash assets of the estate to 

the Harlan District Court, and then diverted the unreported amounts for his 

own benefit and for the benefit of the executor of the estate, Brett Rowlett, and 

that the scheme involved the use of the U.S. Postal Service. 

Count 4 of the information charged Movant with obstruction of justice in 

connection with his efforts to influence a witness, Stacey Birden, to destroy or 

conceal documents with the intent to impair their availability for use in the 

federal grand jury's investigation of Movant. 

Count 5 of the information charged Movant with conspiracy to import 

synthetic marijuana into Fayette County for distribution and sale in his co3 
conspirators' various convenience stores. Appellant admits that he 

participated in this conspiracy by transferring $100,000.00 to his coconspirators to finance the illegal scheme. 

Count 6 of the information charged Movant with tax fraud for 

underreporting his taxable income for the 2011 tax year. Movant admits that 

he filed a false tax return reflecting $26,372.00 in taxable income when his 

actual taxable income for that year was $208,950.00; Movant further admits 

that this failure to report his entire amount of income was done knowingly and 

willfully and that over $10,000.00 of the money he obtained in calendar year 

2011 was from criminal activity. 

Movant acknowledges that the facts of these counts would support 

disciplinary charges for violations of SCR 3.130-3.3(a)(1) (false statement of 

material fact to tribunal); SCR 3.130-8.4(b) (criminal act reflecting adversely on 

lawyer's honesty, trustworthiness or fitness as a lawyer in other respects); and 

SCR 3.130-8.4(c) (conduct involving dishonesty, fraud, deceit or 

misrepresentation). 

IV. DISCIPLINE 

Movant admits that his actions violated the above referenced Rules of 

Professional Conduct. Therefore, he requests that the Court grant him leave to 

resign from the KBA under terms of permanent disbarment pursuant to SCR 

3.480(3). 3We agree that Movant's motion to withdraw his membership is 

appropriate pursuant to SCR 3.480(3). Therefore, it is hereby ORDERED that: 

3SCR 3.480(3) provides in pertinent part: 

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1. Movant, Seth Jared Johnston, is permanently disbarred from the practice of 

law; 

2. In accordance with SCR 3.450, Movant shall pay all costs associated with 

these proceedings, said sum being $135.40, for which execution may issue 

from this Court upon finality of this Opinion and Order; 

3. Pursuant to SCR 3.390, Movant shall, within ten days from the entry of thiS 

Opinion and Order, if he has not already done so, notify all clients, in writing, 

of his inability to represent them; notify, in writing, all courts in which he has 

matters pending of his disbarment from the practice of law; and furnish copies 

of all letters of notice to the Office of Bar Counsel; and 

4. If he has not already done so, to the extent possible, Movant shall 

immediately cancel and cease any advertising activities in which he is engaged. 

All sitting. All concur. 

ENTERED: August 21, 2014. 

Any member who has been engaged in unethical or unprofessional conduct and 

desires to withdraw his membership under terms of permanent disbarment 

shall file a verified motion with the Court stating as follows: 

(a) He/she has violated the Rules of Professional Conduct, or his/her 

conduct fails to comply with those rules, the specifics of which shall 

be detailed in the motion. 

(b) He/she will not seek reinstatement and understands the provisions of 

SCR 3.510 and SCR 3.520 do not apply. 

(c) He/she will not practice law in the Commonwealth of Kentucky 

subsequent to the peimanent disbarment order. 

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