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Columbus Blue Jackets’ Jack Johnson Bankrupt After Granting Parents Power of Attorney Leave Him In Ruin

November 22, 2014  |  Posted by: Giovanni DePhillips
Columbus Blue Jackets’ Jack Johnson Bankrupt After Granting Parents Power of Attorney Leave Him In Ruin Image courtesy of bluejacketsxtra.dispatch.com

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According to ESPN, Columbus Blue Jackets defenseman Jack Johnson has filed for Chapter 11 bankruptcy and is claiming that non-other that his parents are responsible for leaving him in financial ruin

According to the Columbus Dispatch, before Johnson signed his seven-year, $30.5 million deal in 2011, he granted power of attorney to his mother, Tina Johnson, that gave her full control of his finances.

According to the report, Johnson alleges that Tina Johnson and his father Jack Sr. purchased a house in Manhattan Beach, California, using his money but without the player’s knowledge.

To make matters even worse Johnson’s parents took out a high interest loan for the amount of $15 million using their son’s future earnings as collateral.

The mortgage on the house carried a 12 percent rate, the loan of $3 million carried an interest rate of 24 percent, which resulted in huge penalties and default.

According to documents filed in the United States Bankruptcy Court in the Southern District Court of Ohio that were obtained by ESPN.com, Johnson,27 has almost nothing remaining of the $18 million he has earned throughout his nine-year NHL career.

His future earnings also appear peril because of a tremendous amount of debt that has been compounded. Court documents reveal a list of creditors with unsecured claims totaling more than $1.68 million.

In the filing, Johnson claims assets of less than $50,000 and total debts of more than $10 million.

According to the Dispatch,  Johnson has cut off all contact with his family.

“I’d say I picked the wrong people who led me down the wrong path,” Johnson told The Dispatch last week. “I’ve got people in place who are going to fix everything now. It’s something I should have done a long time ago.”

Johnson dropped former agent Pat Brisson in 2008.

Represented by Columbus-based attorney Marc Kessler, Johnson is reportedly now surrounded by financial advisers and a legal team retained to protect his interests.

Johnson’s parents also splurged big money on cars, renovations for the California home and travel costs while following their son as he played for the Los Angeles Kings and Blue Jackets.

According to a source familiar matter, there were clear red flags early in Johnson’s professional career, however it is a common practice for players with hockey parents who have invested a lot in their children’s futures.

“It happens way more than it should,” the source told ESPN.com.

The parents are named in the suit as among Johnson’s creditors, however has not shown any interested in making this into a criminal case.

According to the Dispatch, he is mostly worried about the welfare of his 16-year-old brother, who lives with his parents in Michigan.

ESPN is reporting that Johnson has requested to maintain his existing bank accounts so he can continue paying for living expenses, with court documents showing that at the date of petition, he only had a balance of $6,339 in his checking account and $2,202.62 in his savings account.

The former first-round pick, was taken number three overall  has seven assists in 15 games this season, has three seasons remaining on the $30.5 million deal.

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