Derek Johnson, who posed as a Calgary realtor, found in contempt of court

He's been described as a scam artist who preys on vulnerable people, declared a vexatious litigant by the courts and now he's been found in contempt of court.

Derek Johnson, formerly of Calgary, had been earlier cited for breaching the Alberta Real Estate Act, and now has been found in civil contempt of court for violating a previous injunction order that he stop dealing in real estate.

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The Real Estate Council of Alberta (RECA) appeared before Justice Sal Lovecchio in Calgary on Wednesday.

It claimed that just last month Johnson and his associates have been involved "in a complex ring of internet-based real estate and mortgage fraud spanning from B.C. to Manitoba."

Johnson spoke very briefly and intermittently during a heated conference call with the court this morning. 

It's believed Johnson now resides in B.C.

His associate, Kevin Kumar, who has also been found in civil contempt of court, raised the ire of the judge for speaking out of turn and raising irrelevant points.

Lovecchio raised his voice several times during the 25 minute phone call. 

"I know you don't think you are bound by them [rules of the court], but unfortunately you are. You will follow the rules sir, whether you like it or not," said Lovecchio.

In December 2014, Johnson was ordered by the court to stop carrying on certain activities, including trading in real estate, dealing as a mortgage broker and posting or facilitating real estate listings. 

The order was served on Johnson on Dec. 13, 2014.

RECA alleges Johnson breached the order four days later by posting real estate listings on the website joerhealestate.com, and kijiji.ca and for maintaining several websites that facilitate in real estate trading and dealing in mortgages.

He also obtained a $30,000 deposit for the sale of a home, the council also alleges. 

RECA also alleges that Johnson's wife, Allyson, breached the injunction order by posting real estate ads on kijjiji.ca on behalf of or in participation with Johnson.

Allyson Johnson, Kevin Manji and Laurel Cinnamon failed to appear in court this morning.

Lovecchio fined the trio $1,000 each and ordered them to appear in person at a special hearing on June 7th.

The three, along with Derek Johnson and Kevin Kumar, must present evidence as to why they should not be found in contempt.

RECA to seek harsh penalties, including imprisonment 

The Real Estate Council of Alberta hasn't collected any of the monetary penalties it has imposed on Johnson.

Now the council will seek the maximum penalty against Johnson, which could mean up to two years in jail.

"I have instructions to seek the maximum amount of penalty available the court is willing to provide as a result of the severity of the actions," said Emmett Scrimshaw, the lawyer for RECA.

"There has to be a deterrent effect put in place to keep that business from continuing."

See the document filed in court on Wednesday: