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DOJ settlement bans Life Surge founder from participating in bargain sales

By Ann Marie Shambaugh
Joe Johnson Life Surge founder
Life Surge Founder Joe Johnson speaks at the group's event on Feb. 8, 2025, at the Honda Center in Anaheim, California. (RR Graphic/Facebook)

The founder of a Christian-tinged seminar that pitches methods of building wealth has reached a settlement with the U.S. Department of Justice.

Life Surge founder Joe Johnson has resolved a lawsuit federal officials filed against him in August 2025.

Life Surge has been in the news this week after several speakers related to its seminar pulled out following adverse media coverage.

Per the Aug. 31 agreement, Johnson is permanently banned from participating in bargain sale transactions and must remove related online content posted by The Welfont Group, a company he founded. It did not require Johnson to admit wrongdoing or face any financial penalties.

The suit, filed in a U.S. District Court in Tampa, Florida, accused Johnson of coordinating “abusive” real estate deals. These deals, the Justice Department said, led to huge, unexpected tax bills for the sellers.

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welfont group
Welfont Group offices. (File Photo)

The DOJ estimated that sellers suffered up to $46 million in “tax harm” through 99 transactions tied to The Welfont Group or the Mercy Foundation Group, a now-defunct nonprofit. Johnson founded both organizations, according to the court filing.

In a bargain sale, a tax-exempt organization purchases a property for less than its fair market value, and the seller claims a tax deduction for the difference.

But Johnson presented sellers with inflated property values, according to the suit. Often, appraisers he selected would work with the tax-exempt buyer to quickly resell the property at a much lower price.

IRS audits revealed that this practice left the initial sellers on the hook for the difference in tax liabilities. On average, sellers lost more than $504,000, the suit states.

The suit did not mention Life Surge itself, the traveling Christian seminar featuring celebrity speakers that Johnson founded in 2020. Speakers share inspirational messages interspersed between pitches for programs to build wealth through real estate and the stock market.

Some of those speakers, including former football star Tim Tebow, paused their relationship with Life Surge this week after Mother Jones magazine and the podcast Pablo Torres Finds Out (PTFO) released an investigation. The two publications reported on some attendees going into debt after signing up for programs and classes they purchased at the seminar.

Life Surge addressed the DOJ suit as part of a lengthy reply to reporters working on the Mother Jones and PTFO investigation. It described the ruling as a “significant victory for Mr. Johnson.”

joe johnson life surge
Life Surge Founder Joe Johnson kneels on-stage as Shawn Marcell (right) looks on, at the Life Surge Conference in Columbus, Ohio on May 10, 2025. (Photo: Facebook)

“Life Surge does not believe it will have an adverse impact on either (Johnson’s) personal life or his leadership,” the statement reads. “The company views the resolution as vindicating him and allowing him to speak openly about the case after being unable to discuss it publicly for more than a year.”

Previously, Life Surge claimed the federal government was targeting Johnson for his beliefs, as reported by ChurchLeaders.

“As an outspoken Christian conservative entrepreneur, the IRS has unsuccessfully targeted Johnson for years,” Life Surge stated. “Johnson doesn’t see this as just an easy case to win as he has already done with other cases, but an opportunity to stand up against the schemes of the IRS and expose their abusive tactics.”

As part of the settlement, Johnson is required to sign a declaration annually for five years affirming that he has not participated in bargain sales or any other prohibited activities.

Ann Marie Shambaugh has reported as a print journalist in multiple states, including currently in Carmel, Indiana.

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2 Responses

  1. Wow. I am beaming a message to all people including Christians. If what anyone try’s to sell you, ask if this has anything to do with anything Jesus did. Assume that since the eighties if any person attempts to convince you God is inspiring what they want you to do, then stop and ask a tax consultant, NOT connected to the people trying to convince you to do anything financial. See how easy that was. Now for providing this free advice I sense God wants you to send me $1000.00 as a show of appreciation and faith. HEY, you’re not listening, what did I just say.

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