Michael Johnson accused of taking $500,000 from debt-ridden track league

"Mr Johnson initiated a payment of $500,000 purportedly on account of an unsecured note, lawyers for the unsecured creditors say in a court filing. Shockingly, Mr Johnson elected to secretly prefer himself over the athletes and other, non-insider creditors, while at the same time feigning to the public that he was selflessly looking to advance the interests of the athletes."

"When GST was launched Johnson promised it would bring fantasy to life and transform athletics with track's biggest stars facing off regularly against each other for huge prize money. But the writing was on the wall after the first event in Jamaica last April was sparsely attended, and it collapsed shortly after its third event in Philadelphia on 1 June."

"GST filed for bankruptcy in December after revealing estimated liabilities between $10m and $50m to more than 200 creditors. The claim is made by vendors in a legal filing in which they have also sought permission to sue individual leaders of GST, including Johnson and the main investor, Winners Alliance."

Grand Slam Track, founded by Michael Johnson, promised to revolutionize athletics with high-prize competitions featuring top track stars. The project collapsed after its third event in Philadelphia on June 1, following poor attendance at its Jamaica launch. Johnson allegedly withdrew $500,000 on June 4, despite knowing the organization faced financial collapse and could not cover debts. Vendors filed legal claims accusing Johnson of preferring himself over athletes and other creditors while publicly claiming to advance athletes' interests. GST filed for bankruptcy in December with estimated liabilities between $10 million and $50 million owed to over 200 creditors. Winners Alliance, the main investor, disputes the creditors' claims.

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