| Jeremy Johnson to appear in court Wednesday | |
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David DeMille ddemille@thespectrum.com The Spectrum | |
ST. GEORGE - A former St. George businessman suspected of scamming millions of dollars from people over the Internet is scheduled to face a U.S. District Court justice Wednesday in Phoenix. U.S. Internal Revenue Service agents arrested Jeremy Johnson, 35, Saturday, and the longtime St. George resident now faces a mail fraud charge related to the online businesses the government contends he used to bilk customers out of $289 million by making false claims and charging fees without consent. The new charges accuse Johnson of sending "hundreds of thousands of consumers" computer software through the mail that made false claims about helping them obtain government grants to pay for personal expenses. He faces a maximum penalty of 20 years in federal prison and a $250,000 fine. Johnson is scheduled for a detention hearing at 2 p.m. Wednesday, said Melodie Rydalch, public information officer for the U.S. Attorney's Office in Utah. Johnson was well known in Utah for his philanthropic practices, such as using his fortune to buy helicopters and fly search-and-rescue missions. Last year he led a helicopter mission to earthquake-ravaged Haiti, delivering food, supplies, medical help and other services, reportedly spending more than $1 million in the humanitarian effort. Questions about his business practices arose in December when the Federal Trade Commission hit Johnson with a civil case, suing him and his online business, iWorks, along with nine other defendants associated with iWorks and a network of "shell" companies. The agency froze Johnson's assets in February, accusing him of "luring consumers into 'trial' memberships for bogus government-grant and money-making schemes, and then repeatedly charging them monthly fees for these and other memberships they never signed up for." Johnson has denied any misconduct, saying he doesn't understand why the FTC is targeting him rather than a number of other companies that use similar tactics. He also denied falsely charging customers. "We tell you exactly what you're going to be billed, when and where," Johnson told The Spectrum & Daily News in December. Johnson was arrested while about to board a plane to Costa Rica, where he has a home. In the complaint document, the U.S. Attorney's Office states that Johnson has been traveling internationally and has access to extensive resources in other countries, including helicopters and other vehicles. He also has property in Belize and the Philippines, according to the complaint. | |
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TheSpectrum.com Originally published June 14, 2011 | |
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