| Johnson to be released on bail | |
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David DeMille The Spectrum | |
ST. GEORGE - St. George businessman Jeremy Johnson is set to leave jail today, released by a federal judge Wednesday after friends and family fronted $2.8 million worth of property to get Johnson out from behind bars as he awaits trial on a federal mail fraud charge. Johnson, 35, who was arrested June 11 on a single mail fraud charge related to his Internet businesses, had been refused bail for months, because he was considered a flight risk as he awaits the criminal trial and a related civil case in which he is charged with defrauding thousands of online customers by charging them for items they never purchased. U.S. Magistrate David Nuffer turned down a similar bail proposal last month when friends and family offered $1 million after hearing testimony that Johnson has stashes of cash and gold hidden throughout Southern Utah. Nuffer was also concerned about Johnson's abilities as a pilot - he is well known in Washington County for flying rescue missions and made national headlines last year when he flew to Haiti to help after the country was ravaged by an earthquake. Nuffer approved the new proposal Wednesday after 16 people put up their homes, property or other financial holdings to secure Johnson's release, according to a court stipulation. A lien will be placed on each of the properties, which would be forfeited to the federal government if Johnson were to flee. The decision comes on the heels of a letter Johnson wrote to the court two weeks ago in which his attorneys said he expressed frustration with the court proceedings and even proposed the idea of representing himself. No court date is set for Johnson's trial. He faces 20 years in prison if convicted. Travis Marker, Johnson's managing attorney in St. George, said the bail would likely be made official this morning, once all of the paperwork is finished. "Clearly, on the side of the family there's tremendous relief," Marker said. "They're glad to have Jeremy back with his family." Marker said being free from jail would help Johnson contribute to his defense plans. Johnson will wear an electronic tracking device, must surrender his pilot's license and will not be allowed to leave Utah unless he is working on his civil case, which is being prosecuted in Nevada. The Federal Trade Commission alleges he was the mastermind behind a multi-faceted Internet-based scheme that bilked thousands of customers out of about $350 million in the past decade - about $50 million of which went to Johnson. Johnson spent large sums on philanthropic efforts, donating to local charities, flying his helicopters to aid search-and-rescue efforts and helping individuals who were in trouble, such as helping to make rent payments for families with sick children. According to FTC documents, filed when the agency requested that his assets be frozen, Johnson also lived in a multi-million dollar home and reportedly lost millions to casinos while gambling. Based on evidence gathered in the FTC investigation, federal prosecutors have said they expect another superseding indictment could be filed, which would include additional charges. Next week the government is already set to auction off some of the goods he purchased through his company, iWorks, including furniture, art and classic cars - an action Marker said the defense plans to challenge. Items advertised for sale as part of the auction include muscle and collector cars, home and office furniture, and flat screen televisions. | |
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TheSpectrum.com Originally published Sep. 14, 2011 | |
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