Judge believes Jeremy Johnson is flight risk

David DeMille ddemille@thespectrum.com The Spectrum

Jeremy Johnson ST. GEORGE - A federal judge ruled Monday that St. George businessman Jeremy Johnson will remain behind bars while he waits for trial on felony mail fraud charges. U.S. Magistrate Judge David Nuffer ruled Johnson to be a flight risk, agreeing with prosecutors that the 35-year-old may not stick around to face criminal charges that come with a maximum penalty of 20 years in prison and a $250,000 fine. Nuffer said he might consider releasing Johnson if he can post a $1 million bond, and Johnson's attorney, Nathan Crane, told the judge he would file a motion to pull from resources offered by family and friends to reach that amount. Johnson was arrested in June at a Phoenix airport with $26,400 cash on hand and a one-way ticket to Costa Rica, leading prosecutors to allege that he intended to live outside the country, suggesting he may have hidden bank accounts. "No bond is sufficient," Utah Assistant Attorney General Brent Ward told the judge during Monday's hearing in Salt Lake City. Johnson's lawyers spent much of the day Monday presenting evidence to the contrary, arguing that he was taking cash with him for a start-up tourism helicopter business and that the home prosecutors claim he owns was actually a short-term rental. About 30 people filled the courtroom in support of Johnson, and his attorneys presented 70 pages of letters from friends, family and community leaders vouching for him. Ben Hafen, Johnson's lifetime friend and owner of a St. George insurance company, said the ruling was difficult to understand. "That's one of those things where I just don't see the point," Hafen said, arguing that Johnson wouldn't run from his problems or leave his family and friends in Utah. Hafen joined Johnson on a relief mission to earthquake-ravaged Haiti last year Ð one of many cases where Johnson was part of philanthropic efforts. In St. George, he was known as a pilot for search-and-rescue missions and a major donor to local charities. "He's done a lot of good," Hafen said. Federal prosecutors contend that Johnson also has done a lot of bad. In addition to the criminal mail fraud charges, Johnson already was facing civil charges from the Federal Trade Commission that he was the "mastermind" behind a $350 million online fraud scheme that bilked hundreds of thousands of consumers. Officials contend that his companies deceptively enrolled consumers into memberships for products or services and then repeatedly charged them even if they complained. In the criminal case, prosecutors say Johnson's companies illegally sold CDs through the mail that offered to show people how to apply for government grants to help them pay for personal expenses. "The fact is that nobody got a cent from using that CD, except (Johnson's) own company," Ward told the judge. Johnson's attorneys have maintained that their client runs a legitimate business, arguing that his websites operated no differently than countless others. Meanwhile, Johnson's friends, family and other supporters say the deck has been stacked against him, arguing that federal prosecutors are intentionally trying to make him look bad. Johnson was living in St. George for six weeks before making the business trip to Costa Rica and could have been arrested at any time before that, they argue, but the government waited until he left the area so it would look like he was fleeing. Bennett L. Brooks, Johnson's friend and a former Justice of the Peace in the Fredonia Justice Court, said having known Johnson and hearing about the number of people in the community supporting him, it is difficult to see why he should be considered a flight risk. "He's not guilty until proven in the court of law, and I don't think it's fair for anybody to have to sit in jail and have the feds get the upper hand against him," Brooks said. "He needs that ability to build his own case and get his affairs in order, and he can't do that in jail." The Associated Press contributed to this report.

TheSpectrum.com Originally published July 12, 2011

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