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SALT LAKE CITY — St. George businessman Jeremy Johnson might be spending less time in federal prison.
The 10th Circuit Court of Appeals upheld his conviction in a decision Thursday but sent the case back to the district court for a new sentence. A three-judge panel ruled that the trial judge erred in assessing Johnson an enhancement under federal sentencing guidelines that resulted in a 135-month prison term.
A jury convicted Johnson in 2016 of eight counts of making false statements to a bank in connection with his once multimillion-dollar online marketing company, iWorks. At the same time, jurors acquitted him of 78 counts of bank fraud, wire fraud and money laundering.
Johnson argued on appeal that there's no evidence that he received more than $1 million as a result of his offenses that resulted in a two-level enhancement to his sentence. He contended that the government failed to show Wells Fargo Bank ever received the false statements or relied on them in releasing any funds.
The court agreed, noting "the government doesn’t dispute that it failed to present any evidence that would indicate (Wells Fargo Bank) received or relied on Johnson’s false statements."
Related:
Key figure in Utah political scandal appeals conviction
A onetime helicopter-flying millionaire who helped launch a pay-to-play scandal involving two former Utah attorneys general asked a federal appeals court Thursday to reverse his conviction for lying to banks to keep his online business afloat.U.S. Attorney John Huber said his office is pleased with the 10th Circuit's decision affirming Johnson's conviction but did not address its reversing his sentence.
"Jeremy Johnson violated federal law and the 10th Circuit has now validated the jury's verdict of guilt," he said in a statement.
Johnson, 42, is currently held in a federal prison in Safford, Arizona. His released date is listed as Nov. 18, 2025, according to the Bureau of Prisons.
Johnson is also named in a Federal Elections Commission complaint alleging he used straw donors to contribute money to three high-profile politicians.
