This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
St. George businessman and philanthropist Jeremy Johnson agreed Wednesday to be extradited from Arizona to Utah to face a federal charge of fraud connected to his massive Internet-based marketing operations that brought in hundreds of millions of dollars.
Johnson waived his right to an extradition hearing after Magistrate Judge David K. Duncan raised some questions that might have resulted in drawn-out proceedings in the state where he was arrested and jailed Saturday, according to his Utah attorney, Travis Marker.
The development means Johnson might be in jail for several weeks before the U.S. Marshals Service flies him to Utah, where he will face a charge of mail fraud that was handed up Wednesday by a grand jury. Marker said once in Utah, Johnson will seek his release from jail.
Johnson was arrested in Phoenix Saturday before he could board a flight to Costa Rica, where he has a home. IRS agents used a complaint signed by a magistrate to detain Johnson in anticipation of the grand jury indictment.
Federal prosecutors were seeking to keep Johnson jailed while he faces the charge.
Johnson, along with associates and a number of his companies, also were sued by the Federal Trade Commission in December for allegedly using shell companies and false advertisements to entice consumers to buy information on "make-money schemes" and "stay-healthy programs," and to obtain government and private grants.
Consumers who gave credit card or debit card numbers for a minimal handling charge, usually $1.99, were then charged unauthorized monthly fees of $59.95, and some faced a one-time fee of $189, according to the suit.
Hundreds of thousands of Johnson's customers sought refunds from card issuers over the charges, the suit said. When Visa and MasterCard terminated those merchant accounts, the complaint says Johnson and others created dozens of shell companies to accept card payments in order to avoid detection.
Since 2006, Johnson's companies have taken in more than $350 million from sales and returned about $75 million to customers who complained, while keeping more than $275 million, according to court records. Johnson has received more than $48 million in salary and other distributions since 2006, the FTC said.
Johnson has denied the fraud allegations and said he engaged in legitimate business practices.
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