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The LDS Church has agreed to repay $2.3 million in donations from Jeremy Johnson, the St. George businessman serving a federal prison sentence.
The settlement was part of a lawsuit that the Federal Trade Commission brought against Johnson in 2010, alleging that his marketing company had defrauded consumers by not properly disclosing additional charges when a consumer paid a nominal fee for products, such as information on how to get government grants to pay personal expenses.
Johnson settled the FTC case by agreeing to turn over his assets, but he did not admit to wrongdoing. In a related criminal case, Johnson was found guilty on eight counts of making false statements to a bank; a jury acquitted him on 78 other fraud-related charges.
The court-appointed receiver in the FTC case had asked the church to return $2.67 million that Johnson had donated from 2006 on. But, according to court filings, the receiver settled with The Church of Jesus Christ of Latter-day Saints for $2.35 million.
A judge approved the settlement Wednesday.