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Attorneys for St. George businessman Jeremy Johnson and federal prosecutors are close to a deal that will allow him to post a multimillion-dollar bond and leave jail until his trial on a fraud charge connected to the operation of the massive Internet marketing company iWorks.
A hearing is scheduled for Wednesday in front of U.S. Magistrate David Nuffer to review a deal that Johnson's attorney, Nathan Crane, and U.S. Justice Department prosecutor Brent Ward have been putting together.
Both declined to say Monday how much the bond might be, but Crane said last week it will top, substantially, the $1.2 million bond previously proposed but turned down by Nuffer.
Nuffer declined to approve that bond after testimony from a former business associate of Johnson, Chad Elie, who said in testimony that Johnson had told him he had hidden caches of money. Nuffer also said Johnson's experience as a pilot would allow him to easily flee.
Johnson was arrested at the Phoenix airport in June by IRS agents on a single charge of fraud connected to iWorks, the St. George Internet company that marketed information about working at home and getting government grants to subsidize personal expenses.
The Federal Trade Commission, which is suing Johnson, iWorks and others in federal court in Las Vegas, says iWorks and related companies took in about $350 million in the past decade and that Johnson received about $48 million of that amount.
Johnson was known in Utah for his philanthropy and for helping law enforcement by flying his helicopters to help in searches and other operations.
The proposed bond will consist of the equity in homes and property of Johnson's relatives and friends, Crane said.
Johnson is being held in the Davis County Jail.
Prosecutor Ward previously said in court that Johnson is expected to face more charges in a new indictment, which apparently has yet to be handed up by a grand jury.
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