Jeremy Johnson and iWorks Finally Settle With FTC. Loses Lots, Including Freedom.

Sometimes it takes years and years to get the satisfaction of people having to finally be accountable for their alleged bad acts. In the case of Jeremy Johnson and iWorks it took about six years.

Jeremy Johnson first came to my attention in June 2010 when I wrote this article about BadCustomer.com. Something wasn’t adding up with that situation.

But the action today gives an entirely new context to Jeremy Johnson’s statement, “I’ve been a very blessed person. I strongly believe the life I live is not one I created, it was given.” – Source

On July 28, 2016, Johnson was sentenced to 135 months in federal prison. While he does have an inmate number assigned to him, 42486-308, he is not yet in custody. His currently scheduled release date in October 13, 2035.

At his sentencing hearing the judge was unforgiving. – Source

The court document also says Johnson attempted to discredit those pursuing him, “Prior the Court’s issuance of an order under DUCrimR 57-6, Johnson was publishing numerous websites, blogs, and videos defaming the prosecutors and investigators in this case. He even created a false Facebook page for the United States Attorney’s Office for the District of Utah and used unauthorized images of then U.S. Attorney David Barlow.”

The court document also stated, “While on pre-trial release and after representing to the Court that he lacked funds to pay for counsel, Johnson made numerous gambling trips to high-end Las Vegas casinos where he gambled away substantial sums of money playing poker and slot machines.”

This little nugget did make me laugh, “During trial, Johnson called various Wells Fargo Bank branches for the purpose of manufacturing evidence. As set forth in previous papers, Johnson lied in every call to Wells Fargo representatives and referred to his trial as “this fucking stupid trial.” This statement perfectly summarizes Johnson’s view of his obligations to obey the law. ”

At sentencing Judge Nuffer is reported to have said, “The problem is becoming comfortable lying, concealing and deceiving,” Nuffer said. “When you do that in one area, it taints all areas of your life. . . . Purity does not overcome impurity.” – Source

As a further example about what a show the Johnson criminal trial was, read this account from one day at trial.

But regardless of the criminal case against Johnson, the FTC had reached a settlement prior to his sentencing. The FTC settlement sucked in family members caught in the mess.

The FTC filed a lawsuit against Johnson and others in December 2010.

See also  Two More Settle with FTC over I Works

Today the FTC has announced Johnson and people he loves are going to lose a lot of assets in the case.

“The ringleader and two other defendants in the massive IWorks online billing scheme have agreed to settle Federal Trade Commission charges that they took more than $280 million from consumers via deceptive “trial” memberships for bogus government-grant and money-making products. In addition, the wife and parents of IWorks’ owner and CEO Jeremy Johnson have agreed to settle FTC charges that they received assets and funds as gifts from Johnson that came from the unlawful scheme.

The FTC sued Johnson, nine other individuals, and 61 corporate defendants, including IWorks, in December 2010. The complaint alleges that IWorks enticed consumers to sign up for purportedly “free” or “risk free” trials, but then charged them recurring monthly fees they never agreed to pay.

After extensive briefing and a hearing, the court determined that the FTC is likely to prevail on the merit of its claims and froze the assets of Johnson and the corporate defendants to help ensure that money could be returned to IWorks’ numerous victims. The court later granted the FTC summary judgment against IWorks and the other corporate defendants on five complaint counts, and held that Jeremy Johnson and IWorks’ general manager Ryan Riddle were personally liable for IWorks’ law violations.

Johnson, IWorks, and 26 corporate defendants have agreed to a $280.9 million judgment, which represents consumers’ unreimbursed losses to the scheme, according to the FTC. The judgment will be partially suspended upon transfer to the FTC of all of Johnson’s frozen assets, including millions of dollars in bank accounts, stock, real estate and jewelry, and any interest he has in assets held by the receiver.

The orders against Riddle and Andy Johnson, who managed one of IWorks’ deceptive programs, impose judgments of more than $280.9 million and $6 million, respectively, which are suspended based on their inability to pay. The suspended judgment as to each settling defendant will become due immediately if they are found to have misrepresented their financial condition.

The stipulated orders against Jeremy Johnson and Ryan Riddle ban them from selling grant products, investment opportunities, continuity programs, and forced upsells (add-on products bundled with the offered product), and from using negative option features (automatically billing a consumer unless the consumer specifically declines the offered product). Johnson and Riddle are also banned from debiting consumers’ bank accounts without first obtaining their express verifiable authorization, and from misrepresenting material facts about any product, including the total cost or any associated risks.

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See also  BadCustomer.com Investigative Report. Is it a Scam or Something You Need to Be Afraid Of?

The order against Andy Johnson bans him from selling products as forced upsells. The orders against Jeremy Johnson, Ryan Riddle and Andy Johnson also prohibit them from violating the Electronic Fund Transfer Act, selling or otherwise benefitting from consumers’ personal information, and failing to dispose of consumer information properly.

Under stipulated orders entered against Jeremy Johnson’s wife, Sharla Johnson, and his parents, Kerry and Barbara Johnson, Sharla Johnson agrees to surrender the family home in St. George, Utah, three holding companies, and various properties, including aircraft and investment accounts. Johnson’s parents will surrender four parcels of land in California and Utah, and hundreds of thousands of dollars worth of precious metals.

Four other individual defendants reached settlements with the FTC in October 2013, April 2014, and February 2016. Litigation continues against three remaining individual defendants and four companies they own.

In another matter involving the IWorks scheme, a federal jury in Utah convicted Jeremy Johnson and Ryan Riddle of making false statements to a bank on multiple IWorks merchant account applications. After Johnson and Riddle agreed to settle with the FTC, Johnson was sentenced to 11 years and three months in prison, and Riddle to five years and three months. Both men will be subject to three years of supervised probation upon release.

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