SALT LAKE CITY — St. George businessman Jeremy Johnson faces a new federal indictment that eliminates most of the consumer fraud allegations against him.

But he and all but one of four associates named in the case have more than 80 criminal charges against them related to how his now-defunct online marketing enterprise, iWorks, conducted businesses.

Also, a federal judge Friday postponed until next February a jury trial that was scheduled for September because Johnson has new court-appointed attorneys after his previous counsel dropped out citing an undisclosed conflict of interest.

New indictment

The revised indictment — the fifth in the case against Johnson since 2011 — centers on bank fraud, alleging Johnson and other executives set up a series of straw companies to continue to charge customers' credit and debit cards after credit card firms started to fine iWorks for excessive customer chargebacks.

Many buyers of iWorks' products, including those offering help in making money through Internet advertising, called their banks or credit card companies to dispute the charges and have them reversed, according to the indictment.

Johnson, Scott Leavitt, Bryce Payne and Loyd Johnston were charged with 86 counts of conspiracy, false statements to banks, wire fraud, bank fraud, participating in fraudulent banking activities, money laundering, conspiracy to commit money laundering and aiding and abetting.

Ryan Riddle is charged with 55 counts because he had resigned before some of the alleged crimes had taken place, prosecutor Michael Kennedy said.

The five men pleaded not guilty Friday in a U.S. District Court hearing. They face 30 years in prison and a $1 million fine if convicted.

Consumer fraud charges dropped

Kennedy told Magistrate Judge Paul Warner that the new indictment cuts out verbiage related to consumer fraud and other facts that prosecutors don't see as relevant to their case. He described them as "largely stylistic" changes.

Prosecutors initially alleged Johnson and the others bilked online consumers of nearly $300 million.

The previous indictment alleged iWorks used numerous websites to tout bogus government grants that were available to stop foreclosures and to pay down debt and for personal expenses such as groceries, home repairs, utilities and Christmas gifts. The sites claimed the grants could be accessed through a CD offered for a $2.29 shipping fee.

Many customers who ordered the CDs found they were not as represented and that their credit or debit cards were repeatedly charged for services they didn't sign up for or know about, according to the charges.

In 2010, the Federal Trade Commission made those same accusations in a civil lawsuit against Johnson, iWorks and others that is scheduled for trial Jan. 19 in Nevada.

Upcoming criminal trial

Warner scheduled the trial in the criminal case to start Feb. 1. It is anticipated to last four weeks. Johnson is now represented by Rebecca Hyde Skordas and her husband, Greg Skordas.

Before he stepped off the case, Johnson's attorney Ron Yengich filed a motion to lift the gag order Warner imposed more than two years ago. The Skordases told the judge they want him to rule on the motion. The government opposes removing the gag order.

Johnson is a central figure in the criminal charges filed last summer against Swallow and former Attorney General Mark Shurtleff. State prosecutors allege they accepted gifts from Johnson, including use of his house, private jet and luxury houseboat.

In May, the Federal Election Commission filed a complaint against Johnson for allegedly making illegal campaign contributions to Shurtleff, Sen. Mike Lee, R-Utah, and Sen. Harry Reid, D-Nev.

State prosecutors complained that federal authorities undermined an immunity agreement they have with Johnson for information he provided in the criminal cases against Shurtleff and Swallow.

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