Estimated read time: 3-4 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
SALT LAKE CITY — Stephen Roger Jenson, charged alongside his brother in a fraud case after prosecutors say they lost millions in plans to build a high-end resort, accepted a plea deal Wednesday.
Seven days into a nine-day jury trial, Jenson pleaded no contest to three counts of communications fraud, amended to a third-degree felony, while one count was dismissed. An additional 10 counts of money laundering, all second-degree felonies, were also dismissed.
The trial is ongoing for his brother, Marc Sessions Jenson, who has maintained his not guilty plea. Marc Jenson's attorney had deferred making his opening argument in the case but plans to do so Thursday morning.
The Jenson brothers are accused of losing millions of investors' contributions toward a proposed $2.5 billion resort in Beaver County. The exclusive Mount Holly resort on 2,000 acres in the Tushar Mountains was to include 1,200 building lots starting at $1 million each, a Jack Nicklaus-designed golf course, and a ski area managed by Olympic gold medalist Ted Ligety.
Stephen Jenson could avoid prison time through the plea deal and will pay $275,000 in restitution throughout his probation. If restitution is paid, an option to reduce the felony charges to misdemeanors will be considered.
Prosecutor Tim Taylor said a deal had been discussed before the trial opened, but the two parties were unable to resolve their concerns. Taylor and Stephen Jenson's attorney, Edward Stone, met again after a long day of testimony Tuesday to renegotiate.
"I feel like it was an appropriate resolution. I'm comfortable with it," Taylor said. "If we can go ahead and get $275,000 for our victims, we feel that will be positive."
Stephen Jenson will be sentenced March 30.
Stephen Jenson was an officer in the investment while his brother — a convicted federal felon who had faced state securities fraud and racketeering charges and had filed chapter 7 bankruptcy on his business — served as a marketing consultant.
I feel like it was an appropriate resolution. I'm comfortable with it. If we can go ahead and get $275,000 for our victims, we feel that will be positive.
–Tim Taylor, Prosecutor
Investors claim Marc Jenson didn't advise them of his criminal background, telling them the project was debt-free and that there was no risk.
In his opening statement, Stone argued that the Mount Holly project failed because a firm called XE Capital didn't meet its contractual obligation to provide $6 million to $7 million for the development.
"Steve Jenson bankrupted himself trying to save this project," he said. "He tried to keep this project afloat, but he couldn't do it because XE Capital cut him off at the knees."
The agreement doesn't impact the rest of the trial for Marc Jenson, Taylor said.
Marc Jenson is at the center of the criminal charges against former Utah Attorneys General Mark Shurtleff and John Swallow. He claims they shook him down for money and favors during a trip to the posh Southern California villa where he was living in 2009. Jenson is currently serving a 10-year prison sentence in an unrelated case.
Mumford sent subpoenas to Shurtleff, Swallow and Ligety to testify in the nine-day trial. Their lawyers filed objections, which were upheld Tuesday by 3rd District Judge Elizabeth Hruby-Mills.
Shurtleff, known for his unreserved remarks on social media, commented on the plea deal on Twitter Wednesday.
"1 down 1 to go!" he tweeted.
