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SALT LAKE CITY — A third defendant in the iWorks fraud case wants the charges against him thrown out because he says a federal prosecutor gave him immunity.
Loyd Johnston claims in a new court filing that assistant U.S. attorney Brent Ward agreed to not prosecute him if he came in for an interview about iWorks in July 2011.
Johnston, a retired Utah National Guard sergeant, started working for company founder Jeremy Johnson after meeting him through one of his children.
Already named in a Federal Trade Commission civil lawsuit against Johnson and iWorks, Johnston said in exchange for his cooperation, Ward verbally agreed not to file criminal charges against him, according to court documents. The agreement was not put in writing.
At the first interview, Ward said it would "probably take an hour to come up with the paperwork, and instead of providing a written agreement, Ward had multiple government agents who were present vouch for his history of integrity," court documents say.
Related:
Co-defendant on Jeremy Johnson's 'list' says feds agreed not to prosecute him
A co-defendant in the fraud case against St. George businessman Jeremy Johnson wants the charges dropped because he claims the U.S. Attorney's Office agreed not to prosecute him.Johnston's name is also on a list of people Johnson wanted protected from prosecution as part of a proposed plea bargain in January 2013 in which Johnson would admit to bank fraud and money laundering.
Defendants Bryce Payne and Ryan Riddle have also asked the judge to dismiss the charges against them because their names are on the list.
Johnson's plea deal fell apart during a bizarre court hearing when prosecutors balked at submitting a list to the judge. But lawyers for Payne and Riddle argue Ward agreed in court not to go after them even if Johnson didn't plead guilty. Prosecutors contend there was no agreement because Johnson didn't enter the plea.
Johnson, Payne, Johnston and Scott Leavitt face 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.
Riddle is charged with 55 counts because he had resigned before some of the alleged crimes took place.
All five men rejected plea offers earlier this year. They are scheduled to go to trial next February.
