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SALT LAKE CITY — Federal prosecutors dropped criminal charges Thursday against one of the four iWorks managers indicted with company founder Jeremy Johnson.
Loyd Johnston asked a federal judge last week to dismiss the 86-count fraud indictment against him because assistant U.S. attorney Brent Ward promised not to prosecute him if he came in for interviews in July 2011.
After reviewing the assertion and records of his interviews with law enforcement, prosecutors say no immunity agreement was reached between Johnston and the government, according to court documents.
"Nevertheless, because Mr. Johnston could reasonably have believed that the United States had agreed not to prosecute him, the United States respectfully represents that it is in the interest of justice and fundamental fairness under the circumstances unique to this defendant that all counts against Loyd Johnston be dismissed with prejudice," assistant U.S. attorney Robert Lunnen wrote.
Johnston, a retired Utah National Guard sergeant, started working for iWorks after meeting Johnson through one of his children. He is still named in a Federal Trade Commission civil complaint.
Defendants Bryce Payne and Ryan Riddle have also asked the judge to dismiss the charges against them because their attorneys say they're on a list of people Ward agreed not to prosecute.
All five men rejected plea offers earlier this year. The remaining four are scheduled to go to trial next February.
Riddle is charged with 55 counts because he had resigned before some of the alleged crimes took place.
