IN THF. UNITED STATES DISTRICT COURT 

DISTRICT OF UT AH, CENTRAL DIVISION 

FEDERAL ELECTION COMMISSION, 

Plaintiff, 

V. 

JEREMY JOHNSON, 

Defendant. 

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Case No. 2:15-cv-00439-DB 

STIPULATION FOR ENTRY 

OF CONSENT JUDGMENT 

District Judge Dee Benson 

STIPULATION FOR ENTRY OF CONSENT JUDGMENT BETWEEN PLAINTIFF 

FEDERAL ELECTION COMMISSION AND DEFENDANT JEREMY JOHNSON 

Plaintiff Federal Election Commission ("FEC" or "Commission") and defendant Jeremy 

Johnson agree and stipulate as follows: 

1. The Commission and Johnson consent to entry of the attached Consent Judgment 

Between Plaintiff Federal Election Commission and Defendant Jeremy Johnson ("Consent 

Judgment"). 

2. The Commission makes the following allegations which, for purposes of this 

stipulation, Johnson has agreed not to contest. 

3. In mid-2010, Johnson used the names of others to contribute approximately 

$50,000 to Mike Lee, who was then a candidate in the 20 IO Republican primary election for 

United States Senate in Utah, and who, after winning that election, became a candidate in the 

November 2010 general election for United States Senate in Utah. John Swallow solicited 

Johnson to reimburse contributions to the Lee campaign and promised Johnson that funding the 

contributions would help protect Johnson's business interests from federal prosecution. 

4. During the time relevant to this case, Johnson's husiness interests included 

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companies that made tens of millions of dollars by processing financial transactions for onlinc 

poker companies. Also during the time relevant to this case, Johnson was aware that the United 

States Attorney's Office in the Southern District of New York had been filing lawsuits to seize 

the assets of online-poker companies, including those like Johnson's companies that processed 

financial transactions relating to online poker games. 

5. In January 2010, Lee entered the race for the Republican nomination for Senate in 

Utah. Swallow engaged in fundraising efforts for Lee 's campaign and solicited Johnson to make 

a large contribution to the campaign. When Swallow asked Johnson to contribute to Lee's 

campaign, Johnson asked Swallow whether he could write a large check to the Lee campaign or 

if limits applicable to a previous campaign to which Johnson contributed applied. Swallow 

confirmed to Johnson that the same rules applied. 

6. Swallow and Johnson discussed how contributing to Lee's campaign would help 

protect and advance Johnson's business interests. Swallow told Johnson: ·'I'm supporting you, 

and supporting your processing of poker . . . you don't have to worry about anything on the state 

level, but if the federal government comes after poker, you wanna head that off and this is how 

you do it. " Swallow also told Johnson: "[W]e've gotta raise this money and we gotta make Mike 

Lee our guy . . . . [H]e's gonna be choosing the next U.S. Attorney and you gotta have him in 

your comer and you gotta have the U.S. Attorney in your corner, especially while you're 

processing poker in this district. " 

7. Johnson entered into arrangements or understandings with his straw donors that 

they would contribute funds to Lee's campaign and that Johnson would supply them with the 

funds for those contributions. Johnson would tell a potential straw donor: "Hey would you 

donate to Mike Lee? I'll get you the money." 

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8. Juhnsun's straw donors transmitted funds to Lee's campaign that collectively 

amounted to approximately $50,000. Johnson supplied his straw donors with those funds by 

either advancing them the money for the contributions they would make to Lee's campaign or 

reimbursing them for the contributions they had already made to Lee's campaign. 

9. Johnson made the contributions described in paragraphs 3 to 8 for the purpose of 

influencing the 2010 Republican primary election for United States Senate in Utah or the 20 l 0 

general election for United States Senate in Utah. 

I 0. In 2010, Johnson used the names of others to contribute approximately $20,000 to 

then-Majority Leader Harry Reid, who was a candidate in the June 2010 primary election for the 

Democratic nomination for United States Senate in Nevada, and who, after winning that election, 

became a candidate in the November 2010 general election for United States Senate in Nevada. 

11. In 2010, Johnson discussed with individuals in the oniine-poker gaming industry, 

including Ray Bitar, a principal of an internet-poker company called Full Tilt Poker, using straw 

donors to contribute unlawful amounts to federal candidates, including Majority Leader Reid, in 

an attempt to protect or further their business interests. Full Tilt Poker became a defendant in a 

civil asset forfeiture case brought by the United States Attorney's Office in the Southern District 

of New York in 2011. See United States v. Pokerstars, et al., No. l l-cv-2564 (S.D.N.Y.). 

12. During the time relevant to this case, Johnson owned an internet-marketing 

company named I Works. In 2010, the Federal Trade Commission was investigating complaints 

that I Works charged customers without authorization and engaged in other fraudulent trade 

practices. In the latter half of 2010, Johnson unsuccessfully sought Majority Leader Reid's 

assistance in halting the Federal Trade Commission's investigation. ln December 2010, the 

Federal Trade Commission filed suit against Johnson and some of his associates and businesses, 

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including I Works, in the United States District Court for the District of Nevada. See FTC v. 

Johnson, et al., No. 2:10-cv-2203 (D. Nev.). Also as a result ofl Works' allegedly unlawful 

business practices, Johnson was criminally indicted in June 2011 in the United States District 

Court for the District of Utah. See United States v. Johnson et al., No. 2: 1 l-cr-050 l (D. Utah). 

13. Johnson entered into arrangements or understandings with his straw donors that 

they would contribute funds to Majority Leader Reid's campaign, and that Johnson would supply 

them with the funds for those contributions. 

14. Johnson's straw donors transmitted funds to Majority Leader Reid's campaign 

that collectively amounted to approximately $20,000. Johnson supplied his straw donors with 

those funds by either advancing them the money for the contributions they would make, or 

reimbursing them for the contributions they had already made, to the Reid campaign. 

15. Johnson made the contributions described in paragraphs 10 to 14 for the purpose 

of influencing the 2010 Democratic primary election for United States Senate in Nevada or the 

2010 general election for United States Senate in Nevada. 

16. Johnson made the contributions described in paragraphs 3 to 14 voluntarily and 

with an awareness that they were unlawful. 

17. The evidence that Johnson was aware that the contributions described above were 

unlawful includes conduct related to earlier violations. In 2009, John Swallow solicited Johnson 

to make a large contribution to the 2009 United States Senate campaign of Mark Shurtleff, who 

was then the Attorney General of Utah and a candidate in the June 2010 Republican primary 

election for United States Senate in Utah. Johnson offered to write a check for Shurtleff s 

campaign in an amount in excess of FECA' s limits. Swallow told Johnson, however, about 

FECA's limit on the amount that any one person could legally contribute to a federal candidate. 

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Swallow and Johnson then discussed the possibility of illicitly contributing additional amounts to 

Shurtleff' s campaign by giving the funds to straw donors and arranging for those straw donors to 

pass on the funds to the Shurtleff campaign. Johnson entered into arrangements or 

understandings with his straw donors that they would contribute funds totaling approximately 

$100,000 to Shurtleff s campaign and that Johnson would supply them with the funds for those 

contributions. Johnson's violations in connection with Shurtleff's 2009 Senate campaign are 

beyond the five-year statute of limitations in 28 U.S.C. § 2462, but help demonstrate Johnson's 

state of mind related to later contributions in the name of another. 

18. The straw donors for Johnson's unlawful contributions to the Lee, and Reid 

campaigns included Johnson's family members, employees, friends, and business associates. 

19. In an attempt to conceal his illicit scheme, Johnson sometimes used cash to 

advance funds to his straw donors or to reimburse them for their donations to the candidates. 

20. Also, Johnson and his straw donors at times used companies and accounts that 

they owned or effectively controlled to execute and attempt to conceal Johnson's illegal 

contributions. 

21. For example, Johnson enlisted one of his business associates, Arvin Lee Black II, 

to act as a straw donor and to recruit other straw donors for Johnson's illicit contributions. On 

June 14,2010, Triple 7, a company Johnson owned or effectively controlled, issued a check for 

$14,400 to Sole Group LLC, a company owned or controlled by Black. The $14,400 amount of 

that check was the exact amount needed to fund six contributions of $2,400 each, which was 

FECA's applicable limit for contributions to federal candidates in the 2009-2010 election cycle. 

22. The same day that Triple 7 issued its $14,400 check to Sole Group LLC, Sole 

Group LLC issued six checks for $2,400 each (totaling $14,400) made payable sequentially to 

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Arvin Lee Black II, Atia Black, Matthew Blnck, Savannah Jones, Kyle Boyer, and Tiffany 

Boyer. Each of those six individuals attempted to make contributions in the amount of $2,400 

each to the Lee campaign in June 2010. Some of their checks bounced, but at least four of the 

contributions, for a total of $9,600, were successfully made. 

23. On June 21, 2010, Swallow informed Johnson about the four bounced 

contribution checks, and Johnson responded that he would "fix" the problem immediately. The 

following day, three of the four contributors whose contributions had bounced issued new 

contribution checks to the Lee campaign. One of the re-submitted checks also bounced. 

24. Because the amount in violation is $70,000 and in light of the nature of the 

violations involved here, the Federal Election Campaign Act permits the Commission to seek 

civil penalties up to $840,000. See 52 U.S.C. § 30109(a)(6)(C). Considering a number of 

applicable factors, in ordinary circumstances a civil penalty of $270,000 would be warranted 

based on the violations outlined herein. 

25. In August 2016, the United States District Court for the District of Nevada 

entered a monetary judgment against Johnson, jointly and severally with other defendants, in the 

amount of $280,911,870.36. Stipulated Order, FTC v. Johnson, 2: I O-cv-2203-MMD-GWF 

(Docket No. 1941) (D. Nev. Aug. 26, 2016). Payment of that judgment was suspended in light 

of Johnson's inability to pay. Johnson certifies that his ability to pay a legal judgment has not 

materially improved since the 2016 judgment. 

26. In March 2016, Johnson was convicted of violating 18 U.S.C. § 1014 for having 

knowingly provided a material false statement to a bank for the purposes of influencing the 

bank's action. Jury Verdict, United States v. Johnson, 2:1 l-cr-00501-DN-PMW (Docket No. 

1399) (Mar. 25, 2016). Johnson was sentenced to an 87-month prison term for that conviction. 

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Amended Judgment, United States v. Johnson, 2: I l-cr-00501-DN PMW (Docket No. 1801) 

(Dec.20.2018), ajf'd, 2020 WL 748843 (10th Cir. Feb. 14, 2020) (unpublished). Due to the 

ongoing coronavirus pandemic, Johnson was recently released to a halfway house. 

27. The internal Revenue Service has assessed millions of dollars in unpaid federal 

income taxes against Johnson. See Declaration of Brick Kane 1 8 and Exh. 1. FTC 11. Johnson, 

2:10-cv-:2203-MMD-GWF (Docket No. 2057) (D. Nev. Sept. 19, 2019). 

28. In recognition that Johnson owes the federal government mil lions of dollars in 

connection with other actions and is currently limited in his ability to earn a living, the 

Commission agrees to forego any civil monetary penalty. If Johnson's financial c-0ndition on the 

day he signs this stipulation was not as represented. a total civil penalty of $270,000 wiJI be 

immediately due. 

29. Johnson shall also be subject to the declaratory and injW1Ctivc remedies described 

in the Consent Judgment. Johnson's previous violations in connection with Shurtleffs 2009 

Senate campaign support the issuance of equitable relief here. 

30. The Court should enter the Consent Judgment. 

Respectfully submitted. 

Lisa J. Stevenson (lstevenson@fec.gov) 

Acting General Counsel 

Kevin Deeley (kdceley@fec.gov) 

Associate General Counsel 

Hany J. Summers (hsummers@fec.gov) 

Assistant General Counse ----

e--/ 

ob S. Siler Usiler@ cc.gov) 

Acting Assistant General Counsel 

7 

K~t>¥~ 

Scott T. Evans 

CHRJSTENSEN & JENSEN, P.C. 

257 East 200 South, Suite 1100 

Sall Lake City. Utah 84111 

Telephone: (801) 323-5000 

Karra. Porter@chrisjen.com 

Scott.Evans@chrisjen.com 

At1orneys for defendant Jeremy Johnson 

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Tara J. Kilfoyle (tkilfoyle@fec.gov) 

Attorney 

FOR THE PLAINTIFF 

FEDERAL ELECTION COMMISSION 

999 E Street, NW 

Washington, DC 20463 

(202) 694-1650 

~~~2020 

1 swear or affirm upon oath and under penalty of perjury that the foregoing Stipulation for Entry 

of Consent Judgment Between Plaintiff Federal Election Commission and Defendant Jeremy 

Johnson is true and correct. 

Date: ]- Zr 2-o <- c) 

sr A TE oF ___.\,,__ro~w~---- coUNTv OF WAf!htJb:ror-.) . 

Subscribed and sworn to or affirmed before me this 1 clay of j Jk/ . 20 JO. by Mr. Jeremy Johnson, who is personally known to me or whose idendty has been satisfactorily 

established. 

[SEAL] 

----------------.. LESLIE M DEAN 

Notary Public, State of Utah 

Commission# 712266 

My Commission Expires 

June 07, 2024 

NOTARY PUBLIC 

Name /gt 1//. ;J,-, 

My commission expires: ei, .... 7 .... ,;20)~ 

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