Saturday 24 September 2011

 

Utah auctioneer expects lively bidding Saturday, when property owned by St. George businessman Jeremy Johnson, who faces a federal criminal mail fraud charge, goes on the auction block. A preview of the auction Friday gave potential bidders a peek at the office and patio furniture, seven televisions, computers, classic automobiles, a dune buggy, and snow plane powered by a rear wooden propeller with a roof of black and white cowhide. All told, 248 items are scheduled be sold, all of which are from Johnson’s defunct I Works company except the cars. The Federal Trade Commission sued Johnson and I Works in December in federal court in Las Vegas, accusing him of running a large-scale fraud that took in about $350 million. I Works is accused of making millions of dollars of unauthorized charges on consumers’ credit and debit cards after they purchased products online for a minimal charge. At the request of the FTC, a federal judge appointed a receiver, Robb Evans & Associates, to examine the finances and business records of Johnson and I Works and preserve assets. The receiver asked the judge to allow it to sell off property because the company was no longer functioning and it wanted to preserve as much value as possible. In another case, Johnson faces a federal criminal mail fraud charge in Salt Lake City connected to his I Works operation. He was released from a jail last week after posting a $2.8 million bail. On Friday, a steady stream of people circulated among the auction items at the warehouse of Statewide Auction Co. By mid-afternoon 130 bidders had registered. The auction begins at 10 a.m. at the warehouse at 5099 Wheeler Way in Hurricane. There is no minimum bid on any of the items. Tom Erkelens, a co-owner of Statewide Auction who will conduct the sale, said he anticipates a good crowd Saturday, and expects strong bidding on the five mint-condition classic cars, among them a 1972 Chevelle Super Sport, a 1957 Belaire and a 1953 Ford Customline with "Ford-O-Matic."

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