The sale approved by Nevada Federal Judge Roger Hunt August 25, 2011, authorized the receiver, appointed by the court, to sell properties owned by Johnson and his associates over their objection, that includes houseboats, aircraft, multiple real estate properties, classic cars and other items. Court Order
Johnson contends other means would bring greater value other than a local auction. He has previously stated in court records that the vehicles are collector's items which will not realize full value in an auction at Hurricane, Utah but will appreciate in value while court proceedings are pending. None of the items scheduled for sale are perishable and the current depressed state of the economy favors selling any assets at a later date, according to court records. There is not imminent need for a sale, he said.
Johnson contends his company and property have been taken without due process and has filed an appeal to stay further action by the receiver until there is final resolution in the civil case brought by the Federal Trade Commission for alleged illegal internet sales activities, an allegation that he has denied. Johnson said the FTC has used lengthy news releases asserting allegations against he and his associates which are untrue and have yet to be proven in court.
Utah attorney Michael Studebaker represents Duane Fielding, Anton Holdings and Network Agenda, named by the FTC in court records. He told KCSG News that his clients filed a motion to Stay Enforcement of the Court Order providing for the sale and included a Memorandum of Law for the appeal. He said the filing by his clients is in addition to the Pro Se appeal filed by Johnson earlier Friday. Motion to Stay - Memorandum of Law
Studebaker said the sale by the receiver should be stayed until the Ninth Circuit Court of Appeals makes its determination. The Court on Friday routinely set forth the time line of the case ordering a transcript of the case due November 21, 2011. Jeremy D. Johnson's (the Appellant) opening brief to be filed by January 3, 2012 and the Federal Trade Commission (Appellee) answering brief by February 2, 2012 with Johnson's optional reply brief due 14 days after service of the answering brief.
Studebaker said the case affects a large number of people, like his clients, and the FTC appears to have made a strategic calculation to overwhelm the Court and defense attorneys with massive amounts of documents making allegations that so far have been without substance.
Johnson was arrested in Phoenix, Arizona and extradited to Utah on a single count of mail-order fraud where he was jailed until a week ago Thursday when he was released after family and friends posted a $2.8-million dollar bond. Sixteen people put up their homes, property or other financial holdings to secure his release.
Studebaker said the single-count of mail fraud filed against Johnson and his imprisonment for 95-days appears an abuse of the judicial system by federal authorities. Nathan A. Crane of Peter Stirba & Associates, has been appointed by the Court to represent Johnson in the mail-fraud complaint filed in Utah federal court.