Harry Reid: Investigation By Troy Rawlings Links Democratic Leader To Utah Bank Fraud, Money Laundering

Harry Reid: Investigation By Troy Rawlings Links Democratic Leader To Utah Bank Fraud, Money Laundering

The Harry Reid investigation continues as Utah lawyer Troy Rawlings digs into the past of the Democratic leader. Former Utah attorney generals John Shurtleff and John Swallow were arrested in 2014 for engaging in so-called “pay-to-play” schemes, where they traded political favors with businessmen. These men included Jeremy Johnson, who accused Swallow of being involved in a plan to pay off Reid in hopes of ending the FTC investigation into his company iWorks. In 2013, the U.S. Justice Department declined to file charges against Reid and closed their investigation, but Rawlings claims he has “information from witnesses in the attorneys general case” that would indicate that Reid is corrupt.

In a related report by the Inquisitr, Harry Reid is retiring, but there is a lot of disagreement over the real reason he is ending his political career in 2016.

The center of the Harry Reid investigation actually revolves around St. George businessman Jeremy Johnson. The businessman stands accused of running a $350 million software scheme, where he sent software to consumers for a supposedly risk-free trial but billed them anyway. Johnson was arrested at a Phoenix airport in 2011 while carrying more than $26,000 in cash and a one-way plane ticket to Costa Rica.

WASHINGTON, DC - SEPTEMBER 16: Senate Majority Leader Harry Reid (D-NV) answers questions following the weekly Democratic policy luncheon at the U.S. Capitol September 16, 2014 in Washington, DC. Reid answered questions about the midterm elections and the remaining legislative agenda for the Senate. (Photo by Win McNamee/Getty Images)
Harry Reid [Photo by Win McNamee/Getty Images]

Johnson apparently thought Reid could intervene in the Federal Trade Commission’s (FTC) investigation into iWorks. In addition, former Utah attorney general John Swallow allegedly orchestrated an agreement in 2010 to pay $600,000 to someone connected to Reid. The alleged scheme failed and Johnson tried to get his money back, although he’s uncertain if Reid, or anyone else connected to Reid, ever received the money. The investigation into these matters eventually led to the arrest of Swallow and his predecessor, John Shurtleff.

According to Deseret News, Jeremy Johnson’s case is now being handled directly by the businessman because he can’t afford a lawyer. He is also forbidden from discussing the criminal and civil cases based upon a judge’s gag order.

“It’s like being famous for all the wrong reasons,” he said. “And then compounded by the fact that I can’t articulate what my position is at all. Of course, I don’t like being in the center of it.”

Johnson and four other associates face up to 86 counts of wire fraud, bank fraud, and money laundering in connection with iWorks, but he will not stand in court again until February of 2016. If Johnson is called to testify against Swallow and Shurtleff, he says he will tell the truth despite being friends with the two other men.

“I won’t lie as a witness. I won’t make anything up. I’ll just say what I know and that’s it,” he said.

Senator Harry Reid
[Image via CC BY-SA 2.0 Via Flickr| Courtesy Of Amanda Bossard/ Medill News Service| Resized]

According to City Weekly, the Harry Reid investigation reveals that the Democratic leader was implicated by Johnson in at least two bribery schemes. Johnson allegedly recorded a conversation where Shurtleff discussed funneling $2 million to Reid in 2010 in order to get the Utah Senator to introduce legislation legalizing online poker. This online gambling scheme allegedly bore fruit since Reid “pursued federal law to legalize Internet poker but ultimately gave up before even introducing the legislation.”

Utah lawyer Troy Rawlings is attempting to trace the money that allegedly was being given to Reid. According to the Associated Press, the Rawlings has criticized the U.S. Department of Justice for allegedly “limiting what information he has access to and what he can investigate.”

“It is not up to the DOJ to tell me who can and who cannot be investigated and what evidence is relevant and material to a state case,” Rawlings said.

The attorney is investigating potential statewide crimes in relation to the case, but he decided to confirm the ongoing Harry Reid investigation after being questioned by a local newspaper. The lawyer also claims there are witnesses to Reid’s corruption.

“To simply ignore and run from what has been presented by multiple witnesses and sources… would mean I am either intentionally blind, or overly worried,” Rawlings said.

In the past, Kristen Orthman, a spokeswoman for Reid’s office, claimed that “Senator Reid has no knowledge or involvement regarding Mr. Johnson’s case. These unsubstantiated allegations implying Senator Reid’s involvement are nothing more than innuendo and simply not true.” Now, based upon the new investigation by Rawlings, Orthman says Reid is being targeted for political purposes.

“[Rawlings is using] Sen. Reid’s name to generate attention to himself and advance his political career, so every few months he seeks headlines by floating the same unsubstantiated allegations,” she claims.

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[Photo by Chip Somodevilla/Getty Images]