Thu, Jan 15, 2015

SALT LAKE CITY (ABC 4 Utah) - Prosecutors say two brothers bilked investors in a project that was plagued from the beginning.

But lawyers for Marc and Stephen Jenson there was no fraud or deceit on their part.

The Jenson brothers are facing multiple counts of fraud and money laundering in a failed Mt. Holly ski and golf resort project in Beaver County.

Prosecutors claim the project failed to materialize leaving investors with millions of dollars in losses.

The case also has the attention of state investigators after Marc Jenson claimed the charges came after he refused to be financially "shaken down" by former Attorneys General Mark Shurtleff and John Swallow. Marc Jenson is now a key witness in felony charges including bribery against Shurtleff and Swallow.

Tim Taylor, a deputy Utah County attorney is prosecuting the case after the Attorney General's office claimed a conflict of interest.

In opening statements before the 10-person jury, Taylor said the Jenson brothers failed to tell investors key information about themselves.

He said their company was "physically broke and on the brink of foreclosure."

One of the investors, Dr. Jeffery Donner of Colorado testified that he thought the Jenson’s were well off.

"He said there was no debt,” Donner testified. (I was) told Jenson was rich and had no reason to believe him.”

Prosecutors say investors chipped in one and a half million dollars each. But Taylor said Jenson failed to tell potential investors about their money problems, that Marc Jenson was a convicted felon and facing other charges too.

“To think they had this kind of background, a rap sheet basically was unbelievable,” said Donner.

One of the attorneys representing the Jenson brothers told the jury that the project was legitimate.

"Ted Ligety, the gold medalist from Park City was going to be ski director,” said Edward Stone during opening arguments. “Jack Nicklaus had a design, was designing the golf course.”

But Stone said e said there were money problems from the beginning and it wasn't the fault of the Jenson brothers. He said prior owners were deep in debt.

Stone said Marc Henson even loaned the previous owners $3 million. They later filed for bankruptcy.

“And it was very frustrating,” Stone said. “It put Mt. Holly (proposed project) in a cash strapped situation constantly.”

He said the project was still moving along. Stone told jurors the property was worth $200 million and debt was around $25 million. 

And despite investor financing, Stone said there was just too much money problems from financiers they were working with.

“The only reason why the project failed was lack of funding,” he said. “(There was) not anything, not any intent to deprive or steal money.”

Subpoenas have been issued for Shurtleff and Swallow. But their attorneys are refusing to testify. Taylor says they are not relevant to the case but Jenson's attorneys claim they are.

"We will call them and see what happens," said Marcus Mumford, attorney representing Marc Jenson.