Democratic Senator Harry Reid Implicated In $350 Million Fraud

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SALT LAKE CITY –  The seemingly corrupt – or at the very least dishonest – Democratic Senator from Nevada, Harry Reid, is now himself accused of far more sinister wrongdoing. Harry Reid, as most will recall, repeatedly went before the Senate during the 2012 campaign cycle, for the sole purpose of claiming that Mitt Romney had not filed tax returns for ten years.  The accusation was both false and disingenuous, and Harry Reid knew it. Reid only made such statements on the floor of the US Senate, where he was cloaked with protections that allowed him to make slanderous statements about Romney.

A Utah businessman who is accused of perpetrating a $350 million  fraudulent software scheme says the state attorney general arranged a deal with Senate Majority Leader Harry Reid (D-Nevada) to kill a federal investigation into the software business.  In return for killing the federal investigation, substantial cash payments were made to Harry Reid, accusers say.

Harry ReidJeremy Johnson, the St. George, Utah businessman who’s accused of billing hundreds of thousands of consumers for products they never ordered, told The Salt Lake Tribune that newly elected Utah Attorney General John Swallow (D) set up a deal in 2010 between Johnson and Reid to funnel $600,000 to people close to Democratic Senator Harry Reid. Johnson claims that, in return for the payments, Senator Reid would intervene in the Federal Trade Commission’s investigation.

Swallow strongly denies the allegations and maintains he only offered to connect Johnson with a lobbying firm. At the time, he was serving as Utah’s chief deputy attorney general.  Neither the FBI nor Senator Reid’s office would not comment on the allegations.

Federal prosecutors initially charged Johnson, 37, with one count of mail fraud.  Two weeks ago he was set to enter a guilty plea to two additional charges of bank fraud and money laundering, as part of a larger plea agreement with the government.

But that deal fell apart after Johnson and prosecutors disagreed over the terms.  Johnson instead decided to maintain his not guilty plea and the case is now set to go to trial. Johnson, who is currently free on a $2.8 million bond, faces more than 10 years in prison if convicted.

The Salt Lake Tribune has reported that Johnson provided emails, financial statements, photos, and a transcript of a recorded meeting with Swallow to the newspaper.  Only one email from Johnson was available on the newspaper’s website, but that doesn’t mean the newspaper doesn’t have the rest of the material.

After the Federal Trade Commission filed a lawsuit against Johnson and nine business associates in December 2010, Johnson said he asked Swallow to return part of the $250,000 he had paid.  Johnson said he doesn’t know if anyone connected to Reid received it.

Maybe this explains why Reid and fellow Senate Democrats have been too busy to pass a budget for the last four years.

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A prolific political writer, Schaefer's political writings are syndicated by Technorati Media and published by Technorati Politics. Schaefer also publishes the American Politics Wiki and Intelligent US Politics, which was recently named one of the top 100 conservative blogs in America.

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