SALT LAKE CITY — In his second day testifying in the fraud case against him, Marc Sessions Jenson described the steps he took to ensure potential investors knew of his run-in with Utah state law.

Jenson told the people he met who were interested in memberships to an exclusive ski and golf resort he was developing with his brother that they should search his name online, where they would find unflattering news coverage about prior charges against him, and then come to him with any questions they had.

That included Jeffrey Donner, a Colorado doctor who was deeply interested in the proposed Mount Holly Club in Beaver County, Jenson testified Tuesday. When Jenson had a mutual friend and Mount Holly partner, Tim Bell, approach Donner about his interest, "the first thing" they were to discuss had to be Jenson's history and the fact that, by court order, he could not be an owner or executive on the project.

Not only was the doctor still enthusiastic about the project despite learning Jenson had taken a plea in abeyance to charges of securities fraud, he commiserated with him as the two chatted during a Las Vegas limousine ride, as he had once been subject to a fraud investigation in Colorado, Jenson claimed.

"My fight with the great state of Utah is over, Jeff," a July 2008 email from Jenson states. "They dismissed every charge they filed against me. I agreed to pay some money only after they gave me a deal that required no money, but the judge wouldn't sign it. This is how these things are done. I'm happy with the results and so is the state."

Jenson is now serving a 10-year prison sentence after failing to pay restitution on that case.

The email went on to narrate Jenson's confidence in the development and the money-making opportunities it would bring to Donner.

"I feel more strongly than ever about the value of the club, the pathway we have chosen to finance it and our ability to sell the lots and memberships. I believe that the convertible feature of your loan is probably the best investment opportunity you've ever had. I promise the club will work," the email from Jenson read.

Jenson also testified he never told investors that the Mount Holly project was debt-free, a claim made by prosecutors, but described the $20 million to $25 million debt as "low debt," and Donner agreed.

The Mount Holly Club, which aspired to emulate the overnight success of the lucrative Yellowstone Club in Montana, was to include 1,200 building lots starting at $1 million each, a Jack Nicklaus-designed golf course and a ski area managed by Olympic gold medalist Ted Ligety.

With the collapse of the Mount Holly project, Donner and others lost millions. Jenson ascribes the failure to XE Capital, a New York-based hedge fund that had promised additional money and then withheld it, and a partner at the firm who "fell too much in love with it."

"He stole it from us," Jenson said simply.

That business partner bought the Mount Holly Club out of bankruptcy and currently holds it under a different name.

Jenson has pleaded not guilty to multiple counts of second-degree communications fraud, theft by deception and money laundering in the wake of the failed development.

Prosecutor Tim Taylor has argued that Marc Jenson and his brother, Stephen Roger Jenson, deceived investors as they wooed them to the project, failing to disclose that the business was nearly broke and that Marc Jenson had been the subject of a felony conviction and other criminal charges from complaints by disgruntled business associates.

In his opening statement, defense attorney Marcus Mumford claimed disgruntled investors pointed their fingers at Marc Jenson rather than XE Capital only after two closed-door meetings with then-Attorney General Mark Shurtleff.

Marc Jenson's testimony Friday, which only began to address allegations surrounding the Mount Holly Club, focused on his previous conviction and dealings with Shurtleff.

Marc Jenson testified that as he sought to fight the charges against him, he was directed to Shurtleff's self-described "fixer," Tim Lawson, and instructed in calls from Shurtleff to work with Lawson. The back-door dealings ultimately resulted in a plea deal that would not require prison time, Marc Jenson alleges.

Any mention Tuesday of interactions with Shurtleff, Lawson or former Attorney General John Swallow was immediately met with objections from Taylor, who had remained mostly silent during Friday's testimony, and sustained by 3rd District Court Judge Elizabeth Hruby-Mills.

The Utah Attorney General's Office, led by Shurtleff, initially filed charges against the Jensons but removed itself from the case in 2013. Mumford sent subpoenas to Shurtleff and Swallow to testify in the trial. Their lawyers filed objections, which the judge upheld.

View Comments

Marc Jenson is at the center of the criminal charges against former Utah Attorneys General Mark Shurtleff and John Swallow. He claims they shook him down for money and favors during a trip to the posh Southern California villa where he was living in 2009.

Stephen Jenson accepted a plea deal partway through the trial, pleading no contest Wednesday to three reduced charges of third-degree felony communications fraud, while one additional fraud charge and 10 counts of money laundering, all second-degree felonies, were dismissed. He will be sentenced March 30.

The trial, entering its 11th day, will continue Wednesday morning as prosecutors cross-examine Marc Jenson.

Email: mromero@deseretnews.com, Twitter: McKenzieRomero

Join the Conversation
Looking for comments?
Find comments in their new home! Click the buttons at the top or within the article to view them — or use the button below for quick access.