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Utah businessman tied to Shurtleff and Swallow cases loses another round with parole board

$4.1M • Businessman with ties to ex-A.G.s is paying debt in monthly $130 increments.

Steve Griffin | The Salt Lake Tribune Marc Sessions Jenson, 54, testifies during his trial for second-degree felony charges of fraud, money laundering and theft by deception in connection with the failed Mt. Holly ski resort near Beaver, Utah. Trial is being held in the courtroom of Judge Elizabeth Hruby-Mills in the Matheson Courthouse in Salt Lake City, Friday, January 23, 2015.

A former big-money lender who had ties to the political corruption scandal that upended the careers of two former Utah attorneys general has lost another battle with the state's parole board.

In July, Marc Sessions Jenson sought relief from nearly half the $4.1 million in restitution the board says he owes the victims of a 2005 criminal case, insisting there were new documents to show that a portion of the debt had been settled through other lawsuits.

On Oct. 6, the board rejected Jenson's petition and denied his request for a hearing on the issue, documents from the Utah Board of Pardons and Parole show. The papers offer no explanation for the decision, beyond stating that the documents submitted by Jenson's attorneys and the Utah Attorney General's Office had been reviewed.

"It is unfortunate that the board chose to make this decision without either holding a hearing or viewing confidential information offered by Mr. Jenson," Jenson's attorney, Helen Redd, said this week. "We are already moving forward in a different direction to resolve this matter."

As directed by an earlier board ruling, Jenson is currently paying down his multimillion-dollar debt in $130 monthly installments.

His only remaining avenue to challenge a restitution order would be through the state courts, board spokesman Greg Johnson has said.

That is precisely where Jenson should have raised the issue, the Utah Attorney General's Office agreed in documents it filed with the board — but back in 2008 or 2011 when the case was before the courts.

"The board does not sit as appellate court to re-litigate and correct restitution orders," Assistant Utah Attorney General David Sonnenreich wrote.

Charged in 2005, Jenson pleaded no contest to three felony counts of unregistered securities sales in 2008. He was granted a plea in abeyance that kept him out of prison, and he was ordered to pay the $4.1 million, owed to two former business partners, Michael Bodell and Morris Ebeling.

Jenson went to prison in 2011 for nonpayment. His lawyers at the time told the court that at least some of the debt had been paid through other lawsuits and settlement agreements, but according to the attorney general's office, Jenson failed to produce supporting documents or ask for a hearing.

Jenson was released from prison in October 2015, when a new set of attorneys pressed the issue and submitted hundreds of documents and financial records to the board.

Jenson's most recent challenge sought a release from $1.6 million owed to Bodell. It included resubmitted financial records and documents, along with a copy of a redacted settlement from Bodell's lawsuits with Bank One and the investment firm Cherokee & Walker.

Jenson's attorneys contend the records offer proof that his former business partner was made whole by suing others and that Bodell "withheld information, misrepresented facts and provided false testimony" to the board.

Bodell has denied, both in person at a board hearing and in an affidavit, that he has received any outside money to offset Jenson's debts.

The state maintains that Jenson is bound by the original plea agreement and must "live with the consequences of his decision to accept responsibility," board documents say.

Jenson became a key figure in a scandal that left former Utah Attorneys General Mark Shurtleff and John Swallow facing criminal charges in 2014, after he alleged they had squeezed him for money and favors. Shurtleff's case was dismissed in July. Swallow has pleaded not guilty to multiple felony and misdemeanors and is set for trial in 2017.

jdobner@sltrib.com

Steve Griffin | The Salt Lake Tribune Marc Sessions Jenson, 54, becomes emotional as he testifies during his trial for second-degree felony charges of fraud, money laundering and theft by deception in connection with the failed Mt. Holly ski resort near Beaver, Utah. Trial is being held in the courtroom of Judge Elizabeth Hruby-Mills in the Matheson Courthouse in Salt Lake City, Friday, January 23, 2015.

Leah Hogsten | The Salt Lake Tribune Marc Sessions Jenson smiles as he enters the courtroom to hear the verdict. Jenson was found not guilty Friday, January 30, 2015 of fraud and money laundering in connection with the failed Mount Holly golf and ski resort near Beaver Ñ a case with ties to the bribery and corruption investigation of former Utah attorneys general Mark Shurtleff and John Swallow. Following a three-week trial, a jury of five men and three women deliberated 14 hours over two days before acquitting Jenson of four counts each of second-degree felony communications fraud and money laundering.

Leah Hogsten | The Salt Lake Tribune l-r Defense attorneys Brad Mumford, Helen Redd, defendant Marc Sessions Jenson and lead attorney Marcus Mumford embrace after he was found not guilty Friday, January 30, 2015 of fraud and money laundering in connection with the failed Mount Holly golf and ski resort near Beaver Ñ a case with ties to the bribery and corruption investigation of former Utah attorneys general Mark Shurtleff and John Swallow. Following a three-week trial, a jury of five men and three women deliberated 14 hours over two days before acquitting Jenson of four counts each of second-degree felony communications fraud and money laundering.