Federal charges have been filed against former Morgan County council administrator Garth Day. Charges were dropped at the state level several months ago as the investigation was turned over to federal officials. At the time that the case was turned over to federal jurisdiction, County Attorney Jann Farris said, ““My fear is that Garth will be released immediately from the prison [state prison] due to the non-violent nature of his crimes and his lack of a criminal record and prison overcrowding. I do not feel like that would be appropriate considering the damage he has done. In the federal system he will more likely get and serve a significant prison sentence. In my judgment that will be in the best interest of justice.”
Federal officials have conducted interviews with county personnel, and with Day himself as a part of their investigation. The charges now filed represent the outcome of their investigation. There are six counts filed in federal court by US attorney Charlie Christensen and Assistant US attorney Carlos A Esqueda. The charges include:
1. Theft from a program receiving federal funds
2. False loan and credit applications - On or about April 15, 2009, in the Northern Division of the District of Utah, Garth B. Day, defendant herein, knowingly made a material false statement and report for the purpose of influencing in any way the action of Centennial Bank, a financial institution as defined by 18 U.S.C. § 20, whose deposits, at all times relevant to this Felony Information, were insured by the Federal Deposit Insurance Corporation, in connection with an application for a loan and credit, in that the defendant falsely represented to Centennial Bank on a $250,000 line of credit application applied for on behalf of Morgan County that he had Morgan County’s authority to apply for and obtain such line of credit when in truth and fact he did not.
3. Wire fraud - On or about May 1, 2009, in the Northern Division of the District of Utah, Garth B. Day, defendant herein, for the purpose of executing, and attempting to execute, the scheme and artifice, did cause the Centennial Bank, account # XXXX 4742 to transfer, by means of an interstate wire transmission, $92,000 from an account purportedly owned by Morgan County Redevelopment Agency to the defendant’s personal U.S. Bank, account # XXXX-XXXX-XXXX- 1794, to pay off his personal debt.
4. Mail Fraud – On or about May 19, 2009, in the Northern Division of the District of Utah, Garth B. Day, defendant herein, for the purpose of executing, and attempting to execute a scheme and artifice to defraud Morgan County, a local governmental entity, and to obtain money and property by means of false and fraudulent pretenses, representations, and promises, did place and cause to be placed in an authorized depository for mail matter, a letter to First National Bank of Morgan, purporting to be authorized by Morgan County, requesting the disbursement of funds to the defendant, to be sent and delivered by the United States Postal Service.
5. Bank Fraud – On or about April 6, 2010, in the Northern Division of the District of Utah, Garth B. Day, defendant herein, did knowingly execute and attempt to execute a scheme and artifice to defraud a financial institution, to obtain moneys and funds owned by and under the custody and control of said financial institution by means of false pretenses and representations, in that the defendant without authority removed funds from Morgan County account at First National Bank of Morgan, account # XXX 7683, and opened a bank accounts at Chase Bank account # XXXX4386 purportedly in the name of Morgan County but in truth and in fact was for personal use and expenses, which said financial institution as defined by 18 U.S.C. § 20 whose deposits, at all times material to this Indictment, were insured by the Federal Deposit Insurance Corporation.
6. Money Laundering – Garth B. Day, defendant herein, did knowingly engage and attempt to engage in the following monetary transaction by, through, and to Centennial Bank, a financial institution, affecting interstate commerce, in criminally derived property of a value greater than $10,000, that is, the transfer of U.S. currency, such property having been derived from a specified unlawful activity (to wit: False Loan and Credit Applications, in violation of 18 U.S.C. § 1014).
The final count included a wire transfer on May 1, 2009 from Centennial Bank in the amount of $92,000 to pay off Day’s debt with US Bank.
The charges state a total amount of $465,537 as the total proceeds obtained by Day in the alleged activities. The filing also includes forfeiture of any of the proceeds from the transactions by Day, and to the extent that the proceeds cannot be recovered, include the forfeiture of any other property of Day up to the $465,537.
Police reports previously obtained indicate that Day has provided information to prosecutors and is cooperating with the investigation. The process will now proceed towards either an agreement between Day and the United States attorneys, or to a trial in Federal Court. An initial appearance on the charges will be scheduled within the next few days.