Utah Business News

Securities enters Order against former directors of "Our Unsung Heroes"

2007-10-01T06:00:00+00:00

"Paul McSweeney and Craig Ostlund promised a 17.5% return on airplane venture"

SALT LAKE CITY, Utah - The Division of Securities announced today that an Order to Show Cause has been entered against Paul McSweeney and Craig Ostlund, former directors of "Our Unsung Heroes" charity. Both men face Securities Fraud for offering two Draper investors a 17.5% return on a $15,000 investment for an airplane purchase, failing to disclose important financial information and offering an unregistered security which violated the Utah Securities Act. The Utah Division of Securities is seeking for Paul McSweeney, of Utah County and Craig Ostlund, of Salt Lake County, to cease and desist from offering any securities and pay a $45,000 fine.

According to the Order, McSweeney and Ostlund solicited $15,000 from the two victims in 2006. The Draper investors were told that the money would be used to buy an airplane off the Ebay auction website for flight lessons that would help pay for Utah World War II veterans to go to Washington, D.C. through the "Our Unsung Heroes" charity. Ostlund claimed that "Our Unsung Heroes" had certified flight instructors who would offer flight training and if the organization "went under", the investors' money would be refunded after the airplane was sold. McSweeney and Ostlund sold the investors a promissory note with a yearly return of 17.5%, for a term of three years. On February 23, 2006, the investors obtained a signature loan for $15,000 and wired the money to an Ebay seller to purchase an airplane.

During 2006, the investors received three late payments of $1,615 each. When McSweeney and Ostlund stopped making interest payments, the investors hired an attorney who recovered an additional $5,000. To date, the victims are still owed $8.384.41

McSweeney and Ostlund failed to disclose the following financial information to the Draper investors; Ostlund previously filed for bankruptcy twice, McSweeney filed for bankruptcy in 1999, Ostlund faced $1,000 in unpaid civil judgments, and that McSweeney faced $3,500 in unpaid civil judgments.

Securities enters Order against Dennis T. Wynn for Car-Flipping Scheme

2006-09-12T15:55:43+00:00

"Wynn took $82,026 from four victims in fake investment, faces new charges "

SALT LAKE CITY, Utah - The Division of Securities announced today that an Order to Show Cause has been entered against Dennis T. Wynn, of Salt Lake County, for offering unlicensed securities to four victims in an alleged car-flipping investment which violated the Utah Securities Act. The Securities Division also named Wynn's companies, DFTF Financial Group, LLC and Arizona Cyber Auto, as Respondents.
The Order asks Dennis Wynn to cease and desist from any further solicitation of investors or conduct violating the Utah Securities Act and requiring a payment of $200,000 to the Division of Securities.

According to the Order, Dennis. T. Wynn approached four investors between June 2003 and October 2005. Wynn allegedly told victims they could earn profits by investing in his car-flipping business. Wynn told them he made money by buying cars wholesale, selling them to bad credit customers by offering financing with high interest rates and splitting the profits on each sale with his investors. Wynn received a total of $82,026 from the victims and gave two investors unsecured promissory notes and made verbal investment contracts with the other two investors. According to the investigation, Wynn did not follow through on the car-flipping scheme, failed to make payments to the four investors and in some cases used the investors' money for personal expenses, payments to his companies and payments to family members.

To date, only one investor has received a partial payment on her investment and despite repeated demands, the remaining three investors have not received their interest or principal from Wynn.

Wynn also failed to tell investors he filed for personal bankruptcy in 1989, that Wynn Company had filed for bankruptcy in 2002, that Wynn faced over $2 million in outstanding civil judgments, the IRS filed a $163,860 tax lien against all of Wynn's real estate in 2001, the State of Utah filed criminal charges against Wynn in 2002 for violating the Utah Motor Vehicle Business Regulation Act and that Wynn entered an abeyance plea in 2003 with the State resulting in the dismissal of criminal charges.

Investors are urged to contact the Division of Securities to make sure anyone offering investments is licensed, by calling (801) 530.6600, toll free at 1.800.721.7233 or logging on to www.securities.utah.gov.

Utah Investor loses $14,781.03 in "Advanced Fee" Loan Scheme

2006-08-15T14:43:29+00:00

"Company promised big loans for small fees, victim loses money"

SALT LAKE CITY, Utah - The Division of Securities announced today that a Default Order has been entered against Peak Funding, Inc. and Leland Wheeler, of Garden City, New York for violating the Utah Securities Act. The investigation alleges Wheeler and Peak Funding fraudulently induced an investor to send more than $14,000 in order to receive a $300,000 loan and that they lied to the investor about the loan. Wheeler and Peak Funding are ordered to cease taking money for loans and to pay the Division of Securities $40,000 in fines.

According to the Default Order, Leland Wheeler and Peak Funding defrauded a Utah investor of $14,781.03 between October and November 2005. Wheeler offered the victim a 30-year "Secured Business Loan" for $200,000 at a 4% interest rate if he sent Wheeler an "Insurance Deposit" for $3,764.61. Wheeler claimed the "Insurance Deposit" would be held in an interest-bearing account while the loan was processed. He said once the paperwork was completed, the Utah investor would receive $200,000 directly into his bank account. The investor sent Wheeler a copy of his social security card, his driver's license and paycheck stub along with his bank account information.
After Wheeler received the first payment, he phoned the investor and claimed that he needed another $4,759.44 to complete the transaction which would raise the loan amount to $250,000. The investor complied and sent the funds. Over the following weeks, Wheeler coerced the investor to send additional funds in increments of $4,183.99, and $2,072.99 to raise the loan amount to $300,000. Wheeler went so far as to tell the investor that Federal Express would personally deliver the funds to his Utah address.

No funds arrived and to date the investor is still seeking his deposit of $14,781.03 from Peak Funding, Inc. and Leland Wheeler.

Father and Son take $295,800 from Investor in Comcast Cable Scam

2006-08-11T23:06:06+00:00

"Securities enters Order for selling shares in Comcast receivables"

SALT LAKE CITY, Utah - The Division of Securities announced today that a Stipulation and Consent Order has been entered against Jordan Tenney Jr. for selling unregistered "factoring" investments for accounts receivables incurred by CommuniCom Corporation, a contractor used by Comcast Cable.

According to the Order, a Utah investor purchased 52 factoring agreements for CommuniCom Corp. between April 23, 2005 and October 22, 2005 from Jordan Tenney Jr. and his father John B. Tenney Sr. The agreement stated that if the Investor paid CommuniCom a percentage of the company's' receivables upfront, he would receive full payments directly from Comcast Cable when CommuniCom was reimbursed for contractor work.
CommuniCom's contractors installed cable, Internet and phone connections for Comcast in Massachusetts. Tenney Jr. offered the Investor 20 of the "factoring" agreements purchased during that time period and signed on most of the 52 agreements as "Controller/Treasurer". In July 2005, the Investor stopped receiving payments and called Jordan Tenney Jr. He told the victim CommuniCom was having problems and the Investor would get his money in the next week or so. The Investor received a few partial payments over the following three months from CommuniCom. In October 2005, the Investor and his accountant demanded to see CommuniCom's financial records. The records provided showed that Jordan Tenney's father had used the company's money for personal expenses and to hire an expert witness to defend John B. Tenney Sr. against criminal charges In addition, the investor had not been told that Jordan Tenney Jr. had been named as a defendant in three civil suits, each resulting in judgments against Tenney Jr. To date, the investor has not received the balance of his investment in the factoring agreements with CommuniCom.

Jordan Tenney Jr. was ordered to cease and desist from engaging in any conduct in violation of the Utah Uniform Securities Act. The Division also requires Tenney, Jr. to pay a $500 fine.

State Agrees To Preliminary Injunction

2006-08-11T23:00:58+00:00

Salt Lake City, Utah - The State of Utah has consented to the temporary postponement of recent amendments to the state's securities laws which were adopted in the special session of the legislature in May. S.B. 3004 requires securities brokerage firms to report to the State Division of Securities information on all the transactions involving the stock of Utah companies that were not settled on a timely basis.

The law was designed to provide more information to investors and Utah companies about trades which did not settle on time or which might indicate abusive short selling, whereby some traders sell stock they do not own in an effort to drive down stock prices. To the extent that abusive short selling occurs or to the extent that investors do not receive shares that they purchase, the markets are not operating efficiently. The new legislation was an effort to provide more transparency and fairness to the markets.

Since the law was enacted in May, there have been several significant developments toward the same goal. The United States Senate has held two hearings into hedge fund and short selling abuses. On July 19, 2006, the Securities and Exchange Commission proposed changes to its regulations governing short selling. If those proposals are adopted, the ability of traders to engage in abusive short selling will be severely constrained. Regulators have brought an increasing number of enforcement actions against traders and brokers engaged in short selling violations.

On July 28, 2006, the Securities Industry Association filed suit in federal court to halt implementation of Utah's new law, arguing that some of the specific terms of the state law were preempted by federal law. Representatives of the securities industry have since met with state officials expressing a preference for a uniform national solution to any problem which may exist regarding settlement failures. While the representatives have expressed appreciation for the state's efforts in raising awareness, they said the state's requirements would be difficult and costly to implement, might work against the SEC's efforts to devise a national solution, and might result in reduced trading in the stock of companies based in Utah.

The state has agreed to a court order that the implementation of the law be postponed from October 1 to June 1, 2007. This will give more time for policy makers to determine whether the changes proposed by federal regulators make the Utah law unnecessary.

"We're satisfied to allow the SEC a window of opportunity to develop a comprehensive solution," said John Valentine, President of the Utah Senate.
"Their success will benefit companies and investors, not just in Utah, but throughout the nation. If acceptable solutions are not developed at the federal level, Utah stands ready to implement its statute after June 1, 2007."

"Individual investors and the integrity of the markets are at serious risk from high numbers of settlement failures. To the extent that abusive short selling increases the number of settlement failures or contributes to market manipulation, regulators have a duty to investigate and take action," said Wayne Klein, Director of the Utah Securities s Division. "We applaud the efforts of the SEC to reduce opportunities for short selling abuses through its current proposal to amend the federal regulation on this issue. The enforcement actions now being brought by federal regulators to prevent these abuses also will go a long way towards improving market transparency and fairness to investors." Klein hopes that these moves can result in a common effort by state and federal regulators.

"It makes irrefutable good sense for the State of Utah to defer and allow the federal regulatory authorities to fully engage the industry on these important issues, before the State embarks upon protracted and costly litigation." said Scott Reed, lead counsel from the Utah Attorney General's office, who is defending the lawsuit. "But investors, large and small, need to be assured in every way possible of a level playing field." Reed believes the agreement to place enforcement of the new statute on hold is likely to save both the industry and the State of Utah millions of dollars, giving the federal Securities and Exchange Commission an opportunity to re-define market practices in this area.

50th Anniversary of the Interstate System

2006-06-16T18:22:42+00:00

SALT LAKE CITY - UDOT is celebrating the 50th Anniversary of the Interstate System by hosting a farewell event for members of the commemorative convoy from the American Association of State Highway and Transportation Officials (AASHTO).

What: AASHTO has organized a coast-to-coast convoy, featuring approximately 20 trucks, buses, recreational vehicles and cars, to travel along Interstate 80 to commemorate the original convoy of Lt. Col. Dwight Eisenhower in 1919.

The convoy will enter Salt Lake City on the evening of Saturday, June 17th to meet with local transportation professionals. The convoy departs on Monday, June 19th.

Speakers: Gov. Jon M. Huntsman, Jr., UDOT Executive Director John Njord, Idaho Department of Transportation Executive Director David Ekern

Photo-op: Governor Huntsman will ride his motorcycle with the UHP motorcycle troopers to lead the 20-vehicle convoy from Sugarhouse Park onto eastbound I-80.

Other motorcycle participants: John Njord, UDOT Executive Director Robert Flowers, Public Safety Commissioner Speaker Greg Curtis 25 UHP motorcycle troopers

When: June 19, 2006 8:15 a.m.

Where:
Sugarhouse Park
West Hills Terrace
2100 South 1300 East
Salt Lake City, UT

In 1919, Eisenhower traveled from Washington, D.C. to San Francisco. The difficult trip took over two months and was his inspiration for the interstate highway system. As President, Eisenhower signed the legislation making the interstates a reality on June 29, 1956. The convoy will reach Washington, D.C. on June 29th to celebrate the anniversary of the 1956 Federal-aid Highway Act.

UDOT to Restrict Access at 31st Street in Preparation for New Interchange Motorists Advised to use Alternate Routes

2006-06-07T21:51:48+00:00

OGDEN - Beginning Saturday, June 10, the Utah Department of Transportation will restrict westbound traffic on 31st Street in Ogden to one lane over I-15. This restriction will remain in place through 2006 to accommodate the reconstruction of the north side of the 31st Street overpass.

On June 9, east and westbound 31st Street and interchange ramps at I-15 and 31st Street will be closed from 10 p.m. to 8 a.m. to facilitate traffic reconfigurations. Beginning June 10, 31st Street traffic will be realigned to the south side of the overpass. Two lanes will be maintained eastbound over I-15.

After the change, motorists should expect heavy delays in the vicinity of the 31st Street interchange, especially during peak traffic hours, and are advised to use alternate routes to and from I-15 in Ogden. Riverdale Road, 24th Street and 21st Street are all options.

"Making significant lane restrictions on such a critical route is never an easy decision." said Brent DeYoung, UDOT Project Director for the I-15 NOW expansion project. "However, these restrictions are necessary for the safety of the traveling public and our workers while completing these much needed improvements to the roadway."

In addition to the long-term lane restrictions on the 31st Street overpass, traffic will not be able to access westbound 31st Street from Parker Drive after this realignment takes place. However, right turns from Parker Drive to eastbound 31st Street will be allowed. Motorists should plan to use alternate routes.

This temporary reconfiguration of 31st Street comes as part of I-15 NOW, a major reconstruction project to improve this interchange and five other interchanges between the I-15/I-84 junction in Riverdale and 2700 North in Farr West. The project will also increase capacity on I-15 by adding additional lanes in each direction and is scheduled for completion in 2008.

UDOT encourages motorists to watch for heavy construction equipment, obey the posted speed limit and exercise extreme caution when traveling construction projects. For more information, visit www.udot.utah.gov/i15now or call 888-415-6690 (888-I15-NOW0).

National Search by Advisory Group to Seek Head of Committee of Consumer Services

2006-05-01T15:31:30+00:00

SALT LAKE CITY, Utah - Francine Giani, Executive Director of the Utah Department of Commerce, announced today that at the request of Governor Jon M. Huntsman, Jr., an advisory panel and search committee has been put in place and tasked with undertaking a national effort to find a staff director for the Utah Committee of Consumer Services (CCS).

"We are anxious to move this process forward," stated Mike Mower, Deputy Chief of Staff for Governor Jon Huntsman, Jr. "The Director of the Committee of Consumer Services has an important role and specific charge to advocate for Utah utility ratepayers."

"With rising electric and natural gas rates being such a national issue affecting the pocketbooks of citizens in every state, it behooves us to expand our search for a qualified candidate," said Giani. "We owe it to the Committee of Consumer Services and every Utahn to find someone who can hit the ground running."

Established in 1977, the Committee is Utah's utility consumer advocate, representing residential, small community and agricultural consumers of natural gas, electricity and telephone service mainly before the Utah Public Service Commission.

Giani will serve as the chairman of the CCS Search Committee and will be joined by Dr. Laura Nelson, the Governor's Energy Advisor and a former CCS staff member; Claire Geddes, consumer advocate; DeeJay Hammon, present chairman of the CCS; Utah State Senator Karen Hale, (D), Salt Lake County; Utah State Representative J. Stuart Adams, (R), Davis County; and Scott Gutting, President of Energy Strategies, Salt Lake City.

As part of the nationwide search, the Search Committee will oversee the recruitment by placing a job announcement in utility industry professional journals, newsletters, and websites. Interested candidates should send their resumes to the Department of Commerce, 160 East 300 South, P.O. Box 846701, Salt Lake City, Utah 84114.

For more information please contact Mike Mower, 801-541-1981 or Francine Giani, 801-971-8130.

Legacy Parkway Construction Begins

2006-03-04T16:33:06+00:00

SALT LAKE CITY - Gov. Jon M. Huntsman, Jr., UDOT, legislators and elected officials gathered at the Davis County Fairgrounds for a ceremony celebrating the beginning of construction on the Legacy Parkway.

"For nearly 50 years elected officials from northern Utah have been talking about the need to relieve congestion on Interstate 15," said Huntsman. "This day and this project are long overdue."

Construction on the 14-mile project will begin in March with some earth-moving activities at the north and south interchanges. Heavier construction along the entire corridor west of I-15 between North Salt Lake and Farmington will resume later in the summer.

"Investing in transportation projects is key to generating long-term economic growth and protecting our quality of life," Lt. Governor Gary Herbert said. "Northern Utah residents are currently caught in unacceptable travel conditions. Legacy Parkway will alleviate those conditions."

The Legacy Parkway will take 30 percent of the traffic off of I-15 and will significantly decrease congestion in Davis County. The Parkway is scheduled to open in October of 2008.

"This is an exciting day for Utahns, especially those traveling northern Utah regularly," Representative Stuart Adams said. "Thanks to the countless hours of work put in by the many legislators, county commissioners, mayors and city councils, relief is finally within sight."

Travel demand forecasts for the North Corridor demonstrate that the Legacy Parkway combined with other transportation improvements, including increases in mass transit, will be needed to meet the 2020 travel demand.

"It's been a long process to get to this point," Senator Sheldon Killpack said. "The Parkway is the right solution in meeting the transportation demands of Davis County residents."

Legacy Parkway will be a four-lane, limited-access, divided highway extending from Interstate 215 at 2100 North in North Salt Lake, northward to the junction of Interstate 15 and U.S. Highway 89 near Farmington. A multiple-use trail for pedestrians, bicyclists, and equestrians will parallel the highway. As mitigation for the Parkway's impact on wetland acres, a 2,225-acre Legacy Nature Preserve has been established to protect precious wetlands and preserve wildlife habitat forever.

A public open house providing the latest information on project plans and status was held at the Davis County Fairgrounds in conjunction with the event.

Utah's Newest Copper Mine To Open For Business

2006-03-04T16:30:52+00:00

Salt Lake City, Utah -- The Lisbon Valley Copper Mine will soon be open for business. Following several years of permitting and a year and a half of construction, the copper mine is expected to begin copper production this month. The Lisbon Valley copper project should be a significant economic benefit to southeastern Utah.

Utah's newest copper mine is about 40 miles southeast of Moab. It continues the state's rich heritage of copper production. "Copper mining in the Lisbon Valley goes back to 1903 with the Big Indian Mine," says Ken Krahulec, project geologist with the Utah Geological Survey in the Department of Natural Resources. "The old Blackbird Mine was in production in the Lisbon Valley area in the 1950s through the early 1970s. At that time, beautiful azurite mineral specimens were discovered near the old Big Indian Mine which led to commercial collection of crystal clusters there into the late 1990s."

The Lisbon Valley Mining Company is a subsidiary of Constellation Copper Company, which began constructing a new open-pit operation in late 2004. The existing small, open-pit mines from the old Blackbird operation will be incorporated into the new mine. The current reserves are estimated at almost 37 million tons. The Lisbon Valley project hopes to mine about 18,000 tons-per-day.

Constellation Copper estimates capital costs for the Lisbon Valley Mine and plant at about $55 million with an annual operation cost of $18 million in goods and services, $10 million in taxes, and $9 million in wages for 146 staff. The Utah portion of the copper project is expected to have a seven-year mine life.