Friday, March 19, 2010

Is crime increasing or decreasing in Utah County?

Is crime increasing or decreasing in Utah County?

As a candidate for Utah County Commissioner, I believe the most important duty of government is to protect its citizens from crime. Over 60% of the budget of Utah County goes towards law enforcement, funding either the Sheriff’s department or the County Attorney’s department. In other words, most of what a County Commissioner does is oversee the budget for law enforcement.

At the Utah County Republican Central Committee meeting on February 20, 2010, my opponent, three term incumbent Gary Anderson, asserted that crime has “decreased” in Utah County since he was last elected in 2006. I respectfully disagree, and am concerned that Commissioner Anderson is either unaware, or unconcerned, about the massive increase in investment fraud since he was last elected.

According to the Utah County Attorney’s office, victims of investment fraud in Utah County lost $45 million in 2006 and 2007 together, $64 million in 2008, and $104 million in 2009. In other words, since Gary Anderson was last elected, investment fraud has at least tripled, and nearly $200 million has been reported stolen.
What is ironic is that Utah County is currently engaged in dozens of activities to improve economic development that are really not the proper role of government, while apparently ignoring its proper role in law enforcement. If that $200 million had not been stolen, the positive economic impact of that $200 million would be much greater than any form of “economic development” Utah County is currently trying to do. If that $200 million had not been stolen, hundreds of small businesses could have been started, college educations paid for, and missions served. Furthermore, Utah County unfortunately now has a well earned reputation as the “fraud capital of the State” with apparently over half the fraud cases in Utah coming from Utah County.
If elected as your County Commissioner, I pledge to make fighting investment fraud one of my highest priorities, and expect you to hold me accountable if I seek re-election and we have not made substantial progress fighting investment fraud.

Specifically:

1. Education is the key to the solution. Government cannot, and should not, protect you from your own greed and stupidity. If something sounds too good to be true, it almost certainly is. Any investment that promises potential returns exceeding 10% a year is risky, and anything over 15% is high risk and the investor should be capable of losing their entire investment. Furthermore, if you have to borrow the money to make an investment, you are almost certainly not in a situation where you can afford to lose all or most of your investment. It is also critical that everyone understand that a Ponzi scheme is an investment where the “returns” are paid not through the profitable activities of the company, but instead through the funds raised from new investors. If elected, I would start a public education campaign in Utah County explaining the points I just made above that would exceed the public education campaign on the H1N1 virus. I would create an investment fraud hot line where people could call in and get some basic advice on how to spot investment fraud, and also report investment fraud. I would have our county attorneys and sheriffs speak in public as much as possible to explain how investment fraud is happening in Utah County, and how it can be identified. I would like to see part of the punishment for engaging in investment fraud be a requirement of several hundred hours of community service dedicated to fighting investment fraud, where the individual would teach others how they used religion, family connections or other forms of affinity fraud or manipulation to convince otherwise intelligent individuals that they could guarantee returns exceeding 15% a year.

2. More resources are needed to fight back. County Attorney Jeff Buhman stated in October 2009 that he could “double or triple” his division devoted to fighting investment fraud, and they would all still be very busy. The simple answer would be to raise taxes, but I am unwilling to do that, so we would need to do the following: (a) redeploy existing resources to this problem from lower priority areas to this higher priority area, (b) we need to fine these criminals who are frequently living lavish lifestyles enough to fund the increase in resources we need to fight investment fraud, and (c) require individuals who are involved in investment fraud to give several hundred hours of community service educating the public on how these crimes are happening. It is the proper role of government to prosecute and convict criminals who have stolen money based on lies, and return as much of that money as possible to the victims. We need to wisely devote the resources necessary to fight this problem.

3. We cannot rely on the federal or state government. Like many of you, I am alarmed and concerned at the rapid rate of growth by our federal and state governments, and am anxious to “push back” against this alarming rate of government expansion. However, equally concerning is the mentality that we should rely on our federal or state governments to rescue us from all our problems. Commissioner Anderson believes that the federal and state governments are supposed to fix this problem for us. I respectfully disagree. The County Attorney prosecutes essentially all felonies in Utah County, including investment fraud, and the federal and state governments have been of little help the last three years while this problem has grown. I believe Utah County has the duty to fight this problem first, and not rely on any assistance from the federal or state governments. I have spoken with both federal officials at the Securities and Exchange Commission, and state officials at the Utah Securities Division, and they have both confirmed that Utah County has the duty to first investigate these crimes in most instances, and then come to them for assistance that may or may not be given.
Finally, we need your help. Please don’t hesitate to speak up when you see someone selling an investment that is “too good to be true” and please email me your ideas on how we can better fight investment fraud in Utah County.
Sincerely,
Joel Wright

Below are two excellent recent stories on Investment Fraud in Utah County:
1. “Investment Fraud Rampant in Utah County” from the Daily Herald, February 28, 2010, available at: http://bit.ly/c3jzUu
2. “Investigators say $59 million scheme targeted Utah County” from Deseret News, October 24, 2009, available at: http://bit.ly/aqmpIM

Total claims of investment fraud reported to Utah County Attorney by year since 2000:

Total from 2000 to 2009: $432,339,530.53

2009: $104,607,873
2008: $64,197,107
2007: $7,457,665.19
2006: $14,681,704.18
2005: $30,218,566.76
2004: $19,264,455.79
2003: $18,260,368.76
2002: $80,038,210.38
2001: $66,505,735.54
2000: $27,107,843.03

Why did I resign from the Board of Regents?

Why did I resign from the Board of Regents in February 2009? Thanks for asking. I’m happy to respond.

In short, I resigned because I was afraid the opponents of Utah Valley University (“UVU”) on the Board of Regents would have stopped the search process for a new President if I did not resign, and UVU’s future would have been harmed because they would have been stuck with an interim President for several years or more. Also, Governor Huntsman was no longer willing to support me, even though he had initially encouraged me to “shake things up” on the Board of Regents.

However, after I resigned, Governor Huntsman sent me a very kind note of thanks for my service on the Board of Regents (copy of this note included in comments below), and the Board of Regents even sent me a kind letter thanking me for my service and the “fresh perspective” I brought to the challenges facing higher education (copy of this letter included in the comments below). The letter also confirmed that I did not do anything wrong while serving. Lt. Gov. Herbert also sent me a kind email, which I have included below.

That’s it. But if you’re still interested, please read the complete explanation below.

The Board of Regents in Utah consists of 15 voting members, all appointed by the Governor and confirmed by the State Senate to six year terms. I was appointed by Governor Huntsman to the Board of Regents in June 2008, and confirmed by the State Senate shortly thereafter.

The job of the Board of Regents is to serve as an advocate for Utah's ten universities and colleges before the Utah State Legislature, and oversee resource allocation and manage the appointment of Presidents at these universities and colleges as well. The budget for higher education in Utah is approximately $1.2 billion, which is approximately 10% of Utah’s entire budget.

In May 2008 the son of Senator Harry Reid, Josh Reid, resigned from the Board of Regents with three years of his six years remaining. The Governor at the time, Jon Huntsman Jr., had previously appointed me to the State Charter School Board, and I thought he would re-appoint me to the State Charter School Board for another term. However, the Governor decided he wanted me to serve on the Board of Regents. I would have preferred to stay on the Charter School Board but when the Governor asks you to serve, you don’t say no. The Governor subsequently told me that we needed some “new blood” on the Board of Regents and he expected me to “shake things up” as well.

After about a month on the Board of Regents, I quickly realized that most of the Regents view their job as preserving the status quo in higher education in every area, but especially with regards to the University of Utah and Utah State at the top of the pecking order. In order to avoid any conflict and preserve the pecking order, the budget they recommend to the State Legislature every year generally consists of the same percentage increase (or decrease) in funds for every university and college, even if that institution is growing much faster than their increase in funds, like UVU or Dixie College.

As anyone who knows me can appreciate, I am an independent thinker. I warmly welcome any information or advice, but I will reach my own conclusions. I quickly realized the “system” was unfair to both UVU and Dixie, because they were growing much faster than everyone else, and did not hesitate to point out the fact that UVU was receiving approximately 40% less funding per student than Southern Utah University, and 20% less funding per student than Weber State. So I proposed we change to a system where the funding follows the student. We could require some level of admissions standards at all of our universities and colleges, and also create a separate research budget for University of Utah and Utah State (which they deserve, since they are research institutions). My proposal was strongly rejected, and I was actually told in private that my fellow Regents viewed me as being too “pro-UVU” for making such a proposal.
Things continued to get worse because many of the Regents do not tolerate dissent. I voted against approving a master’s degree for SUU because I believed it was a “diploma mill” degree that lacked the high standards needed of a master’s degree. I lost 14-1. That was the only “nay” vote I saw in my entire 9 months on the Board of Regents. I was also controversial because I asked in private if we should stop accepting gifts from the Universities and Colleges that we oversee, or at least disclose all the gifts we were receiving.

In short, it was safe to say I was the least popular Regent on the Board of Regents after only 6 months because I was unwilling to accept the status quo, and would continually point out that Utah had the fewest taxpayers supporting the most students, so it was essential that we learned how to do more with less.

I was also assigned to the UVU Presidential Search Committee by the Regents. It was my favorite task on the Board of Regents, and I spent over 50 hours a month for more than 4 months trying to recruit candidates to apply, and then discuss the issues related to UVU with all of them in private. One of the strongest candidates was Dr. Ned Hill, who had been Dean of BYU’s Business School. His wife also ran for the State Legislature that year as a Democrat, and during her campaign she did not hesitate to question the ethics of the State Legislators in Utah County. When I called and spoke with Dr. Hill after the election was over, I pointed out to him that most of the job as President of UVU would be fighting to obtain equitable funding from the Legislature, and that it would be difficult without a close working relationship with State Legislators in Utah County that his wife had just recently strongly criticized. I suggested, and made clear it was only a suggestion, that if he could talk to some of the State Legislators in Utah County, share his vision for UVU with them, and learn how to work with them, that it would resolve one of the concerns I had with his candidacy. I made clear it was not a requirement for him to do so, and that I was speaking only for myself. Dr. Hill is very bright, and realized quickly he would need to have a working relationship with the State Legislators in Utah County if he were going to be a successful President of UVU. I offered to put him in touch with some of the Utah County Legislators, and he welcomed the opportunity to talk with them.

I heard nothing further until early January 2009, when I learned Dr. Hill had decided to withdraw from consideration for President of UVU. I was disappointed, but did not know why. I subsequently learned Dr. Hill had spoken with a Legislator, had realized being President of UVU was a highly political job, and he wasn’t interested in the politics given the many other amazing opportunities he could pursue. After I spoke with him, and even after he dropped out, several other Regents spoke directly with Dr. Hill, and made it clear to him that he was a very strong candidate regardless of his relationship with the Legislators. But Dr. Hill did not want to pursue his candidacy for President of UVU any further. Dr. Hill said that neither my call, nor his call with the Legislator was “threatening” and both of us were only trying to be helpful.

Then, in late January 2009, someone involved with the Board of Regents or the Search Committee (not myself or Dr. Hill) told Paul Rolly who writes a political gossip column for the Salt Lake Tribune that Dr. Hill had dropped out of the race after being required to “make nice” with Utah County Legislators. The story quickly developed a life of its own. As a member of the Search Committee I was not allowed to talk with the press at the time, but told everything I knew to the Board of Regents when they became concerned about the attention in the press.

The Board of Regents then concluded I should resign, or things were going to get out of control. I told them I was happy to resign if the Governor wanted me to do so, since it was clear I was not making any headway on the Board. Subsequently they went to Governor Huntsman and asked for my resignation. Governor Huntsman never allowed me to tell my side of the story, and simply told me to resign, with the promise that no one had any concerns about what I had done and nothing inappropriate would be said about me if I resigned. I was only too happy to resign at that point.

However, only two days after I resigned, the Board of Regents leaked details of my resignation to someone who then leaked it to Paul Rolly at the Salt Lake Tribune. The Board of Regents apologized to me profusely over this, but it didn’t matter, as I was then hammered in the press, with allegations I was required to resign because I had broken some law or rule, even though I had not broken any law or rule, and the Board of Regents later confirmed that in their letter to me. Strangely, the press never even called me to ask my side of the story. However, even if they had called, I couldn’t have said anything because the UVU presidential search process was ongoing.

So, that’s the story. If anyone with firsthand knowledge has a different version, I’d encourage them to call me to discuss.

This story is worth sharing because I believe it says a lot about me. I do not hesitate to fight for what I believe is right, and I’m not afraid to be controversial. I enter public service to serve the public, and not to feel important or receive undeserved praise. I’m honest, maybe even to a fault, and believe there are many things much more important than myself – and the future of UVU is definitely one of those things. Looking back at everything that happened, I wouldn't do anything differently. I continue to believe the future of UVU is far more important than a few harsh words about me in the press, or my ongoing service on the Board of Regents.

Thanks for taking the time to hear my side of the story. Don't hesitate to call or email me if you would like to discuss further.

P.S. Here is the email I received from then Lt. Gov. Gary Herbert after I resigned from the Board of Regents:

"Gary R. Herbert February 27, 2009 at 1:31pm
Sometime things don't go the way we plan them--and the old adage "no good turn goes unpunished" comes to mind. I appreciate all of your service over the years. Don't let this last experience get your down. You are a good man with a great family. And I am glad to call you a friend! GH"

Saturday, March 6, 2010

Do voters or "gentlemen" decide who gets to be your Utah County Commissioner?

In the last couple weeks, several supporters of my opponent, Gary Anderson, have told me that I am "violating" the "Gentlemen's Agreement" because we are supposed to have one County Commissioner from South of Provo, one from Provo, and one from North of Provo. And, if I won, we'd have two County Commissioners north of Provo (Ellertson lives in Lindon and I live in Cedar Hills), and one in Provo (White). In other words, "gentlemen" are apparently supposed to decide who should run for County Commissioner, and not the voters.

As you can imagine, I completely reject this idea. This Gentlemen's Agreement is wrong for multiple reasons:

1. The voters or delegates should select each County Commissioner, not the entrenched elite who benefit from the status quo. I believe in transparency, and I believe in the wisdom of the voters.

2. Each County Commissioner is elected by ALL of Utah County, and expected to represent ALL of Utah County. If Commissioner Anderson believes he only represents the 20% of the population in Utah County that lives south of Provo, then he should make that clear, instead of claiming to represent all of Utah County.

3. The population assumptions in the Gentlemen's Agreement are completely wrong. When Gary Anderson was first elected as a County Commissioner in 1982, approximately one third of Utah County may have lived south of Provo, one third in Provo, and one third north of Provo. But that is simply not the case now. Approximately 20% of Utah County lives south of Provo, a little over 20% in Provo, a little under 20% in Orem, a little under 20% in Northwest Utah County (Lehi, Saratoga Springs and Eagle Mountain) and a little over 20% in Northeast Utah County (Lindon, Pleasant Grove, Cedar Hills, American Fork, Highland and Alpine). In other words, if we divided Utah County by thirds, then South County and most of Provo would only get one Utah County Commissioner, not the two they have now!

4. The Gentlemen's Agreement has not been followed in the past. There have been multiple instances in the last 30 years where you did not have one County Commissioner south of Provo, one in Provo and one north of Provo. It appears that supporters of Commissioner Anderson are only bringing it up now because it favors him.

5. Does Commissioner Anderson share this same view? I don't know, but I'll try to ask him, and let you know his response. If so, then the $200,000 "award" that Utah County gave to the Springville Art Museum last year, and the ongoing support of the Utah County Fair in Spanish Fork, seem more like political patronage, and less like the best use of taxpayer funds.

If elected, I would represent all of Utah County equally, because all of Utah County votes for me. I was raised in Provo, but live in Cedar Hills, and have supporters all over Utah County.

However, I do think there is considerable merit to the view that Utah County now has 550,000 residents, and that 3 county commissioners cannot adequately represent all of them, no matter where they live. Our three county commissioners have "executive, legislative and judicial powers" which is a primitive form of government without checks and balances that is not based on the US Constitution. If only two County Commissioners would trust the voters, then the voters of Utah County would get the chance to consider a new form of County Government that would potentially cost less and include geographic representation. See my blog post here for the details on how this process would potentially work: http://wright4countycommissioner.blogspot.com/2009/11/should-utah-county-change-its-form-of_18.html

If anyone knows if Commissioner Anderson supports this Gentlemen's Agreement, please post.