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
