June 25, 2014

The decision released this morning by the United States Court of Appeals for the Tenth Circuit in Kitchen v. Herbert is currently being reviewed by the Utah Attorney General’s Office. Although the Court’s 2-1 split decision does not favor the State, we are pleased that the ruling has been issued and takes us one step closer to reaching certainty and finality for all Utahns on such an important issue with a decision from the highest court. For that to happen, the Utah Attorney General’s Office intends to file a Petition for Writ of Certiorari to the United States Supreme Court. The Tenth Circuit Court’s issuance of a stay will avoid further uncertainty until the case is finally resolved. Whether the Utah Attorney General’s Office seeks en banc review of the Tenth Circuit’s ruling has yet to be determined.

Dee Allen Randall of Kaysville Charged in Alleged Ponzi Scheme and Related Crimes

$72 million from 700 local and national investors allegedly raised and used fraudulently

SALT LAKE CITY June 18, 2014 — Attorney General Sean D. Reyes and Assistant Attorney General Jacob S. Taylor filed Criminal Information documents and an Affidavit of Probable Cause for multiple counts of securities fraud and other related charges against Dee Allen Randall of Kaysville, Utah for allegedly using investor funds for purposes unrelated to their investments. According to the AG’s Office Mr. Randall allegedly raised more than $72 million from approximately 700 investors nationwide in one of Utah’s largest alleged Ponzi schemes.

“Our office continues to work cooperatively with Utah’s Department of Commerce to aggressively investigate and prosecute white collar crime,” said Attorney General Sean Reyes. “Although Utah is known as a national leader for our robust economy and business friendly environment, we are also extremely vulnerable to fraud – especially affinity fraud. We have recently made internal changes in the AG’s Office by adding a new Markets and Financial Fraud division and by promoting some of our strongest leaders to battle individuals and companies engaged in fraud.”

“Dee Randall’s massive alleged ponzi scheme is a harsh reminder that all of us need to be very careful where we put our money no matter our age or the size of our nest egg,” stated Keith M. Woodwell, Director of the Division of Securities. “Our Division is thankful for the great work by Assistant Attorney General Jake Taylor in bringing the criminal case and our valued partnership with the new team at the Attorney General’s Office.”

Randall is accused of using investor funds for purposes unrelated to their investments, including payments to other entities that he owned and/or controlled, payments to other investors participating in his various offerings, payments to individuals associated with him and/or other businesses, and cash withdrawals.  In addition, he allegedly failed to disclose to investors that he had sizable judgments issued against him and that he had filed for personal bankruptcy.

As detailed in the Criminal Information documents, Randall is being charged with 21 second degree felony securities fraud counts, one third degree felony securities fraud count, and one second degree count of pattern of unlawful activity. The Division of Securities investigated this case for the past two years and the charges are allegations. The defendant is presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court.

U.S. Tenth Circuit Court of Appeals Grants Temporary Stay on Evans v State of Utah District Court Decision

SALT LAKE CITY June 5, 2014– The U.S. Tenth Circuit Court of Appeals granted a temporary stay of the district court’s May 19, 2014, order to recognize same-sex marriages performed in Utah during a 17-day window when the unions were allowed. The State of Utah requested a stay earlier in the day and filed a Notice of Appeal with the district court on Evans v State of Utah on Wednesday. The temporary stay was issued and the Plaintiff’s were directed to respond to the stay motion no later than June 12, 2014.

“We appreciate the circuit court granting the stay request and acknowledging the need for more time to allow all parties a chance to address such important issues,” said Attorney General Sean Reyes.

The State of Utah Requests Stay and Files Notice of Appeal with the U.S. Tenth Circuit Court of Appeals on Evans v Utah District Court Decision

June 5, 2014— The Utah Attorney General’s Office requested a stay and filed a Notice of Appeal with the U.S. Tenth Circuit Court of Appeals in response to the May 19, 2014, federal court ruling in Evans v. State of Utah that the State must recognize same-sex marriages performed in Utah during a 17-day window when the unions were allowed.

“Although the State recognizes the deep burden placed on families who must continue to wait for a final decision regarding their rights and those of their children, any decision by the highest courts that results in undoing what the District Court has granted could be more disruptive than awaiting certainty and finality,” stated Attorney General Sean Reyes.

“It is clear that the District Court understood the complexity and intricacy of the legal issues surrounding its order by allowing twenty-one days for measured consideration of implementation or appeal,” said AG Reyes. “We have carefully weighed and researched all options, including the viability of recognizing only those marriages performed during the 17-day window, but cannot ignore the fact that Evans v Utah and Kitchen v Herbert are inseparably intertwined.”

According to the AG’s office, the Kitchen case, the Tenth Circuit appeal in the Evans case (regarding federal law), or a decision by the Utah Supreme Court applying to Evans and other cases (on state law) could individually or collectively impact, as a matter of law, Judge Kimball’s decision.

“Those of us working on the case take no pleasure in prolonging the legal process, but to immediately recognize benefits or marriages performed during the 17-day period is premature pending the outcomes of these other decisions,” said AG Reyes.

“If it were somehow possible, an immediate decision by the U.S. Supreme Court on all issues in question, would be welcomed by the State,” General Reyes continued. “In the absence of that, the State will continue to consider every avenue to further the legal process as expeditiously as possible while asking the Courts to stay further action until the ultimate questions regarding recognition of marriage and constitutionality of Utah law can be answered with finality. The State looks forward to the day when these issues are resolved and Utah, along with its citizens, have certainty and a clear understanding of the law.”

Contact:

Missy W. Larsen
801.230.9890
missywlarsen@utah.gov