Former Morgan County Council Administrator Pleads Guilty to Fraud, Money Laundering, Theft

SALT LAKE CITY—Garth B. Day, 41, of Elwood, former Morgan County Council Administrator, pleaded guilty in federal court Monday to money laundering; false loan and credit applications; theft from a program receiving federal funds; and wire, mail, and bank fraud in connection with a fraud scheme involving the county and various financial institutions.

U.S. Magistrate Judge Samuel Alba presided over the change of plea hearing. Sentencing in the case is set for Oct. 25, 2011, at 2 p.m. before U.S. District Judge Dee Benson. Day waived indictment and was charged in a six-count Felony Information filed in April. The case is being investigated by the FBI, the Morgan County Sheriff’s Office, and the Morgan County Attorney’s Office.

Day, who was the council administrator from June 2008 to Aug. 4, 2010, was responsible for managing, controlling, and reconciling Morgan County’s finances. As a part of the plea agreement reached with federal prosecutors, Day admitted that he misappropriated approximately $1 million in county funds to pay off personal debt. He said he repaid more than half of the money he took before reporting the full extent of his conduct to county authorities around Aug. 27, 2010. According to the plea agreement, the total restitution due to victims of the fraudulent activity, including a financial institution and the county, is $416,222.24. Day agreed to pay full restitution as a part of the plea agreement.

According to the plea agreement, Day’s fraud scheme involved several electronic transfers, fraudulent mailings to banks and credit card companies to get them to extend him credit in Morgan County’s name, and forged documents. He also admitted he created false documents to cover his criminal conduct when he was questioned by county officials.

For example, Day admitted that in October 2008, he submitted a credit card application to U.S. Bank in order to obtain a credit card using the credit of Morgan County. He represented to the bank that the credit card was authorized by the county when, in fact, it was not.

On another occasion, he submitted various false documents to Centennial Bank to obtain a $250,000 line of credit in the name of Morgan County. He submitted a promissory note forging the name of a Morgan County council member. He also submitted a false government certificate to the bank with a forged signature.

Day said that he needed money generated by the scheme to pay off personal debt he accrued from two speculation homes he owned.

Theft from a program receiving federal funds carries a potential penalty of up to 10 years in federal prison; false loan and credit applications and wire, mail, and bank fraud have potential penalties of up to 30 years in federal prison. Money laundering carries a potential penalty of 10 years. Day also faces a fine of up to $1 million.

Former Morgan County Council Administrator Charged with Fraud, Money Laundering, Theft

Prosecutors Also Seeking $465,537 Money Judgment

SALT LAKE CITY—A six-count felony information filed in U.S. District Court in Salt Lake City Tuesday charges Garth B. Day, 41, of Elwood, former Morgan County Council Administrator, with money laundering; false loan and credit applications; theft from a program receiving federal funds; and wire, mail, and bank fraud.

Day was the council administrator from June 2008 to Aug. 4, 2010. As a part of his duties, he was responsible for managing, controlling, and reconciling Morgan County’s finances.

The loss amount from the alleged fraudulent activity, which occurred in 2009 and 2010, is $465,537. The case is being investigated by the FBI, the Morgan County Sheriff’s Office, the Morgan County Attorney’s Office, and the U.S. Attorney’s Office. An initial appearance on the charges will be scheduled within the next few days.

Count one of the felony information charges Day with theft from a program receiving federal funds. According to the information, Day converted to his personal use federal funds Morgan County received from the U.S. Department of Transportation. The potential penalty for this count is up to 10 years and a $250,000 fine.

Count two charges Day with making a materially false statement and report to influence the actions of Centennial Bank. According to the charges, Day falsely represented to the bank that he had the county’s authority to apply for a $250,000 line of credit for the county when in fact he did not. This count carries a potential penalty of up to 30 years in prison and a $1 million fine.

Count three, a violation of wire fraud, alleges Day used an interstate wire transmission to move $92,000 from an account purportedly owned by the Morgan County Redevelopment Agency to his personal account to pay off personal debt.

Count four of the felony information alleges Day committed mail fraud when he mailed a letter to First National Bank of Morgan, purporting to be authorized by Morgan County, requesting the disbursement of funds to him.

Count five, bank fraud, alleges the defendant, without authority, took funds from a Morgan County account at First National Bank of Morgan and opened a bank account in the county’s name at another bank. The bank account, while in the county’s name, was used for personal expenses.

Wire, mail, and bank fraud carry maximum penalties of 30 years in prison and $1 million in fines per count.

The final count of the felony information alleges Day laundered money derived from unlawful activity when he transferred $92,000 from the Centennial Bank line of credit to pay off his credit card debt at another bank. The potential maximum penalty for money laundering is 10 years and a fine of $250,000.

A felony information is not a finding of guilt. An individual charged in a felony information is presumed innocent unless or until proven guilty in court.

400 Police Authors and Women’s History Month

Police-Writers.com, a website dedicated to listing state and local police officers who have authored books added three women police officers. Coinciding with National Women’s History month, the 400th police writer is a women.

Volitta Fritsche is a detective sergeant with the Morgan County Sheriff’s Department. In addition to her 18 years with the Morgan County Sheriff’s Department (Indiana), she has an additional 8 years experience in the criminal justice system having worked as a dispatcher, corrections officer and court reporter. She has written two books, Deadly Decisions which is the story of a mother’s search for her missing son; and, a children’s book, Genuine.

Donna Wudyka was hired by the Detroit Police Department in 1987. She retired on a duty-related disability in 1997. Donna Wudyka’s book is Shattered Badges, Broken Hearts: An Officer's Nightmare. The book is the true-life account of a January 1996 officer-involved-shooting that claimed the life of police officer Patrick Prohm. According to Donna Wudyka, her book, “describes the aftermath of the shooting, and the hell that the City of Detroit put my partner and I through: Injustice, discrimination, harassment, numerous violations of the union contract, embarrassment, and mental anguish. My partner and I thought the incident was traumatic enough. Wait until you see what came after it.”

In 1992, Maureen Tracy joined the San Diego County Sheriff's Department as a deputy sheriff. She is the 400th author to be added to the list of state and local police officers who have written books.

After the academy Maureen Tracy worked in a correctional facility and was ultimately transferred to a specialized unit. Her book, The Department, is an account of her experiences on the San Diego County Sheriff’s Department. Maureen Tracy stated about her book, “One fall morning I received the phone call that changed my life. In turn of personal traumatic events I made a mistake on the job. However, despite the mitigating circumstances discovered through the Internal Affairs investigation, I found myself on the chopping block and headed toward termination. Was my mistake immoral? Yes. Were the actions of many people on this Department immoral? Absolutely. This is a story about the "good" of my job and the love I had for it. It is about the "bad" in the harassment, animosity and jealousy I experienced. This is the "truth" as to why I left the Department.”

The March newsletter from Hi Tech Criminal Justice will feature an article about the 21 women police officers who are currently listed on Police-Writers.com

Police-Writers.com now hosts 400 police officers (representing 170 police departments) and their 862 books in six categories, there are also listings of United States federal law enforcement employees turned authors, international police officers who have written books and civilian police personnel who have written books.