Man who pretended to be LDS general authority pleads guilty to fraud

Man who pretended to be LDS general authority pleads guilty to fraud

(Spenser Heaps, Deseret News, File)


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SALT LAKE CITY — A former Utah County commissioner pleaded guilty Thursday in a scheme that defrauded investors of hundreds of thousands of dollars by, in part, posing as an LDS Church general authority.

Gary Jay Anderson, 70, pleaded guilty in 3rd District Court to communications fraud, a second-degree felony. In exchange for his plea, two other counts of communications fraud and a charge of engaging in a pattern of unlawful activity were dismissed.

In the unique plea deal, Anderson could potentially avoid jail or prison time if he can come up with $25,000 by the time he's sentenced in August.

Prosecutors and Anderson's attorney agreed that if Anderson can pay $15,000 in restitution by the time he is sentenced on Aug. 25, the state will only recommend up to six months in jail. If Anderson can come up with $25,000 in restitution, the state will recommend no jail time. But if Anderson comes up short of $15,000, Judge Vernice Trease can sentence him to whatever she feels is appropriate, which could include time at the Utah State Prison because he pleaded guilty to a second-degree felony.

Anderson's plea comes seven months after the man considered the main conspirator in the scheme, Utah County businessman Alan Dean McKee, 56, of Benjamin, pleaded guilty to bilking an out-of-state construction company of thousands of dollars for an industrial development he claimed was backed by The Church of Jesus Christ of Latter-day Saints. McKee pleaded guilty to engaging in a pattern of unlawful activity.

In that case, McKee became involved in a potential large-scale industrial development near Elberta, Utah County, in 2012. In order to get Minnesota-based Ames Construction to go along with the project, McKee led them to believe that Gary Stevenson, the presiding bishop of the LDS Church at the time, other high-ranking church officials and high-ranking state officials such as the governor of Utah were assisting him with the project.

Anderson, under McKee's instructions, called Ames board member Mark Brennan posing as Bishop Stevenson, according to court documents. Anderson began working for McKee as a consultant after leaving office and emailed Brennan at McKee's request telling him he was meeting with LDS officials about the project.

Because of these communications, Ames Construction paid McKee approximately $380,731, according to court records.

McKee also pleaded guilty to theft in a second case for contracting with two companies to help him remove and recycle materials from a 14-mile stretch of railroad that he didn't own. He is scheduled to be sentenced Nov. 28.

The restitution Anderson will pay will go to Chet Olsen, a Benjamin resident. McKee told Olsen he could purchase discounted farm equipment through a fictional company called Associated Land Brokers through a bankruptcy sale. As Olsen deposited money in McKee's account for the equipment based on a list of prices McKee provided, McKee had Anderson call Olsen posing as the president of the company to assure him the equipment was coming. That included a call in August 2015 when Anderson instructed Olsen he needed to pay an additional $10,000 for taxes and fees, according to the plea.

Over eight months, Olsen paid McKee $755,740, according to court documents.

In court Thursday, Anderson's attorney, Nathan Crane, claimed that it was McKee who was the main culprit in the fraud scheme and said his client didn't get involved until three years after McKee had already started his actions. Crane said Anderson was also deceived at first, but admitted Thursday that there was a point in which "a line was crossed" as well.

Crane has claimed the former commissioner invested $110,000 from his own retirement funds with McKee.

Olsen was consulted and agreed with the plea deal, according to the state. It was mainly for that reason that the judge accepted the plea deal Thursday, noting that it was important for the victim to get some of his money back.

The plea deal calls for more than $162,000 in restitution to be paid, in addition to whatever court-ordered restitution is made. As part of the plea deal, Anderson will also surrender his law license at the time of sentencing and will be placed on probation for five years.

Crane declined to answer questions after the hearing, including whether Anderson has access to $15,000 or $25,000 and how he plans to raise that money if he doesn't already have it.

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Pat Reavy

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