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SALT LAKE CITY — A Utah business owner is facing a federal lawsuit after the Securities and Exchange Commission said he used at least $5 million in investment funds to buy a house, vacation home and cars.
The lawsuit, filed last month, says Christofer Shurian, 57, of Mapleton, raised $18 million from 36 investors to develop Water's Edge Resort in Garden City, in Rich County, including enticing Chinese foreign nationals.
According to the lawsuit, Shurian promised the investment would be used to build a hotel, condos, water park and retail space, to be completed by 2017 — but as of the filing date, only one retail building had been built and some of the condo construction had begun.
Shurian also used millions of the funds on personal expenses, including spending over $1.9 million on payments to find investors, over $1.16 million to buy an unrelated property in Heber, around $250,000 on a home in Mapleton and approximately $160,000 on a vacation home in Mexico, documents allege.
He is also accused in the suit of forging invoices, and spending more than $180,000 on cars, over $500,000 on personal credit card payments, $340,000 on his ex-wife and over $700,000 directly to his personal bank account, among other purchases, according to the lawsuit.
"(Shurian) knew that using investor funds to pay for personal and unrelated business expenses was contrary to the representations made in the offering documents," the lawsuit states.
