SALT LAKE CITY -- A U.S. bankruptcy court judge has ordered a forensic accountant to take control of a Kaysville man's businesses.
Dee Allen Randall is under investigation for possibly taking $65 million from more than 700 investors over the past several years. He owns a number of businesses, including Horizon Mortgage & Investment, Horizon Financial & Insurance Group and Horizon Auto Funding. He had promised returns of up to 14 percent through investments in real estate, auto leases and insurance, according to court documents.
Judge Joel Marker appointed Gil Miller as the bankruptcy trustee.
Randall filed for Chapter 11 bankruptcy in December. A hearing in U.S. Bankruptcy Court is scheduled for 8:30 a.m. Oct. 26.
Laurie Cayton, of the U.S. Trustee Office, filed a motion earlier this year raising concerns that Randall's financial schemes may be fraudulent, saying in court documents that Randall was dishonest, incompetent and mismanaged funds.
In a 22-page court document, Cayton said she had conducted a search and found Randall was "listed as an officer, director or manager and discovered 20 entities in which he has been involved in the past six years prior to filing, 12 of which are still active entities."
Jennifer Bolton, spokeswoman for the Department of Commerce, said, "There is an open investigation concerning Mr. Randall with the Utah Division of Securities. Other than that, we cannot comment on the case."
Cayton said in the documents that Randall continued to solicit funds from potential investors after he had filed for bankruptcy.
He did disclose to new investors in a 250-page "private placement memorandum," that was issued with securities, that they would more than likely lose their investment, according to the court document.
He also disclosed that he was using the funds from new investors to pay old investors, "thus the reference to the "legal Ponzi Scheme," according to the document.
But attorney Tracy Olson, of Murray, who represents two investors, does "not subscribe to the notion what (Randall) is doing is legal."
"My clients' first concern is to get their money back," Olson said.
Olson said his clients invested more than $100,000 with Randall because, "even though I've never met the man, from what I understand, he's a pretty good salesman."