FARMINGTON — A judge asked a defense attorney to submit a “significant” amount of documents before he could sentence a man who had embezzled about $4.2 million from others.
Second District Court Judge David R. Hamilton met with Davis County Attorney Troy Rawlings and defense attorney Elizabeth Hunt in his chambers on Tuesday, prior to the hearing for David Burns Stayner, 69.
Then during the hearing, Hamilton said he needed the materials “that were not made available” so he could review Stayner’s plan was for restitution.
Another sentencing hearing is set for June 29.
Stayner, owner of Secured Loan Fund, based in Farmington, was released in May from the Davis County Jail after attorneys on both sides agreed to redo his sentencing hearing.
Stayner pleaded guilty to two second-degree felonies, securities fraud and communication fraud. In February, he was sentenced to serve concurrently two terms of one to 15 years in Utah State Prison and ordered to pay back almost $4.2 million to his victims, according to the court docket.
Stayner planned to file an appeal of the prison sentence based on the fact that the prosecutor spoke at the sentencing hearing, which was against the plea agreement. The prosecutor said he would “submit it based on AP&P’s (pre-sentence) report,” Rawlings had said.
The pre-sentence report made by Adult Probation and Parole had recommended Stayner, who has no previous criminal record, be sentenced to prison based on the amount of the restitution, Rawlings said.
But Rawlings agreed with Hunt to redo the sentencing hearing.
Victims in the case were present at Tuesday’s hearing and had planned to speak about the impact of what Stayner did to their lives.
Rawlings said the victims, who live out-of-state, are willing to attend the sentencing hearing on June 29, in order to “see what happens and hear (Judge Hamilton’s) rationale” on the sentence he would impose.
Also, the victims hope the documents Stayner provides to the judge will explain how restitution will happen, Rawlings said.
According to court documents, Stayner was investigated by the Utah Division of Securities in 2009.
He had registered Secured Loan Fund with the division. In March 2004, he collected funds from multiple investors, claiming the investments were secure and would pay a guarantee of 12 percent.
Money from victims was put into an account at a Wells Fargo Bank in Farmington. In 2008, a victim asked Stayner to return the $1 million he had invested, but Stayner told him the funds were “tied up in a single investment,” according to the documents.
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