FARMINGTON -- A judge has asked a defense attorney to submit a "significant" number of documents before he can sentence a man who embezzled about $4.2 million.
Before Tuesday's hearing for David Burns Stayner, 69, 2nd District Court Judge David R. Hamilton met with Davis County Attorney Troy Rawlings and defense attorney Elizabeth Hunt in his chambers.
Then, during the hearing, Hamilton said he needed the materials "that were not made available" so he could review Stayner's plan for restitution.
Another sentencing hearing is set for June 29.
Stayner, owner of Secured Loan Fund, based in Farmington, was released from Davis County Jail in May 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 two concurrent terms of one to 15 years in Utah State Prison and ordered to repay almost $4.2 million to his victims, according to the court docket.
Stayner planned to appeal the prison sentence based on the fact that the prosecutor spoke at the sentencing hearing, which was against the plea agreement.
The prosecutor at the February sentencing hearing was not the same prosecutor who handled the plea agreement, Rawlings said. The prosecutor at the sentencing hearing said he would submit a recommendation for a possible sentence, "based on AP&P's (presentence) report," Rawlings has said.
But the prosecutor who handled the plea agreement had stipulated that prosecutors would not make any comments or recommendations to the judge concerning any type of sentence.
The presentence report made by Adult Probation and Parole recommended that 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.
Victims in the case were present at Tuesday's hearing and had planned to speak about the impact of Stayner's actions on their lives.
Rawlings said the victims, who live out of state, are willing to attend the June 29 sentencing hearing to "see what happens and hear (Hamilton's) rationale" on the sentence he imposes.
Also, the victims hope the documents Stayner provides to the judge will explain how restitution will take place, 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 about $4.2 million from multiple investors, claiming the investments were secure and would pay a guarantee of 12 percent.
Money from multiple victims was put into an account at a Wells Fargo Bank in Farmington. In 2008, one 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.
Other victims reported similar lost investments that eventually amounted to $4.2 million.
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