FARMINGTON -- A judge sentenced a 69-year-old man to one year in jail and nine years of probation so he can pay investors restitution of almost $4.2 million.
David Burns Stayner, owner of Secured Loan Fund, based in Farmington, appeared in 2nd District Court on Wednesday before Judge David R. Hamilton. Stayner pleaded guilty Dec. 27, 2010, to securities fraud and communication fraud, both second-degree felonies.
According to court documents, in March 2004 Stayner collected funds from multiple investors, claiming the investments were secure and would pay a guaranteed 12 percent. The funds were used to buy property in California, but Stayner also used the principal to repay some investors.
"A lot of my life is tied up in baseball," Hamilton said before he sentenced Stayner. "At the last hearing, which was like a batting practice, I pitched you a fastball, and you should have slammed it. Instead, you rolled over it and hit a ground ball."
Hamilton had asked Stayner at the June 8 hearing to come back with "a specific and meaningful plan" to pay restitution.
Hamilton said in Wednesday's hearing that Stayner's plan did not show exactly how he was going to make payments, even though letters from businessmen in the court file said they are interested in hiring Stayner.
Stayner will begin his term in Davis County Jail today, with credit for the three months he served. As part of the sentencing, Stayner is ordered to pay $500 a month beginning in July that will go toward restitution and to provide quarterly reports on his employment and finances. Stayner cannot be employed in any business where he handles money.
Tom and Karen Chelsey, who invested $1 million with Stayner, asked the judge to sentence Stayner to serve one to 15 years in Utah State Prison.
"We're homeless," Karen Chelsey said. "We are living with our children, going from one child's home to another, moving our grandchildren out of their rooms until we can afford to take care of ourselves."
Tom Chelsey said Stayner's rA(c)sumA(c) shows a man who should have known what he was doing. Chelsey said he doubts he will see any restitution, considering Stayner's age and health problems.
Stayner "is not remorseful at all," Chelsey said. "He said he wants to pay restitution as a desperate act of a man who wants to stay out of prison."
Stayner apologized to the victims and said, "I pledge all I have to pay them back."
It was Stayner's second sentencing hearing. Prosecutors agreed to a do-over after Judge Michael G. Allphin sentenced Stayner on Feb. 14 to two concurrent terms of one to 15 years in Utah State Prison for two second-degree felonies: securities fraud and communication fraud.
Stayner had agreed to plead guilty to the two charges, and prosecutors had agreed not to speak at the February hearing.
The prosecutor at the February sentencing hearing was not the same prosecutor who handled the plea agreement. The prosecutor at the sentencing hearing said he would submit a recommendation for a possible sentence, "based on AP&P's (presentence) report," Rawlings 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.
Elizabeth Hunt, who handles appeals, called Davis County Attorney Troy Rawlings and informed him of the breach.