7/30/09 SBI Report PDF - wcfgoldmine.comwcfgoldmine.com/SBI_Report.pdf · UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #: 1 lnvestigation Report Printed on: 07/30/2009 Case

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #: 1

Printed on: 07/30/2009lnvestigation Report

Case Number: 2009-00065 SBI SISJH ENVISION"OGDEN

Agent: JIM VAUGHN

Dato Reported: 04/06/2009

Requested By: SHERRI GREEN

Oate & Time Occured: 04/06/2009

MNI#:9000129e

RemaTKs: UAG ASKS SBI TO LOOK AT ACUSSATIoNS FROI\,1 NEWSMAN WHo SEES FINANcIAL FRAUDOF CAIUPAIGN

offense: PUBLIC CoRRUPTIoN

Suspecfs

Name: JOHNSON,

nace:feyesl--Address: APT#

BLAIN HENSLEY

oenaertfgatr:l I

oo{-- =-} nsr:u weishtl-ss #l l Drive.'s License:f€

Name: SHREVE,

n..rf,-lEyesf- -tAddressl

ABRAHAM

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DoBl --ass #:tF---l

Hstt- | weisht? --Drivsr's License:f - -,

r-

Name:I--Race: f----]Eyesf - -Addressf,--

Driver's Licens{----'r

Hgt: Weiqht:

Drlver's Lic€nse:

Name: ENVIStON OGDEN

Race: Gender:

Eyes: HaiiAddress: APT#

cender:t-l DoBF-t xst:|.-l weisht:f lHalr:l---a ss *l_ ---J Driver's License:!-

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ss #:

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS PA1C*2

Investigation Report Printed on:07130/2009

Case Number: 2009-00065 SBISI SJH ENVISION-OGDEN

Namei FRIENDS

Race:

Eyes:

Address: APT#

OF NOTHERN UTAH

Gender

Hair:

REAL ESTATE

DOB Hgl: Weight:

Driver's License:

AssociafesType Associate Name

L__

FRIENDS OF NOTHERN UTAH REAL ESTATE

Assoc DOB Criminal (28CFR)

YES

YES

* .l'-^

YES

NO

NO

j. -iL-_:1-

ProperTyNO! * e.E

*

SOURCE

Case leceived ftom Scott Rp€d,

OFFENSE

Ogden,City ordinances:

. r, Narrative

Office ofthe Utah Attomey General

fir:tf!,!

l

*'

P;liticfi A;tivity by oity employee 2-6- 1 3 ,

Campailn hnancing disclosure',in the name ofaaolher 1-8-3c,

Campaign financing disclosqe,Personal campaign conrmitteq 1-8-tA ! ,

utatfstate itatutes: r * n !l

Utah chd?itabl€ solicitations act: 13-13122

Political activity ofmunicipal officer or employee: 10-03-1ICommunication fraud 76-1 0-1 801

Money iaundering 76- i0- 1903

Communications Fraud 76-10- 1801

Regishation ofPolitical Action Committees 20 A-11-601

Federal statutes:Money Laundering Title 18, Part 1, Chapter 95, Section 1956

Tax law for 527 organizations

't"i

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATTONS Pase #: 3

lnvestigation Report Printed on:07/30/2009

Case Number: 2009-00065 SBISI SJH ENVISiON-OGDEN

COMPAr'ICT,ry\'IT-INFO

Complainant:SCHWEBKE, ScottOgden Standard ExaminerCity Hal1 repoter

ComDlainant:SCHROEDER, Daniel V.Depafiment ofPhysicsWeber Slate Universiry2508 University CircleOgden, Utah 84408-2508Phone: (801) 626-6048Fax: (801) 626-7445email : [email protected]

Person:JOHNSON, Blain H.DOB:

IIome Address:1444 Binford StOgden, Utah 84401Phone: 801-393-4603 (Ce11)

email: [email protected]

L-,Yllre$:Name: Dan Pete$on/Jeff LucasCompany Name: Hertz Car Saies

Cell:

Witness:


lnvestigation Report


Printed on: 07/30/2009

Name: Craig BielikCompany Name: Ogden Regional Medical CenterTitle:Address:

Phone:Cell:Email:

Witness:Name; Chris L. DallinCompany Name: McKay-Dee Hospital Center

Phone:f--Cell:

Witness:Name: Dave HardmadMari NewboldCompany Name: Ogden-Weber Chamber of Comnerce

Address:

Phone:

Email:

Witness:Name: Ron KusinaCompany Name: Weber Economic Development CorporationTitle:l'Address:

Email{f--Witness:Name: Patry MarcroftCompany Name: Marketstar

Email: f-_ -.----1-

r

Phone: l---Cell:

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #j 5lnvestigation Report Prinled on: 07/30/2009

Case Number: 2009-00065 SBtSt SJH ENV|StON_OGDEN

Title:Address:

Phone:Cell:Email:

Witness:Name: Tracy Duckworth, Manager

Address:

Company Name: UBS Financial ServicesAddress: _--?Phone:Email:

Witness:Name: Kathy HaleCompany Name: LBS Bant USA

Address:

Phone:Fax:Email:

Wltness:Name: Kristin Graziano, BrokerCompany Name; Coldwell Banher Residenrial Brokeraoe

--

Phone:f

-

l----l-*,.-

Name: Eric Bemstein


Printed on: 07/30/2009lnvestigation Report

CaseNumber:2009-00065 SBISISJH ENVISION-OGDEN

Company Name: Coldwell Banl<er

Witness:Name: Jonathan Cohen. Vice President Relocation Services

Phone:Email:

SYNOPStS

Case presented to SBI by Scott Reed, an Attomey for the Utah Attomey General.

The case originated from Scott Schwebke, a reporter for the Ogden Standard examiner. He allegesthat in 2007 two Ogden city council candidates received approximately $20,000 in campaigncontdbutions through illegal means. The donations were made by Envision Ogden, but fumeledtbrough a second compary known as Friends ofNorthern Utah Real Estate (FNIIRE).

Schwebke goes ou to point out several city ordinances, state code yiolations and federal laws thatwere broken related to the campaign contdbutions.

DETAIL

This case was initially presenilo SBI by Scott Reed, an attomey with the Utah Attomey General'soffice. This is related to allegations ofpublic comrption involving the November 2007 Ogden CityCouncil elections.

Daaiel V. Schroeder, a professor at Weber State Unive$ity, has compiled files and documentsrelated to a political race and suspected improper conduct related to financial donations tocampaigns.

Envision Ogden was accused ofgiving financial donations to campaigns and tien funneling otherfunds through another source, Friends ofNorthem Utal Real Estate to contribute morc to thesesame campaigns, Envision Ogden later has admitted giving over $20,000 in contributions to thecampaigns ofRoyal Eccles and Blain Jobrson, both candidates lor Ogden City Council.

5/7/2009 SA Scott Hansen

CI Jim Vaugh and SA Scott Hansen met with Daniel Schroeder at SBI offices. Schroeder providedsevetal documents, one ofwhich was a copy ofthe IRS Form 8872, Schedule A (Itemized list ofdcnors) and Scheduie B (iten.rized list ofexpenditures) for Envision Ogden for the year 2007. Thisform is to be filed by January 31 of the year following the repoded pedod (January 1 - December

UTAH DEPARTMENT AF PUBLIC SAFETY INVESTIGATIONSlnvestigation Report

Case Number: 2009-00065 SBISI SJH ENVIStON-OGDEN

Printed on: 07130/2009

31). This report was dated 3/3/2008 and signed as being prepared by Jefflucas, theS ecretary/Treasurer for Envision Ogden.

This IRS repofi shows 29 dono$ listed as contributing $1,000 or more and 24 other donors for morethan $50 but less than $ 1,000. The IRS 8872 also shows $ 16,885 for contributors of less than $50and do not need to be listed individuallv.

5/1212009 SA Scott HansenInterviewed Dan Peterson, General Sales Manager for Hertz Car Sales in Ogden. He said he wascontacted by one oftheir employees over in Corporate, anol}ter area ofoffices in the same building,but separate. This employee is one oftheir accountants or bookkeepe$ named Jefflucas. Headmitted that he was the same Jefflucas associated with Envision Ogden as theirSecretary/Treasurer. He said he had asked Hertz for a contibution 10 Envision Ogden. He said thatthese funds were for a table at the Amer Sports banquet at the Ben Lomond Hotel Grand Ballroom.

I asked him ifhe could provide a copy of Hertz's canceled check, he said he could. Then I asked himabout Envision Ogden and Friends ofNorthem Utah Real Estate. He said he had been with EnvisionOgden since it began and that Abraham Shreve was the President and Director.

I asked Lucas about FNLIRE. He said he didn't know much about them. Luoas said that he had beeninstructed by Abraham Slreve to cut some checks to FNITRE out ofthe Envision Ogden account.Lucas said he had personally delivered one ofthose checks to Blain Jobffon. Lucas said he couldn,trecall which one it was or what the amount was, but he gave the check to Johnson personaily.

517812009 SA Scott Hansen

Having made contact with several ofthe contuibutors listed on IRS 8872 Schedule A, none wereaware that the donations were going to a Political Action Committee. Many were govemed andrestricted from contibuting to any political interests by federal regulations. All said they haveintemal policies prohibiting the company from donating to candidates or political issues because ofconflicts ofinterest or issues that may arise from customers with opinions that oppose that ofapaficular person or issue.

Each ofthe contacted parties provided copies ofthe canceled checks made payable to EnvisionOgden and accompanying invoices. All showed "For Deposit Only" with a Wells Fargo Bankaccount lun]ber of hich is the account for Envision Ogden at the Ogden downtownbranch at 24th and Wastr-ngion BIvd. See follow up raports for supplem€n1s ofresponses toquestions posed to eaoh ofthe contacted parties.

5/19/2009 SA Scott llansenAfter trying to contact Jeff Lucas to retdeve a copy ofthe Hertz Car Sales check, Abraham Shrevescalied SA iiansen. iie asked about ihe investigation md what'!he allegations wer€. Hansen

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #: Ilnvestigation Report


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explained some ofthe complaints and Shreve said they were retaining an attomey, though he wouldno1 say who, to review the facts ofthis case. Shreve said he had reviewed these things with anotherattomey eaxly on and had been told that there was nothing crin.rinally wrong. Hansen asked the name

ofthat attomey, but was again denied any names.

Hansen asked Shreve, "Who is Friends ofNorthem Utah Real Estate.".

Shreve responded, "That's Blain Joblson."

Hansen asked, "Ifthat is Blain Johrrson's business, why did he deny any knowledge ofit in a press

intewiew?"

Shreve, "I don't really know. I asked myselfthat question when I found out about it."

Halsen asked Shreve to come in and meet, but Sbreve declined until he could meet with this newattomey. Shreve said it should be taken care of within a couple ofdays. Then he would be availableto meet. .

Salt Lake Tribune article by Christopher Smart titled "Ogden City Attorney: Campaignfunditrg problem 'cured"', appearing March 30, 2009

Article begins with talking about how Dan Sc1[oeder had taken in facts and figures to the OgdenCity Attomey, Gary Williams, to file complaints of campaign frurding irregularities on the parts ofBlain Johnson and Royal Eccles, both candidates for Ogden City Council positions.

The article reads ". . . But City Attomey Gary Williams ruled earlier this month that inconsistenciessurounding campaign-fund reporting during that municipal election have been "cured" by amended

disclosues he allowed 17 rnonths after the election. . . .

"Both organizations (Envision Ogden and Friends ofNorthem Utah Real Estate-FNURE) had been

named in initial campaign disclosure statements ofthen-candidates Blain Johnson and Royal Eccles

"The candidates - shortly after Schroeder filed his complaint - amended disclosures confiming thatthe funds attxibuted to Friends of Nofihem Utah Real Estat€ rea1ly came lrom Envision Ogden.

"Johrson received $ 1,500 from Envision Ogden and $ 10,990 from Friends of Northem Utah Real

Estate, according to his 2007 filings. March's [2009] amended fiiings show he received $l2,490from Envision Ogden. Eccles, who lost the election, reported, in his 2007 disclosue, that h€

received $9,700 from the Northen Utah group; in March, his amended disclosure shows that

Envision Ogden gave him the money.




"In an interview, now-Councilman Johnson said he had acted ethically aad within the law. Heexplained that he an.rended his campaign disclosure to make the flap go away.

"I know I didn't do any'thing wrong," he said. "I received the funds, and I repofied it."

"Johnson said he believed Friends ofNorthem Utah Real Eslate was a legitimate organization,despite not being abie to come up vr'ith the narnes of anyone associated with it."

Sunday, April5,2009, Ogden Standard Examiner reporter Scott Schwebke printed in anarticle titled 'rEnyision Ogden contributors worry donations ended up in Ogden campaigns".

Quoting from the article; "Some financial contuibutors to Envision Ogden, an organization fonnedto promote local outdoor recreation, axe surprised their donations may have been funneled in 2007 totwo cif council candidates.

"Ogden Regional Medical Center gave $5,000 to Envision Ogden in March 2007 with theunderstanding the money would be used for economic development activities, said Craig Bielik,hospital spokesman.

"We absolutely did not know the money would be used in that manner to make a politicalcontuibution. It's a little conceming," said Bielik, adding Ogden Regional Medical Center doesn't getinvolved in political campaigns. "It was our underctarding thal it was to go to suppofl developmentofthe downtown Ogden conidor."

"Little is krown about FNIJRE. JeffLucas, an accountant from Moryar who is treasurer olEnvisionOgden, said he has no information about the organization. The organization is listed as NorthemUtah Friends ofReal Estate on Envision Ogden's federal disclosule report.

"Eccles said in aa amended campaign disclosure statement filed with the city that FNURE;s addressis 4723 Hanison Blvd, which is the location ofthe Ogden law offices of Smith Knowles, whereJohnson works as an attomey.

"Johson said FNURE was established by some employees ofa title oompany vr'ho have an office inthe building where he works, but declined to identify the employees or the firm.

"Lincoln title Insurance Agency is headquatered in the Smith Kaowles building. Melvin Smith, anattomey who owns dre title company and is a principle with Smith Klowles, said he has noknowiedge ofFNURE.

"Qwest Communications gave $7.500 to Envision Ogden in May 2007 to help sponsor a localreception to network with other businesses looking to relocate to Utah, said Mark Milzen, aspckesman for the telecommunications conpany.

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"It was for a corporate sponsorship ofan event and for Ilo other purpose,'r he said.

"A political organization contribution and expenditure report filed by Envision Ogden with the U.S.Intemal Revenue Service lists Qwest's contuibution as $10,000.

"It is unclear why the amou ts repoded by Qwest and Envision Ogden are different.

". . . Between Jan. 4 ard Dec. 31, 2007, Envision Ogden received 55 donations totaling $87,342 andspent $79,676, according to its IRS contributions and expenditures report.

"Most olEnvision Ogden's expenditures were associated with the Amer Sports dinner and a sneakpeek event in June 2007 at the Salomon Center, a recreation and entertainment facility at TheJunction development downtown, the report indicates.

"Johnson and Eccles have since amended campaign finalce disclosue statements to acknowledgethey received contdbutions ftom FNLTRE, which got funds from Envision Ogden.

"Johnson said while his original campaign hlings are accurate, he amended them to addressSchroeder's complaint. "I don't believe I did anlthing wrong," he said."

Wednesday, June 30, 2009, SA Scott IlansenAfter contacting witnesses and receiving documents and statements from tlem, t}re facts werepresent€d to Assistant Attomey Geneml Scott Reed for col1sideration of criminal charges.Explaining that the people did not know, nor were they told that the money they were contributingfor Envision Ogden would be used for anlthing other than for welcoming Ameri Sports into theMefo Ogden area and to also try and solicit or encourage other businesses to consider locating inthe Ogden axea. Many have intemal policies pertaining to involvements in political campaigning oreven display of support or a stand on a political issue. Some axe actually prohibited by federal orlegal statutes regarding contributing funds to politicai issues.

Scott Reed said that he couldn't see how they had necessarily devised or used a scheme or artihce todefraud another or to obtain ftom another money, property, or an1'thing ofvalue by means offalseor fraudulent pretenses, representations, promises or material omissions.

The fact that the Ogden City Attomey, the FBI and US Attorney, Lieutenant Governor's Olfice andnow the Utah State Attomey General had declined to do anything with this case it will be closed.


Investigation Report



FOLLOW UP

4-6-2009Received complainant's file for examination.

4-7-2009Read file, research laws related to file

4-8-2009I contacted IRS Agent Greg Stewart (801-330-8365). I generally explained the case and asked ifthey were interested in looking at the case. He said he would be interested and requested a copy ofthe file.

4-8-2009A courier from the IRS met with me at SBI and picked up a copy ofthe case for Agent Stewafi.

4-9-2009News Article:TUESDAY, MARCH 03,2OO9Criminal Wrongdoing in the 2007 Ogden City Council Campaign - UpdatedEven in Emerald Ci,t, laundering campaign contributions is iltegalBy Dan SchroederDuitgthe 2007 Ogder municipal election campaign, an entity called Friends of Northern UtahReal Estate accepled oyer $20,000 in contributions from Enyision Ogden altd, rmmediately passedthis money on to two cify council candidates, Blain Johrson and Royal Eccles. This activity violatedOgden's campaign finance disclosure ordinance, which prohibits campaign contributions made byone person in the name ofanother. The violation is a class B misdemeanor. If Mr. Johnson isconvicted as a knowing participant in this activiq,, he will be disqualified from holding office as acity council member.

EvidenceThe receipt of funds from Friends of Northern Lltah Real Estctte (FNIJRE) is detalled on theIrnancial disclosure statements filed with the Ogden Clly Recorder by candidates Blain Johmon andRoyal Eccles on October 26, Novemb 28 and November 3 0, 2007. Johnson received a total of$10,990 in four installmerts fton-r Fly'alRE, while Eccles received $9700 in two installments. Foreach candidate this amount constituted more than halfofthe total contributions received during thecampaign cycie--and substantially more than flte total contributions received by the candidate'sopponent. Johnson's disclosure statements give the address of FNURE as "4723 Harrison, Ogden,"which is the same building as his law office. Eccles gave no address for FWLIRE on his slatement.

No entity by the name of F e ds o-f Norther Utah Real Estale, or anything similar, is registered asa business in UIah ot as a527 political organization with the 1R.S.

Meanwhile, Erlrsion Ogden was orgattzed in early 20Q7 and conducted various fund raising

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page#:12


Case Number: 2009-00065 SBISI SJH ENVISlON-OGDEN


activities during the first haifofthat year, including the "Sneak Peek" grand, opening ofthe city-owned Salomon Center on June 15. The organization made a direct contribution of$1500 toJoblson's campaign on September 7,2007, as disclosed on Jo1'nson's October 26 statement.

However, by early S eptember, Envision Ogden was comng :under increasing scrutiny. One citizenasked the Lieutenant Governor's office to inquire into the organization's status. A second citizensubmitted a records req]J.estto Ogden Ciry, asking for documentation ofthe aqangement underwhich Envision Ogden was pet1JLilled,to use t}'e Salomon Celxter fat its f\tld taising event. A thirdcitizen called the leader of Envisiox Ogde,? and asked about the organization's purpose and how ithad been able to use lhe Salomc,n Center.

Envilion Ogden notified the lRS olits Section 527 status (using the required Form 8871 on March3, 2008. The form names realtor Abraham Sbreve as the chairman and only officer, and Jefflucasas the custodiar ofrecords. Its 2007 year-end Reporl of Contributions and Expenditures (Form8872) Envision Ogden Disclosure Statement was submitted on May 12, 2008. That repot lists thedirect $1500 contribution to Blain Johrson plus five later contdbutions totaling $20,'700,to"Northern Utq.h Friends of Real Estate." The purpose ofthese contdbutions is stated tobe "citycouncil campaign support. "The total amount isjust $10 more than the total amount ofthe sixcontributions from FNLlRt repoded by Johnson and Eccles. The dates and amounts oftheindividual contribution installments also cotrespond to an extent.

In conclusion, it would appear that IlVLIRE simply forwarded political contributiots from EnyisionOgden to catdi.dates Johnson and Eccles. This effectively concealed the true source oftheseconbibutions ftom voters, both befor€ the election and for more than six montls after the election.

Relevant law

Section 1-8-3C of the Ogden City Code prohibits campaign cont butions made by one person inthe name ofanolher:

C. In Name OfAnother: No person shall make a contribution in the name of another person or makea contribution with another person's funds in his or her own name, and no caadidate, member ofapersonal campaign committee, or political campaign committee shall knowingly accept acontribution made by one person in the name ofanotier pe6on or made by one person with thefunds of another person.Section 1-8-1 defures "person" very broadly to include organizations and committees. Section 1-8-7makes violation ofthe disclosure ordinance a class B misdemeanor, and states that a personconvicted of such a violation may not hold the olfice to which the person was elected, if any.

Implications

Whoever operated FNURE clearly violaled Ogden b ordinance and is guilty ofa class Bmisdemeanor. At this time we do not know the identity ofthat person or persons. However, theaddress that Johnson gave for FNURE suggests thal the entity was operated either by Johnsonhimself, or by someone eise at his law hrm, or by someone else in the same building. In any case, it


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Printed oni 07/30/2009

should be easy for a prosecutor to subpoena the bank records ard detemine who was signing thechecks.

Even if someone else signed the checks, Johnson and Eccles would still be guilty ofviolating theordinance if they were aware that the I'}y'L/Rt contributions originally came from Ezlisictn Ogden.

It seems probable thal Envision Ogden violated. Ogder's disclosure ordinance by contdbuting fundsthrough I'NURE. It may also have violaled another provision ofthe ordinance by making $4684 indirect expenditures for the 2007 campaign. In addition, Ezyr,slo n Ogden appears to have violatedfederal tax laws by filing Form 8871 more than a year after it began accepting contributions, byfailing to file a mid-year disclosure report, and by filing its year-end disclosure repoft more thanthree months after the January 3l deadline. Envision Ogden may have also violated state laws bysoliciting contdbutions while holding itselfout to be a chadtable organization, and by contributing$2000 to a legislative candidate in 2008 without properly registering with the state or filing itsdisclosule statement on time.

Finlly, Ogden C/t, officials may have violated the law by allowing Envision Ogden to we a cit'1-owned building for a polirical fund raising event.

4-8-2009News Article:

Ogden city attorney: Campaign funding problem 'cured'

By Chdstopher Smart

The Salt Lake Tribune

Salt Lake Tribune Posted:03/30/2009 04:41:01 PM MDT

An entity called Envision Ogden gave nearly $20,000 to two Ogden City Council candidates in2007. But amended campaign disclosures, filed in mid-March, reveal that tlle entity funneled a goodchunk ofthe money thrcugh the non-registered Friends ofNorthem Utah Real Estate.

That could be in violation ofan Ogden ordinance thal reads: "No person lor entity] shall make acontribution in the name of another person ... ."

But City Attomey Gary Williams ruled earlier this month that inconsistencies surroundingcampaign-fund reporting during that municipal election have been "cured" by amended disclosureshe allowed 17 months after the election.

When asked Monday by The Tlibune to expand upon or explain his ruting, Williams declined toconment, except to say, "I'm done with this."

Not everyone shares Williams' opinion, including City Councilwoman Amy Wicks. Last week, shequestioned whether ihe Elvision Ogder,Friends of Noithei-n Utah Real Estate contuibutions vrere

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS


Case Number: 2009-00065 SBI Sl SJH ENVISION-OGDEN


within Ogden ordinances. Perhaps, she suggested, the 1aw should be sfengthened to prevent futur€

sleights-of-hand.

Representatives ofEnvision ogde[, which registered with the Lieutenant Govemol's office the yeal

aftir the election, could no1 be reached for comment. Friends ofNorthem Utah Real Eslate is not

registered an1'where and does not appear in any directory. No one interviewed for this story could

nane any principals ollhal organization.

The brouhaha began in March when ogden resident Dan Shroeder formally complained to the ciry

attorney that Envision ogden campaign contributions to two city council candidates appealed to

have been "laundered" through a dummy organization.

Both organizations had been named in initial campaign disclosule statements of then-candidates

Blain Jolmson and Royal Eccles.

The candidates - shotly after Shroeder frled his complaint - amended disclosures confirming that

the funds attdbuted to Friends ofNofihem Utah Real Estate really came ftom Envision Ogden

Johnson received $1,500 from Envision Ogden and $10,990 from Friends ofNorthem Utah Real

Estate, according to his 2007 filings. March's amended filings show he received $ 12'490 fromEnvision Ogden. Ecoles, who lost the election, reported, in his 2007 disclosure, lhat he received

$9,700 from the Northem Utah group; in March, his amended disclosure shows that Envision Ogden

gave him the money.

ln an interview, now-Councilman Johlson said he had acted ethically and within the law. He

explained that he amended his campaign disclosure to make the flap go away

"I know I didn't do an)'thing wrong," he said. "I received the funds, and I reported it'"

Johnson said he believed Friends ofNorthem utah Real Estate was a legitimate orgarizalion,despite not being able to come up with the names of anyone associated with it.

Jobrson prevailed over Sheila Aardema, while Eccles lost to Wicks in the 2007 election.

Said Wicks: "We need to krow who a candidate's dono$ are . who has an interest in getting that

person elected."

4:14-2009

cal\ e 4 Jim Malpede, FBI, Public Corruption investigations, he agreed to meet with me next week

for a discussion ofthis case aad how federal public oorruption laws might apply

4-14-2009

Scott Reed, Utah Attomey General (UAG), called Major Carr concaming this case.

4-29-2009

Page#:14





Met with Scott Reed UAG conceming this case.

5-5-2009

I emailed Daniel V. Schroeder at his online address at Weber State. He responded soon after and wearanged for a meeting at SBI on Wednesday May 6, at 10:30.

**** *'* tr* ************* ** *** ******

5/1212009 S/A Scott Hansen with Hertz Car Sales, Ogden, Utah

1- Name: Dan Peterson./Jeff Lucas llate:. 5 I 12/2O09

Title:Address:

Phone:Cell:Email:

2. Did you or your organization contribute to Envision Ogden?Peterson said he was contacled by one oftheir employees, Jefflucas - an accountant inthe management office, requesting a $5,000 donation. Hertz had ageed upon contdbuting$1,000. Lucas was the person who handled the check request and gave the check to EnvisionOgden.

Lucas was at the office and Pelerson brought him in. He admitted tiat he was also the same

Jefflucas that shows as Secretary/Treasurer for Envision Ogden and the same person thatprepare, signed and submitted the IRS foms 8872, Schedules A and B. Lucas also statedthat Envision Ogden was a Political Action Con'mittee and was registered with the State ofUtah as such. When Lucas was asked what these solicited contributions were used for he

said they were used to pu1 on a "Sneek Peek" for a promotional dinner for welcoming AmerSporls into the Ogden area.

When Lucas was asked about what the excess monies were used for he said they were usedto promote Envision Ogden and to support local candidates in campaign races.

When asked about Fdends ofNodhem Utah Real Estate (FNURE), Lucas said he didn'tknow much about them, other than he was told by Abe Shreves, director ofEnvision Ogden,to cut checks to Blain Johnson's carnpaiF fund and to FNURE. Lucas also said he hadpelsonally given at least one ofthose checks payable to FNURE to Blain Johlson, a

candidate for Ogden Ci{ Council.

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Case Number: 2009-00065 SBI S I SJH ENV SION-oGDEN

3. How much did you contribute?Hertz contributed $1,000.

4. Was there a requested or suggested amolnt to contribute?The original solicited sponsorship was for $5,000, but $1,000 would secure a table (10settings) at the balcluet held at the Ben Lomond Hotel and would also name your companyas a contributor on the program. $5,000 would have also provided a banner to be shown atthe banquet and gala festivities at the "Sneek Pe€k" at the Solomon Center arld Ben LomondHotel Grand Ballroorn-

5. How did you pay Envision Ogden - cash, check, certilied funds or bank transfer?Company check.

6. Do you haye a copy ofthe documents (invoices, check requisition and front and backofthe check) and would you provide a copy to us?

Yes.

7. How were you contacted? Bywhom?Jeff Lucas was the person that nlade the request lroru Dan Peterson,

8. Did they explain what Envision Ogden does and how these funds would be used?No, other than it was to support a business function and banquet. The $1,000 ,,vould provideHertz with a table accommodating 10 guests. It would also include them as a listedcontdbutor, not a sponsor - which would have cost $5,000 - 510,000, on the printedprogram or advertising

9. Did they at any time state that they were a "PAC" (Political Action Committee) orgroup?

Peterson did not receive such an explanation, but his contact was with JeffLucas - who isthe secrctary/treasurer for Envision Ogden and he did state to S/A Hansen that they areregistered as a PAC.

10. Did they say these funds rvould be used for political actions or campaign support orcontributions to any candidates in political races?

No.

11. Were there any stipulations, restrictions or limitatiols given by you as to what thesefunds were or were not to be used for?

No, however it is the company policy to not engage in any political positions or to benamed suppoters ofpoliticai positions or ofspecific candidates.

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page # 17




* *,* * rlk* ** * * * **:k * * '* '* x r** *:t * ** *,k * i* * )k,k * * * * * * ** * * )t * * * *:* * * * * ** * * * *:k:k x * * * +* *:F **

5112/2009 S/A Scott Hansen with Ogden Regional Medical Center

1. Name: Craig BielikCompany Name: Ogden Regional Medical Center

7.

D^te:5/12/2009

2.

Address:

Phone:Cell:Enailal-

Did you or your organization contribute to Enyision Ogden?Yes, we as the hospital did contribute. We didn't have any independent recollections ofhaving contributed, but the hospital was contacted by the Ogden Standard Examinerreporter, Scott Schwebke, asking about a donation made to Envision Ogden. After lookingup in the accounting depaftment, it was shown that the hospital did make a aontdbution toEnvision Ogden

How much did you contribute?$5,000, a table sponsor lor the Amer Sports Welcome Gala.

Was there a requested or suggested amount to contribute?$10,000 for a full sponsorship, $5,000 for a table sponsorship with a banner, and then$1,000 for a table and listing as a business contdbutor. Individual tickets were

5. How did you pay Envision Qgden - cash, check, certified funds or bank transfer?Check #

3.

4.

6.

;Pay to the Order ol Envision Utah (not Envisior Ogden). Thecheck does show it being deposited into Wells Fargo Bank accoun{--$nvisionOgden agcouut.

Do you have a copy ofthe documents and would you provide a copy to us?Yes, we will provide a copy ofour check request, ftont and back ofthe check and copy ofthe invoice received from Envision Ogden. (Copies ofthese documents were received5/14/2009.)

How were you contacted? By whom?Bielik and Mark Adams, the CEO for Ogden Regional Medical Center, were contacted bythe Ogden Mayor's office requesting support ofthis function. Bielik didn't recail ifit wasthe mayor or someone from his office that initially contacted the hospital.


Printed on: 07/30/2009lnvestigation Repott


8. Did they explain what Envision Ogden does and how these funds would be used?It was said that this function was to welcon.re in Amer Sports, a new business moving intothe Ogden area, and to show business suppofi for them and their employees. It waspresented as rallying support for this business and any others that are being solicited byOgden City, Chamber ofCommerce, and th€ Weber Counry Economic Development. Onthe Envision Ogden invoice it states under their name, "Working to Promote Ogden's HighAdventure Recreation".It was assumed that this was a business promoting, organizing andplanning venture to help in setting up a wise development plan for cu[ent ard future growthof commercial and economic developments in the Ogden/Webar areas.

The hospital was suppofing the new business in hopes ofsecudng thef suppofi ardaligning themselves with the HR department and fnding out ifthey may be a listed care

facility with the compary insurance plan.

Did they at any time state that they were a "PAC'| (Political Action Committee) orgroup?

No, it was not said - nor was it asked, due to the natue ofthe festivities and how and whatwas being promoted.

Did they say these funds would be used for political actions or campaign support orcontributions to any candidates in political races?

No.

9.

10.

11. Were there any stipulations, restrictions or limitations given by you as to what these

funds were or were not to be used for?No, it was just assumed it was to be used for business deYelopments.

It was intercsting that though the check was made payable to Envision Utah it was depositedinto the Envision Ogden account and nothing else was noted or said. Envision Utah was a

Govemor Initiative odginating with Govemor Mike Leavitt, with Jon M. Huntsman, Jr beingcommittee chaiman. Their role or mission was to assist communities and regions

throughout the state ofutah with plaruing and developmenl for future growth withnecessary inftastructures to suppofi and attract commercial and residential growths to these

areas ofthe state.

** *:! * * '*rr *;* * *:k * * * ** ** * * * *, '* )* * * ri * * ** ** * * * * * * * *;* * *** * *:F r** '*;* 't:* * r:** * * * * * * * * * * *

5/1212009 SA Scott Hanser, McKay-Dee Hospital, Ogden, Utah

1. Name: Chris L. DallinCompany Name:Title:

-Dee Hosnital CenterDatet 5112/2009

UTAH DEPARTMENT OF PIJBLIC SAFETY INVESTIGATIONS Page #: 19lnvestigation Report Printed on: 0230/2OOg

Case Number: 2009-00065 SAt St SJH ENVIS|ON,OGDEN

Address:F----jl

:h;ne:f- .'_- J

2.

3.

5. How did you oa Envision Ogden - cash, check, certified funds or bank transfer?

Did.yol or your organization contribute to Enyision Ogden?At first he didn't recall this incident..His.n*t ."rporr." iur-u question, ,,Is Envision Ogdenthe same as Envision Utah?,,Dal'n had been associated withEnui^rl* Utut,

'"f,"o it *u,originally organized. He is familiar with their role and purpor"s, Uoi t

" OlArt no* -yilri,.,gabout Envision Ogden. As we talked he tt .n ,e-"rot

"iJit " Ltquet, tho,:gh fie aiAn,tactually attend it himself. He did remember contributing, but not al'muctr aJttey naA Ueenasked for.

How much did you contribute?$ 1 ,000, they had been asked to be a sponsor for $ 10,000 or g5,000. Dallin went to thehospital's executive board and suggested giving a $i,000 contribuiion. thi, u-ount rvu.approved.

Was lhere a requested or suggested amount to cootributel$10^.000^for a fuI1 sponsorship, $5,000 lor a table sponsorship with a banner, and then$1.000 for a table and lisring as a busines, conLribuLor nnO,Jpfor-t.r--

E-"ilk

Cbec ,000, Pay to the Order of: Envision Ogden pO Box 1751, Ogden,ggLgglg2-The check does show it being deposited into w"tiirargo B"nr. u""orntI .- En\ ision Ogden accounl.

Do you have a copy of the documents and would you provide a copy to us?

I::.-::,::l^1:llu:-a copy ofour check requesi front and bact o?ile crrecr and copy ofrne rnvolce recerv€d trom Envision Ogden. (Copies ofthese documents were receiveds/12/2009.)

How were you contacted? Bywhom?

I1.l::1.":ig'lr']t conracred by Mayor Godfrey requesring McKay_Dee be a sponsor forlne Amer sporl wetcome gala lo be held February g.2007. The \4ayor.s office wissuggesting their $5,000 or $ r 0,000.sponsorsrrip. i,4cKay-Dee chosJJbe a $ r ,000 donor,and this was split with Select Health, the HMd or i:rsurance djvision. Eacn paid $500,though the check does slrow $ 1,000 from McKay_Dee Ijospital

Both McKay-Dee and Select Healtb "re

interested in showing support with the hope ofgaining their business as patients and aiso insurance cusronr"is. s'i""in"ort, did this in

7.



Case Number: 2009-00065 SBI SISJH ENVISION-OGDEN

Printed on: 07/30/200s

hopes of gaining a stronger position with Mayor Godfrey and bis consideration as an

insurance option for consideration to Ogden City employees-

8. Did they explain what Envision Ogden does and how these lunds would be used?It was said that this function was to weicome in Amer Sports, a new business moving intothe Ogden area, and to show business support for them and their employees. It waspresented as rallying support for this business and any oth€rs that ar€ being solicited byOgden City, Chamber of Comnerce, and the Weber County Economic Development ofhce.On the Envision Ogden invoice it states under their name, "Working to Promote Ogden'sHigh Adventure Recreation". It was assumed that this was a business promoting, organizingand planning venture to help in setting up a wise development plan for current and futuregrowth ofcommercial and economic developments in the Ogden/Weber areas.

Chris Dallin was not familiar with Envision Ogden. He was one of the original organizersand administrators for the Envision Utah program initiated by Govemor Leavitt. He workedwith Envision Utah as part ofhis responsibilities as President and Director ofthe DavisCounty Chamber of Commerce. It was his idea or concept ofEnvision Utah that promptedhis support ofthis request from Envision Ogden.

Chris Dallin also included copies of emails between himsell Tim Pehrson - Adminisratorand CEO of McKay-Dee Hospital, Jena Edgington - Administrator with Select Health.

9. Did they at any time state that they were a "PAC" (Political Action Committee) orgroup?

No, it was not said - nor was it asked, due to the rature ofthe festivities and how and whatwas being promoted. McKay-Dee tries to be supportive of connnunity affaim in hope ofeaming the trust and support with the people ofthe community.

10. Did they say these lunds would be used for political actions or campaign support orcontributions to any candidates in political races?

No. They, McKay-Dee Medical Center, have strict guidelines prohibiting the hospital fromtaking political stands or endorsing any political candidates or specific issues.

11. Were there any stipulations, restrictions or limitations given by you as to what thesefunds were or were not to be used for?

No, it was just assul'[ed it was to be used for business developments.

****,k******rr**:****)k***** {()**** ***,lr*,*****,k*:*'*****)t)kr.** ****,i **********'k****5l'1412009 SA Scott Hansen and Ogden-Weber Chamber of Commerce

1. Name: Dave Hardman,Mari NewboldCompany Namer Ogden-Weber Chamber of Cornmerce

D^tet 5/14/2009



case Number: 2009-00065 sBlsl sJH ENVISIoN-OGDEN

Prlnted on: 07130/2009

2.

3.

Cell:Email:

Did you or your organization contribute to Envision Ogden?Yes, it was to support the Amer Spoft banquet at the Ben Lomond Hotel.

How much did you contribute?$1,000, they had been asked to be a sponsor for $5,000. As they presented it to the

Chamber's goveming board it was agreed that they would participate, but only for $1,000.

Was there a r€quested or suggested amount to contribute?$10,000 for a full sponsorship, $5,000 lor a table sponsorship with a banner, and then

$1,000 for a table and listing as a business coDtributor and supporter.

How did vorr nqv F.qJisiotr Ogden - cash, check, certified funds or bank transfer?Chec

-Ii.000.

Pay to the Order of: Envision Ogden PO Box 1751, Ogden, Utah84402.

Do you have a copy ofthe documents and would you provide a copy to us?Yes, we will provide a copy ofour check, front and back ofthe check, and a copy oftheinvoice received from Envision Ogden, (Copies ofthese documents were received5/18/2009.) The check did show an endo$ement (hand wdtten) "For Deposit Only" intoWells Fargo Bank accounfl=-.

How were you contacted? Bywhom?They were originally contacted by Mayor Godfrey requesting their support and participationas a sponsor for the Amer Sport welcome gala to be held February 8, 2007. The Mayor'soffice was suggesting their $5,000, but that was morc than they felt they could afford. Theydid settle on being a $ 1.000 donor.

Did they explain what Envision Ogden does and how these funds would be used?It was said that this function was to welcome in Amer Spotls, a new business moving intothe Ogden area, and to show business support for them and thet employees. It waspresented as rallying support for this business and any odlers that are being soliaited byOgden City, Chamber ofConrmerce, and the Weber County Economic Development office.On the Envision Ogden invoice it states under their name, "Working to Promote Ogden's

High Adventure Recreation". It was assumed that this was a business promoting, organizingand planning venture to help in setting up a wise deveiopment plar foi cuiient and future

7.

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page 4 22



Prinled on: 07130/2009

9.

10.

growth ofcommercial and economic developmenls in the Ogden/Weber areas.

Did Envision Ogden, at any time, state that they were a "PAC" (Political ActionCommittee) or group?

No, it was not said - nor was it asked, due to the naturc ofthe festivities and how and whatwas being promoted. It was an assumption on the Chamber's part that this was a businessdevelopment group.

Did they say these funds would be used for political actions or campaign support orcontributions to any candidates in political races?

No. They, Ogden - Weber Chamber ofCommerca, have stdct guidelines prohibiting the

Chamber ofCommerce from taking political stands or endorsing any political candidates orspecifrc issues. Though members may hold or take positions the Chamber itselfremainsneutral on all issues and candidates so as not to alienate any members or businesses fromthe Chamber of Colnmerce.

11, Were there any stipulations, restrictions or limitatious given by you as to what thesefunds were or were not to be used for?

No, it was just assumed it was to be used for business developments and the cost ofthisgala banquet.

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511812009 SA Scott Hanser and Weber Economic Development Corp.

l. Name: Ron Kusina Date: 5/18/2009

Company Name: Weber Economic Development Corporation

2.

TitleAddress:

Phone

Did you or your organization contribute to Envision Ogden?Yes, it was to support the Amer Sport banquet at the Ben Lomond Hotel.

How much did you contribute?$1,000, they had been asked to be a sponsor for $5,000. Ron presented it to the govemingboard aad this was the amount they felt they could contribute. The Chamber of Commerce

and Economic Development often suppofi these functions and usually in similar amounts as

each other to welcome and encourage ihe business and econot-rlic development oiihe

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #:23

Prinied on: 07/30/2009lnvestigation Report

Case Number: 2009-00065 SBI SISJH ENVISION-OGDEN

Ogden and Weber commercial and business sector.

4. Was there a requested or suggested amount to contribute?$ 10,000 for a full sponsorship, $5,000 for a table sponsorship with a banner, and then

$1,000 for a table and listing as a busiless contributor and supporter.

5. How did you pal trlnlision Ogden - cash, check, certified funds or bank tralsfer?cn".{J$ t ,000. Payio the ordei ol Envision ogden Po Box 1751, ogden, ulah84402.

7.

Do you have a copy of the documents and would you provide a copy to us?Yes, we will provide a copy ofour check, front and back ofthe check, and a copy oftheinvoice received from Envision Ogden. (Copies ofthese documents were received5/18/2009.) The check did show an endorsement (hand written) "For Deposit Only" intoWells Fargo Bank accountf-f

How were you contacted? By whom?They were originally contacted by Mayor Godfrey requesting their support and participationas a sponsor for the Amer Sport welcome gala to be held February 8, 2007. The Mayor'soffice was suggesting their $5,000 suppor! but that was more than they felt they couldafford. They did settle on being a $1,000 donor.

Did they explain what Envision Ogden does and how these funds would b€ used?It was said that this function was to welcome in Amer Sports, a new business moving intothe Ogden area, and to show business support for them and their employees. It waspresented as rallying support for this business and any others that are being solicited byOgden City, Chamber of Commerce, and the Weber County Economic Developmentoffices, On the Envision Ogden invoice it states under their name, "Working to PromoteOgden's High Adventure Recreatiotr". It was assum€d that this was a business promoting,organizing and planning venture to belp in setting up a wise development plan for cunentand future growth of commercial and economic projects and developments in the OgdenWeber County areas.


No, it was not said - nor was it asked, It was an assumption that this was a business

development group. Weber Economic Development does not and cannot take politicalpositions for the danger ofalienating any existing or potential businesses.

Did they say these tunds would be uscd for political actions or campaign support orcontributions to any candidates in political races?

No. They, Weber Economic Developmenl Corp, is comprised oia wide vadcty ofbusiness

8.

9.

10.

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page#:24

Printed on: 07130/2009Investigation Report

Case Number: 2009-00065 SBISI SJH ENVISION'OGDEN

leaders with differ€nt attitudes and opinions. They also recognize the necessity ofbeingopen minded and neutral politically.

Thus, it is the policy oflhe Weber Economic Development Corp to not have penonai goalsor ambitions to be reflected in aly oftheir actions as a group.

IfEnvision Ogden had indicated or insinuated in any way that they would use these funds forpolitical purposes it would have declined paflicipating as a financial contxibutor.

11, Were there any stipulations, restrictions or limitations giyen by you as to what thesefunds were or were not to be used for?

No, it wasjust assumed it was to be used for business developments and the cost ofthis galabanquet.

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5/18/2009 SA Scott Hansen and Marketstar in Ogden, Utah

1. Name: Patty Marcroft ft^tet 5/14/2009

Addrelsi- --- ---Tf-- - ---7

2.

Phone:Cell:

Did you or your organization contribute to Envision Ogden?At first she didn't have any independent recollection ofthis event. She said she would haveto look it up and iocate the check and the invoice or check request. Patty then called back tosay that she had located it. Yes, it was to support the Salomon Center Sneak Peek gala butthat was about all that she could say about it. She didn't know anything else about this, otherthan what showed on the paperwork.

How much did you contribute?$1,000.

Was there a requested or suggested amount to contribute?Patty didn't know. She said this invoice was something done and handled by Erin Housley, a

name that shows on the invoice from Envision Ogden. Checking with Edn, she didn't haveany recollections oltlis event nearly two years ago.

3.

4.

UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #:25

Printed oni 07/30/2009lnvestigation Report

case Number: 2009-00065 sBlsl SJH ENVISIoN-oGDEN

5. How did you pav E_nvision Ogden - cash, check, certified funds or bank transfer?ct'ect l--IS t.000. Pi to the order ol Envision ogden Po Box 1751, Ogden, Utah84402.

6. Do you haye a copy ofthe documents and would you proyide a copy to us?Yes, they provided a copy oftheir check, front and back, and a copy ofthe invoice receivedfrom Envision Ogden. (Copies ofthese docrrrents were received 5/18/2009.) The checkdid show an endorsem€nt (hand written) "For Deposit Only" into Wells Fargo Bank account

7. How were you contacted? Bywhom?They weren't sue, si[ce they can't find anyone that recalls this paxticular incident or event.According to th€ date on the invoice it was for the Salomon Center Sneak Peek in June of2007. The invoice was dated June 5, 2007.

Did they explain what Enyision Ogden does and how these funds would be used?It was said that this function was to welcome in Amer Sports, a new business moving into theOgden area, and to show business suppod for them and their employees. It was presented as

rallying support for this business and any oth€rs that axe being solicited by Ogden City, theOgden-Weber Chamber ofComnerce, and the Weber County Economic Developmentofhces. On the Envision Ogden invoice it states under thef name, "Working to PromoteOgden's High Adventure Recreation".

It was assumed that this was a business promotilg, orgadzing and planning venture to help insetting up a wise development plan for current and future growth of commercial aadeconomic proiects and deveiopments in the Ogden-Weber Counry areas.


No, it was not said - nor was it asked. It was an assumption that this was a businessdevelopment group. Marketstar does not take political positions for the danger ofalienatilgany existing or potential businesses from being customers. No one had actually spoken withanyone from Envision Ogden. The only contact they had with Envision Ogden was when theyattended the event. There was no mention or talk ofthen being a political action coml.rittee

10, Did they say these funds would be used for political actions or campaign support orcontributions to any candidates in political rac€s?

No. IfEnvision Ogden or the Mayor's office had indicated or insilluated in any way thatthese funds would be used for political purposes they would have declined, or it would have

irfluenced their participating as a financial contributor.

ii. Were there any stipulations, iestrictions oi lirnitations giYen by you as to what these

8.

9.


lnvesligation Repott

Case Numberi 2009-00065 SBISI SJH ENVISION-OGDEN

Printed ohi 07130/200S

funds were or were not to b€ used for?No, it wasjust assumed it )vas to be used for business developments and the cost ofthisgala sneak peek event.

Envision Ogden's IRS 8872 Schedule A shows that Marketstar mad€ two contributionstotaling $1,800 (6/18/2007 for $1,000 and 8/l/2007 for $800). Patty was able to locate thecheck for $1,000, but she couldn't find any payments lor $800. On the invoice fromEnvision it lists the name Erin Housley next to Marketstar and shows under "Description"Salomon Center Sneak Peek.

Erin Housley is the assistant to the CEO for Marketstar. SA Hansen spoke with Erin and shedidn't have any independent recollections ofthis. She said that the Salomon Center SneakPeek did sound familiar, but she didn't attend anything there. It may have been managementand the bill simply came to her. She checked her file for copies ofthe invoice or someother paper.work, but she only goes back for one year and then she skeds them, except tllecopies that are held in accounting. This was nearly two years ago and her records were gone.

She did say that they don't get involved with any political issues or events. She couldn't seehow they would have knowingly participated in an).lhing that would have been remotelyassociated with politics.

,.,1,**:k * * tr"* + x **:f ,i. * r,r,i ******************;**'f******'*;F;**,t**t(ri*:t+*rN****:r(******;+*

f. Name: Eric Bernstein D^tel 5121D009Company Name: UBS Financial ServicesTitlel rAddress:Phone:Cell:Email:ffi

Local Contacts:Name: Tracy H. Duckworth

Address:

PhoneCell

Name: Kathy Hale





2.

Comnanv Name:Title:Address:

PhonelFax:Email:F

Did you or your organization contribute to Envision Ogden?Yes and no. We pa icipated in a function with Envision Ogden as a welcoming banquet forAmer Spots that was coming into the Ogder area from the Porlland, Oregon area. They

fEnvision Ogden] had wanted us to make a check payable to them, but we IUBS FinancialServices] explained to them fiat we couldn't do that, per our intemal protocols and standardoperating procedures. IIBS would agree to pay lor the food and facilities, but would have tomake any checks payable to the facilities or vendors directly, notto Envision Ogden. The total for the agreed upon expenses was $6,047.00.

How much did you contribute?$6,047

Was there a requested or suggested amount to contribute?Eric didn't recall if there was any other amounts discussed, but they had ageed to pay theexpenses totaling $6,047.00.

How did you pay Enyision Ogden - cash, check, certified funds or bank transfer?Ctreck { ---}6,047, Pay to the Order of Ben Lomond Hotel at PO Box 1751, Ogden,

uT 84402.(This is the same address as for Enyisior Oeden.):

Do you have a copy ofthe documents and would you provide a copy to us?

Yes, we will provide a copy ofour check request, front and back ofthe check and copy oftbe invoice received from Envision Ogden. (Copies ofthese documents were rec€ived

6/1/2009.) Included in the package ofdocuments:- UBS check, #1453151, front and back, dated 6/21/07 payable to BeD Lomond Hotel at PO

Box 1751, Ogden, Utah- Copy of Ben Lomond Hotel Invoice #00004, in the amount of $6,047 with itemized

billing (interesting note; at the bottom ofthe invoice it shows address of PO Box 1751,

Ogden Utah 84402 - Envision Ogden's address too.)- Copv of "AMER Event Budset" showing breakdown ofcosts totaling $8,047- !gpX-ql-g44!! ftom Jeff Lucas (Envision Ogden) to Kathy Hale and another itemized bill

lotaling $7,047 dated 5/9/0'7

- Copies of 2/7/200? enails bciween Doii llosher and Kathy Hale r','ith attachnents

3.

4.

5.

6.

T]TAH DEPARTMENT OF PIJBLIC SAFETY INVESTIGATIONS PAgE#:28



containing the event's guest list, copy ofthe invitation, announcement flyer andadvertisemenf

7. Ho\ry were you contacted? Bywhom?The national office was contacted by Tracy Duckworth, the Branch Manager, with therequest for contibution-/support ofthis public,/business function to welcome Amer Sports

into the Ogden area.

Atter some negotiating and discussion, It was agreed that lrBS would pay for the food andfacility bilis associated with dle function.

Tracy Duckworth didn't recall how he was initially oontacted or by whon.

8. Did they explain what Enyision Ogden does and how these funds would be used?It was said that this function was to welcome in Amer Sports, a new business moving into theOgden area, and to show business support for them and their employees. It was presented as

rallying support for this business and any others that are being solicited by Ogden City,Chamber of Commerce, and the Weber County Economic Development. On the EnvisionOgden invoice it states under their name, "Working to Promote Ogden's High AdventreRecreation". It was assumed that this was a businass promoting, organizing and planningventure to help in setting up a wis€ development plan for curent and future growth ofcommercial and economic developments in the Ogden/Weber areas.

9. Did they, at any time, state that they were a "PAC" (Political Action Committee) orgr0up?

No, it was not said - nor was it asked, due to the nature olthe festivities and how and whatwas being promoted. Ifthis had been known UBS would have inrmediately declined tocontribute or pafticipate in any way. UBS is closely regulated by the Securities ExchangeConrmission (SEC) and prohibited from parlicipating in or conhibuting to any politicalaction committees or political issues of any kind.

10. Did they say these funds fiould be used for political actions or campaign support orcontributions to any candidates in political races?

No, but again this question was not asked by UBS either, being led to believe it was solelyfor the purposes of welcoming in this new business or enterprise into the Ogden business

community.

11, Were there any stipulations, restrictions or limitations given by you as to what these

funds were or were not to be used for?Yes, these funds were to cover food and facility expenses associated with this banquetfunction. Envision Ogden was told explicitly that they could not be used for arything else,

per I-he company's irrie'-nal policies.


Printed on: 07/30/2009lnvestigation Repott

case Numberi 2009-00065 SBISI SJH ENVISIoN-OGDEN

Interesting notes with the documents that Eric Bemstein send. These documents were received

6/1/2009 having been sent via UPSI

A. The check, f-ivas made payable to Ben Lomond Hotel and shows an address of PO

Box 1751 in Ogden. This is the mailing address for Ervision Ogden and according to UnitedStates Postal Inspectors, Ben Lomond Hotel has not and does not receive mail at this box

B. The endorsement on the back of this check shows "FOR deposit only" and gives account

numbertl-- |hich is the Washington Mutual Savings account number for BenLomond Hotel - but now closed since November 2008. It then shows "pay to order ofEnvision Ogden.

C. The lnvoice from Ben Lomond Hotel shows an amount of$6,047, but there are two otherbills or budget billings showing amounts of $8.047 and $7,047. In the emails included in the

documents sent by Mr Bemstein, it refers to negotiations on what IIBS could or would pay

for. UBS stated that they needed invoices ftom the various vendors, but Envision Ogden was

telling IIBS that the various vendors had already been paid by Envision Ogden.

The invoice shown from Ben Lomond Hotel showing the $6,047 matched the amount ofthecheck. on the bottom ofthe invoice it showed an address for Ben Lomond Hotel ofPO Box1751, Ogden, Utah 84402, which again is the mailing address for Envision Ogden.

There seem to be some inegularities associated with this account and the supportingdocuments.

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Witness/Contributor Questions onSBI SI SJH Envision Ogden

Case 2009-00065

1. Name: Jonathan Cohen D^tet 5126/2009

Compary N4me: Coldwell BaD.ker Real Estate

AddressiPhonef-- JCell:Emait

2, Did you or your organization contribute to Envision Ogden?

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case Number: 2009-00065 SBISI SJH ENVISION-OGDEN

Yes.

3. How much did you contribute?$2,000, check Nof ---Jd ared3l21/2oo'7.

4. Was there a requested or suggested amount to contribute?They didn't recall at this time, more than two years after the fact.

5. How did you pay Envision Ogden - cash, check, certified funlts!! bank transfer?Company cheik drawn on danl< of America. check NolJd aad 3l21l2oo1 . Pay toth€ Order of: Envision Utah (not Envision Ogden).

6. Do you have a copy ofthe documents and would you provide a copy to us?Yes, we will provide a copy ofour check request, front and back ofthe check and copy oftheinvoice received from Envision Ogden. (Copies ofthese documents were received5/26/2009.)

7. How were you contacted? Bywhom?Kristin Graziano, our Ogden Broker, was contacted by someone fromthe Ogden Mayor'soffice requesting support ofthis function. Ms Graziano didn't remember much about theincident other than they will frequently contdbute to these tlpes offunctions with hopes ofgaining their business in relocating families associated with the business transfers. She didsay that she wasn't able to attend the event peffonally.

8. Did they explain what Enyision Ogden does and how these funds would be used?It was said that this function was to welcome in Amer Sporls, a new business moving into theOgden area, and to show business suppoft for them and their employees. It was presented as

rallying support for this business and any others that are being solicited by Ogden City,Chamber ofCommerce, and the Weber County Economic Development. On the EnvisionOgden invoice it states under their narne, "Working to Promote Ogden's High AdventureRecreation". It was assumed that this was a business promoting, organizing and planningv€nture to help in setling up a wise development plan for curent and futule growth ofcommercial and economic developments in the Ogder/Weber areas.

9. Did they, at any time, state that they ryere a "PAC" (Political Action Committee) orgroup?

No, it was not said - nor was it asked, due to the nature ofdre festivities and how and whatwas being promoted it was never considered that this was affiliated with anything political.Coldwell Banker does not associate themselves with any political parlies or issues because

ofthe possible business contacts that this may affect.

10. Did they say these iunds woiiid be used for political actions or campaign suppcrt or

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Case Number: 2009-00065 SBISI SJH ENV|StON-OGDFN

contributions to any candidates in political races?No.

11. Were there any stipulations, restrictions or limitations given by you as to what thesefunds were or were not to be used for?

No, it u/as just assumed it was to be used for business developments and promotions.

This was strictly an effort to solicit Amer Sports business to sell homes to their employeesand executives tmnsferring to Ogden. This is not unlike other contributions made to similarfunctions for other businesses where potential clients could be gained.

Documents

7/30/09 SBI Report PDF - wcfgoldmine.comwcfgoldmine.com/SBI_Report.pdf · UTAH DEPARTMENT OF PUBLIC SAFETY INVESTIGATIONS Page #: 1 lnvestigation Report Printed on: 07/30/2009 Case