Kaysville man accused of major Ponzi scheme

June 19--KAYSVILLE -- A Davis County man is wanted for an alleged Ponzi scheme that officials say bilked Utah residents and others out of their life savings and raked in tens of millions of dollars from 2006 to 2011.

Kaysville resident Dee Allen Randall, 63, was charged by the Utah Attorney General's Office with 22 counts of second-degree felony securities fraud Wednesday, in addition to one count of the same charge in the third degree.

Randall's initial hearing has been set for July 2 in 3rd District Court in Salt Lake City. He is out of police custody, and a warrant has been issued for his arrest. His bail has been preset at $100,000.

Randall allegedly engaged in investment fraud using several financial organizations which at the time he owned or managed, including the Horizon Financial & Insurance Group, Horizon Auto Funding, Horizon Financial Center and Horizon Mortgage & Investment, among others.

He was effective at misleading investors, according to charging documents, and sometimes used his status as a practicing Mormon as a persuasive tool.

"Most of the investors were sold on the high interest rate offered and because Randall had a good reputation in the insurance industry and was an active LDS member," the documents state. "Some investors stated they felt their investment was safe because Randall told them their investment was backed by real estate or car titles. For some investors, Randall stated or led them to believe that they would be placed on the car titles or deed of trust."

Randall illegally misled individuals about the risks of their investments and told them they were protected, court documents say.

"Many of the investors were told about some of the risks of investing, but Randall explained the risks away," the charges state. "Randall stated to some investors that if anything happened to him, he had a life insurance policy that covered (their losses). Randall also stated that even if he went bankrupt, the assets would be sold and everyone would receive their money back."

His actions constituted an elaborate fraud, according to court documents.

"Specifically, Randall created a Ponzi scheme and misused investor funds," the documents state.

Contact reporter Ben Lockhart at 801-625-4221 or [email protected]. Follow him on Twitter at @SE_Lockhart.

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