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A special agent with the Utah Attorney General's Office testified Tuesday that C. Dean Larsen stole $35,000 from two investors in early 1986 and then spent the money on company and personal expenses.

Mike Hines, assistant chief special agent, said Larsen took two checks given to him in January 1986 by Ray and Cecily Christensen and deposited the money in the Boston Building account and C.D. Larsen Trust Fund.Hines' testimony came during a preliminary hearing in 3rd Circuit Court.

The Christensens testified earlier that the two checks, one for $20,000 and one for $15,000, were given to Larsen to purchase interest in Baseline, a real estate development project.

Hines further testified that most of the money appeared to be spent on expenses unrelated to Baseline. About $7,000 was spent by Larsen in the form of a check written to C. Dean Larsen. The check was marked "loan advance" and was cashed by Larsen.

Prosecutors also showed that the Christensens were never given an interest in the Baseline project.

Cecily Christensen is also one of several investors who have testified that Larsen took disbursement checks made out to the investors and deposited them in an account over which he had control. She also said that Larsen stole $14,788 in disbursement checks on her investment in Majestic Oaks - a Provo motor home park.

Larsen's attorney, Larry Keller, has argued that private placement memorandums signed by some of the investors gave Larsen power of attorney to re-invest their money.

Several investors testified, however, that power of attorney did not give Larsen the right to steal their money.

Larsen has been charged with 46 counts of felony fraud in connection with his management of money invested in Granada and its various limited partnerships.

Records in U.S. Bankruptcy Court show that thousands of investors - mostly doctors, dentists and their employees - lost $47 million in Granada.