Gene Parrish has been sentenced to up to 10 years in prison for failing to tell investors about his criminal history.
Two years ago, Parrish solicited investment capital for a new company but failed to mention his record and that he owed thousands of dollars in restitution to previous victims.By the time parole officers caught up with Parrish, he had taken in $74,900. The income from that plus his previous scheme totaled nearly $350,000.
Parrish, 44, was sentenced Monday to up to 10 years in prison on the new crimes by 3rd District Judge William Thorne. Parrish is to serve the new term concurrently with his prior one-to-15-year prison term, the judge ordered.
Parrish went to prison in 1992 for bilking more than 200 would-be vacationers out of money they paid for low-cost vacation packages to Hawaii and Mexico. Parrish used the money to travel in Europe, buy a new car and pay his home mortgage.
Charged with 52 counts of theft and one count of communication fraud, he eventually pleaded guilty to six counts.
Prosecutors also filed communications fraud and racketeering charges against D&B Broadcasting, owners of KTKK radio, which heavily advertised the vacation packages. A judge, however, dismissed all charges, saying there was no evidence station management knew money from sales of the vacations was being diverted to purchase jeans that were to be sold in Europe for profit.
In February 1994, Parrish won parole after telling the Utah Board of Pardons: "Until all of the victims have been repaid, the matter will not be closed for me, either morally or ethically."
While on parole, Parrish was supposed to find work and begin repaying his victims at the rate of $200 a month. He was forbidden to be self-employed or to enter into contracts, according to Assistant Attorney General Jeffrey Gray.
Almost immediately, Parrish began seeking investors for an Internet directory service.
There may have been nothing wrong with the business itself, Gray said. "It's how he went about it."
Securities fraud laws are intended to promote full disclosure of important information to investors, Gray said. Parrish did not disclose his criminal history, his parole status or that he had filed for bankruptcy in 1993.
"Those facts are important if you're an investor," Gray said.