A Layton man has pleaded guilty to charges he defrauded corporations and individuals of about $1 million.
Terry Davies Lund, 43, pleaded guilty during a 3rd District Court hearing Friday to communications fraud, a second-degree felony; engaging in a pattern of unlawful activity, a second-degree felony; and failing to make, render, sign or verify a tax return, a third-degree felony.In exchange for his plea, prosecutors dropped 11 additional counts of communications fraud; two additional counts of failing to make, render, sign or verify a tax return; one count of making, rendering, signing or verifying a false or fraudulent tax return, a third-degree felony; and four counts of evasion of sales tax, a second-degree felony.
Lund could be sentenced to spend up to 35 years in prison. He is scheduled for sentencing Feb. 26.
Lund was charged in April, after authorities discovered through a sting operation about his involvement in an insurance scam.
In March 1994, Lund discussed with some undercover FBI agents how to stage a car accident to get the most money possible out of an insurance policy, according to the charges. The agents staged the accident on April 26, 1994, at a Millcreek intersection. After the accident, Lund continued to coach the men on how they could capitalize on the insurance claims for USAA and Allstate Insurance companies for personal injury, lost wages and property damage benefits.
Other allegations accuse Lund of defrauding private individuals and financial institutions of a total of $823,611. In 10 detailed instances, Lund either borrowed money or received payment for vehicles that never materialized or were sold illegally, according to the charges.
In one instance, Lund received $577,000 in payment for 31 Chevrolet Astro vans he never possessed, the charges state. After receiving the money, Lund left for the Philippines, where he deposited the funds in his personal bank account.
Although Lund applied for and received a sales tax license from the Utah State Tax Commission on Aug. 1, 1995, records show Lund failed to pay $180,961.58 in sales taxes he collected in 1996 for the sale of motor vehicles through his business entity, South Western LC, the charges state.