Former legislator Merrill Harward has been sentenced to 37 months in prison for his role in a telemarketing scam that bilked victims across the country out of millions.
Harward, 61, of Salt Lake City, must begin serving the term on Jan. 5, U.S. District Judge Dee Benson said Monday.Harward was indicted with Orem attorney Mark K. Stringer and five others after federal agents shut down Professional Excellence Institute and related companies in Utah County in 1995.
Prosecutors alleged the companies offered professional services -- such as business coaching or patient referrals for doctors and dentists -- but failed to provide the services and denied requests for refunds.
Harward worked as a coach, occasionally supervised other coaches and handled customer-service duties, said Assistant U.S. Attorney Scott Thorley. Harward knew customers were not receiving services and he stalled complaints and refund demands, Thorley said.
Investigators discovered thousands of victims, he noted, including hundreds of dentists.
In August, a federal jury found Harward guilty of 23 counts of mail fraud, 19 counts of wire fraud and one count of conspiracy after a joint trial.
Harward and Stringer were tried together. Other defendants negotiated plea bargains.
Harward and Stringer testified they believed the companies were legitimate. In court Monday, Harward said he was trying to do a good job for his employers but admitted his decision to keep working for the firms was reckless.
"I acknowledge my role was more than it ought to have been," Harward said.
Harward asked the judge to consider the personal anguish the prosecution and impending prison term have caused him. Over the weekend, his 4-year-old grandson asked if he was moving away, Harward said.
"The pain that was in his eyes broke my heart," Harward said, fighting tears. "I don't think I will ever be able to make that up."
Harward's attorneys, Max Wheeler and Jerome Mooney, pointed to his past service and his acceptance of responsibility for his crimes. Harward served in the Utah House between 1977 and 1982 as a Republican from Salt Lake City.
Benson said Harward has continued to downplay his knowledge and role.
"This was not a borderline illegal activity," Benson said. "It was rotten from the inside out . . . when one scam stopped working, they moved to another one."
Benson calculated Harward's sentencing range as 37 to 46 months, then ordered him to serve the lowest end of the range. He also ordered him to pay $20,000 in restitution.
Stringer was sentenced last month to nine years in prison. The other defendants received lighter sentences.