A Layton man has been sentenced to spend up to 15 years in prison for defrauding corporations of almost $1 million.
Third District Judge Robin Reese, 43, sentenced Terry Davies Lund during a court hearing March 19 to two one-to-15-year terms and one zero-to-five-year term at the Utah State Prison. The terms are to run concurrently with each other and with a 33-month federal prison sentence Lund was already serving for similar charges.In December, Lund pleaded guilty 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. Lund also pleaded guilty in federal court to money laundering and bankruptcy fraud.
Overall, Lund must pay back $806,098 in restitution to 10 corporate entities and the Utah Tax Commission, prosecutor Clark Harms said. After serving his prison terms, Lund will serve 36 months of parole.
Because of his racketeering conviction, Lund has a permanent injunction preventing him from ever being employed in the car sales industry, of trying to raise capital and of handling other people's money, Harms said. He also has an injunction against being self-employed, and he must disclose his criminal history to prospective employers.
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 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, the charges state.
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 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.