OGDEN (AP) — An Eden man who headed a Salt Lake company and briefly operated Nordic Valley ski resort has been charged with 31 felony fraud counts in an alleged scheme that authorities say bilked $2.51 million from investors and employees.
Gary Randall Whetton, 31, allegedly redirected $533,791 from a nonexistent online gaming company to third parties and personal use, some of which went to Nordic Valley promotional items.
Whetton was the CEO and president of Catalyst Advisors, a Salt Lake -based company specializing in locating operating capital for businesses. He was supposed to use $487,000 from 11 investors to launch the gaming platform.
Whetton, who was charged Wednesday, allegedly said he created software to run the online site, which he said would allow people from around the world to play simultaneously with the text translated into their languages.
During a two-year period, Whetton allegedly received $687,000 from investors for the platform.
Court records said Whetton used the money to purchase personal items and pay his wife's doctor bills, a marketing firm for Nordic Valley, and his attorney, who was representing him in a real estate transaction involving the ski resort.
Of the 31 second-degree felonies, many are for unpaid wages and bills associated with the ski resort he operated for about three months.
While collecting all proceeds during that time, Whetton failed to pay nearly $1 million to employees and bills and failed to pay a contractor $613,818 for development work, authorities allege.
An arrest warrant was filed June 18, but Whetton was not booked into the Weber County Jail until Tuesday evening. Deputy County Attorney Camille Neider said Whetton had been in California and unaware of the active warrant and returned to Utah for a family function.
Judge W. Brent West on Wednesday set a cash-only bail of $200,000.