R. Dean Udy, 71, a former stake president and regional representative in Brigham City, Utah was sentenced to 1-to-15 years in state prison last week on securities fraud charges. He pled guilty to a scheme that ran for 12 years or more. According to the article in the Ogden Standard Examiner, “Udy’s victims total 1,500, with an estimated loss of $20 million.”
Prosecutors alleged that Mr. Udy “traded on his positions in The Church of Jesus Christ of Latter-day Saints, which included membership in a stake presidency and as a regional representative in Box Elder County” to gain people’s trust. “People felt Brother Udy would never do anything wrong.”
So what is the lesson here? If anyone uses their church position (explicitly or not) to gain your trust in connection with an investment pitch — run for the hills. Don’t trust anyone just because they are a church leader or even a church member. Do your homework and check out the investment opportunity with the Utah Division of Securities.
Mr. Udy first entered into a Consent Order with the Division of Securities in 2002, but that didn’t slow him down. He was then charged criminally in 2005 and pled guilty to two felony criminal counts in 2007. However, that sentence was held in abeyance for 36 months after he agreed to pay full restitution to his investors and to provide accurate information to the State about those investors. But that didn’t happen, and it took several years for the judge to lose patience with him and send him to jail.
In June a federal grand jury indicted him and his son, Cameron, for charges alleging they ran a $11.4 million in bank fraud in Las Vegas, and they face trial on that charge in October.
I hope he goes to jail for the rest of his life!
Sadly, Church Fraud is a very real concern, with potential risk from the outside as well as within. There are simple steps to increase the security of a church’s finances but it is difficult to know where to start. I recently found out about a Christian Accounting firm that offers online tools and support for churches. They have some excellent resources as well as an online questionnaire that will determine whether a church is at risk. Their service is called Weeds in the Garden.
Udy ran a huge Ponzi scheme and the SEC dropped the ball by giving him a plea bargain. At the time, the SEC didn’t realize that it was a Ponzi scheme and had only considered it security’s fraud.
The LDS Church does not leave much room for questioning
Church authority. This lack of individual thought allows
predators like this con man run unchallenged. Also the
lack of oversight by the Attorney General who turns a blind
eye to any con man who makes a donation or has political
or religious connections which is the same thing in Utah.
Even after conviction they are given such lenient sentences
as to be a disgrace. The victims lives are destroyed but they
run free living the good life thanks to Mr Schurloff and
friends. Elect an honest Attorney General!!!
It’s called affinity fraud and is found across ALL subsections of societies. Doctors, lawyers, teachers, police officers, and religions. I’ve seen them all. You name the group and there are scam artists who take advantage of them. Madoff traded on Jews. This is no different.
Mormons are no more or less susceptible than any other group.
What happened at the trial? Was the son sentenced to prison too?
What good does it do him to be behind bars while the dishonest Bankers and Wall Street swindlers run free?