SALT LAKE CITY July 1, 2014 -In a case investigated by the Utah County Attorney’s Office and prosecuted by the Utah Attorney General’s Office Steven L. Flygare was convicted by plea of a Pattern of Unlawful Activity involving multiple acts of Securities Fraud and Communications Fraud and sentenced on June 27, 2014 by the Honorable Deno Himonas in the Salt Lake Third District Court. Pattern of Unlawful Activity is a second degree felony for which Mr. Flygare has been sentenced to an indeterminate term of 1 – 15 years in the Utah State Prison and ordered to pay restitution in the amount of $2,220,231.55.
“This particular case is a wonderful example of how the Mortgage and Financial Fraud Unit works successfully with other agencies throughout the state to achieve justice,” said David Sonnenreich, Director of the Markets and Financial Fraud Division of the Attorney General’s Office. “Mr. Flygare’s case has taken great focus and collaboration and our office is extremely pleased with the tremendous results for Utah citizens.”
Steven Flygare is a 58 year-old Utah County resident who has been convicted of engaging in a pattern of unlawful activity against multiple individuals between January 2007 and at least September 2008. The unlawful activity included multiple acts of Securities Fraud and Communications Fraud related to various real estate developments and a water share project in the State of Utah. In connection with the victims’ investments, Mr. Flygare made numerous misrepresentations and omissions of material fact and used the majority of investor funds for personal and other expenses unrelated to the pitched investments. Mr. Flygare also purported to collateralize investments with property that he neither owned or had authority to encumber.
“White collar criminals are not welcome in Utah. Immediately upon taking office in December, I established a qualified and respected legal and executive team to help restore public trust in the critical functions of the Attorney General’s Office including more focused and unbiased investigation and prosecution of financial fraud,” said Attorney General Sean Reyes. “Because of this, we have taken extraordinary efforts to assess and restructure office-wide divisions and leadership. Hundreds of meetings with employees, agencies, legislators and other clients led to the establishment of a new Markets and Financial Fraud Division under David Sonnenreich. Our Commercial Enforcement Division, working with our tremendous partners at the Utah Department of Commerce, is now being led by Che Arguello. Since promoting these two individuals last month we have seen great progress. Over the years, both of these leaders have proven to be dedicated and successful advocates against financial crime in Utah.”
The Flygare case was investigated by Jeff Robinson of the Utah County Bureau of Investigations. Assistant Attorney General Che Arguello who has recently been elevated to Division Director over the Commercial Enforcement Division screened, filed and prosecuted the case.