College-fund chief is fired

The director of a Utah-based college savings program was fired this week for what officials are calling "questionable transactions."

The state auditor's office is now conducting its own investigation into the dealings of Dale C. Hatch, former director of the $715 million Utah Educational Savings Plan or UESP trust, which is administered through the Utah Higher Education Assistance Authority and is one of the nation's most highly rated such programs.

Hatch's termination was effective Wednesday. He was unavailable for comment.

"We felt like it's important to act quickly and get the appropriate people involved," said Dave Buhler, Utah System of Higher Education associate commissioner of public affairs.

A July 6 letter to Hatch said he was being terminated "due to unacceptable personal conduct." Hatch was suspended July 1 with pay, pending an investigation into "conflict of interest" and "breach of trust" issues.

The letter from UHEAA acting executive director Mark Spencer goes on to state that over several years Hatch opened UESP accounts in which he had an ownership interest, transferred funds in and out of and "added market adjustments" to the accounts without supporting documentation.

"He was not informing his superiors or other employees in the program," Spencer said Wednesday.

Over the past week, USHE officials conducted their own audit after UHEAA employees began raising questions two weeks ago.

The attorney general's office advised that the state auditor do its own investigation, which will help determine if any criminal charges need to be filed by the district attorney, according to attorney general spokesman Paul Murphy.

State auditor Auston Johnson said he has just begun to determine if Hatch committed fraud and, if so, to what extent.

Buhler would not say exactly what the transactions involved, only that individual investor accounts in the trust were not harmed.

"It was not like taking money out of individuals' accounts. It wasn't like that," he said. "All investors are whole and will continue to be whole."

Spencer said he will take over for Hatch and wait to find a replacement until after the state auditor has completed his investigation.

"We're doing all we can to ensure investors that all invested funds are protected and will be protected. We're confident we can do that," Spencer said.