SPRINGVILLE — A former Springville mayor and state legislator has been charged with 20 felony counts of fraud for taking more than $350,000 from several investors for humanitarian projects in China that didn't pan out.

According to an affidavit filed in the 4th District Court by the Utah Division of Securities, James Brent Haymond coaxed investors, including current state Rep. Stephen Clark, R-Provo, to invest in projects that included growing alfalfa in China to help build a relationship between The Church of Jesus Christ of Latter-day Saints and Chinese officials.

Haymond then forwarded the money to Gen Yee Lin, a Chinese native who claimed to have influential contacts with the Chinese government because of favors he and his father had done for the government.

Lin, who is charged with 18 felony counts of fraud, said the Red Army in China had donated land for the project and that an LDS couple from Idaho would oversee the crop. He also said the LDS Church considered the project to be a step toward gaining Chinese government approval to establish missions in China, the affidavit said.

The Division of Securities says the LDS Church was never involved.

Haymond served as Springville mayor from 1982 to 1986. Though he didn't win a second term in office, he was elected to the Utah House of Representatives, where he served from 1991 to 1999.

During that time, U.S. Rep. Chris Cannon, R-Utah — then serving as financial chairman for the Utah Republican Party — introduced Haymond to Lin, who claimed to have been previously contracted by the National Security Agency.

Since Haymond had experience building power plants, Lin enlisted his help to find funding to build similar structures in China. He recommended they find financial backing through the trading of Mid Term Notes in Europe, which Lin said would quickly double investments.

Over the years, the project changed from purchasing airplanes to growing alfalfa. But even when their money wasn't returned, many investors continued to invest under the impression that it would help the LDS Church.

No money was ever returned, however, because Mid Term Notes as Lin described them do not exist, the securities division said.

Friends of Haymond, including some investors, say the former mayor was duped by Lin just as they were.

Lin and Haymond appeared in court in July to face charges, and a waiver hearing is scheduled for February.

Haymond's attorney, Randall Spencer, said the case is still being gathered, but he expects Haymond to be exonerated.

"I don't believe that there is any question that Mr. Haymond acted with a great deal of integrity and believed in everything that was going on," Spencer said. "But some things did not work out as Mr. Haymond thought they would."

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E-mail: lwarner@desnews.com