Jail ordered for ex-chief of college savings

The former head of Utah's college savings plan must spend at least some time in jail and undergo counseling for stealing money from the program, a judge has ruled.

Dale Hatch, 55, who headed the Utah Education Savings Plan (UESP) until he was fired in July, earlier pleaded guilty to second-degree felony theft as part of a plea bargain and on Friday was sentenced by 3rd District Judge Leslie Lewis. The charge carries a potential term of one to 15 years in prison, but the judge suspended that.

However, Lewis imposed a 90-day jail sentence, with 30 days to be served starting Sunday evening. She ordered that Hatch return for a review of his conduct each month for six months and said she then will decide whether to impose the remaining 60 days behind bars.

Lewis also ordered that Hatch be placed on probation for three years, repay the money he took, provide 100 hours of community service and undergo family counseling with his wife and possibly other family members.

"I am trying to balance what happened with fairness," Lewis said.

Hatch, a former state budget director under former Gov. Norm Bangerter, has no previous convictions, earned a good reputation as a financial manager and has many respected members of the community to vouch for his character. But Lewis said that Hatch has let many people down running a scheme to move UESP funds around in a way that would benefit him.

Lewis noted that a presentence report indicated UESP officials believe that the end of the criminal case against Hatch still doesn't end the "internal disruption" of the college savings program. "It's going to take you a lifetime" to repair the wrongdoing, Lewis told Hatch.

Hatch's lawyer, Peter Stirba, said what Hatch did was wrong and that Hatch is sorry for his actions, but Stirba pointed out that the fund enjoys a nationally recognized reputation and good financial health because of Hatch's previous hard work.

Prosecutors say Hatch filtered $85,500 of UESP money from the fund into his personal account. Hatch has repaid $20,000 and has come up with the remainder, which will be processed soon, according to lawyers for both sides.

"This is totally my responsibility," Hatch told the judge.

Later, Amanda Covington, spokeswoman for UESP, said: "I think this provides a sense of closure for us. We've definitely moved forward with the program and are seeing success with our new director, Lynne Ward, and with the fund itself."

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E-mail: lindat@desnews.com