Investor says accusation by Utah Division of Securities harmed his reputation

SALT LAKE CITY — A decision made by the Utah Division of Securities to post a media release almost four years ago still leaves businessman and investor Culley Davis in a world of hurt.

The release and a corresponding lawsuit accused Davis of a "scam" in which he allegedly solicited $100,000 from a Draper husband and wife and neither repaid them nor converted the cash to stock for Trigenix Inc., a vitamin supplement product that was part of One World Nutrition. The release also said that Davis failed to disclose a bankruptcy, an injunction against him in Idaho, tax liens and court judgments.

Media companies, including the Deseret News, published stories at the time reporting the allegations.

Meanwhile, Davis's attorneys talked to the division, and he settled the case by admitting to the disclosure problems.

Three years later, in April 2009, the securities division sent a letter to Davis apologizing and notifying him that the earlier release had been pulled from division archives. Final results of the division's investigation did not support all of the allegations, the letter reads.

Regardless, court filings and news stories about the incident still show up online. Beyond forcing Trigenix out of business, Davis said, the online material has prevented him from getting multiple jobs and investment opportunities.

"When you get something like this it changes your whole life in a way most people can't even fathom," he said. "You can't stop the hemorrhaging."

The division has since decided to change its policy and will no longer issue media releases "based on initial filings of administrative actions," it told Davis in the 2009 letter.

"It went too far," said Keith Woodwell, director of the Utah Division of Securities. "We did not find that he used the money for his own personal use."

Davis now lives in Nevada and is trying to get Trigenix off the ground under a new name. He's also working on book publicizing and continues work in securities and investments.

e-mail: rpalmer@desnews.com