Lehi man accused of $2M scam is in jail

LEHI — A man who allegedly bilked associates out of millions of dollars and tried to gamble his way out of debt is behind bars.

Zane Gray, 35, started his residential fire-alarm business, Elite Fire Systems, in Lehi in 2001. The company was successful for several years, and Gray established a scholarship fund for the families of firefighters who died in the line of duty, according to his Web site.

But police said his business dealings began to crumble after he bought huge inventories of fire alarms in order to get a better price. Gray then started soliciting investments from friends and acquaintances, offering profit-sharing in the company, police said.

"It was a one-time legitimate business that went bad, and he couldn't cover his debts," said Lehi Police Lt. Darren Paul.

Instead, Gray began writing himself checks for trips to Las Vegas casinos and shuffling money from account to account in an attempt to hide his losses, police said.

On Jan. 15, officers began looking for Gray, who went missing after business associates confronted him. Police tracked his cell phone to Wasatch County, where they found him in his vehicle.

According to an affidavit filed in 4th District Court, Gray admitted defrauding 10 people of more than $2 million. He told police he had "robbed Peter to pay Paul," using investor funds to pay off earlier investors, all under the pretense of growing his business.

Gray was booked for investigation of communications fraud.

— Paul Koepp