Former Morgan administrator admits to embezzling nearly $1 million

SALT LAKE CITY — A former Morgan County Council administrator admitted in federal court Monday to embezzling nearly $1 million from his employer.

Garth B. Day, 42, pleaded guilty in U.S. District Court to all six counts in a felony indictment: theft of government funds, false loan applications, wire fraud, mail fraud, bank fraud and money laundering.

Day managed the county's finances from June 2008 to August 2010. He admitted in court that he stole the money to pay off personal debts, including those incurred from the construction of two spec homes.

Day, of Elwood, converted federal transportation funds to his own use, wired county redevelopment money to a personal account and opened a personal bank account in the county's name. He told a bank he had the authority to open a $250,000 line of credit for the county when he did not. He also forged a county councilman's signature on loan papers.

Initially confronted about the discrepancies in spring 2010, Day admitted that he created false documents to cover the crimes. He was placed on leave without pay until he was fired in August 2010.

Day returned about half of the stolen money and as part of his plea agreement must pay back another $416,222.

Judge Dee Benson is scheduled to sentence Day on Oct. 25. Combined, the charges carry a possible penalty of up to 140 years in prison and millions of dollars in fines. Federal prosecutors have agreed to recommend prison time at the low end of federal sentencing guidelines.

Day was originally charged in state court with 43 counts of financial fraud before the case was transferred to federal court.

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