A Layton man has been charged with defrauding "innocent corporations and individuals out of at least $1 million."
Terry Davies Lund, 42, was charged Friday in 3rd District Court with 12 counts of communications fraud, second-degree felonies; engaging in a pattern of unlawful activity, a second-degree felony; making, rendering, signing or verifying a false or fraudulent tax return, a third-degree felony; three counts of failing to make, render, sign or verify a tax return, third-degree felonies; and four counts of willful evasion of sales tax, second-degree felonies.A $1 million arrest warrant has been issued for Lund, who was known to have been in Indonesia during the past month and in Hong Kong during the past week, the charges state.
The charges say they chronicle Lund's pattern of illegal activity beginning with a March 19, 1994 incident where he met with Kory Beckstead to discuss "the possibility of staging an automobile accident as a measure of raising money."
"Lund explained the method of completing a staged accident and instructed Beckstead on the insurance coverages he should have prior to the accident," the charges state.
On March 31, Lund again discussed the matter with Beckstead and FBI Special Agent Joel Rudow, the charges state, this time instructing them "as to the best location to stage an accident and the physical injuries they should claim following the accident."
Rudow, Beckstead and FBI Special Agent Robert Burnham staged the car accident at 3700 S. Highland Drive on April 26, the charges state. After the accident, Lund continued to coach the men on how they could capitalize on the insurance claims for USAA and Allstate Insurance companies for personal injury, lost wages and property damage benefits.
"Lund repeatedly indicated during his meetings with Beckstead and Rudow that he expected to receive part of the insurance claim money from USAA and Allstate as a result of his representation of them as their public adjuster," the charges state.
Other allegations accuse Lund of defrauding private individuals and financial institutions of a total of $823,611. In ten detailed instances, Lund either borrowed money or received payment for vehicles that never materialized or were sold illegally, according to the charges.
In one instance, Lund received $577,000 in payment for 31 Chevrolet Astro vans, but "Lund never, in fact, owned the vans or possessed the vans, and used fraudulent VIN numbers to induce (the buyer) into making the wire transfer."
After receiving the money, Lund left for the Philippines, where he deposited the funds in his personal bank account, the charges state.
Although Lund applied for and received a sales tax license from the Utah State Tax Commission on Aug. 1, 1995, records show Lund failed to pay $180,961.58 in sales taxes he collected in 1996 for the sale of motor vehicles through his business entity, South Western LC, the charges state.
Authorities issued a $1 million bail request because Lund is a "flight risk," "a danger to the community," believed to "continue to engage in criminal enterprises," and likely to flee the United States and live abroad with sufficient means "for quite some time," the charges state.
While executing a search warrant at Lund's Layton residence in December 1997, authorities found evidence that indicates Lund is engaged in "schemes to defraud" involving gold mines, international management and international investment, the charges say.
Lund, says he is a Canadian citizen and has tried to obtain a Canadian passport. He has been out of state since being charged in federal court with money laundering.