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Show A-2 Sat/Sun/Mon/Tues, September 5-8, 2020 The Park Record The Park Record. Serving Summit County since 1880 The Park Record, Park City’s No. 1 source for local news, opinion and advertising, is available for home delivery in Summit, Wasatch, Salt Lake, Davis and Utah counties. Single copies are also available at 116 locations throughout Park City, Heber City, Summit County and Salt Lake City. SUBSCRIPTION RATES In Summit County (home delivery): $56 per year (includes Sunday editions of The Salt Lake Tribune) Outside Summit County (home delivery available in Wasatch, Salt Lake, Davis, Weber and Utah counties; all other addresses will be mailed via the U.S. Postal Service): $80 per year To subscribe please call 435–649– 9014 or visit www.parkrecord.com and click the Subscribe link in the Reader Tools section of the toolbar at the bottom of the page. To report a missing paper, please call 801–204–6100. Same-day redelivery is possible if you call during the following hours: * Weekdays: 6:30–8 a.m. * Saturday: 7–8 a.m. * Sunday: 7–10:30 a.m. To request a vacation hold or change of address, please call 435–649–9014 or email: circulation@parkrecord.com Fraud case brought against Basin man Prosecutors: He sought brewery investments for personal use JAY HAMBURGER The Park Record A federal grand jury in late August returned an indictment against a Snyderville Basin man charging him with five counts related to what prosecutors describe as a fraudulent scheme involving investments in Mine Shaft Brewing, LLC. Timothy Andrew Nemeckay was charged with securities fraud, two counts of making a false statement to the Securities Exchange Commission, wire fraud and money laundering. The prosecutors say Nemeckay organized a scheme designed to obtain investor monies fraudulently by making false statements and misrepresentations as well as omitting information. He then diverted the funds for his personal use, the indictment says. The indictment claims he represented to investors that Mine Shaft Brewing was raising monies with plans to Continued from A-1 Injunction granted THE NEWSROOM To contact the newsroom, please call 435–649–9014 or email editor@parkrecord.com For display advertising, please call a sales representative at 435–649– 9014 or email val@parkrecord.com To place a classified ad, please call 435–649–9014 or email classads@parkrecord.com For questions about your bill, please call 435–649–9014 or email accounts@parkrecord.com The Park Record online is available at www.parkrecord.com and contains all of the news and feature stories in the latest edition plus breaking news updates. The Record’s website also hosts interactive entertainment, restaurant and lodging listings and multimedia features. Contents of The Park Record are Copyrighted 2015, Wasatch Mountain News Media Co. All rights reserved. No portion may be reproduced in any form without written consent of the managing editor or publisher. The Park Record (USPS 378-730) (ISSN 0745-9483) is published twice weekly by Wasatch Mountain News Media Co., 1670 Bonanza Drive, Park City, UT 84060. Periodicals postage paid at Salt Lake City, Utah, 84199-9655 and at additional mailing offices. Postmaster: Send address changes to The Park Record, P.O. Box 3688, Park City, UT84060. Entered as second-class matter, May 25, 1977, at the Post Office in Park City, Utah, 84060 under the Act of March 3, 1897. Subscription rates are: $56 within Summit county, $80 outside of Summit County, Utah. Subscriptions are transferable: $5 cancellation fee. Phone: 435–649–9014 Fax: 435–649–4942 Email: circulation@parkrecord.com Published every Wednesday and Saturday land across county lines without the neighboring county’s consent. Hideout and the developers have denied allegations of wrongdoing. The bill’s floor sponsor, Sen. Kirk Cullimore, R-Sandy, has said substitute language in the legislation that legalized that kind of annexation was mis- Continued from A-1 Relic will be restored tion. The vote allows the 85-foot-tall head frame, made of steel and weighing 45 tons, to be moved slightly to the southwest of the historic location and then put upright again. The approximately 150-foot move will put the head frame in a location where the ground is better suited for the structure. It was a momentous vote even if it garnered limited attention. Park City was founded in the 19th century as a silver-mining camp and the industry drove the economy for decades. Silver prices eventually dropped sharply, crushing the industry and leaving Park City in economic ruin in the decades before the launch of the ski industry. There are numerous mining-era relics dotting the mountains surrounding Park City. Park City leaders and tourism officials over the years have come to see the mining heritage as something that sets the community apart from some of the other mountain resorts. There has been an organized effort over time to preserve much of the mining history, making the collapse of the Daly West Mine derrick especially discouraging for the community. The head frame dates to 1914, according to City Hall, and was built the year after a fire at the Daly West Mine. It was largely neglected in recent decades. develop a brewery and a restaurant in Park City and in California. He received upward of $2.7 million, the indictment says. The investor roster totaled approximately 100 with investors hailing from various places in the U.S., it says. He represented to the investors that Mine Shaft Brewing had an offering of $9.4 million in equity shares with a minimum investment pegged at $20,000, the indictment says, adding that he represented the monies would be used for the acquisition and development of a Park City brewery and earn 8% annually in interest. It says the projections called for a return of between 12 and 20 times on the investment. He also represented the Park City location would “produce thousands of barrels of alcohol for distribution” and operate a restaurant as well as an event center, the case against Nemeckay says. Mine Shaft Brewing “projected it would become a top craft brewer in 5 years,” it says. Nemeckay, meanwhile, represented that the investors would have a right of first refusal in later rounds of investment and they would be offered other benefits like the first access to beers and ciders produced in limited quantities, the indictment says. The indictment, though, says instead of seeking capital for the start of the brewery, Nemeckay “was seeking funding for his personal use.” It says less than $550,000 of the funds raised were used for the brewery development in Park City and eventually in Santa Clarita, California. The 8% annual return did not come to fruition, the indictment says, describing that “interest payments were usually not made, and when they were made, the payments came from new investor money.” Approximately $1.7 million of the overall upward of $2.7 million in investor funds was used by Nemeckay for his personal benefit, the indictment says, describing that he used $312,266.47 of the funds to pay restitution in a Utah Division of Securities case involving a separate investment offering. The case covers the period between early 2013 and early July of 2020. The U.S. Attorney’s Office for the District of Utah said the securities fraud count carries a potential maximum penalty of 25 years in prison upon conviction, the most serious of the possible sentences if he is convicted. “Far too many Utah headlines report homegrown fraud schemes. There are disproportionate numbers of wolves in sheep’s clothing in our state. In this indictment, the alleged offender was even under the thumb of securities regulators when he persuaded investors to pay into his scheme, and he purportedly used investor money to pay off previously ordered restitution,” U.S. Attorney John W. Huber said in a prepared statement released by the U.S. Attorney’s Office for the District of Utah. “Once again, we encourage those considering investment opportunities to do their due diligence before handing over their life savings to someone who doesn’t have their interests at heart.” Nemeckay’s attorney, Patricia Geary Glenn, also released a prepared statement. It reads: “We intend to vigorously defend against these unfounded allegations — in court — not in a one sided statement of the sort released by the US attorney — that resorts to shop worn adages about wolves and sheep apparel. The Mine Shaft Brewing brand and Tim Nemeckay’s dedication to the company are fixtures in the Park City sports community. The one line the public should take away from the DOJ press release is the one about the presumption of innocence afforded to him while he goes through this process and is vindicated.” represented to him. He, in turn, told his fellow legislators that the substitute language involved only technical changes. Last month, the Legislature sought to undo that mistake and repealed that language in a special session. The repeal, though, will not go into effect until mid-October. Hideout indicated prior to Thursday’s ruling that it would try to use that window to move forward with annexing the land near Richardson Flat. The lawsuit against Hideout is not the only legal avenue Summit County has taken to try to halt the annexation. The county also sued the developers, along with Wells Fargo Bank, claiming Brockbank’s acquisition of the land is invalid. The county argues the land was illegally subdivided and that the con- stable who facilitated the sale and prepared the property deeds did not have the authority to do so. The constable is also listed as a defendant in the suit. A hearing in that lawsuit is scheduled Wednesday. The annexation attempt has been contentious ever since Hideout unveiled its intent in July to pursue the land. Park City also opposes the annexation, meaning the controversy has pitted Hideout against its two closest neighbors to the west. In a prepared statement Friday morning, Park City Mayor Andy Beerman urged Hideout to abandon the annexation effort. “I am thankful to our Summit County leaders for standing up to protect our quality of life, and truly hope Hideout will consider a regional planning process inclusive of public input and collaboration,” he said. “Hideout should look within for their commercial development and mend fences with their partners so we can work together on addressing regional issues.” At one point, it appeared Hideout itself may have put an end to the ordeal when it repealed a key resolution following a botched attempt in mid-August to hold a legally mandated public hearing on the annexation. A Zoom mishap prevented the hearing from occurring. Lawmakers repealed the legislation shortly after. But Hideout didn’t give up, declaring its desire to use the 60 days before the repeal becomes law to annex the land. The homeowners association in Empire Pass, known as the Empire Pass Master Owners Association, and City Hall reached an agreement regarding historic preservation, and the work at the Daly West Mine location will be included in the broad work plan. The homeowners association is working in cooperation with Deer Valley Resort on the project. The estimated cost is a little more than $200,000. The funding will come from the homeowners association and City Hall. “It was a source of frustration ... to see this lying on its side, neglected for five years,” said Doug Ogilvy, the president of the Empire Pass Master Owners Association and a key figure in the discussions that led to the agreement to pursue the work. He sees the head frame as one of the five most important mining-era locations in Park City, alongside spots like the building on the Park City Mountain Resort slopes that was once part of the Silver King Mine. He said it is likely the work will not start until the summer of 2021. Some of the steel will be cut from the head frame and replaced with new steel. Extensive work is required on two of the legs that were badly damaged in the collapse. Bolts will be used instead of rivets. A new foundation will be created. Once the prep work is completed, two 120-foot cranes will be brought to the location. They will lift the head frame from where it is on the ground and move it to the new location. It will then be secured there. It will be put back at the same height as earlier. “I think it’s exciting. Basically, for five years, this stumped everybody,” Ogilvy said, calling the Daly West Mine head frame a “monument to the history of Park City.” Continued from A-1 is not adequately representing its people. “The majority party seem(s) to think that they don’t have to listen to voters when we pass ballot measures or oppose major tax reform,” she said. “My background is in public policy and working with state legislatures, and I’ve seen firsthand the positive changes that can happen when legislators genuinely listen to the people they represent.” Owens said she is knocking on doors daily and she’s confident that, if elected, she can ensure the voices of the people she’s spoken with will be heard in the Legislature. Owens said her most pressing issues are safety in schools and health care, which she said go hand in hand due to the coronavirus pandemic. “I have kids in public schools and family members who are high risk for COVID-19,” she said. “Top of mind for me right now is ensuring that our educators and students feel safe and supported, and that everyone has access to the health care they need during this pandemic.” As a small business owner herself, Owens said she wants to see Utah’s state government do more to support businesses like hers. COVID-19 and its effects are likely to be felt for the next several years, she said, and small businesses need assistance from the government if they are going to survive. “We need to ensure small businesses are propped up and receiving the help they need,” she said. Owens said she thinks she has a particular set of skills that make her a better choice than Johnson. “We’re at a moment in history where we need leaders who consider the most vulnerable among us when making public policy decisions,” she said. “We need leaders who listen to voters, and who have the experience to make smart policy choices.” Candidates square off affected by our response.” Johnson said he worries that socialism is “creeping into our education system, stifling diversity of thought and preaching big-government socialism as our savior.” “We need to get the government out of the way and put parents and teachers back in charge,” he said. Johnson said his focus is primarily on economic development. “We must continue our economic development responsibly while protecting our family neighborhoods,” he said. “We need to plan our infrastructure, so we have less time spent in traffic and more time spent with our families. My experience in data analytics and economics uniquely prepares me to analyze growth and plan responsibly for our growth while ensuring Utah remains a great place to live, work and raise a family.” Democratic candidate Katy Owens Katy Owens holds a master’s degree in political science and has worked in election administration for the past 10 years at the county, state, national and international levels. During that time she has testified on topics like election security, voting by mail and technology in the voting process in more than a dozen state legislatures. Owens said she was compelled to run for office herself because the Legislature Count On Us - People Banking With People You can count on Grand Valley Bank as together we navigate through these challenging times. You can depend on our steady and locally grounded excellent service. Call Us Today 435-615-2265 1225 Deer Valley Dr. Park City grandvalleybank.com |