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Show Summit County man pleads guilty to swindling charges by RICK BROUGH Record staff writer Accused swindler Bruce W Hatch, a Summit County resident, pleaded guilty in Salt Lake Third District Court last week to 10 of 51 felony counts filed against him. The charges state that, starting in late 1983, Hatch and his firm, Financial Development Associates, accepted money from investors on the promise it would be invested in securities. But allegedly the money was diverted to other purposes while Hatch falsely told customers it had been invested. The company was shut down by court order last January after complaints from investors prompted state federal and county investigations. investiga-tions. (Court records state Hatch is a resident of ParkWest Village.) Investigators say 80 people were bilked of a total of $2 million. Gerry D'Elia, Salt Lake County deputy attorney, said he will ask the court to order restitution from Hatch when it holds a sentencing hearing on Sept. 13. The state has frozen the assets of Financial Development, and will ask the district court to divide the money among the investors. But the firm's remaining assets come to less than $100,000, said D'Elia. This would result in the investors only getting at most, five cents on the dollar for what they paid. D'Elia said an order of restitution from the court would call on Hatch to return money to investors from his future life earnings. D'Elia said he will present testimony from investors at the September hearing. The court has not yet heard the victim's stories, he noted. "The people are really out on this one," he said. In a plea bargain arrangement, Hatch pleaded guilty to five counts of securities violations and five counts of theft by deception. D'Elia indicated he was very pleased with the plea bargain. The sentences could be extensive, he said. For instance, each count of theft by deception carries a one-to-15 year sentence, to be served separately or concurrently. What lesson is here for investors? D'Elia said that is hard to say, because Hatch operated in a way that eluded even sophisticated investors. When he was told to buy something, Hatch would call a company and reserve a block of securities, he said. When investors checked the company, they were told that an option existed to buy the securities in their name. They did not realize later, D'Elia said, that the option lapsed because the money from Hatch was not forthcoming. At the same time, D'Elia cited one good general rule for investors. "You don't want to rely on your neighbor for an investment. Check it out yourself." |