The scam Anderson succumbed to was simple: He gave $20,000 to a business associate to invest, but the associate spent it on things such as rent and a boat.

"He claimed he was putting the money in a mutual fund but he just out and out took it," said Charlene Barlow, an assistant Utah attorney general.

The case, the Attorney General's Office says, illustrates the importance of checking out an investment before jumping in.

Though the man who scammed Anderson has been sentenced to jail, it has not been the end of Anderson's problems. The fraud and other debts Anderson accumulated forced Anderson to declare bankruptcy last year.

"To me, the biggest loss to us was our credit, my credit history," said Anderson, 53. "It's tough to put a dollar value on that."

It was Anderson's credit history that helped him meet his perpetrator.

At about 6 feet tall and 300 to 400 pounds with white hair, Dale Allen Jones, 44, of Murray, is the kind of man who stands out. For many years, he worked in the trucking industry, serving as a middle man between drivers looking for freight to haul and businesses with materials to ship. But business was not so good. Court documents say Jones had $246,000 in outstanding civil judgments against him when he swindled Anderson.

Anderson said he met Jones in the summer of 2003. Jones was operating a Salt Lake City-based business called Monarch International Holdings Inc., which brokered freight loads over the Internet. Anderson's brother and cousin were partners in the company.

The businessmen asked Anderson if he would like to obtain capital for Monarch. Anderson said he had no experience in venture capital or investments. His background was in sales. But Anderson's credit score was good and banks would issue loans that he personally guaranteed.

In return for the capital, Anderson said, Jones and Monarch agreed to pay him monthly fees through which he could repay the debts. Anderson also became an officer in the company.

While at Monarch, Anderson said, he saw Jones go through occasional mood swings where he would throw a tantrum - often aimed at employees who challenged his authority - then return to normal.

But Anderson also described Jones as "for the most part, a really nice guy." Anderson remembers Jones as being smart with good business ideas. But then Jones would alter his ideas or not follow through.

Then in September 2003, Monarch board members began discussing an idea from Jones to invest in a mutual fund. The fund was supposed to be with a company Jones identified as Vanguard Financial Security Corp.

Anderson assumed the company was the well-known investment firm Vanguard. It wasn't.

Jones told Anderson he knew someone at Vanguard Financial who could allow them to invest in a mutual fund not available to the public. A man named Keith Billingsworth was to facilitate the transaction, according to court papers and Anderson.

After 30 days in the fund, the investment was supposed to triple, court papers state. Jones asked Anderson to find $20,000 to invest and supplied Anderson with a purported letter from Billingsworth on Vanguard letterhead defining terms of the agreement. A portion of the proceeds would go to a Monarch subsidiary and the remainder would go to Anderson.

Anderson said he saw the investment as an opportunity to pay down some of the debts he incurred for Monarch. On Oct. 1, 2004, court papers say, Anderson deposited $20,000 into a Monarch account.

Six or eight weeks later, Anderson had not received his return. Anderson examined Monarch bank statements and saw his deposit but did not see a payment to Vanguard Financial. Anderson said Jones tried to explain that the transfer would not show up in the statement.

Anderson dug further. He went to the bank and found documents showing what had happened after he deposited the $20,000. Jones transferred $10,000 to the Monarch subsidiary, according to court papers, and took $2,500 in cash. The remaining money stayed in the Monarch account. Anderson said he later learned Jones spent the money on such things as rent on his apartment and repairs on his boat.

Sitting at the bank, realizing what Jones had done, Anderson's mouth opened and his jaw dropped.

He said he felt "embarrassed" and "angry."

Anderson went back to the Monarch offices to ask Jones what happened. Jones claimed Billingsworth ran off with the money, though police can find no record Billingsworth exists.

Anderson knew he had been cheated.

He began exiting Monarch. Anderson closed a Monarch account for which he was listed. He also began gathering documents showing what happened at the company.

Anderson said he left the company on March 31, 2005. By that time, the monthly payments from Monarch had stopped.

Jones, Anderson said, believed he was trying to sabotage the company. As he was driving away from the company, Anderson claims, Jones called him on his cell phone and said he would kill him the next time he saw him.

Anderson went to an attorney to begin civil proceedings against Jones. Anderson's attorney believed there was a criminal case to be made against Jones and contacted the Utah Attorney General's Office.

In March, Jones pleaded no contest to one county of securities fraud. A judge on April 27 sentenced Jones to six months in jail, three years of probation and ordered him to begin repaying Anderson the $20,000.

But much damage has already been done. Anderson filed personal bankruptcy in May 2005. Between the bogus investment, the loans for Monarch and personal expenditures, Anderson and his wife accumulated $481,000 in liabilities, according to the bankruptcy filings. That was about $150,000 more than the couple's assets.

Anderson was able to keep his house and car but is trying to pay back his creditors.

Anderson said he wants to make sure Jones will not try to scam anyone else.

"If this guy gets out in six months, I'm thinking he's going to go right back to doing this," Anderson said.

"I'm trying to help people avoid being victims in the future, especially with Dale Jones," Anderson said.

ncarlisle@sltrib.com