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The Securities and Exchange Commission on Thursday announced fraud charges against a Utahn convicted of embezzling more than $1 million from two former employers.
Micheal Dean Shumway, the former treasurer of two Utah County companies, fraudulently sold corporate shares of stock in American Fork Irrigation Co. and Lehi Irrigation Co., the SEC says.
From 2003 to May 2015, charges state, Shumway falsified those companies' books and records, and sold shares to investors.
The SEC is requesting that Shumway be barred from serving as an officer or director of any public company.
In December, Shumway pleaded guilty to one count of felony mail fraud in U.S. District Court and was sentenced Wednesday to one year and one day in federal prison. He has been ordered to serve three years of probation after he's released. The mail fraud charge — which covers the act of obtaining money under false pretenses — stems from a bank statement mailed to Shumway on Feb. 1, 2015.
Shumway embezzled more than $500,000 from each company, and the court ordered him to pay restitution to the two companies.
He had worked for American Fork Irrigation Co. as secretary and treasurer from about 1998 to May 2015, and in the same positions at Lehi Irrigation Co. from 2007 to May 2015.