Investors who have been desperately petitioning federal bankruptcy court because they fear a Salt Lake City man is trying to get out of repaying money allegedly gained through fraud have an ally: the Sandy Police Department.

An investigation has led to six felony fraud and bad-check charges against Darryl R. Syversen, 47.

Syversen filed for bankruptcy protection in February, listing liabilities of $1.2 million versus assets of about $14,000. In a financial declaration filed with the court, he noted there were 57 people to whom he owed money for "personal loans," which ranged from $1,600 to $90,000.

But a number of creditors have been petitioning bankruptcy court to dismiss the case, arguing that "the loans" were in fact investments obtained by fraud and not subject to discharge through a bankruptcy proceeding.

"How can somebody just walk into a bankruptcy and say, 'Oh yeah, these guys are all personal loans, they're all creditors' without saying, 'Well, I really just took their money and I'm walking away from it,' " Leonard Bernstein, of Sandy, who invested about $23,000 with Syversen, told The Salt Lake Tribune.

Bernstein said Syversen told him he wanted the money to apply for an FHA/HUD real estate brokerage license and would use profits he made to repay him, according to the criminal charges. In May 2010, Syversen wrote Bernstein a check for $8,000 and asked him to hold it for a time, but Cyprus Credit Union later told Bernstein the account had been closed, according to the criminal complaint.

Sandy police Detective Chuck Thoman also said in an affidavit that Syversen solicited $10,000 from Salt Lake City resident Steven Scott in October, claiming the money would go to purchase wrecked vehicles that would be repaired and sold for a profit. Syversen also offered Scott a return of $1,000 per month plus 10 percent for every loan he closed at his mortgage company, according to the affidavit.

"The defendant [Syversen] omitted to state to Mr. Scott the fact that he had twice filed for bankruptcy and that the two bankruptcies were discharged in 2002 and 2007," Thoman said.

In a complaint filed in court with the latest bankruptcy, Scott said that because the debt he was owed was the result of fraud, the amount should not be included in the bankruptcy case.

Syversen's court-appointed attorney did not return a phone call Wednesday seeking comment.

tharvey@sltrib.com

twitter: @tomharveysltrib —

Don't be a victim

Information on how to avoid fraud is available from the Utah Division of Securities at securities.utah.gov, or by calling 801-530-6600.