This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A Utah lawmaker Wednesday called for a criminal probe of the Utah Transit Authority in connection with a UTA board of trustees member who had a financial interest in land at a proposed FrontRunner commuter rail stop at 12800 South in Draper.

Rep. Janice Fisher, D-West Valley City, said at a news conference that Attorney General Mark Shurtleff and Salt Lake County District Attorney Sim Gill should investigate irregularities cited in a December 2010 report by the Utah Legislative Auditor General that found UTA board member Terry Diehl may have broken the state's conflict of interest law.

Diehl is chairman of UTA's planning and development committee. He also is a Salt Lake area developer.

He did not respond to a request for comment on Wednesday.

Fisher was joined by UTA watchdog Claire Geddes and Zach Frankel, of the Utah Rivers Council, among others, who support her call for an investigation. At the news conference, Fisher said she was asking for the criminal probe now because no such request was made during the recent legislative session.

In letters to Shurtleff and Gill, Fisher did not single out Diehl, who was the focus of the auditor general's report. But, she noted, many questions remain unanswered.

"I am writing to request that your offices investigate the circumstances and events with which UTA board members and its contractors advocated for the selection of this transit station," Fisher's letter states. "I seek a thorough investigation which would uncover and bring to justice all those who participated in what may be a gross breach of public trust."

Fisher referred directly to the December audit that found that "the allegation of conflict [of interest] on the UTA board of Trustees was valid." It also states that Diehl did eventually "disclose the conflict and abstained from board actions relating to it."

According to the audit, in July 2008, a company called Whitewater Seven entered into a purchase agreement for 144 acres near 12800 South along the proposed FrontRunner line. In September 2008, Diehl began working as a consultant for Whitewater Seven.

The UTA board met on Sept. 24, 2008, and Oct. 22, 2008, when Diehl could have disclosed his conflict of interest but did not, the audit said.

However, in a Nov. 3, 2008, letter to UTA officials, Diehl did declare a conflict.

On Nov. 20, 2008, UTA, Whitewater Seven and the city of Draper entered into a development agreement for the land, the audit revealed. In December 2008, Diehl became owner of Whitewater Seven.

In November 2009, UTA officially selected 12800 South in Draper as the planned site for a FrontRunner station. In December 2009, according to the audit, Diehl sold the development rights on the acreage to a firm called Draper Holdings for an undisclosed sum.

The audit found that Diehl may have committed a class B misdemeanor for failing to disclose the conflict of interest in a timely manner. The finding also recommended that the Legislative Audit Subcommittee consider referring the case to the Attorney General's Office.

In response to the audit, UTA officials argued the law in question is vague. The agency followed its policies when selecting the Draper station, according to UTA General Manager Michael Allegra.

On Dec. 14, 2010, the Legislative Audit Subcommittee declined to forward the matter to the attorney general.

UTA has since strengthened its conflict of interest policy so that a board member cannot own land near a site being developed by the agency.

UTA spokesman Justin Jones, who attended the press conference, said the agency has complied with directives outlined in the audit. "We welcome any look into how we conduct the public's business," he said.

Neither the attorney general nor the district attorney had received the letter Wednesday, according to spokesmen for those offices. —

FrontRunner 12800 South timeline

July 2008 • Whitewater Seven agrees to buy land at 12800 South.

September 2008 • UTA board member Terry Diehl begins working for Whitewater Seven.

Nov. 3, 2008 • Diehl declares conflict of interest in a letter to UTA.

Nov. 20, 2008 • UTA, Draper and Whitewater Seven enter into a development agreement.

Dec. 10, 2008 • Diehl becomes owner of Whitewater Seven.

Nov. 4, 2009 • UTA officially selects 12800 South as site for FrontRunner station.

December 2009 • Diehl sells development rights for undisclosed sum.

Source • Legislative Auditor General