This is an archived article that was published on sltrib.com in 2011, and information in the article may be outdated.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 former Morgan County Council administrator accused of bilking the county out of more than $465,000 made his first appearance in federal court on Tuesday.
Garth B. Day, 41, of Elwood, is charged in U.S. District Court with six felony counts: money laundering, false loan and credit applications, theft from a program receiving federal funds, wire fraud, mail fraud and bank fraud. He entered not guilty pleas to the crimes before U.S. Magistrate Samuel Alba.
Alba set a tentative five-day trial date to begin July 18 before Judge Dee Benson.
Day, who was the council administrator from June 2008 to Aug. 4. 2010, converted county funds for his personal use on several occasions beginning in 2009, according to information filed in court Tuesday.
Day allegedly stole funds Morgan County received from the U.S. Department of Transportation. He also wired $92,000 from a Morgan County redevelopment agency into his own bank account to pay off personal debt, the information states.
Day also misrepresented to Centennial Bank that he had the authority to open a $250,000 line of credit on behalf of the county, according to the information. He then transferred $92,000 from the new Centennial Bank credit line to pay off his credit card debt at another bank, the information states.
In yet another incident, Day sent a letter to First National Bank of Morgan claiming the county had authorized him access to county funds, and also forged the county's authorization in the process, according to the information.
If convicted, Day faces a maximum of up to 30 years in prison and a $1 million fine on some of the charges.
The FBI, Morgan County Sheriff's Office, Morgan County Attorney's Office and U.S. Attorney's Office assisted in the investigation.
Day was initially charged in state court, but that case was dismissed in lieu of federal prosecution. He is out of custody while awaiting trial