Thursday's hearing came just hours after Lee resigned and Kenneth Cornelius, a member of the Town Council, was appointed as mayor pro tem. The plea came as the latest entry in a tumultuous chronology of Lee's tenure as mayor, which included efforts to arm the entire town and ban the United Nations.
Lee originally was charged with a second-degree felony misuse of public funds, but Washington County Deputy Attorney Paul Christensen amended the charge as part of a plea bargain.
Christensen told the judge that between Aug. 22, 2001 and June 21, 2002, Lee allowed then-town clerk Stacy Noelle Higbee to collect an advance on her wages totaling $18,600. After a January audit of the town's financial records, Higbee had paid back all but $2,500. Lee used his own money to pay back the $2,500, which proved he knew the practice of advancing the wages was wrong, Christensen said.
"Lee received no pecuniary gain," Christensen said. "But he signed the checks. It happened on his watch."
Higbee, who has resigned as town clerk, has a preliminary hearing scheduled for Sept. 8 before Shumate.
The added charge of witness tampering stemmed from a May incident in which Lee asked the current town clerk, Mona Wilcox, not to testify against him in the apparent belief that the prosecution's case would crumble without her cooperation.
Lee's attorney said the defense agreed with the facts of the first charge, but said Lee approached Wilcox on the advice of a third party.
"As misguided as he was, he [talked to Wilcox] not knowing that he was involving himself in felony conduct," Terry said.
Prosecutors recommended that Lee be sentenced to 2 years in jail, and Shumate said he would ask the state Department of Adult Parole and Probation for a presentence report. He set sentencing for Oct. 1.
Shumate also said because the victims in the case were residents of Virgin, he would ask the Town Council to select town officials who could address the court at Lee's sentencing.
Lee, who was in the middle of his second term as mayor, has made headlines before.
In June 2001, he convinced the Town Council to pass an ordinance requiring each homeowner in the community of about 400 residents to possess a firearm. The Utah Attorney General's Office later determined that the ordinance was unconstitutional, so the council changed it to read homeowners just had to be "armed." One town wag said that could mean anything from a pitchfork to a banana.
That earned Virgin international headlines, to the embarrassment of many residents.
Lee also tried, but failed, to persuade the Town Council to pass an ordinance similar to one in neighboring La Verkin, which adopted a resolution barring the United Nations from conducting any business in town or establishing a presence there.
And last year, Lee was chastised for charging residents $25 to appear before the town's Planning Commission and council meetings. Lee would screen those wishing to get on the agenda and reject those he feared might express opinions contrary to his.