This is an archived article that was published on sltrib.com in 2015, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
A federal grand jury has indicted West Jordan businessman Wayne Palmer and his cousin on 48 charges related to an alleged Ponzi scheme that raised more than $140 million from 600 or more investors, many of whom lost all or part of their funds.
Palmer, 60, and Julieann Palmer Martin, 47, face charges of wire fraud, mail fraud and money laundering connected to the operation of Palmer's company, National Note of Utah.
Palmer's court-appointed attorney, Rob Hunt, declined to comment.
Martin's attorney, Rebecca Skordas, said in an email that her client is "unable to respond to the specific allegations the government has made against her other than by entering her 'not guilty' plea, which she fully intends to do at her initial appearance before the court."
Palmer and Martin solicited investors from around the country for National Note, which extended real estate loans, engaged in other real estate activities, operated a mint and also claimed to extract precious metals from mine tailings.
The indictment alleges that the pair used fraudulent or misleading statements, including that investments were safe and guaranteed and that the company was always profitable, generating 18 percent or more a year that enabled it to pay a consistent 12 percent annual return to investors.
However, investors allegedly were not told that beginning around 2007, National Note had net losses every year and that monies from new investors were being used to pay interest or repay principal to older investors.
They also were not told most investments were in entities that Palmer controlled or that monies were used to pay Palmer's personal expenses, the indictment says.
Palmer and Martin will receive summonses to appear in federal court on the charges, according to the U.S. Attorney's Office for Utah. The wire and mail fraud counts each carry a maximum prison sentence of 20 years and the money laundering counts 10 years.
The Securities and Exchange Commission sued National Note of Utah and Palmer in 2012 for allegedly operating a Ponzi scheme. That case is ongoing.