Bulletin for February 3-9, 2012

Matt Connors, Senior Manger of Rocky Mountain Advisors.

Upcoming Provo Rotary Luncheon Meetings and Events

February 9: Judge Kay A. Lindsay, Judge of the Juvenile Court for the Fourth Judicial District, serving Wasatch, Utah, Juab and Millard Counties.

February 16: Gordon D. Brown, President, Provo Missionary Training Center: The Church of Jesus-Christ of Latter-Day Saints.  

February 23: Clark G. Gilbert, President and CEO of Deseret News and Deseret Digital Media, Salt Lake City.

Report of the Weekly Luncheon Meeting held February 2, 2012

     Today's meeting was held at Riverside Country Club. President Steve Densley conducted. Doris Bullock played dinner music and accompanied the singing of the Anthem. Jill Moon lead the singing and the Pledge. Vic Ludlow offered an invocation.+

     Doris Bullock comes to substitute in playing our dinner music whenever Ron Roberts is away. She was there today. She won't accept payment always indicating that we should put her pay into our charity to help do more good. Today President Steve Densley awarded her with a tax-deductible donation receipt from the Provo Rotary Charitable Foundation indicating her donations.

     Quent Bates inducted Scott Kirkland as a new member of the club. Scott is the General Manager of Riverside Country Club. Welcome Scott!

     Guests: Jim Calder introduced his wife Ann. Two members of the BYU Rotaract Club were in attendance, Jacob and Jordan from Sacramento.

     February birthdays were recognized for Ray Beckham, Bill Bridges, Steve Densley, Dan Ellertson, Leslie Gledhill, Scott Miller, Robert Redd, Steve Tolley and Paul Warner.

     President Steve Densley awarded the prestigious Paul Harris Fellowship to Pete Pletsch.

     Ricky Hood served as sergeant today.

Plaque taken from the wall of one
the business indicted for fraud.

     Jim Calder introduced Matt Connor, CPA, Senior Manager at the Salt Lake City based forensic accounting firm Rocky Mountain Advisory, who spoke about the expansion of affinity fraud in Utah. In the past five years his firm has investigated more than $500 million in fraud involving more than 2,000 victims. He shared several of those stories.

     He gave several characteristics of a Ponzi scheme. Many start out as legitimate business that get in financial trouble and turn to fraudulent practices to keep the doors open.

        .relies on a continuous influx of cash

        .never becomes profitable

        .begins deceiving investors with intent

        .new investors funds are used to repay older investors

        .a business promises extraordinary rates of return (i.e. 5% to 10% per month)

     In Utah occasionally church associations are used to lure investors because of trust of one's fellow church members/neighbors.

     In closing Mr. Connors quoted Ronald Reagan: Trust but verify.

     As is customary, President Steve Densley distributed door prizes a the end of the meeting.