Financial Schemes in Utah

I first came to Utah back in 2003. Growing up in Southern California, I noticed a few differences between the ocean backdrop culture of LA and the mountain backdrop culture of the Wasatch Front.

First, the overwhelming population of Latter Day Saints provides for a strong Christian and Mormon Religious culture in everyday life not found in any other place in the United States. Some aspects of this life are funny, some are annoying, some are completely infuriating. Being part of a society that embraces a religion so tightly creates many differences in respect to a liberal culture of a place like Southern California. Even though I am a Latter Day Saint myself, I still prefer the open air of California to the bubble of Utah County.

Second, the change of the seasons creates so much of a lifestyle difference compared to the endless summer of California. Winter gets old fast. Summer is not long enough. The Lakes and mountains are an easy and fast escape from every day life and daily grind.

Lastly, it seems everyone in Utah is somehow involved in a new multi-level marketing company or financial scheme. I personally know around 20 people who are participating in a multi-level, relationship marketing type company. Why is Utah such a hotbed for these companies. The economics of such businesses only work for those at the top. So many people get sucked into these deals on the dreams of a better life, more money, financial freedom.

The most recent scheme to break involves a well known Utah company by the name of Franklin Squire, LLC. Their owner, Rick Koerber, has just been indicted on three federal court charges; Wire Fraud, Mail Fraud, and Tax Evasion. If found guilty, Rick could find himself in prison for up to 45 years and fined up to $750,000.

Over two years ago I had multiple conversations with individuals directly employed by Rick Koerber. Their promise was to yield up to 5% montly on any money invested with the company. They had a process titled an "Equity Mill" professing huge returns by using cashed out equity from homes and cars to provide high yield bridge loans to needy investors. Since then all I've heard is story after story of individuals losing tens, hundreds, even millions of dollars in connection with this scheme. So why does Utah seem so succeptible to such schemes?

I don't have a direct answer to this quesiton. I think it may have something to do with the Mormon culture of being trusting and accepting of others. It may have something to do with the dream of people to find a quick way out and be financially free without having to really work hard for it. Maybe it has something to do with the Mormon culture having such a strong belief against things like gambleing, lotteries, etc. Maybe this is the Mormon lottery. Very few get rich at the expense of many. In Koerber's case, he got rich, others lost money, others went to prison, and now it looks like it's his turn.