Audit finds Securities deficiencies
Utah agency says it is already taking steps to fix problems
The leader of the Department of Commerce, which includes the division, says steps to correct most of the deficiencies cited in the audit have been implemented, except for one that will require legislative action.
The audit report said concerns raised by people investigated by the division involved "procedural errors, an alleged overzealous pursuit of securities violations, and the perception that those investigated do not receive fair treatment" — all of which were "heightened" by personnel conflicts within the division.
"These concerns appear to be a result of the division not following established policies and procedures," the audit report states. "Case management is inconsistent and, at times, appears inappropriate. ... The division has significant authority, but its credibility depends on using that authority judiciously."
A pair of legislators requested the audit, in part because of controversy over the division's handling of a securities-fraud investigation. The auditors looked at more than 20 cases the division handled in recent years.
In a letter included in the audit report, Francine Giani, executive director of the Commerce Department, listed ways that the audit recommendations already have been implemented.
"We have made the changes that have been requested, except for one which requires a legislative change, and we have a sponsor for a bill to change the way the board is structured, and we will do that next session," she told the Deseret News.
Complaints about the division included that it "used intimidation to coerce cooperation and violated settlement agreements" forged with people it investigated, according to the audit report.
Rep. Jim Bird, R-West Jordan, who requested the audit, told the Deseret News that most of the report's findings were expected.
"The audit, I think, has come back and said, 'You know, there's a huge problem in the Division of Securities, and it's going to take some huge problem-solving people to fix them.' And it also indicates it's going to take some legislation to fix the advisory council," Bird said.
The audit findings "absolutely" confirmed what he had been told by people inside the division and by people investigated by the division, he said.
Recent comments
Giani continues to insult herself. Yesterday she said the auditors...
FPlnrsAgnstGovtFraud | July 5, 2008 at 3:29 p.m.
kbj- sue them.
roy | July 4, 2008 at 4:19 p.m.
I was so glad to see this headline and article in the Business section...
kbj | July 4, 2008 at 11:22 a.m.
