Jason D.

Boren (#7816)
Quinton J. Stephens (#12675)
Jackie Bosshardt (#14139)
Ballard Spahr LLP
201 South Main Street, Suite 800
Salt Lake City, Utah 84111-2221
Telephone: (801) 531-3000
Facsimile: (801) 531-3001
borenj@ballardspahr.com
stephensq@ballardspahr.com
bosshardtj@ballardspahr.com
Attorneys for Utah Communications Authority

IN THE THIRD JUDICIAL DISTRICT COURT

SALT LAKE COUNTY, STATE OF UTAH
UTAH COMMUNICATIONS
AUTHORITY, an independent state agency
of the State of Utah,
Plaintiff,

AMENDED COMPLAINT
Case No. 160901578

v.

Judge Paul G. Maughan

PATRICIA NELSON, an individual,

CRYSTAL EVANS, an individual, and
DOES 1 through 5,
Defendants.
Plaintiff, Utah Communications Authority (UCA), by and through its undersigned
counsel, Ballard Spahr LLP, hereby complains against Defendants Patricia Nelson (Nelson),
Crystal Evans (Evans), and Does 1 through 5 (Doe Defendants) as follows:
THE PARTIES
1.

UCA is an independent Utah state agency.

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2.

Upon information and belief, Nelson is an individual residing in Salt Lake

County, Utah.
3.

Until approximately February 22, 2016, Nelson was employed by UCA as an

administrative assistant to UCAs Executive Director, Steven Proctor (Mr. Proctor).

4.

As an administrative assistant to Mr. Proctor, Nelson was entrusted with

confidential information and was relied upon by UCA to manage sensitive financial and other
information of UCA.
5.

Nelson had been employed by UCA or its predecessor, Utah Communications

Agency Network (UCAN), for approximately seventeen years and had worked for Mr. Proctor
for approximately 25 years; both Mr. Proctor and UCA trusted Nelson.
6.

Upon information and belief, Evans is an individual residing in Salt Lake County,

Utah and is Nelsons daughter.

7.

Defendant Does 1 through 5 are individuals and/or entities whose names and

identities are currently unknown who may have participated in the acts complained of below. If
and when the true names of Defendant Does 1 through 5 are ascertained, UCA will amend the
Complaint pursuant to Utah R. Civ. P. 9(a)(2).
JURISDICTION AND VENUE
8.

This Court has jurisdiction over this matter pursuant to Utah Code Ann. 78A-

9.

Venue of this action properly lies in this Court pursuant to Utah Code Ann.

5-102.

78B-3-307.

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GENERAL ALLEGATIONS
10.

UCA, formerly UCAN, was created by statute in 1997 and is funded by Utah

taxpayers.
11.

UCA is responsible for, among other things, managing Utahs 911 Program,

enhancing and supporting emergency communications at the State, regional, local, and tribal
levels, maintaining and operating emergency radio networks throughout Utah, and coordinating
Utahs participation in the establishment of a nationwide network dedicated to public safety.
12.

As part of these responsibilities, UCA operates and maintains equipment

throughout the State and employs technicians throughout Utah to perform such maintenance.
13.

Like many state agencies and private companies, UCA simplifies and expedites

its operations by allowing certain, trusted employees to use UCA credit cards. Because these
cards are issued to a state agency, purchases made on the UCA-issued cards are not subject to
sales tax.
14.

Nelson, as a trusted employee and as Mr. Proctors administrative assistant, was

issued a UCA credit card with her name on it.

15.

Nelson also had in her possession, custody, and control, a spare UCA credit

card to be used by employees who did not have a personal card and/or if a technicians card were
suspended due to some third-party fraud, etc.
16.

Nelson also had in her possession, custody, and control, a UCA credit card to be

used for travel by employees who were travelling on official UCA business.
17.

As Mr. Proctors administrative assistant, Nelson was entrusted with maintaining

UCAs credit card account including overseeing the distribution of credit cards, receiving the

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credit card statement, and assisting in the resolution of any issues with UCAs credit cards and/or
credit card account.
Discovery of Unauthorized Charges
18.

On or about January 7, 2016, a technician working for UCA discovered a credit

card statement on one of UCAs printers and delivered this statement to UCAs bookkeeper,
Kathy Trees.
19.

Once Ms. Trees received the statement, she noticed that the format of the credit

card statement was different from those she had previously seen.
20.

Ms. Trees also noticed that this statement had a number of charges attributable to

a card with a number ending in 0205 that had nothing to do with UCAs business and were not
authorized by UCA.
21.

The credit card statement had a closing date of October 1, 2015. A copy of the

credit card statement is attached hereto as Exhibit 1.

22.

Some of the unauthorized charges attributable to the card ending in 0205

include:
VENDOR

AMOUNT

www.rosecoatings.com

$1,638.00

Michaels

$392.61

Petsmart

$365.27

ULTA

$363.59

Toys R Us

$363.19

IVIVVA Fashion Place

$346.19

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23.

Because Nelson maintained a list of all credit cards and to whom such cards are

issued, Ms. Trees asked Nelson who had possession of the card ending in 0205.
24.

Nelson stated that she did not know who had possession of the card, but she

would find out.

25.

The following day, on or about January 8, 2016, Ms. Trees followed up with

Nelson and inquired as to whether she knew who had been issued the card ending in 0205. At
that time, Nelson stated that she did not know because she had given the statement to Mr. Proctor
to review the unauthorized charges.
26.

Ms. Trees approached Mr. Proctor to discuss the situation, however, contrary to

Nelsons representations, Mr. Proctor did not have the subject statement and was unaware of the
issues with the unauthorized charges.
27.

Over-hearing the conversation between Mr. Proctor and Ms. Trees, Nelson

entered Mr. Proctors office and began looking for the subject credit card statement. When it
could not be found, Nelson agreed to find it and bring it to Mr. Proctor.
28.

Later that evening, after Nelson had returned home without producing the

statement, Mr. Proctor attempted to obtain a copy of the credit card statement directly from
UMB, the credit card issuer.
29.

Mr. Proctor learned that only Nelson was authorized to obtain information on

UCAs corporate credit card account. UMB, therefore, refused to provide Mr. Proctor with a
copy of UCAs credit card statement and/or to answer Mr. Proctors questions.
30.

At that point, Mr. Proctor telephoned Nelson to discuss the issue. Nelson

informed Mr. Proctor for the first time that she was issued the card ending in 0205 and that she

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believed Evans husband, Nelsons son-in-law, had stolen the credit card and made the
unauthorized charges.
31.

A further review of the October 2015 credit card statement revealed that there

were also unauthorized charges on a UCA credit card bearing Nelsons name and ending in
0073.
32.

For the same statement period with a closing date of October 1, 2015, the

unauthorized charges on the card ending in 0073 are as follows, as can be seen on Exhibit 1:

33.

VENDOR

AMOUNT

PayPal to *CNSMITH55

$6,254.68

Alterra Pest Control

$99.00

*CNSMITH55 is Evans PayPal username indicating that a payment of $6,254.68

was made on UCAs credit card account using Nelsons card and paid to Evans.
34.

On or about Monday, January 11, 2016, the business day following Nelsons

accusations of her son-in-law, Nelson informed Mr. Proctor that she actually believed the
charges on the cards ending in 0205 and 0073 were her fault, not the result of her son-in-law
stealing the credit cards.
35.

Nelson told Mr. Proctor that she and her family had recently returned from a trip

to the Bahamas and that her daughter, Evans, was having marital difficulties and that Nelson had
given Evans a credit card to cover her expenses for a short period of time. Nelson said she gave
Evans the card ending in 0205 accidentally.
36.

Nelson also admitted that the $6,254.68 was transferred via PayPal to Evans to

repay her for the expenses associated with the trip to the Bahamas which Evans had paid for on

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her American Express card to acquire points with the expectation that Nelson would reimburse
Evans.
37.

According to Nelson, she was not aware that the PayPal transfer would be paid

for using UCAs credit card account.

38.

At this point, UCA cancelled both the credit cards ending in 0205 and 0073

and placed Nelson on administrative leave while an investigation into the facts and
circumstances regarding these unauthorized charges could be conducted.
39.

To assist in the investigation, UCA requested from UMB a copy of all the credit

card statements UMB had in its records for UCAs credit card account.
40.

A review of these statements indicated that as early as July 3, 2009 (the earliest

date for which UMB has records), and continuing through January 7, 2016, at least four UCA
credit cards, all of which were in Nelsons and/or Evans possession, custody, and control, have
numerous personal and unauthorized charges.
41.

Nelson had possession of at least one these cards and made numerous

unauthorized purchases on UCAs account.

42.

Evans had possession of at least one of these cards and made numerous

unauthorized purchases on UCAs account.

43.

In total, these unauthorized charges approximate $800,000.00.

Discovery of Fraudulent Statements

44.

During the relevant time period, UMB provided credit card statements to UCA

via email to Nelson.

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45.

Up and until the summer of 2014, Nelson had the primary responsibility for

collecting receipts from UCAs employees to substantiate the credit card purchases made on
UCAs credit card account.
46.

This responsibility included confirming that the charges made by UCAs

employees were for legitimate and authorized purchases or, in other words, that the purchases
were related to the employees job duties and used to advance UCAs business and objectives.
47.

Although this responsibility shifted to Ms. Trees in the summer of 2014, UMB

continued to provide the credit card statements exclusively to Nelson.

48.

When UMB provided UCA with copies of the credit card statements for its

investigation into Nelsons and Evans unauthorized charges, UCA learned that the statements
that Nelson had been submitting to UCA for payment had been materially altered.
49.

Nelson and Evans knew that if they submitted an invoice to UCA that included

their personal/unauthorized charges, not only would UCA not pay the invoice, it would know
that Nelson and Evans had been making personal/unauthorized purchases on UCAs credit card
account.
50.

Accordingly, Nelson and Evans materially altered UCAs credit card statements,

often manufacturing fraudulent supporting invoices/statements to support the altered credit card
statements.
51.

For example, attached hereto as Exhibit 2 is a copy of the credit card statement

provided by UMB to UCA with a statement closing date of January 1, 2013 (the Accurate
Statement).

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52.

This statement includes a number of personal/unauthorized charges such as

Sacramento Beekeeping, Petco, the State Liquor Store, Utah Home Fitness, Nordstrom, etc.
53.

Attached hereto as Exhibit 3 is a copy of the altered credit card statement Nelson

provided to UCA for payment for the same time period (the Altered Statement).
54.

Defendants altered the Accurate Statement to create the Altered Statement by,

among other things, omitting unauthorized personal charges, changing vendor names, changing
dollar amounts of charges, and adding non-existent charges.
55.

A review of the Altered Statement, Exhibit 3, shows that, among other changes,

Defendants made the following changes:

56.

Sacramento Beekeeping became Fast Gas;

Petco became Valmont Site with a different dollar amount;

The State Liquor Store became Codale Electric with a different dollar
amount;

Utah Home Fitness became Cummins Power; and

Nordstrom was simply deleted.

In addition to altering UCAs credit card statements, Defendants also

manufactured and/or altered some of the receipts/invoices submitted to support the Altered
Statements.
57.

For example, Exhibit 3 includes a charge for $1,468.00 to Star Microwave.

58.

No such transaction, either in vendor, amount, or reference number appears in

Exhibit 2.
59.

In order to support their Altered Statement and disguise their

personal/unauthorized charges, Defendants submitted the invoice attached as Exhibit 4.

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60.

A true and correct copy of this invoice from Star Microwave is attached hereto as

Exhibit 5 and clearly includes the invoice date of 04/03/12 and invoice number 70676.
61.

Invoice 70676 was paid by UCA on or about May 29, 2012, by way of a check

bearing the number 19117, a copy of which is attached hereto as Exhibit 6.

62.

Defendants altered invoice number 70676 from Star Microwave to make it appear

as though the $1,468.00 was paid using UCAs credit card in December of 2012.
63.

Defendants have been altering UCAs credit card statements and/or certain

invoices/receipts in order to conceal the unauthorized personal charges she/they were making on
UCAs account at least as early as August of 2009.
FIRST CLAIM FOR RELIEF
(Conversion/Theft Against Nelson and Evans)
64.

Plaintiff incorporates by reference each of the allegations set forth above.

65.

Nelson and Evans made personal and unauthorized purchases on UCAs credit

card account for which UCA has made payment.

66.

In so doing, Nelson and Evans have exercised dominion and control over UCAs

property.
67.

Neither Nelson nor Evans had any right or authority to make personal and

unauthorized purchases on UCAs credit card account.

68.

UCA has been deprived of the use of the funds used to pay the unauthorized

charges in an amount approximating $800,000.00.

69.

Nelsons and/or Evans conduct was intentional, willful, and with the knowledge

that such would harm UCA and UCA is entitled to punitive damages.

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SECOND CLAIM FOR RELIEF

(Fraud Against Nelson and Evans)
70.

Plaintiff incorporates by reference each of the allegations set forth above.

71.

From at least August of 2009, continuing through August of 2015, Nelson and/or

Evans was/were submitting to UCA for payment, credit card statements which Nelson and/or
Evans had altered, electronically or otherwise.
72.

Nelson and/or Evans also submitted to UCA receipts/invoices which had been

materially altered.
73.

Nelson and Evans knew that these statements and receipts/invoices were false.

74.

Nelson and/or Evans submitted these statements and receipts/invoices to induce

UCA to pay amounts charged to UCAs credit card accounts which included unauthorized
personal purchases made by Nelson and Evans.
75.

UCA, completely unaware that the credit card statements and receipts/invoices

that Nelson and/or Evans submitted to it for payment were false, did reasonably act upon these
statements and requests by paying the amounts shown on the false credit card statements.
76.

In so doing, UCA was harmed in an amount approximating $800,000.00.

77.

Nelsons and/or Evans conduct was intentional, willful, and with the knowledge

that such would harm UCA and UCA is entitled to punitive damages.
THIRD CLAIM FOR RELIEF
(Fraudulent Concealment/Nondisclosure Against Nelson)
78.

Plaintiff incorporates by reference each of the allegations set forth above.

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79.

In accepting and retaining custody of credit cards issued by UCA to certain of its

employees, Nelson represented to UCA that the charges she had made and would make would be
for legitimate UCA business, to further the needs and objectives of UCA.
80.

As such, Nelson had a duty to disclose to UCA any use of these cards for

illegitimate or unauthorized purchases.

81.

In accepting and retaining custody of credit cards issued by UCA to certain of its

employees, Nelson had a duty to disclose any unauthorized purchases made on the cards given to
her.
82.

In receiving, accepting, and in many instances, reviewing UCAs credit card

statements and, thereafter, requesting/making payment for the charges appearing thereon, Nelson
had a duty to disclose to UCA any and all inaccuracies or misinformation contained in these
credit card statements as well as any documentation supporting such statements.
83.

Nelson knew that she and Evans were using the credit cards issued to Nelson on

UCAs credit card account for unauthorized purchases and/or that some third-party was using
these cards to make unauthorized and purchases.
84.

Nelson knew that the credit card statements and supporting documentation she

was submitting to UCA for payment had been materially altered.

85.

The fact of these unauthorized charges and materially altered documents was

material to UCA and Nelson knew that this information was material to UCA.
86.

Nevertheless, Nelson failed to timely disclose to UCA that she and/or others had

made unauthorized purchases on UCAs credit card account and/or that she and/or others had
materially altered the credit card statements and supporting documentation provided to UCA.

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87.

As a result, UCA has been damaged in an amount approximating $800,000.00.

88.

Nelsons conduct was intentional, willful, and with the knowledge that such

would harm UCA, and UCA is entitled to punitive damages.

FOURTH CLAIM FOR RELIEF
(Breach of Fiduciary Duty Against Nelson)
89.

Plaintiff incorporates by reference each of the allegations set forth above.

90.

Nelson, by virtue of her position and responsibilities within UCA, including the

trust placed in Nelson by UCA to hold and use a UCA credit card and to participate in the
management, review, and payment of this credit card account, owed UCA fiduciary duties.
91.

Nelson breached her fiduciary duties.

92.

As a result, UCA has been damaged in an amount approximating $800,000.00.

93.

Nelsons conduct was intentional, willful, and with the knowledge that such

would harm UCA, and UCA is entitled to punitive damages.

FIFTH CLAIM FOR RELIEF
(Aiding and Abetting Breach of Fiduciary Duty Against Evans)
94.

Plaintiff incorporates by reference each of the allegations set forth above.

95.

Nelson and/or Evans made numerous personal/unauthorized charges and

fraudulently altered UCAs credit card statements and supporting documents to disguise their
fraudulent activity.
96.

UCA was harmed both by the unauthorized charges as well as the fraudulently

altered credit card statements which concealed the existence of the unauthorized charges for a
long period of time.

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97.

Nelson and Evans knew that the altering of UCAs credit card statements and

supporting documentation was dishonest, violated UCAs right to receive accurate credit card
statements from Nelson, and breached Nelsons fiduciary duties.
98.

Evans substantially assisted and/or encouraged Nelson in the altering of UCAs

credit card statements and the documents supporting these statements.

99.

As a result, UCA was harmed in an amount approximating $800,000.00.

100.

Evans conduct was intentional, willful, and with the knowledge that such would

harm UCA, and UCA is entitled to punitive damages.

SIXTH CLAIM FOR RELIEF
(Aiding and Abetting Fraud Against Nelson and/or Evans)
101.

Plaintiff incorporates by reference each of the allegations set forth above.

102.

Nelson and/or Evans fraudulently altered UCAs credit card statements and

supporting documents to disguise unauthorized charges that were made on that account.
103.

UCA was harmed both by the unauthorized charges as well as the fraudulently

altered credit card statements which concealed the existence of the unauthorized charges for a
long period of time.
104.

Nelson and/or Evans knew that the altering of UCAs credit card statements and

supporting documentation was dishonest and violated UCAs right to receive accurate credit card
statements from Nelson.
105.

Nelson and Evans substantially assisted and/or encouraged each other in the

altering of UCAs credit card statements and the documents supporting these statements.
106.

As a result, UCA was harmed in an amount approximating $800,000.00.

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107.

Nelsons and/or Evans conduct was intentional, willful, and with the knowledge

that such would harm UCA, and UCA is entitled to punitive damages.
SEVENTH CLAIM FOR RELIEF
(Civil Conspiracy Against Nelson and Evans)
108.

Plaintiff incorporates by reference each of the allegations set forth above.

109.

Nelson and Evans combined to make numerous unauthorized/personal charges on

UCAs credit card account and to materially alter UCAs credit card statements and supporting
documents to conceal these charges and persuade UCA to pay the resultant credit card bills.
110.

Nelson and Evans had a meeting of the minds with respect to this conduct and

their intentions.
111.

As a result, UCA was harmed in an amount approximating $800,000.00.

112.

Nelsons and/or Evans conduct was intentional, willful, and with the knowledge

that such would harm UCA and UCA is entitled to punitive damages.
EIGHTH CLAIM FOR RELIEF
(Unjust Enrichment Against Nelson and Evans)
113.

Plaintiff incorporates by reference each of the allegations set forth above.

114.

A benefit was conferred upon Nelson and Evans by way of their having made

personal and unauthorized charges on UCAs credit card account and persuading UCA to pay for
these charges with UCAs own funds.
115.

Nelson and Evans have knowledge and an appreciation of the benefit conferred

upon them.

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116.

Nelson and Evans have accepted and retained the benefits conferred upon them

under circumstances that make it inequitable for them to retain such without payment of their
value.
WHEREFORE, UCA requests the following relief:
A.

An order and judgment against Nelson and Evans, jointly and severally, in an

amount to be determined at trial but approximating $800,000.00;

B.

An order and judgment awarding UCA punitive damages against Nelson and

C.

An order and judgment awarding UCA its attorneys fees and costs associated

Evans;

with this action; and

B.

Any other relief the Court finds just and equitable.

DATED this 25th day of March, 2016.

/s/ Jason D. Boren, Esq.

Jason D. Boren, Esq.
Quinton J. Stephens, Esq.
Jackie Bosshardt, Esq.
BALLARD SPAHR LLP
Attorneys for Utah Communications Authority

Plaintiffs Address:
Utah Communication Authority
5360 Ridge Village Drive
Salt Lake City, Utah 84118

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