Businessman ordered to jail, must repay $4.7 million in scam

A former South Jordan man was sentenced Monday to 90 days in jail and three years of probation for cheating two investors out of about $4.7 million.

Darin Layne Kracl, 41, who had pleaded guilty to one count of second-degree felony securities fraud, also was ordered by 3rd District Judge Randall Skanchy to pay restitution as directed by the Utah Attorney General's Office. The amount will be at least $500 a month at first, then increase to more than $2,500 a month.

Prosecutors say Kracl offered in December 2006 to trade the investors' money in foreign markets through his Salt Lake County business, despite not having a trading license.

Of the $6.7 million invested in the next five months, Kracl spent about $2.1 million on unrelated people and companies; $1.7 million on his own investment funds; and $869,000 on vehicles, including a Porsche, according to court documents. His defense attorney, Rebecca Hyde Skordas, said some of the money was lost in the market.

The investors recovered about $2 million. Kracl has turned over his house, a boat and other property that will be sold to help pay restitution. Skordas said Kracl, a former minor league baseball player, now lives in Idaho and runs a business there that sells baseball equipment. Original Article