SALT LAKE CITY (KUTV) — A lawsuit against the Bank of Utah alleging they aided in a multimillion dollar Ponzi scheme has added a new name to the list.
The suit claims Vice President and Senior Trust Officer Jodi Buckner was directly responsible for aiding Stephen Swensen in his theft by not reporting her suspicions of fraud.
A new claim was filed in late March that accuses Buckner of admitting to not reporting her suspicions of fraud during a secret recording, where she allegedly illegally gave out protected information.
This happened after the Bank of Utah counter-sued Swensen’s former clients, claiming to not be liable for any financial loss due to a signed agreement.
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“Who would have ever thought that this would be part of it,” said Cortney Hall, family member of one of Swensen’s former clients, referring to the Bank of Utah’s lawsuit.
Hall said her parents were shocked to find that their self-directed IRA accounts with the Bank of Utah were used by Swensen as a means for stealing funds.
“You almost feel, like, what is the bigger lesson out of all this?” Hall asked.
Now, two years after the discovery that their retirement savings were drained, Hall said her father has passed away and her mother has had to take a job to support herself.
“My mom has been through so much, and I honestly get choked up thinking about how much strength she’s had to go through this,” Hall said.
Most of Swensen’s clients were elderly retirees.
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According to a lawsuit filed in 2023 on their behalf, Swensen convinced his former clients to open self-directed IRA accounts with the Bank of Utah and sign control over.
Then, Swensen would allegedly wire stolen funds to a fraud investment account for personal use.
A counter-claim from the Bank of Utah stated they were not liable for financial loss, nor aware of any fraud at the time,
A new lawsuit filed in late March now names Jodie Buckner separately as a defendant, claiming she admitted to having some suspicions of a Ponzi scheme while working with Swensen during a secret recording taken days after Swensen committed suicide in June 2022.
The suit alleges that Buckner suspected fraud but did not do anything, instead choosing to continue to work with Swensen.
The lawsuit also alleges that Buckner gave out protected financial information from Swensen’s clients to one of his associates, Jacob Cazier.
The Bank of Utah vehemently denied having any liability or association with the fraud scheme in a statement to 2News in September 2023.
Last week, the bank made motions showing they plan to act with another counter suit to the newest amended complaint from Swensen’s former clients.
“I don’t think that we are very confident that any of it’s going to be resolved,” said Hall about finding justice. “We’re trying to get what’s in our control, because this whole thing is out of control.”
As time goes on, Hall said that hopes of finding a resolution are dwindling as her family finds another way to move forward.
Meanwhile, the original lawsuit filed by the Securities and Exchange Commission against Swensen’s estate shows multiple updates, namely regarding what will happen with the left over funds.
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Swensen is accused of taking around $30 million dollars from over a dozen of his former clients.
Updates in the lawsuit said frozen assets have been combed over to show at least $2.5 million is left over in his assets.
“I think it could be part of [my parent’s] money, along with other victims,” said Hall about Swensen’s leftover savings found from his estate.
Receivers of Swensen’s estate included his wife, mistress and multiple associates, all of whom have agreed to pay assets proven to be stolen, but claim they knew nothing about the fraud.
Swensen’s wife and mistress both have asked to receive a piece of the funds left to them from his will, but as of Monday, all assets are frozen and will be divvied up after the investigation, according to the suit.
2News has reached out to the Bank of Utah, as well as lawyers for Wendy Swensen, Steve Swensen’s late wife to comment on this issue but we have received no response.
