State v. Poulsen
2012 UT App 292
| Utah Ct. App. | 2012Background
- Poulsen pled guilty to participating in a pyramid scheme (class B misdemeanor).
- The State sought restitution based on victims’ net losses totaling $168,400.
- The restitution hearing was brief, with no witnesses and only documents proffered by the State.
- The court awarded partial restitution ($60,000) but did not establish a proper causal nexus.
- The court did not provide a full evidentiary hearing on whether losses arose from Poulsen’s criminal conduct.
- The issue on appeal was whether the restitution met statutory and causal requirements and whether a full hearing was required.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether losses qualify as pecuniary damages recoverable civilly | State contends losses are civil-damages recoverable under the Pyramid Scheme Act and UCSPA | Poulsen contends the losses do not have a sufficient causal link to his acts | Yes, losses qualify as pecuniary damages recoverable civilly under the act and UCSPA |
| Whether a sufficient causal nexus exists between Poulsen's conduct and the losses | State argues the record shows a nexus from Poulsen's solicitation to losses | Poulsen argues no adequate nexus is shown in the record | Record insufficient; remand for full nexus evaluation at a proper restitution hearing |
| Whether Poulsen was entitled to a full restitution hearing | State relies on statutory requirement for a full record of reasons and nexus | Poulsen asserts the hearing was inadequate and he was denied rebuttal | Yes, entitled to a full evidentiary hearing on causation and liability; remand for hearing |
Key Cases Cited
- State v. Brown, 2009 UT App 285 (Utah App. 2009) (establishing causation nexus and standards for pecuniary damages in restitution)
- State v. Miller, 2007 UT App 332 (Utah App. 2007) (restitution review standards and discretion)
- Peterson v. Sunrider Corp., 2002 UT 43 (Utah 2002) (civil remedies for pyramid schemes recognized)
- State v. Bickley, 2002 UT App 342 (Utah App. 2002) (invited error doctrine and restitution procedures)
- State v. Robinson, 860 P.2d 979 (Utah Ct. App. 1993) (causality requirements for restitution awards)