State v. Stewart
438 P.3d 515
Utah2018Background
- Scott R. Stewart was charged with multiple securities- and related-fraud counts and one count of participating in a pattern of unlawful activity under Utah’s Pattern of Unlawful Activity Act.
- After this court’s decisions in State v. Taylor and State v. Kay (finding securities/communications fraud not continuing offenses), the State amended the information and dismissed several time-barred counts.
- The State nevertheless intended to call investor witnesses to testify about investments tied to the dismissed (time-barred) fraud allegations to prove the pattern-of-unlawful-activity charge.
- Stewart moved to exclude testimony and other evidence relating to crimes on which the statute of limitations had run; the district court granted the motion, finding the pattern charge must be predicated on acts that would themselves be chargeable.
- The State sought interlocutory review of that exclusion; the Supreme Court reviewed statutory interpretation of Utah’s Pattern of Unlawful Activity Act and the five-year lookback rule.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether time‑barred crimes may be used as predicate acts to establish a pattern of unlawful activity | State: the Act’s plain language and five‑year lookback permit use of untimely acts to prove a pattern | Stewart: predicate acts must be chargeable; statute of limitations bars use of untimely conduct as an "offense" | The court held time‑barred acts may be used to establish a pattern; reversed the district court |
Key Cases Cited
- State v. Taylor, 349 P.3d 696 (Utah 2015) (explaining securities fraud is not a continuing offense)
- State v. Kay, 349 P.3d 690 (Utah 2015) (concluding communications fraud is not a continuing offense)
- Marion Energy, Inc. v. KFJ Ranch P’ship, 267 P.3d 863 (Utah 2011) (statutory interpretation: seek legislative intent from plain language)
- Anderson v. Bell, 234 P.3d 1147 (Utah 2010) (statutory parts must be construed harmoniously)
- State v. Crank, 142 P.2d 178 (Utah 1943) (describing statute of limitations as a bar to prosecution)