Utah Code 76-6a-102. Conducting pyramid scheme — Violation as deceptive consumer sales practice — Prosecution of civil violation

(1)	Terms defined in Section 76-1-101.5 apply to this section.

Actor: means a person whose criminal responsibility is in issue in a criminal action. See Utah Code 76-1-101.5
Compensation: means money, money bonuses, overrides, prizes, or other real or personal property, tangible or intangible. See Utah Code 76-6a-101
Conviction: A judgement of guilt against a criminal defendant.
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Offense: means a violation of any penal statute of this state. See Utah Code 76-1-101.5
Person: includes a business trust, estate, trust, joint venture, or any other legal or commercial entity. See Utah Code 76-6a-101
Property: includes both real and personal property. See Utah Code 68-3-12.5
Pyramid scheme: means any sales device or plan under which a person gives consideration to another person in exchange for compensation or the right to receive compensation that is derived primarily from the introduction of other persons into the sales device or plan rather than from the sale of goods, services, or other property. See Utah Code 76-6a-101

(2)	An actor commits the offense of conducting a pyramid scheme if the actor knowingly organizes, establishes, promotes, or administers a pyramid scheme.

(3)	A violation of Subsection (2) is a third degree felony.

(4)

It is not a defense to an action brought under this section that:

(a)	the sales device or plan limits the number of persons who may be introduced into the sales device or plan;

(b)	the sales device or plan includes additional conditions affecting eligibility for introduction into the sales device or plan or when compensation may be received from the sales device or plan; or

(c)	a person receives property or services in addition to the compensation or right to receive compensation in connection with a pyramid scheme.

(5)	The appropriate county attorney or district attorney has primary responsibility for investigating and prosecuting a criminal violation of this section.

(6)

(a)	A violation under this section constitutes a violation of Section 13-11-4.

(b)	A criminal conviction under this section is prima facie evidence of a violation of Section 13-11-4.

(c)	In addition to prosecution under this section, a violation of this section shall be civilly investigated and prosecuted as prescribed by Title 13, Chapter 11, Utah Consumer Sales Practices Act.

Enacted by Chapter 111, 2023 General Session