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Utah state Rep. Trevor Lee resigned from the Legislature Monday after prosecutors charged him with mortgage fraud and alleged that false employment and income documents were used to obtain financing for his newly built home.

The criminal case, filed by the Utah Attorney General’s Office in 3rd District Court, charges Lee, 35, with second-degree felony mortgage fraud and communications fraud and third-degree felony forgery and possession of a forgery writing device, according to the charging documents as reported by KSL.

The charges are allegations. Lee has not been convicted, and the filing of criminal charges does not establish guilt.

Shortly after the charges became public, Lee notified Utah House Speaker Mike Schultz that he was resigning effective immediately. In his resignation statement, Lee cited personal circumstances requiring his attention and said he could no longer give constituents the time and service they deserved. The statement did not address the substance of the criminal charges.

Prosecutors focus on employment and income documents

The mortgage count centers on documents prosecutors say were used to support Lee’s ability to qualify for financing on a home in Layton.

According to KSL’s account of the charging documents, investigators reviewed records stating that Lee was a sales director for Blue Logic earning $15,833 a month, or about $190,000 annually. Investigators were later told by Blue Logic that Lee had not accepted the employment offer and instead worked as a contractor. The company also told investigators that Lee had requested the employment letter to help him obtain a home loan and that the information in the letter was not accurate, according to the charging allegations.

Prosecutors also allege that financing records included an employment contract with Enevive stating that Lee had worked for the company beginning in July 2024 at $13,761 per month.

Enevive CEO Trent Spafford told investigators the contract was fraudulent and that his signature had been forged, according to KSL’s report of the filing.

The charging documents go further. KSL reports that investigators said Lee acknowledged during an interview that he had personally forged Spafford’s signature on the Enevive document in order to obtain the loan. The filing also alleges Lee acknowledged that the Blue Logic letter was intended to show W-2 income and that he knew the company was not in a position to pay the salary represented in the letter.

Those statements are described in the prosecution’s charging documents and have not yet been tested through trial.

Earlier dispute also centered on financing the home

The criminal filing follows months of scrutiny involving Lee’s finances and the construction of the Layton residence.

In April, Spafford publicly alleged that Lee sought approximately $93,000 in advances from Enevive while trying to obtain financing for the home. Lee disputed allegations surrounding that arrangement at the time, characterizing accusations involving his public office as politically motivated.

The new criminal case represents a significant change from that earlier dispute. Prosecutors have now brought a specific mortgage fraud charge and tied it to alleged employment and income representations in the home-financing process.

KSL previously reported separate disputes over construction of the property, including claims by subcontractors that they were owed money for work on the residence. Those disputes are distinct from the newly filed criminal charges.

Why the allegations matter to mortgage professionals

Utah law makes it a crime to knowingly make or facilitate a material misstatement, misrepresentation or omission during the mortgage lending process when it is intended to be relied upon by a mortgage lender, borrower or another participant in the transaction. The state’s mortgage fraud statute also addresses the use of information containing material misrepresentations during that process.

For lenders and originators, employment and income verification are central underwriting controls because they help establish a borrower’s ability to repay and the accuracy of the information used to make a credit decision. The allegations in the Lee case concern precisely that part of the loan file: whether employment relationships and income were accurately represented to obtain financing.

The Office of the Comptroller of the Currency describes mortgage fraud broadly as deceit or misrepresentation in the origination or funding of a mortgage loan and identifies incorrect information on mortgage applications as a warning sign.

The criminal case is now before Utah’s 3rd District Court. The charging allegations will be subject to the normal criminal process, including Lee’s opportunity to contest the state’s evidence and present a defense.

WRE News will update this report as court records, responses from the parties or additional verified information become available.

Featured image: Utah State Capitol in Salt Lake City. Photo by Alex Moliski/Unsplash.