Allred pleads guilty, faces prison and financial restitution requirements

Former Lehi City Streets Superintendent Wade Allred and his cousin, Adam Lake, have both pleaded guilty to embezzling nearly $800,000 from Lehi City between 2014 and 2019.

According to court documents previously presented in Provo’s Fourth District Court, Allred and Lake werecharged with 15 second degree felonies and one third-degree felony, including money laundering, communications fraud, theft, and witness tampering.

Allred has admitted to creating fake purchase orders for road salt and other road materials from Lake’s company, Vinco Enterprises, when in fact Lehi City never received the materials. According to court documents obtained by the Lehi Free Press, “Allred was responsible for ordering these materials for Lehi City. During this time period, Lehi City paid $791,582 to the company owned by defendant Lake as payment on these invoices.”

Charging documents also stated, “All of the $791,582.00 paid to defendant Lake’s company by Lehi City between May 12, 2014, and July 25, 2019, was deposited into Vinco’s account. Defendant Lake and his wife are the only ones with access to that account. Of the over $700,000 deposited from Lehi City, Vinco’s owners withdrew $502,000 in cash during this period from their account. During the relevant period, defendant Allred made cash deposits to his bank account totaling approximately $140,000.00.”

On Wednesday, October 27, Allred pled guilty in a plea agreement negotiated between Allred’s attorney Brett Anderson and Utah County prosecuting attorney Timothy Taylor. Allred will be charged with only one offense, while the remaining 14 charges will be dropped. 

According to court documents obtained by the Lehi Free Press, the agreed upon plea bargain is as follows:

The Defendant is pleading guilty to Count 8, Communications Fraud, Counts 1-7 and 9-15 are being dismissed. The Defendant has agreed to repay $390,791 to National Union Fire Insurance Company of Pittsburgh PA (hereinafter referred to as, National Union), the subrogee of Lehi City. The repayment of that amount is the subject to a civil agreement with National Union and a restitution judgment for that amount shall not be entered. The Defendant also agrees to pay Lehi City $5,000 at or before the time of sentencing. The payment is to reimburse Lehi City for its [insurance] deductible.

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In the civil settlement contract obtained by the Lehi Free Press between Wade Allred and National Union, Allred is to follow the following repayment schedule:A. One Thousand Dollars ($1,000) on or before December 1, 2021, and on or before the 1st calendar day of each month thereafter for 35 additional months. B. A final payment of $354,791 on or before December 31, 2024.C. There is no interest chargeable as long as the terms of this paragraph are followed.D. Mr. Allred may make additional payments to National Union in whole or in part at any time. There is no prepayment penalty. 

The charge of 2nd Degree Felony Communications Fraud carries a Utah State Prison sentence between 1-15 years. In the current plea agreement, the prosecuting office agrees to stipulate a two-step 402 motion reducing the conviction to a Class “A” Misdemeanor if Allred fulfills his obligations in the agreement. 

During the court proceedings, Judge Robert Lunnen did make note and asked Allred if he understood that the plea agreement provided is only a recommendation and the presiding judge is not bound to the negotiated deal. 

Lunnen ordered Allred to meet with the Probation and Parole office in Provo for an interview and they will create a report that will be filed for review at sentencing. Allred is also prohibited from possessing a firearm because of the felony conviction.

Allred is scheduled to be sentenced on December 8 in the same court