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Salem, Utah

Under the Banner of Heaven

Salem, Utah, is a small farming community twelve miles south of Provo, situated where orchards and potato fields meet the steep mountains of the Wasatch Front. Its significance in the book comes from the way its rural landscape becomes a meeting ground for religious expectation and material ambition: the Dream Mine looms above town, while the people drawn to it build enterprises and communities below. Salem is also where Dan Lafferty was born and raised, linking the place to the family history behind the murders of Brenda Lafferty and Erica Lafferty.

Setting and local landscape

The book locates Salem on the eastern edge of the settled landscape, between cultivated fields and the craggy Wasatch mountains. From miles away, attention is drawn to a large white structure clinging to the hillside above town: the Dream Mine. The contrast between working farmland and the conspicuous mine makes the place’s geography part of its story. The fields represent Salem’s ordinary agricultural life; the mountain above them holds a promise of hidden wealth and a future crisis.

Salem also belongs to the book’s broader portrait of Utah County as a center of Mormon life and of Mormon Fundamentalism. That regional context helps explain why a local prophecy about buried treasure could attract committed believers and investors. The mine was not merely an industrial prospect on the edge of town: for its adherents, it was tied to sacred history and to expectations about the Last Days.

The Dream Mine and prophetic expectation

The Dream Mine began with John Hyrum Koyle, a Mormon who considered himself a recipient of prophetic gifts. In a dream on August 27, 1894, he said, the angel Moroni led him into the mountain and showed him nine caverns filled with gold. The wealth was supposedly Nephite, hidden by God along with ancient records. Koyle filed a claim on the hillside east of Salem and began digging on September 17 of that year.

The mine attracted both religious conviction and hopes of financial gain. Devout Mormon investors bought shares, and approximately 700,000 shares were eventually sold. By the mid-1940s, a shaft extended 3,400 feet into the mountain, though no gold had been found. Koyle and his supporters could treat that absence not as a decisive failure but as confirmation that the discovery was reserved for the Last Days. Church leaders rejected his authority to receive such revelations, warned members against investing, and eventually excommunicated him in 1948. His followers nevertheless continued to expect the prophecy to be fulfilled.

That continuing belief drew Onias to Salem. After buying 300 shares in the mine, he later persuaded his mother to buy the same number. In the late 1970s, he said he received revelations directing him to buy land below the mine and establish a City of Refuge where the righteous could survive the coming upheaval. He moved to Utah County and made a $1,500 down payment on five acres beneath the mine entrance. The land thus became, in his religious scheme, not simply property but a place of anticipated shelter.

Business and migration to Salem

In the early 1980s, Kenyon Blackmore moved his family to Salem and entered a business partnership with Bernard Brady. Blackmore introduced Brady to fundamentalism; together they sold shares in tax-sheltered financial trusts and invested in the Dream Mine. Their business account received millions of dollars, and each man acquired a lavish home below the mine. The shared setting joined a speculative religious venture to a more conventional investment operation, making Salem a base for both forms of promise.

Blackmore also connected Brady with Onias, whom he had known years earlier while working as a schoolteacher in Bountiful. Onias was then establishing his School of the Prophets in connection with his plan for the City of Refuge. Brady, in turn, recruited five Lafferty brothers into the school, including Dan and Ron. These introductions created a network in which Salem’s mine, property, business activity, and religious organizing overlapped. The book does not make the town itself responsible for what followed; it shows how people and projects converged there before the network was disrupted by violence and criminal investigation.

The financial enterprise was already under federal scrutiny. In 1983, a grand jury indicted Blackmore, Brady, and nineteen other partners on multiple fraud counts, alleging that they had taken more than $32 million from 3,800 investors. The prosecution characterized the operation as a Ponzi scheme. The allegations placed the Salem-based partnership within a wider legal and financial story, distinct from the Dream Mine’s religious promise but connected to some of the same people and investments.

Salem and the Lafferty story

Salem’s connection to the Lafferty case is personal as well as geographical. Dan Lafferty was born and raised in the farming community, and a contemporary report identified him as living there when he was charged with capital homicide in connection with the July 24, 1984, killings of Brenda Lafferty and her 15-month-old daughter, Erica Lafferty. His brother Ron, who lived in Highland, had been charged earlier. Police also disclosed that they believed Ron might have had a handwritten revelation directing him to commit the crime. These reports place Salem within the investigation’s geography, but they do not establish that the killings occurred there.

Through these connections, Salem becomes more than a point on a map. It is a working agricultural town whose mountain carries an enduring promise of treasure, refuge, and revelation; it is also the setting for businesses and religious networks that brought together people later associated with fraud allegations and the Lafferty case. The town’s narrative significance lies in that convergence: the Dream Mine’s unfulfilled promise remained potent enough to shape investment, settlement, and religious association across generations.