Reading an UTF-8 encoded text file in Mathematica

How can I read a utf-8 encoded text file in Mathematica?

This is what I'm doing now:

text = Import["charData.txt", "Text", CharacterEncoding -> "UTF8"];

but it tells me that

$CharacterEncoding::utf8: "The byte sequence {240} could not be interpreted as a character in the UTF-8 character encoding"

and so on. I am not sure why. I believe the file is valid utf-8.

Here's the file I'm trying to read:

http://dl.dropbox.com/u/38623/charData.txt