UPDATE: According to an article in the Salt Lake Tribune yesterday, Michael Kay Smith, 66, and his son, Quintin Fullmer Smith, 33, each pleaded guilty to two counts of third-degree felony attempted securities fraud as part of a plea deal with prosecutors in which four second-degree felony counts of securities fraud and one count of pattern of unlawful activity were dismissed. The two men each face up to 10 years in prison when they are sentenced in 3rd District Court in September.
Michael Smith and his son Quintin Smith have each been charged with six counts of securities fraud and one count of pattern of unlawful activity, all second-degree felonies, in connection with a furniture loan company they owned called Newport Financial. According to a Salt Lake Tribune article published today they have been accused of “bilking investors of hundreds of thousands of dollars — one while serving as counselor to an LDS stake presidency — in a fraudulent furniture-financing scheme that targeted, among others, a prominent University of Utah football coach.”
The indictment alleges that the Smiths promised a return of 18 percent to gain investments of at least $1.8 million from 18 victims. Their biggest investor was Norm Chow, the offensive coordinator for the University of Utah’s football team, who invested $500,000. Continue reading “UPDATED: Yet Another Local Ponzi Scheme Indictment – Newport Financial”