Sentencing is set for pair in equity-skimming scam

Two Utah men will be sentenced Sept. 11 for taking part in an equity-skimming investment scheme. Kevin Lawrence Wright, Washington County, and Michael Stephen Hurst, Davis County, previously pleaded guilty to third-degree felony securities fraud in 3rd District Court.

Both were criminally charged with talking a Utah couple into buying a Bluffdale home for $590,000, but the couple was urged to get loans for $810,000 on the house. The Utah State Attorney General's Office said the investors were then told they could get $75,000 as a reserve for making mortgage payments, while Wright said the remaining equity would be invested in a mutual fund called Capital Enhancement Fund.

The couple was told they could earn an 8 percent to 10 percent profit on the fund and could even get as much as 30 percent.

However, after the house was purchased, no money went into the fund, according to the Attorney General's Office. Instead, a title company used the money to pay one of Wright's debts and gave money to Hurst, who spent it on a diamond scheme.

Among other things, the investors were not told about Wright having three judgments against him for a total of $327,000, in addition to $56,000 in back state taxes.

The couple has received full restitution, according to the Attorney General's Office, but consumers are reminded to investigate all investment offers before turning over any money.