Utah County man gets probation for scam

A Utah County resident will spend the next three years on supervised probation after he was found guilty of promoting a trust fund scam.

Unlicensed securities seller Kerry Rex Smith pleaded no contest in 4th District Court to a second-degree felony charge of securities fraud last month as part of a plea agreement. Two other charges were dismissed as part of the deal. He received his sentence from Judge Claudia Laycock on Monday.

Smith would tell investors he was a licensed broker and would put $20,000 of the investor's money in a trust fund called TecPro Financial Group, where he said it would earn 10 percent interest in three months. The money actually went to pay for Smith's personal expenses.

"Calling yourself a securities broker doesn't make you one," said Utah Attorney General Mark Shurtleff. "I urge investors to investigate brokers and the opportunities they offer."

In addition to the three years of probation, Laycock suspended a one- to 15-year prison term and ordered Smith to undergo cognitive restructuring counseling, as well as pay $25,000 in restitution. He is also prohibited from being self-employed or acting in a fiduciary capacity when employed by others.