Did forgery land iProvo contract?

In March, the Deseret Morning News reported iProvo had 9,480 subscribers and was rapidly closing in on the original break-even goal of 10,000 subscribers. That goal was expected to be reached shortly, with Billings promising a big summer beyond.

Instead, it took more than six months for iProvo, Nuvont and MStar to reach 10,000 subscribers, a landmark the city will announce today.

Meanwhile, the break-even point for the iProvo project has been readjusted to between 16,000 and 18,000 subscribers. The city has about 34,000 residences.

Billings remained passionately optimistic about iProvo and said the project soon will get a new infusion of energy. Over the summer, the city requested proposals from new potential service providers to join MStar and Nuvont. Billings said he expects to add more than one, though the process could still take several months.

Billings expressed support for Nuvont and MStar but added, "I personally believe we won't restart our momentum until we bring some fresh horses into the mix."

The Washington state attorney general's office is cooperating with the fraud investigation, according to an affidavit filed in 4th District Court by detective Toby O'Bryant, an investigator for Utah County Attorney Jeff Buhman.

In 2004, Provo required several companies jockeying for the contract to become the first provider on the iProvo network to meet several deadlines, including some that would show financial viability.

O'Bryant's affidavit claimed that internal investigations by Provo and HomeNet later concluded that HomeNet bookkeeper Nancy Ryan forged the $50,000 letter of credit to beat a deadline for a financial obligation.

"She also admitted the deed to investigators with HomeNet's head office," O'Bryant wrote.

City leaders delivered documents substantiating the forgery to the county attorney, O'Bryant said.

In February, former HomeNet officer Shauna Badger provided the county attorney's office with documents that, O'Bryant wrote, "purport a much larger scheme on the part of HomeNet."

Badger and others provided statements that HomeNet officials engaged in fraud by procuring investments or loans without paying them back as promised, according to the court documents. The investors believed that HomeNet officials did not use the investment funds for company or iProvo uses, according to court documents.

The court papers name Ryan, George Schneider, former CEO W. Kelly Ryan and former company presidents Kevin Doherty, Michael W. Devine and Frank J. Gillen, all of whom live outside Utah.