Did forgery land iProvo contract?

Gillen is the subject of two investigations by the Utah Division of Securities. The Utah Attorney General's Office filed felony charges in April against Gillen and two others, alleging they fraudulently took more than $450,000 from investors for use in a company called City Lips Cosmetics. The other allegation is that Gillen lied to an investor to secure $30,000 for Garb Oil & Power.

The investigative subpoena power allows the county attorney to look at the financial and business records of all six named and HomeNet. That includes bank records, loan information, credit reports, tax records and witness depositions.

Attempts to reach Nancy Ryan, Devine, Gillen and Schneider were unsuccessful.

A message left for W. Kelly Ryan at iFiber, a Washington company recently known as HomeNet NW, was not immediately returned Monday afternoon. HomeNet NW is listed as one of the major creditors owed money by HomeNet Communications in bankruptcy proceedings in Washington.

A message left for Doherty at Phase 2 International also was not immediately returned, nor was a message left for Katie Samiljan, the attorney representing HomeNet Communications in the bankruptcy case.

Billings said Provo ended its contract with HomeNet for reasons other than the forgery and alleged investment fraud. He grew concerned about the company's cash burn rate and approach.

"The things you're now focusing on came out later," Billings said. "They were very disappointing, but we were a long ways down the path of decoupling when they were raised."

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Contributing: Sara Israelsen

E-mail: twalch@desnews.com