SALT LAKE CITY — Two men who ran a Salt Lake investment company that counted a well-known University of Utah football coach among its investors stand accused of a multimillion-dollar financial scam.
Michael Kay Smith, 64, and Quintin Fullmer Smith, 31, face six felony counts of securities fraud and one count of pattern of unlawful activity, according to documents filed in 3rd District Court. They ran a company called Newport Financial Services.
The Smiths allegedly guaranteed investors an 18 percent return by purchasing contracts of furniture store customers who could not qualify for traditional financing options. They allegedly told people they had invested $1 million of their own money, which investigators say is a lie.
At least 18 investors put in a total of nearly $3 million, including $500,000 from U. assistant football coach Norm Chow, court documents show. Chow's oldest son, Carter, a sports agent whose clients include former BYU receiver and current Indianapolis Colt star Austin Collie, invested $400,000.
Six of those people listed in the charges received minimal or no return on their investments, charges state. The documents don't indicate whether Norm Chow or Carter Chow received any money back.1 comment on this story
Investigators say the Smiths made false claims to attract investors such as they were making "100 percent on every dime they put out there."
"Mike and Quintin said they were making money hand over fist," according to court documents.
They told one investor, court documents show, that "if everything were cut off today, we would have enough to pay every investor back and still have $2 million left over."
A month later, they allegedly told investors all the money was gone.