Brian Jared Smart

Brian Jared Smart
Courtesy: Utah County Jail, 9-12-2012
Born	Brian Jared Smart (1976-10-29) October 29, 1976 Salt Lake City, Utah, US
Nationality	American
Occupation	Insurance salesman, investment adviser
Known for	Ponzi scheme, securities fraud (prior)
Religion	none
Criminal status	California = Criminal Trial Pending; Booked out of jail on $500,000.00 bail[1]
Spouse(s)	Kelli Rae Winger Smart (1998–present)

Brian J. Smart is a 37-year old civilly convicted American Ponzi scammer^[2] from Lehi, Utah.

Criminal case

September 12, 2012, Brian J. Smart was arrested at home in Lehi, Utah^[3] extradited to California and charged in a^[4] 14-felony, 41-count criminal complaint (updated in December 2012 to 15 felonies and 44 criminal charges) for "Theft from elder, Money laundering, Forgery, Grand theft, & Making An Untrue Statement or Omission in connection with Purchase or Sale of a Security" issued by Tony Rackauckas current District Attorney of Orange County,^[5] California.^[6][7] The original criminal complaint requested a 1.78 million dollar bail & asserted that between May 2005 and March 2006, Smart defrauded people while he worked for an insurance firm, in Anaheim, California.^[8] The complaint was amended with new charges & sealed in December 2012. If convicted, Smart faces over 25 years in a state prison.^[9]

Smart is presumed innocent until proven guilty by a court of law.

SEC civil actions

Courtesy: Utah County Jail 09/26/2009

March 11, 2009, the United States Security and Exchange Commission, filed civil Case No. 2:09-CV-00224, SEC v Brian J. Smart & his company "Smart Assets". The complaint described a "3 phase" six-year operation that Smart used to facilitate his Ponzi scheme.^[10]

June 6, 2011 US Federal Judge Dale A. Kimball ruled in favor of the SEC ordering that Brian Jared Smart pay disgorgement, prejudgment interest and a civil penalty's.^[11] Judge Dale A. Kimball ruled that Smart and his company "Smart Assets" violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the US Securities Act of 1934 as well as Rule 10b-5 and entered a judgment upon him in the amount of $4,715,580.00 dollars, the US Court of Appeals later upheld that ruling. Final^[12] judgment was entered against Smart and Smart Assets also permanently enjoining defendants from future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Act of 1934, and Exchange Act Rule 10b-5, and ordering defendants to pay $2,059,077.00 in disgorgement, prejudgment interest of $597,426.00, and a civil penalty of $2,059,077.00, in the civil action Case No. 2:09-CV-00224.

According to the United States Security and Exchange Commission as of August 8th of 2013, no money has ever been paid towards the Judgment obligation and the Judgment remains in full force and effect.^[13]

Appeal of SEC civil judgment

Aug. 24, 2011, Brian J. Smart filed with the United States Court of Appeals for the Tenth Circuit, a hand-written appeal,^[14] Case No. 11-4134 of the SEC's judgment in pro per.^[15] The Tenth Circuit affirmed the judgment, concluding Defendant Smart did not cite any evidence that would contradict SEC declarations, bank records and other evidence submitted by the SEC.

April 27, 2012 US Federal Judge Michael R. Murphy issued a published appellate court ruling citing that Brian J. Smart had been manipulating the litigation process using the Fifth Amendment. The Court of Appeals upheld Judge Dale A. Kimball's ruling, reaffirming the $4,715,580.00 civil judgment.^[16]

SEC Administrative Actions

April 2012, the SEC filed administrative actions upon Brian J.Smart.^[17] In August 2012, the administrative courts issued an "Order making findings, & imposing remedial sanctions pursuant to section 203(f) of the investment act of 1940," banning Smart from the investment industry for life.^[18]

Recovery of Fraudulent Transfer

October 12, 2011, Brian J. Smart granted a "quit claim deed" assigning his equity in the home in Lehi to his wife, Kelli R. Smart.^[19] in exchange for the amount of 10.00 (ten) Dollars.

April 23, 2013, Kelli R. Smart, Brian J. Smart's wife used the same home, in Lehi Utah,^[20] to secure a half million dollar bail bond in favor of Orange County Bail Bonds, to obtain the temporary release of Smart from the Orange County Jail.^[21]

August 8, 2013 Brian J. Smart & Kelli R. Smart, were named in a Security and Exchange Commission (SEC) civil lawsuit^[22] for recovery of a fraudulent transfer of real property (fraudulent conveyance). Case No. 2:13-cv-00752-DBP.

Bankruptcy & adversarial case

October 19, 2009 Brian J. Smart filed a petition for relief under Chapter 7 in the United States Bankruptcy Court, District of Utah, Bankruptcy Case No. 2:09-bk-31462. January 2010, some victims mentioned in the SEC complaint filed adversarial complaint Case No. 2:10-ap-02085 exposing the relationship to Allen and Wendell Jacobson in court filed documents.

December 2011 a non-dis-chargeable judgment in favor of plaintiff (KB) was entered in the amount of $236,935.00 plus a prejudgment interest of $68,624.77, plaintiff (DC) shall have a judgment in the amount of $198,539.00, pre judgment interest of $57,507.39, post judgment interest compounded annually.^[23]

Judgment debtor exams

July 19, 2013 Brian Jared Smart was served with a court order for a Judgment debtor summons, & ordered to appear in court to answer questions regarding personal assets in court Case No. 136405497 FJ, Judge M. James Brady in the fourth district Court, Provo Utah.^[24]

See also

Civil Case Index:

SEC Civil Case # 2:09-CV-00224

Bankruptcy Case # 2:09-bk-31462

Adversarial Case # 2:10-ap-02085

Appeal of SEC Case # 11-4134

Fraudulent Transfer Recovery Case # 2:2011-cv-01170

SEC Fraudulent Transfer Recovery Case # 2:13-cv-00752-DBP

The SEC's (asserted) Fraudulently Transfered Lehi, Utah Home

Judgment Debtor Exams Case # 136405497 FJ, the Fourth District Court, Provo Utah

Note: The Case file numbers, linked on this section, are stored in the PACER system (Public Access to Court Electronic Records). PACER is a service of United States Judiciary. To view and retrieve the linked documents from PACER, you must be a registered user. To register, fill out one of the registration forms available on the PACER site. The United States Congress has given the Judicial Conference of the United States, the judicial governing body of the U.S. Federal Courts, authority to impose user fees for electronic access to case information. For more information visit the PACER site at http://pacer.psc.uscourts.gov/pacerdesc.html

References