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Lds Scam Artists Mormon Fraud - Mormon Doctrine Studies - Posted: 26th Jun, 2015 - 10:18pm
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LDS Scam Artists - Mormon Fraud
This is so unfortunate, specially for those investors who put millions of dollars and trusted in this guy who used his membership as an appeal to scam people. He even showed them his temple recommend, told them about his Church callings as well as his office was full of LDS "Memorabilia". Shame.
QUOTE Val E. Southwick, a smooth-talking businessman who sometimes used his LDS faith to persuade potential investors to part with their money, was charged Wednesday with nine felonies in what federal and state authorities describe as a massive Ponzi scheme that bilked about 800 investors out of as much as $180 million.
Criminal charges filed in state court and a federal civil complaint say the Ogden businessman used a spider web of 150 or so interconnected companies to raise $445 million over 17 years of operation from banks and professional and unsophisticated investors. The latter included at least several elderly investors who, on promises of high returns and that their money was safe, invested their entire life savings with Southwick at a time when his companies were broke.
"Mr. Southwick had such enormous personal appeal that they all believed him," Said Wayne Klein, the director of the state Division of Securities.
The massive fraud may be the largest in Utah history. Among creditors are several hundred Utahns and investors from 29 other states and three foreign countries.
The criminal charges and a civil complaint filed in federal court by the U.S.
Securities and Exchange Commission were filed after negotiations, said Max Wheeler, Southwick's attorney. Southwick has agreed to plead guilty in the state case and reach an agreement with the SEC over the civil complaint, though details are still pending, Wheeler said.
"Val is prepared to acknowledge mistakes were made and has agreed to cooperate with both the state and federal governments to try to get to the bottom of what happened and to make an attempt to minimize the negative impact on investors," Said Wheeler. The attorney added that Southwick had been advised not to speak publicly.
Several investors said Wednesday they were happy to see the charges but were critical that it had taken state and federal regulators so long to prosecute Southwick.
"Here's one of the biggest criminals that has ever been in the history of Utah and they're treating him like he's a VIP or something," Said Jonathan Horne, who invested $2.1 million after meeting personally with Southwick in January 2005....
Criminal charges filed in state court and a federal civil complaint say the Ogden businessman used a spider web of 150 or so interconnected companies to raise $445 million over 17 years of operation from banks and professional and unsophisticated investors. The latter included at least several elderly investors who, on promises of high returns and that their money was safe, invested their entire life savings with Southwick at a time when his companies were broke.
"Mr. Southwick had such enormous personal appeal that they all believed him," Said Wayne Klein, the director of the state Division of Securities.
The massive fraud may be the largest in Utah history. Among creditors are several hundred Utahns and investors from 29 other states and three foreign countries.
The criminal charges and a civil complaint filed in federal court by the U.S.
Securities and Exchange Commission were filed after negotiations, said Max Wheeler, Southwick's attorney. Southwick has agreed to plead guilty in the state case and reach an agreement with the SEC over the civil complaint, though details are still pending, Wheeler said.
"Val is prepared to acknowledge mistakes were made and has agreed to cooperate with both the state and federal governments to try to get to the bottom of what happened and to make an attempt to minimize the negative impact on investors," Said Wheeler. The attorney added that Southwick had been advised not to speak publicly.
Several investors said Wednesday they were happy to see the charges but were critical that it had taken state and federal regulators so long to prosecute Southwick.
"Here's one of the biggest criminals that has ever been in the history of Utah and they're treating him like he's a VIP or something," Said Jonathan Horne, who invested $2.1 million after meeting personally with Southwick in January 2005....
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I feel stories like these are why church leaders are saying, now more than ever, to spend wisely, to look at investments hard before investing. I"ve heard stories like this before. A person using his church position, like Bishop, as saying that he would only tell the truth. Pyramid schemes in Utah are huge. I think using your church calling in any business arrangement is sick and wrong.
TOPIC: LDS Scam Artists - Mormon Fraud