We've discussed the continuing legal troubles of Ogden "investment broker" Val Southwick on Weber County Forum at various times before; but we learn this morning from the Standard-Examiner that Southwick's legal problems have now kicked into high gear. We incorporate below the essential facts concerning Southwick's latest "double whammy" legal problems, as reported by veteran Std-Ex reporter Tim Gurrister:
OGDEN — Officials simultaneously filed state criminal charges and a federal Securities and Exchange Commission lawsuit Wednesday against Ogden financier Val Southwick.Ah yes... there's always that wishful glimmer of hope -- divine intervention, perhaps.
The filings list 817 investors who authorities say were bilked out of an estimated $140 million.
But one of Southwick’s lawyers said it’s possible the 61-year-old real estate speculator has enough assets to repay the money.
Southwick's jilted investors comprise a broad spectrum of investor types, from sophisticated professionals to "babes in the woods," according to this morning's story:
Southwick and VesCor raised more than $445 million from banks, professional investors and so-called “unsophisticated” investors — nonprofessionals typically entrusting Southwick with their life savings, according to an investigative summary released with the court documents by the Utah Division of Securities.Here's the part however, that really sticks in our craw:
The summary said Southwick emphasized his membership and ecclesiastical roles in The Church of Jesus Christ of Latter-day Saints during solicitation meetings with investors.We have little sympathy for bankers and professional investors who may have been taken in by Southwick's alleged ponzi scheme; but it's those trusting and financially unsophisticated "little people" for whom this seasoned investor feels the pain.
“Southwick was touted to investors as a respectable LDS gentleman who was more concerned about the consequences of the after-life than those in this life if he lied to investors,” according to the summary.
“Investors appear to have lost $140 million of their life savings and retirement funds,” division director Wayne Klein said. “The fraudulent elements of the investment scheme remained hidden so long because Southwick kept assuring investors the company was profitable, then solicited money from new investors to pay interest to existing investors.”
The fleecing of the flock at the local wardhouse is an all-to-familiar theme here in Utah we believe; and we wonder if devout LDS church-members will ever get wise to the fact that it isn't smart to put blind trust, (let alone your life savings or entire retirement account) into the hands of somebody who says he's real smart, just because you know him from church.
One reader said it best we think, in a comment under an article in today's Deseret Morning News on this same topic: "When you walk into an office full of ANY kind of religious memorabilia, count your fingers before you walk out."
Having said all this, we'll remind our gentle readers that, as to the pending charges, Mr. Southwick enjoys the benefit of the doubt -- and the legal presumption of innocence -- unless or until he's convicted or cops a plea.
Southwick's Vescorp Capital - in happier times:
And what say our gentle readers about all this?
Update 2/7/08 10:28 p.m. MT: The Salt Lake Tribune also has a thorough writeup on this story, followed by a robust set of interesting reader comments.
