From Deseret News archives:

Lengthy prison term in massive fraud scheme

Published: Saturday, June 14, 2008 12:07 a.m. MDT
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An Ogden businessman has been sentenced to nine consecutive terms of one to 15 years in prison for taking part in a massive investment fraud scheme which involved more than $140 million from at least 800 investors.

Val Southwick appeared in 3rd District Court for his sentencing Thursday and was taken immediately into custody to begin serving his sentence.

Prosecutors say Southwick, 62, created a Ponzi scheme in which he took money from new investors to pay early investors. They also say Southwick used investment money to fund a lavish lifestyle for himself.

Southwick promised his returns on commercial real estate investments, and victims say he traded on his membership with The Church of Jesus Christ of Latter-day Saints to gain investors' trust.

The scheme has left a web of civil suits and bankruptcy actions as investors attempt to get their money back. The Securities and Exchange Commission says it is trying to work with Southwick to try to gain back the investor funds.

Recent comments

never do business with fellow members of the church. it can cause...

steven | June 30, 2008 at 4:29 p.m.

I believe that there is a need for Church leaders to stress honestry...

Running Fish | June 14, 2008 at 9:13 p.m.

My introduction to pyramid schemes was at BYU in early 70s. Two...

CJem | June 14, 2008 at 11:12 a.m.

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