Ogden businessman may get plea deal in fraud case

A plea deal may be in the works for an Ogden businessman accused of bilking investors out of more than $140 million.

Val Edmund Southwick, 62, appeared in 3rd District Court on Tuesday to waive a preliminary hearing on nine counts of second-degree felony securities fraud. An arraignment hearing has been set for March 24.

Assistant Attorney General Charlene Barlow said that at the next hearing, Southwick could enter a guilty plea in a plea agreement, but could also plead not guilty and take the case to trial.

Southwick also faces civil action by the federal Securities and Exchange Commission over his Ogden-based VasCor Capital business.

The SEC alleges that Southwick formed 150 companies that fraudulently raised $180 million, which was used to pay off other investors and to support Southwick and his family.

Investigators say Southwick told investors he was planning to use their money to develop large real-estate projects but instead operated a Ponzi scheme using new investment money to pay off old investors.

Southwick emphasized his membership in The Church of Jesus Christ of Latter-day Saints during solicitation meetings with investors, including showing his LDS temple recommend and decorating his office with LDS "memorabilia" to "breed a sense of trust," state investigators say.

A call to Southwick's attorney, Max Wheeler, was not returned.

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