Posted on 04/20/2011 7:33:32 AM PDT by Colofornian
(ST. GEORGE) – A St. George man was ordered to spend a year in the Washington County Jail on seven counts of securities fraud. According to court documents, 67-year old William Hammons, was convicted by a jury in February on counts related to his involvement in VesCor, an investment company. Hammons worked with Val Southwick, an Ogden businessman, who is currently serving a prison term for a real estate investment scheme that bilked hundreds of investors out of more than $180 million. VesCor companies took in an estimated $250 million from investors, according to accountants, who examined their books during bankruptcy proceedings. It was the largest financial fraud in Utah history. Retired 8th District Court Judge Lyne Payne sentenced Hammons to four prison terms of 1-15 years on the second-degree felonies and three terms of 0-5 years on the second-degree counts, to run consecutively but suspended the prison terms. Hammons was also ordered to pay fines, totaling $11,500 and pay $163,905 in restitution. .
A former bishop in The Church of Jesus Christ of Latter-day Saints planned to turn himself in to law enforcement authorities Tuesday evening, after he was charged Monday with 10 counts of securities fraud in the St. George area, according to his attorney. William Hammons was charged with fraud and other violations in connection with a Ponzi scheme that bilked investors out of more than $50 million, according to Keith Woodwell, director of the Utah Division of Securities. Hammons' indictment was part of a long-running investigation into VesCor Capital Corp., an enterprise formed by Ogden businessman Val Southwick.
Source: Former LDS bishop charged in Southwick's Ponzi deal
That DesNews article added: The Utah Division of Securities said in a report that Southwick lured his victims with promises of high returns and traded on his membership in the LDS Church, emphasizing that he was a "respectable LDS gentleman who was more concerned about the consequences of the afterlife than those in this life if he lied to investors."
These are just a baker's dozen articles in a 16 1/2-month span on the "problem" of Lds affinity scams upon fellow Lds victims (March 2009-->early May, 2010)...
If you only have time to click on one article link below...read the first...be sure to read the comments of FBI special agent Cameron Saxey (who is Lds)...the article mentions how the Utah jurisdictional Securities Fraud Task Force was working on 100+ cases...meaning that $1.4 billion total doesn't tell it all!
BTW...I went to absolutely no major effort or had to do any "days of pouring over" the internet to strain these to the surface. Just about all of them were delivered right into my e-mail lap...meaning I wonder what more I'd find if I really dug deeper!
JOHN L. SMITH: Thieves in the temple: How 'affinity fraud' hurts LDS church members
Source: Las Vegas Review-Journal, Sept. 12, 2010
Local political gadfly arrested for exploiting elderly woman
Source: Provo Daily Herald, May 4, 2010
Preying on the faithful: Though Mormons often victims, LDS church skips fraud-prevention event
Source: Salt Lake Tribune, May 2, 2010
Kaneohe swindler is sentenced
Source: Honolulu Star-Bulletin, April 6, 2010
Investors with troubled firm have Mormon ties
Source: Austin American Statesman, Jan. 16, 2010
Man Who Defrauded Fellow Church Goer Pleads Guilty
Source: www.connect2utah.com (KUTV) Jan. 7, 2010
Lindon Man Accused of Trying to Kill Witnesses to Alleged Scam
Source: MidUtahRadio.com, Nov. 19, 2009
KSL 5 News investigates affinity fraud
Source: KSL.com Nov. 9, 2009
Mormon victims are caught up in $50M scam to sell gold bullion
Salt Lake Tribune, Sept. 18, 2009
LDS Church returned $200K in Southwick Tithing
Source: AP, Sept. 14, 2009
Merriman's church donations may be tained [Momon Ponzi schemer's tithe monies ill-gotten?]
Source: Denver Post, April 24, 2009
Man Who Defrauded Fellow Church Goer Pleads Guilty
Source: Fox News, April 8, 2009
Calif. Man Charged with $40 million Ponzi scheme
Source: AP, March 20, 2009
The bottom line here is that you would expect a church that has 2% of the nation's population to have about 2% of affinity fraud cases -- even if they were as criminal as the atheists and agnostics! [You would expect them to have less than 2% if there was a true higher moral standard at operation here]. You don't expect cases involving $one and a half BILLION!
Over the past 30 years, I’ve noticed that most “get rich quick schemes” have a Utah mailing address...
"There are LOTS of bank robbers!
WHY are you picking on MY client?"
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