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ST. GEORGE, Utah (AP) -- A businessman has been sentenced to a year in jail and placed on probation for 10 years for his role in a $180 million Ponzi scheme believed to be the largest case of financial fraud in the state's history.
Judge A. Lynn Payne sentenced sales agent William J. Hammons, of St. George, on Friday. He had been found guilty in February of seven of nine criminal charges stemming from the scheme, The Spectrum of St. George reported.
Payne sentenced Hammons to one to 15 years in prison for each of four second-degree felonies and up to five years for each of three third-degree felonies, then suspended the sentences in favor of lighter terms.
"These involve separate transactions and evidence an unusual failure to be concerned about other people," Payne told Hammons.
These involve separate transactions and evidence an unusual failure to be concerned about other people.
–Judge A. Lynn Payne
Authorities said Hammons was the lead recruiter for projects by Val Southwick of Ogden, who ran an estimated 150 companies under the name VesCor. That umbrella firm filed for bankruptcy in 2007, leaving about 180 investors out of at least $180 million.
Southwick was sentenced in June 2008 to nine consecutive terms of one to 15 years in prison for securities fraud. He admitted the company used new investors to pay off established investors without securing the investments in real property.
Gil Miller, a certified public accountant who works for the federal receiver in the case, testified that Hammons introduced 190 investors to VesCor who invested $47 million in the company. He received more than $10.4 million in fees or commissions from VesCor between 1998 and 2008, Miller added.
Hammons was convicted of defrauding three investors, and two of them testified about the extreme financial difficulties they've faced since investing money in VesCor.
Kyleen Sorensen, 65, said her property in American Fork is under foreclosure and she had to file for bankruptcy protection last month. "I wish he (Hammons) could feel the fear and uncertainty of (that). ... You never showed remorse," she told Hammons.
But Hammons' wife, Lori, asked the judge for mercy, citing examples of his honesty and ethical behavior.
Assistant Attorney General Che Arguello said restitution owed to the three victims totals $166,905.
Hammons was convicted of counts including violation of securities, pattern of unlawful activity, and abuse/neglect or exploitation of a vulnerable adult -- all second-degree felonies. He also was convicted of third-degree felony counts of operating as an unregistered securities agent.
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(Copyright 2011 by The Associated Press. All Rights Reserved.)
