As reported on the website Law360, A Utah federal judge on Wednesday approved a $125.6 million final judgment that settled the U.S. Securities and Exchange Commission’s case against Vescor Capital Corp. This judgment apparently relates to the company, not Val Southwick who pled guilty to nine counts of securities fraud in 2008 and was sentenced to serve nine consecutive 1 to 15-year prison terms.
But if you are an investor hoping to get you money back, don’t hold your breath. According to the article Vescor’s receiver, Robert G. Wing of Prince Yeates & Geldzahler, has stated publicly that the money may never materialize. “They did not get $125 million, they got a judgment,” he said. Mr. Wings expects to be able to recover only a small fraction of the money Vescor allegedly took from investors. In his most recent report to the court, Wing said he had recovered just over $5 million, and the legal and accounting fees continue to mount, the Receiver’s lawsuits to recover money from third parties will continue.
Bottom line: nobody wins in a Ponzi Scheme — except maybe the lawyers.