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(KSL News) There are new developments today in a KSL Eyewitness News Investigation into an Ogden business.
We exposed problems with Vescor Capital Incorporated, a bankruptcy, and hundreds of investors wondering what happened to their millions of dollars.
Vescor owner Val Southwick faced a room filled with unhappy investors today in downtown Salt Lake City. A federal bankruptcy judge ordered Southwick to attend the hearing. He showed up, but, using his Fifth Amendment right, Southwick refused to answer any questions.
Investors did hear from the company's chief financial officer. He revealed he was often told to take money investors paid into one company and use it to pay the bills of a different company. That was shocking news for some investors.
Dave Spear, a Vescor Investor, said, "That of course is the worst of all situations because it now truly is a ponzi scheme, in my opinion."
Investors also learned, despite the disappearance of their money, Southwick has found the cash to pay more than $400,000 in legal fees.