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St. George • William J. Hammons was described in the first day of his securities fraud trial Wednesday as a self-possessed, arrogant man who dressed immaculately, lived in a huge house in an exclusive St. George community, had a penchant for vehicles and liked reminding those he worked with about how successful and rich he was.

"He drove lots of cars . . . sports cars, SUVs, he had two Jeeps and regular family cars," testified Roseann Campbell, who along with her husband invested $100,000 with Hammons and became what prosecutors contend were the victims of a huge Ponzi scheme.

Hammons, 66, is charged with 10 second- and third-degree felonies for his work on behalf of Val E. Southwick, the imprisoned Ogden businessman who ran the scheme that collapsed in 2007 after bilking 800 or so 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.

State regulators say Hammons was the single largest outside seller of securities for Southwick's VesCor real estate development operations — perhaps taking in as much as $52 million.

The Campbells, two other couples and a single woman testified against Hammons on Wednesday. The trial will focus on these investors, who ponied up $1.2 million with Hammons before things went south in mid-2006.

The Campbells gave Hammons the money in late 2005. But the promised monthly checks weighted with a return they were told would total 14 percent annually stopped coming by June 2006.

"Evidence will show this is about greed and the depths [Hammons] sank into it," said Che Arguello, an assistant Utah Attorney General, during his opening statement to the 10-member jury in a St. George courtroom.

Arguello said Hammons took advantage of investors who "looked up" to him, and were his friends and neighbors. Instead of going to legitimate investments, their money largely went to pay off previous investors to keep the scam going, he said.

Arguello said Hammons misled the investors and didn't disclose that he was working for a commission by referring them to an investment firm. Rather, he told them he would not see any gain. He also never mentioned he was not licensed to deal securities.

"You have to tell of the good, the bad and the ugly," said Arguello.

Clifford Dunn, a St. George attorney representing Hammons, said his client has a stellar reputation in real estate dating back to 1992 and was simply referring people he considered friends to an Ogden real estate development company and never intended to profit personally. He said that the trust deeds investors would have received for property are not securities under state law.

"He never made an untrue statement or omitted information or willfully sold securities as an unlicensed agent," said Dunn.

Roseann Campbell, like the others, said that Hammons never solicited their investments, but spoke so highly of how well he did with VesCor real estate and what "wonderful" projects they sunk money into that they decided to ask to get in on the huge returns.

She said when she heard of Southwick, she remembered him as a classmate at an Ogden school whom she liked for his honesty and integrity.

"He gave me confidence," said Campbell.

She also said Hammons never mentioned receiving a commission for bringing new investors on board.

"He said he was [allowing in investors] because 'I'm your friend.' "

She said Hammons never produced evidence on what he based his glowing assessments of VesCor.

Utah County resident Kyleen Sorensen also described Hammons as an "arrogant" man who liked cars.

In November 2005, Sorensen gave Hammons the minimum investment he would accept — $50,000. By May 2006, the monthly checks she had been receiving from her investment stopped coming.

Lorraine Cameron of Provo and her husband also invested $50,000 with Hammons. When monthly checks stopped coming, they, instead, started getting letters from Hammons warning about a possible investigation by the state Division of Securities.

Cameron said Hammons described the investigation as a "witch hunt."

The biggest apparent loser in the alleged scam was retired Salt Lake City physician Waldo Perkins, who turned over more than $964,000 from his IRA to Hammons in January 2005 and never saw a penny from his investment.

He met Hammons when he purchased a second home across the street from the defendant in 2001 or 2002 and the pair became friends.

Perkins testified he was never pressured to invest with Hammons, but liked the reports of high returns so he cautiously invested.

Perkins, who was 78 at the time he invested, said the agreements between himself and Hammons were oral and nothing was written down.

"I told him if you make money for me, I'll love you till the day I die," said Perkins, "If you lose it, I'll hate you."

Retired 8th District Judge A Lynn Payne is presiding over the trial because no 5th District Court judges were available due to heavy case loads. The trial is expected to last two weeks.

The only other person facing criminal charges in the VesCor case is Shawn Moore, a top VesCor manager. He is waiting trial on 12 felony charges for his alleged part in the real estate investment scam.

Tribune reporter Tom Harvey contributed to this story.