Ponzi Scheme Trial of Former Pastor Begins in Indiana
Ponzi Scheme Trial of
Former Pastor Begins in Indiana
Vaughn Reeves, a former pastor and the founder of the now defunct organization Alanar, is going on trial for what authorities call a multimillion dollar scheme that preyed on thousands of parishioners who believed they were helping to build churches when in fact they were helping the man and his sons acquire sports cars and planes.
The 66 year-old Reeves faces 10 counts of securities fraud. Jury selection for the man's trial began Tuesday in Princeton, Indiana, 25 miles to the North of Evansville. Authorities allege that Reeves and his three sons defrauded about 11,000 investors, selling them bonds worth $120 million secured by mortgages on construction projects at about 150 churches. The men used the money to pay off previous investors and pocketed $6 million, purchased two airplanes, several sports cars, and vacations, according to court records.
The majority of victims of the scheme were Indiana residents, though a handful of church members in Florida, Michigan, Maryland, and Oklahoma were also victimized. All four of the defendants have pleaded not guilty to the charges. Insiders describe the Alanar case as a prime example of affinity fraud, where scammers prey on people who share a common devotion, such as ethnic background or religious affiliation.
The official website of the Securities and Exchange Commission features a warning about the schemes. It says the schemes have targeted retirees, blacks, Jehovah's Witnesses, Armenian-Americans, California bus drivers, Latin American Miami residents, and even Utah Mormons.
Vaughn Reeves, a former pastor and the founder of the now defunct organization Alanar, is going on trial for what authorities call a multimillion dollar scheme that preyed on thousands of parishioners who believed they were helping to build churches when in fact they were helping the man and his sons acquire sports cars and planes.
The 66 year-old Reeves faces 10 counts of securities fraud. Jury selection for the man's trial began Tuesday in Princeton, Indiana, 25 miles to the North of Evansville. Authorities allege that Reeves and his three sons defrauded about 11,000 investors, selling them bonds worth $120 million secured by mortgages on construction projects at about 150 churches. The men used the money to pay off previous investors and pocketed $6 million, purchased two airplanes, several sports cars, and vacations, according to court records.
The majority of victims of the scheme were Indiana residents, though a handful of church members in Florida, Michigan, Maryland, and Oklahoma were also victimized. All four of the defendants have pleaded not guilty to the charges. Insiders describe the Alanar case as a prime example of affinity fraud, where scammers prey on people who share a common devotion, such as ethnic background or religious affiliation.
The official website of the Securities and Exchange Commission features a warning about the schemes. It says the schemes have targeted retirees, blacks, Jehovah's Witnesses, Armenian-Americans, California bus drivers, Latin American Miami residents, and even Utah Mormons.
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