New York (HedgeCo.net) – Indiana Judge Deana Martin sentenced Vaughn A. Reeves, Sr. to 54 years in prison for his role in a massive affinity fraud investment scheme that raised more than $120 million from investors in church bonds.
The SEC alleged that Vaughn Reeves and his sons, Christopher, Joshua, and Vaughn Reeves, Jr., misused the money, raised in the church, through investors.
“The Reeves’ scheme was an affinity fraud in that Alanar’s marketing strategy was devised to appeal to the Christian faith of potential investors.” The prosecution said.
On October 21, 2010, a Gibson County jury convicted Reeves, a former pastor and the CEO of so-called “hedge fund” Alanar, Inc. on nine felony counts of aiding, inducing, and causing securities fraud. The SEC filed a civil action against Vaughn Reeves and others in July 2005 based on related conduct.
The Court also required the Reeves to collectively pay more than $7.88 million in disgorgement, prejudgment interest and civil penalties.
Alex Akesson
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