Church financier faces Ponzi scheme trial in Ind.

AP News
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Posted: Oct 12, 2010 3:10 AM
Church financier faces Ponzi scheme trial in Ind.

A former pastor is headed to trial in Indiana for allegedly taking some money parishoners thought was going toward building churches and using it to buy himself and his sons planes and sports cars.

Vaughn Reeves faces 10 counts of securities fraud. Jury selection is scheduled to start Tuesday morning in Princeton, Ind., about 25 miles north of Evansville.

The 66-year-old Reeves is founder and owner of now-defunct Alanar Inc. Authorities say he and his three sons duped about 11,000 investors into buying bonds worth $120 million secured by mortgages on construction projects at about 150 churches.

Court records say the men diverted money from new investments to pay off previous investors, pocketing $6 million and buying airplanes and sports cars.

All four have pleaded not guilty.