BREAKING: Former Alanar execs charged in massive affinity fraud case

The Tribune-Star

SULLIVAN June 30, 2009 12:53 pm

— Former pastor Vaughn Reeves and sons Chip, Chris and Josh, all executives of Alanar Inc., face 10 separate felony counts each involving violations of the Indiana Securities Act, states a release today from the Sullivan County Prosecutor’s office.
The charges allege the four engaged in a multi-million dollar, faith-based affinity fraud through the use of a modified Ponzi scheme. The charges were filed today in Sullivan Circuit Court by Sullivan County Prosecutor Robert Hunley II.
The investigation was a collaborative effort by the Secretary of State’s Prosecution Assistance Unit, the Sullivan County Prosecutor’s office and the Indiana State Police, the release states. Each of the Reeveses could face up to eight years in prison per charge if convicted.
Secretary Todd Rokita and Prosecutor Hunley will hold a press conference to discuss these charges at 2:30 p.m. today in the Circuit Court Room in the Sullivan County Courthouse in Sullivan.
More details will be available after the press conference.