Published: July 01, 2009 01:18 pm         

UPDATE: Bail for Alanar execs set at $1.5M each

A former Sullivan pastor and his three sons are now in the Sullivan County Jail on bail of $1.5 million each after their arrests in connection with what law enforcement officials say is an elaborate fraud that bilked millions from investors through their company, Alanar Inc.

Vaughn Reeves, 65, and one son, Josh Reeves, 33, were booked into the jail at 11:45 p.m. Tuesday. Another son, Chip Reeves, 44, had been booked into the jail earlier that day. Chris Reeves, 40, was booked in at 12:35 a.m. today.

The Reeveses turned themselves in at the jail after being advised by Indiana State Police that warrants had been issued by the Sullivan County prosecutor on 10 felony counts of affinity fraud against each man.

According to court documents, the Reeveses allegedly duped investors into buying bonds that raised at least $120 million. The stated purpose for the vast majority of the bonds was supposedly to finance church construction and expansion. However, investigators say, the Reeveses shuffled this money among various accounts and stole about $6 million for themselves in the process.

As of noon today, no court appearances had been scheduled for the Reeveses.