News From Terre Haute, Indiana

Local & Bistate

June 30, 2009

Ex-pastor, sons face 10 felony counts in Sullivan

SULLIVAN — A former Sullivan pastor and his sons now face 10 separate felony counts in violation of the Indiana Securities Act for an elaborate fraud that allegedly bilked millions from investors.

Charges against Vaughn Reeves and his sons, Chip, Chris and Josh, were filed Tuesday in Sullivan Circuit Court by Prosecutor Robert Hunley II. The case is the result of a collaborative investigation of Alanar Inc. that was supported by the Secretary of State’s Prosecution Assistance Unit and the Indiana State Police.

Each of the Reeveses could face up to eight years in prison on each class-C felony charge if convicted.

As Secretary of State Todd Rokita joined Hunley on Tuesday at the Sullivan County Courthouse to announce the filing of the charges, word came that one of the men, Chip Reeves, had been taken into custody by U.S. Marshals.

Applause erupted among some of the people in the courtroom who said they were victims of the alleged Ponzi scheme and had lost the money they invested in Alanar Inc.

Later Tuesday, Chip Reeves was taken to the Sullivan County Jail, where, according to a jail spokesperson, his bail was set at $1.5 million, no 10 percent allowed.

All four men moved out of Indiana when the company was put into receivership as, investigators say, the financial scheme fell apart.

“This case goes far beyond simple theft,” Rokita said. “The Reeveses allegedly targeted their victims through their faith, and then exploited their religious convictions in order to hide their elaborate Ponzi scheme from potential investors.”

Chip Reeves, 44, was last known to live in Milford, Ohio. His father, Vaughn Reeves, 65, was last known to live in Louisville, Ky. The most recent known address for Chris Reeves, 40, was Bardstown, Ky. Josh Reeves, 33, had lived in Bettendorf, Iowa.

Hunley said that U.S. Marshals have been looking for the men in anticipation of the charges.

Text Only | Photo Reprints
Local & Bistate
Latest News Poll
AP Video
Last Mass Lynching in U.S. Remains Unsolved Raw: Fight Breaks Out in Ukraine Parliament Robot Parking Valet Creates Stress-free Travel Raw: MH17 Bodies Arrive in Netherlands Plane Crashes in Taiwan, Dozens Feared Dead Raw: Truck, Train Crash Leads to Fireball Ex-NYC Mayor: US Should Allow Flights to Israel Disabled Veterans Memorial Nearing Completion Home-sharing Programs Help Seniors Raw: Mourners Gather As MH17 Bodies Transported Republicans Hold a Hearing on IRS Lost Emails 98-Year-Old Woman Left in Parked Truck Broncos Owner Steps Down Due to Alzheimer's Bodies of Malaysia Jet Victims Leave Ukraine Judge Ponders Overturning Colo. Gay Marriage Ban Trump: DC Hotel Will Be Among World's Best Six Indicted in StubHub Hacking Scheme Courts Conflicted Over Healthcare Law Clinton: "AIDS-Free Generation Within Our Reach" Raw: Plane Lands on New York Highway
NDN Video
LeBron James -- Dropped $2k On Cupcake Apology ... Proceeds To Benefit Charity Snoop Dogg Says He Smoked Weed at the White House Raw: Fight Breaks Out in Ukraine Parliament Chris Pratt Interrupts Interview To French Braid Intern's Hair Shirtless Super Mario Balotelli Dances While Ironing - @TheBuzzeronFOX Whoa! Watch "Housewives" Star Do the Unthinkable LeBron apologizes to neighbors with cupcakes Justin Bieber In Calvin Klein Underwear Shoot Samsung Pre-Trolls The IPhone 6 With New Ad Jimmy Kimmel Introduces His Baby Girl Swim Daily, Nina Agdal in the Cook Islands Guilty Dog Apologizes to Baby for Stealing Her Toy Prince George Turns 1 and is Already a Trendsetter Train Collides With Semi Truck Carrying Lighter Fluid Kanye West Tells-All on Wedding in "GQ" Interview Tony Dungy Weighs in on Michael Sam Scarlett Johansson Set To Marry In August New Star Wars Episode XII X-Wing Revealed Obama: Putin must push separatists to aid MH17 probe Michigan inmates no longer allowed to wear orange due to 'OITNB'

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
  • -


    March 12, 2010