News From Terre Haute, Indiana

Breaking News

Local & Bistate

February 5, 2011

Plea negotiated for Alanar defendant

Sullivan — A plea agreement has been negotiated for the youngest defendant in the Alanar securities fraud case in Sullivan County.

Joshua Craig Reeves, 34, will receive a 6-year prison sentence through the agreement, which will come before a judge for acceptance and sentencing on Feb. 25 in Sullivan Circuit Court.

Reeves faces 10 class-C felony charges of securities fraud for his involvement in Alanar Inc., which is accused of duping investors out of millions of dollars intended for church construction projects. His father, company founder Vaughn Reeves Sr., received a 54-year prison sentence in December.

Sullivan County Prosecutor Bob Hunley said the plea agreement filed with the court Friday will give Reeves credit for the 605 days he has already served in jail awaiting trial, as well as 605 days credit time. Two years of the 6-year sentence will be suspended to formal probation, with Reeves reporting monthly to a probation officer.

The remainder of the sentence, or about four-months, will be served on in-home detention with electronic monitoring.

Hunley said that in considering the plea agreement, the prosecution team looked at Reeves’ involvement in the family business, which had been operating for several years before he joined it.

“We felt he was the least culpable, because he had worked there for the shortest time,” Hunley said. Alanar was in operation from the 1980s until it was shut down by federal authorities in April 2005.

The youngest Reeves son has also agreed to give the prosecution information about the business activities of his father and older brothers in any future hearings or trials.

A class-C felony carries a potential prison term of 2 to 8 years, with an advisory sentence of 4 years. Counting his jail time, credit time and in-home detenion, Hunley noted, Reeves will have served a 4-year sentence.

In October 2010, Vaughn Reeves Sr. was found guilty of 9 felony counts involving violations of the Indiana Securities Act in a jury trial conducted in Gibson County. Josh Reeves was scheduled to go on trial in March in Daviess County. Chris Reeves, 42, has a May trial scheduled in Martin County, while Chip Reeves, 46, has a June trial in Gibson County.

All four men were arrested in June and July 2009 on 10 allegations of affinity fraud, and have been housed in the Sullivan County Jail awaiting trial.

Investigators allege the men set up an elaborate Ponzi scheme through Alanar Inc. where they paid off early investors with money from later investors, but skimmed money out of the company for personal use.

Lisa Trigg can be reached at (812) 231-4254 or

Text Only | Photo Reprints
Local & Bistate
Latest News Poll
AP Video
Clinton Before 9-11: Could Have Killed Bin Laden Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Gaza Truce Unravels; Israel, Hamas Trade Blame Smartphone Powered Paper Plane Debuts at Airshow Raw: Woman Who Faced Death Over Faith in N.H. Netanyahu Vows to Destroy Hamas Tunnels Raw: Rescuers at Taiwan Explosion Scene House Leaders Trade Blame for Inaction Renewed Violence Taking Toll on Gaza Residents Four Rescued From Crashed Plane Obama Slams Republicans Over Lawsuit Raw: Tunisia Closes Borders With Libya Ravens' Ray Rice: 'I Made a Huge Mistake' Today in History for August 1st Raw: Otters Enjoy Water Slides at Japan Zoo Cantor Warns of Instability, Terror in Farewell Florida Panther Rebound Upsets Ranchers US, UN Announce Deal on Gaza Cease-Fire 2 Americans Detained in North Korea Seek Help
NDN Video
Under Armour Launches Biggest Women's Campaign with Inspiring Ad NYPD chokehold death of Eric Garner was homicide: medical examiner Christina Aguilera Pulls a Demi Moore! Man with no arms throws first pitch Chapter Two: Composing for a film in retirement Is Justin Bieber Dating a Model? Guardians of the Galaxy (Trailer) 'Sharknado 2:' Hottest Memes Surfing The Net Snoop Dogg Narrating Animal Footage Is Perfect Raw: Obama Gets Hug From Special Olympian Recapping a Blockbuster MLB Trade Deadline Tigers Acquire David Price - @TheBuzzeronFOX Russell Brand Slams Sean Hannity Over Gaza Conflict Segment Woman's Dive Goes Terribly Wrong Brian Williams Reports on Daughter Allison Williams' 'Peter Pan' Casting News Did Jimmy Fallon Look Up Heidi Klum's Dress? What Drama? Miranda Kerr Poses Topless Plane crashes in San Diego Costco parking lot Justin Bieber Takes To Instagram To Diss Orlando Bloom You Won't Believe the Celeb Cameos in "Sharknado 2"

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