SEC v. Alanar, Inc.; Vaughn A. Reeves, Sr.; Christopher Reeves; Joshua Reeves; and Vaughn Reeves, Jr., No. LR-21778, Southern District of Indiana (Dec. 8, 2010) — Press Release
raw: Alanar, Inc., et al.
Alanar, Inc., et al., No. 1:05-cv-01102 (Dec. 8, 2010)
summary
Vaughn A. Reeves, Sr., a former pastor and CEO of Alanar, Inc., was sentenced to 54 years in prison for orchestrating a $120 million affinity fraud scheme targeting Christian investors through fraudulent church bonds.
paragraph
Vaughn A. Reeves, Sr. and his sons allegedly misused funds from over 300 bond issuances, raising at least $120 million from investors and personally receiving over $6 million in ill-gotten gains. Reeves was convicted on nine felony counts of securities fraud in Indiana state court and sentenced to 54 years in prison. The SEC filed a civil action against the Reeves, resulting in a $7.88 million judgment for disgorgement, interest, and penalties.
narrative
Vaughn A. Reeves, Sr., a former pastor and CEO of Alanar, Inc., was sentenced to 54 years in prison for orchestrating a massive affinity fraud investment scheme that raised over $120 million from investors in church bonds. The scheme, which involved approximately 300 separate bond issuances, targeted Christian investors and exploited their religious trust. Reeves and his sons, Christopher, Joshua, and Vaughn Reeves, Jr., allegedly misused funds from bond issuances, personally receiving over $6 million in ill-gotten gains. The SEC filed a civil action against the Reeves in 2005, resulting in a permanent injunction, asset freeze, and a court-appointed receiver. The Reeves were ultimately ordered to pay over $7.88 million in disgorgement, interest, and civil penalties. Reeves' sons faced separate criminal trials scheduled for 2011. The SEC and state authorities established a distribution plan for harmed investors through the court-appointed receiver.
Classified affinity-fraud(confidence 100%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Statutes
15 U.S.C. § 77q(a)15 U.S.C. § 78j(b)
Parties
KEECHAVILA CONSTRUCTION, INC.
Keywords
reevesvaughn reevesmillion investorsinvestorssecuritiesindianavaughnmillionstatecivil actionchurch bondsstate indianasecurities lawsreeves' schemeagainst reeves
Extracted insights
Dollar amounts 4
- $120.00M $120 million $100M–$1B
- $50.00M $50 million $10M–$100M
- $7.88M $7.88 million $1M–$10M
- $6.00M $6 million $1M–$10M
Entities 11
- organization Alanar, Inc.
- person Chief Judge David F. Hamilton
- person Christopher Reeves
- organization Gibson County
- person Joshua Reeves
- person Judge Deana Martin
- agency Securities and Exchange Commission
- organization State Of Indiana
- organization United States District Court For The Southern District Of Indiana
- person Vaughn a. Reeves Sr.
- person Vaughn Reeves Jr.
Triples 3
- Vaughn A. Reeves, Sr. was sentenced to 54 years in prison for his role in a massive affinity fraud investment scheme that raised more than $120 million from investors in church bonds
- Vaughn A. Reeves, Sr. was convicted of involvement in a massive affinity fraud investment scheme that raised more than $120 million from investors in church bonds
- SEC filed suit against Alanar, Inc., et al. in Civil Action No. 1:05-cv-01102 (S.D. Ind.)
Extracted body text (3,389c)
SECURITIES AND EXCHANGE COMMISSIONLITIGATION RELEASE NO. 21778 / DECEMBER 13, 2010SEC v. Alanar, Inc., et al., Civil Action No. 1:05-cv-01102 (S.D. Ind.) (Chief Judge David F. Hamilton)Former Pastor Sentenced to 54 Years in Prison for Role in Massive Investment FraudOn December 8, 2010, Gibson County, Indiana Judge Deana Martin sentenced Vaughn A. Reeves, Sr. to 54 years in prison for his role in a massive affinity fraud investment scheme that raised more than $120 million from investors in church bonds. On October 21, 2010, a Gibson County jury convicted Reeves ¢" a former pastor and the CEO of Alanar, Inc. ¢" on nine felony counts of aiding, inducing, and causing securities fraud. The SEC filed a civil action against Vaughn Reeves and others in July 2005 based on related conduct.The State of Indiana alleged that Vaughn Reeves and his sons, Christopher, Joshua, and Vaughn Reeves, Jr., violated state securities laws by misusing money raised from purchasers of church bonds sold through Alanar, Inc., an entity controlled by Vaughn Reeves and his sons. According to the State of Indiana, the Reeves' scheme involved approximately 300 separate bond issuances that raised at least $120 million from investors. The State of Indiana alleged that the Reeves' scheme was an affinity fraud in that Alanar's marketing strategy was devised to appeal to the Christian faith of potential investors. The State further alleged that the Reeves misused funds from certain bond issuances to conceal from investors the true rate of default on Alanar's bonds and that the Reeves personally received more than $6 million in ill-gotten gains. The State charged each of the Reeves with ten separate felony counts of violating the Indiana Securities Act. Christopher Reeves, Joshua Reeves, and Vaughn Reeves, Jr. are scheduled to go to trial in 2011. Additional information regarding the criminal prosecution of the Reeves can be found at: www.sullivancountyprosecutor.com/alanar-information.In July 2005, the SEC filed a civil action against the Reeves and others alleging, among other things, that the Reeves violated the antifraud provisions of the federal securities laws by misusing investor funds and improperly diverting investor funds to themselves and entities they controlled. The SEC further alleged that the Reeves' scheme raised more than $120 million from investors in church bonds, including $50 million from investors in related bond funds. On July 26, 2005, the United States District Court for the Southern District of Indiana issued an Order of Permanent Injunction against the Reeves and various entities they controlled which, among other things, permanently enjoined the Reeves from violating the antifraud provisions of the federal securities laws, froze their assets, and appointed an independent monitor over the Reeves' entities. In December 2005, the Court appointed a receiver over the Reeves' entities. The Court subsequently approved a plan that provides for a distribution of funds to harmed investors through the Court-appointed receiver. On May 19, 2008, the Court entered final judgments against the Reeves which, among other things, required them to collectively pay more than $7.88 million in disgorgement, prejudgment interest and civil penalties. For additional information regarding the SEC's case, see LR-19314 (July 27, 2005) and LR-20629 (June 25, 2008).
OCR text (3,389c · html-text · 99% conf)
SECURITIES AND EXCHANGE COMMISSIONLITIGATION RELEASE NO. 21778 / DECEMBER 13, 2010SEC v. Alanar, Inc., et al., Civil Action No. 1:05-cv-01102 (S.D. Ind.) (Chief Judge David F. Hamilton)Former Pastor Sentenced to 54 Years in Prison for Role in Massive Investment FraudOn December 8, 2010, Gibson County, Indiana Judge Deana Martin sentenced Vaughn A. Reeves, Sr. to 54 years in prison for his role in a massive affinity fraud investment scheme that raised more than $120 million from investors in church bonds. On October 21, 2010, a Gibson County jury convicted Reeves ¢" a former pastor and the CEO of Alanar, Inc. ¢" on nine felony counts of aiding, inducing, and causing securities fraud. The SEC filed a civil action against Vaughn Reeves and others in July 2005 based on related conduct.The State of Indiana alleged that Vaughn Reeves and his sons, Christopher, Joshua, and Vaughn Reeves, Jr., violated state securities laws by misusing money raised from purchasers of church bonds sold through Alanar, Inc., an entity controlled by Vaughn Reeves and his sons. According to the State of Indiana, the Reeves' scheme involved approximately 300 separate bond issuances that raised at least $120 million from investors. The State of Indiana alleged that the Reeves' scheme was an affinity fraud in that Alanar's marketing strategy was devised to appeal to the Christian faith of potential investors. The State further alleged that the Reeves misused funds from certain bond issuances to conceal from investors the true rate of default on Alanar's bonds and that the Reeves personally received more than $6 million in ill-gotten gains. The State charged each of the Reeves with ten separate felony counts of violating the Indiana Securities Act. Christopher Reeves, Joshua Reeves, and Vaughn Reeves, Jr. are scheduled to go to trial in 2011. Additional information regarding the criminal prosecution of the Reeves can be found at: www.sullivancountyprosecutor.com/alanar-information.In July 2005, the SEC filed a civil action against the Reeves and others alleging, among other things, that the Reeves violated the antifraud provisions of the federal securities laws by misusing investor funds and improperly diverting investor funds to themselves and entities they controlled. The SEC further alleged that the Reeves' scheme raised more than $120 million from investors in church bonds, including $50 million from investors in related bond funds. On July 26, 2005, the United States District Court for the Southern District of Indiana issued an Order of Permanent Injunction against the Reeves and various entities they controlled which, among other things, permanently enjoined the Reeves from violating the antifraud provisions of the federal securities laws, froze their assets, and appointed an independent monitor over the Reeves' entities. In December 2005, the Court appointed a receiver over the Reeves' entities. The Court subsequently approved a plan that provides for a distribution of funds to harmed investors through the Court-appointed receiver. On May 19, 2008, the Court entered final judgments against the Reeves which, among other things, required them to collectively pay more than $7.88 million in disgorgement, prejudgment interest and civil penalties. For additional information regarding the SEC's case, see LR-19314 (July 27, 2005) and LR-20629 (June 25, 2008).