Bernie Madoff is in good company
They’re not gonna catch us. We’re on a mission from God. - Elwood Blues
(Sullivan, IN) – Former pastor Vaughn Reeves and his sons, Chip, Chris and Josh, face 10 separate felony counts each involving violations of the Indiana Securities Act. The charges allege the four engaged in a multi-million dollar, faith-based affinity fraud through the use of a modified Ponzi scheme.
“This case goes far beyond simple theft,” said Secretary Rokita. “The Reeves allegedly targeted their victims through their faith, and then exploited their religious convictions in order to hide their elaborate Ponzi scheme from potential investors.”
According to court documents, the Reeves allegedly committed affinity fraud by duping investors into buying bonds that raised at least $120 million. The stated purpose for the vast majority of the bonds was to supposedly finance church construction and expansion. However, the Reeves allegedly shuffled this money among various accounts and stole approximately $6 million for themselves in the process.
Secretary Rokita and Prosecutor Hunley will hold a press conference to discuss these charges today at 2:30 p.m. (EDT) in the Circuit Court Room on the 3rd Floor of the Sullivan County Courthouse located at 100 Courthouse Square in Sullivan, Indiana.
