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Home/World/Faith-based Fraud

Faith-based Fraud

Written by Staff | Wednesday, October 7, 2009

When church leaders want to raise money for building programs, they often turn to companies like Indiana-based Alanar, which trains these leaders to sell bonds to fellow church members. In Alanar’s training is advice to open meetings with prayer, quote Scripture during the sales call, and “never sell the facts, sell warm stewardship and the Lord.”

For Alanar, the plan worked. Thousands of investors—mostly church members thinking they were supporting church programs—forked over at least $120 million to the company. The only problem: Alanar was allegedly an elaborate—and illegal—Ponzi scheme. That’s what Huntington County (Ind.) prosecutor Robert Hunley II says. He filed 10 separate felony charges against the leaders of Alanar, former pastor Vaughn Reeves and his sons, Chip, Chris, and Josh. The charges accuse the Reeveses of diverting at least $6 million for personal use.

Federal Judge John D. Tinder will consider a plan that details a distribution schedule for investors defrauded by this investment scheme that was uncovered more than two years ago.

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