Ex-Pastor Sentenced In Church Bond Hedge Fund Fraud

Dec 17 2010 | 12:41am ET

A former pastor has been sentenced to 54 years in prison for ripping off investors in his supposed hedge fund of more than $13 million.

Vaughn Reeves was convicted in October of securities fraud. Prosecutors say he told investors his Alanar Inc. would invest in church construction bonds, but that the 66-year-old Indiana man actually spent the money on himself and his sons, who are set to go on trial next year. Among the goodies the Reeves allegedly bought for themselves were airplanes, sports cars and lavish vacations.

“I am terribly sorry,” Reeves said at his sentencing. “We certainly didn’t set out to defraud or hurt anyone.”

Reeves’ lawyer pleaded for a much shorter sentence—possibly just probation—to allow his client to attempt to make investors whole. But the judge said that the number of victims and amount lost justified the longer sentence.

Reeves was also ordered to pay more than $13.1 million in restitution.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

From Switzerland With Love: Some Hard Truths About Central Banks And Risk

Jan 23 2015 | 7:54am ET

In the wake of the Swiss National Bank uncoupling the country’s currency from...

 

Editor's Note