Pastor and sons face fraud charges

SULLIVAN, Ind. (WTHI) - A former Wabash Valley pastor and his three sons were formally charged Tuesday for preying on church members.

Former pastor Vaughn Reeves and his sons, Chip, Chris and Josh face 10 separate felony counts.

The Reeves operated Alanar, Inc. an investment company in Sullivan, Ind. The four allegedly ran a multi-million dollar, faith-based affinity fraud for at least five years that duped thousands of investors into buying bonds that raised at least $120 million.

The Reeves allegedly stole $6 million for themselves in the process.

Money that was taken from people across the country and even right here in Terre Haute.

Bob and Theresa Moore entrusted their retirement money to Alanar back in March of 2004. Around $300,000 of Theresa's hard earned money from the last 30 years are now gone.

"What I would say to them, you stole from me, my golden years, that I had looked forward to since I was 18 years old," Alanar victim Theresa Moore said. "If I could ask Vaughn Reeves one question, it would be where you rotten from the beginning or did greed just get in the way somewhere down the road."

"They thought they were building churches with that money, instead they bought themselves Porshes, they bought themselves airplanes, they built themselves fancy houses and they built themselves swimming pools," Sullivan County Prosecutor Robert Hunley said.

Both Chip and Chris Reeves were arrested Tuesday and will be brought to Sullivan County Jail on a $1.5 million bond with no 10 percent.

Each of the Reeves could face up to 80 years in prison.