A former pastor has been sentenced to 54 years in prison for his role in a huge investment scheme that illegally earned him $120 million from investors in church bonds.The former pastor, Vaughn Reeves and his sons Christopher, Joshua, and Vaughn Jr, raised funds from purchasers of church bonds sold through their company Alanar, Inc.
The family collected millions through 300 separate bond issuances that were specifically designed to appeal to the “Christian faith” of their targets, according to the SEC complaint.
From the SEC,
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.
Reeves was found guilty on nine felony counts of aiding, inducing, and causing securities fraud.
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