SULLIVAN — A former Sullivan pastor and his three sons have pleaded not guilty to charges they bilked millions from investors in an elaborate Ponzi scheme built on money intended for church construction projects.
Special Judge Jim Osborne of Knox County Superior Court presided over Wednesday’s hearing in Sullivan Circuit Court to appoint defense attorneys for Vaughn Reeves Sr., 65, and sons Chris Reeves, 40, and Josh Reeves, 33. All three men told Judge Osborne they own no property and have no funds to hire their own counsel.
However, Chip Reeves, 44, told the judge he will be represented by attorneys Nick Thiros, Merrillville, and James Voyles, Indianapolis.
Separate trial dates for the men were set for November and December, with all four pretrial conferences on Oct. 16 in Sullivan Circuit Court.
An audience of more than 40 people, many affected by the alleged investment scheme, watched the court proceedings, a few murmuring satisfaction when they saw the former Alanar Inc. executives arrive handcuffed and wearing jail-issued orange inmate clothes.
The men entered the courtroom quietly and sat together to await their turn in front of the judge and Sullivan County Prosecutor Robert Hunley, who read each of the 10 counts of class-C felony securities fraud to Vaughn, Chris and Josh Reeves. At the request of his attorney, the reading of the 10 criminal charges and penalties facing Chip Reeves was waived.
Bob and Teresa Moore of Terre Haute told the Tribune-Star they invested $300,000 with Alanar in early 2004 and felt it was a good investment due to the company’s reputation and longevity.
“They didn’t seem fly-by-night,” Teresa Moore said.
The $300,000 included all of Teresa’s retirement savings from working more than 30 years at Columbia House, in addition to the couple’s personal savings.
Bob Moore called the money “everything we had” and he had no good words for the Reeveses.
Some investors have been paid a small percentage on their investments as Alanar goes through the receivership process to sort out its finances. As a result of the receivership, in February the Moores did get a check for about 10 percent of their investment.
According to court documents, the Reeveses allegedly duped investors into buying bonds that raised at least $120 million. The stated purpose for the vast majority of the bonds was to finance church construction and expansion. However, the Reeveses allegedly shuffled this money among various accounts and stole approximately $6 million for themselves in the process, investigators say.
Prosecutor Hunley and Indiana Secretary of State Todd Rokita announced filing of the criminal charges June 30, alleging securities fraud that occurred between September 2000 and July 2005. All four men turned themselves in to authorities by July 1 and are being held in the Sullivan County Jail on $1.5 million cash bond each.
Judge Osborne set a jury trial date of 9 a.m. Nov. 16 for Vaughn Reeves Sr. Attorney Brian Jewell of Knox County was also appointed as his public defender.
A jury trial date of 9 a.m. Nov. 30 was set for Chip Reeves.
A jury trial date of 9 a.m. Dec. 7 was set for Chris Reeves. Attorney Jeff Johnson was appointed as his public defender.
A jury trial date of 9 a.m. Dec. 14 was set for Josh Reeves. Attorney Chris Ramsey was appointed as his public defender.
Following the hearing, Prosecutor Hunley said it appears the judge decided to start the trials with Vaughn Sr., who was head of Alanar.
The building of the case against the men involved many months and the review of thousands of documents. Many members of the audience exiting the courtroom Wednesday thanked Hunley for prosecuting the Reeveses.
“We’re dedicated to see this through,” Hunley said.
Local & Bistate
UPDATE: Ex-pastor, sons plead not guilty in Sullivan church scheme
- Local & Bistate
-
-
Giant welcome home for Steve
Terre Haute was suddenly home to thousands of cheering New York Giants fans Friday as residents welcomed Super Bowl champion Steve Weatherford back home for a parade.
-
‘One for Terre Haute,’ Steve tells crowd at North
“This one was for Terre Haute,” native son Steve Weatherford proclaimed Friday as he shared his Super Bowl victory with the community that helped send him on the path to a world championship.
-
Hometown support vital to success, Weatherford says
Steve Weatherford said Friday he wouldn’t be celebrating a Giants’ Super Bowl victory if not for the support he’s received from his hometown, his parents and mentors in his life.
-
Craning for a rare glimpse
A visitor from the Far East has naturalists flying to Linton, hoping some good comes from one bird’s bad directions.
-
Vigo’s primary election filings complete
The slate is set for the May 8 primary election, with the race for three at-large seats on the Vigo County Council drawing the largest pool of candidates at the county level.
-
Documentary on electric vehicles plays Sunday at Rose
The rising popularity of electric vehicles and their impact on the world eco-system is the focus of a documentary, “Revenge of the Electric Car,” being presented at 3 p.m. Sunday in Rose-Hulman Institute of Technology’s Hatfield Hall Theater.
-
Man gets 10-year sentence in battery case
A West Terre Haute man received a 10-year prison sentence Friday after pleading guilty to aggravated battery for beating a friend caught in bed with the man’s wife.
-
Asian hooded crane lands in Greene County wildlife area
Bird watchers are flocking to a southwestern Indiana wildlife area to try to catch a glimpse of a crane usually spotted only in Asia.
-
Slow drips: It’s maple syrup season in Indiana
More seasonal, colder temperatures will hit the Wabash Valley this weekend, which is ideal weather for maple syrup production, said Keith Ruble, superintendent of the Vigo County Parks and Recreation Department.
However, Ruble voices concern that this year’s maple syrup season may be short.
-
Downtown restaurant celebrates expansion
The streets of Terre Haute were chilly Thursday night, but for the glow of hot pasta inside Louise’s Pizzeria and Cafe.
-
Contract signed for new Y
Papers are signed and the ink is in place for a new YMCA to operate in Terre Haute.
-
City to impose $30 release fee on towed vehicles
The Terre Haute City Council voted without opposition Thursday to impose a new $30 release fee on vehicles towed and impounded by the police as part of a criminal investigation.
-
Valley educators cautious on Indiana’s ‘No Child’ waiver
Indiana is one of 10 states to receive a waiver from federal No Child Left Behind requirements.
-
Driver dies after Illinois school bus crash
“Brace yourself. Brace yourself,” Fay Pickering shouted to her students just before the school bus she was driving crossed U.S. 40 and landed in a ditch Thursday morning.
-
Trial date set for former WTH police chief
A July 23 trial date has been set for a former police chief of West Terre Haute accused of theft.
-
Motorcycle gang member pleads guilty in federal court
A member of an Indianapolis motorcycle gang who delivered methamphetamine to a Terre Haute dealer has pleaded guilty to drug charges in federal court.
-
July trial date set for mother charged with child neglect
A July 30 trial date has been set for a Terre Haute mother charged with neglecting and battering her toddler.
-
Business hosting SPPRAK fundraiser
Java Haute is hosting the latest fundraiser sponsored by SPPRAK — Special People Performing Random Acts of Kindness.
-
Valley high school cooking competition under way today
Clabber Girl Corp. and Gordon Food Services will host the fourth-annual High School Chef Competition, beginning today through Saturday, and again Feb. 18, in the Culinary Classroom at Clabber Girl.
- UPDATE: Marshall, Ill., school bus driver involved in accident dies; cause appears to be cardiac-related
-
Terre Haute road name game
What used to be called U.S. 40 from the Wabash River west through West Terre Haute to Interstate 70 needs to be renamed and, probably, get new street addresses, a Vigo County planner recommends.
-
MARK BENNETT: William Henry Harrison taught us how to campaign
William Henry Harrison is running for president, again.
It seems impossible, because today would be his 239th birthday, and America has never elected a deceased person to the Oval Office. -
Air National Guard cuts won’t hit 181st Intelligence Wing
The Air National Guard is taking the lion’s share of planned cuts announced last week by the U.S. Air Force. But no cuts are currently expected at Terre Haute’s 181st Intelligence Wing. In fact, the nation’s evolving defense strategy may spell growth at the local base.
-
Friends group takes over Ernie Pyle home in Dana
The western Indiana home in which renowned Hoosier journalist Ernie Pyle was born and an adjacent museum dedicated to preserving his legacy as a World War II correspondent have a new owner.
-
ISU rec center pool out of service while being repaired
Indiana State University is spending about $10,000 to repair a swimming pool at the Student Recreation Center, which opened in 2009.
-
Clinton man throws away, then recovers, $50,000 ticket
A Vermillion County man found himself in a scenario that strikes fear in the heart of Lottery players everywhere. He threw away a $50,000 winning ticket.
-
Show to feature talents of artists with disabilities
Artists whose disabilities have overshadowed their work get a chance to shine in the light of a prodigy this coming month.
-
Fort Wayne forester tells of damage
The emerald ash borer likely will cause as much as $8 million in damage to Fort Wayne’s ash trees by 2015, the city’s manager of forestry operations told a Terre Haute audience Tuesday.
-
Unclaimed assets now part of Goodwill auction site
Many of Indiana’s unclaimed assets are now on Goodwill’s online auction site, Indiana Attorney General Greg Zoeller announced Tuesday.
-
Toyota to increase Highlander output in Indiana
Toyota will increase production of the Highlander mid-size SUV in late 2013 at the company’s Princeton, Indiana plant. Hybrid and export versions will be included. The project is expected to create about 400 new jobs at Toyota Motor Manufacturing Indiana Inc.
- More Local & Bistate Headlines
-
Video of M.I.A's Obscene Halftime Gesture
Obama Scraps Birth Control Mandate
US Airmen's Killer Sentenced to Life in Germany
Navy Names Ship for Gabrielle Giffords
5 Killed in Wrong-way Crash on I-10 in La.
Raw Video: Deadly Blasts in Syria
Raw Video: Italy's Mount Etna Bursts Into Life
Uzbek Man Pleads Guilty in Plot to Kill Obama
Romney Slams President Obama at CPAC
Woman Pleads Guilty in 1987 Newborn Kidnap Case
Raw Video: Rough Seas Stop Oil Removal
Gingrich: Pres. Obama 'waging War on Religion'
Test on Comforter in Powell Unit Shows Blood
Winter Slamming North Asia, Parts of Europe
Denver's Largest-Ever Drug Bust Nets Dozens
Androgynous Model Walks Runway As Man and Woman
Marines: No Punishment for Nazi-like Flag
Raw Video: School Bus Burst Into Flames
Syrian Forces Renew Bombardment of Homs
Skaters Still Hold Hope for Dutch Marathon
First glimpse of Blue Ivy Carter
Absolute Lin-sanity
Angry Dad Shoots Teens Laptop
Hero Driver Saves Kids From Burning Bus
Funeral to be held for Powell boys
Kobe was 'rooting for Patriots' in Super Bowl
Sandusky on having to stay inside and people turning on him
Wookie Sensation
Woolly Mammoth Caught on Camera?
Sandusky makes a statement
Did JLo 'Assault' Marc Anthony on Camera?
Christie Brinkley's Runway Slip
Toddler forced to run half-naked in snow
Halle Wants to Leave the Country
Northern Lights shine above earth
Plane makes perfect belly landing
Kris Jenner New Face of Arousal Oils
