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July 7, 2011

Final Alanar defendant to get 24 years

SULLIVAN — The fourth and final defendant in the Alanar securities fraud case in Sullivan County has signed a plea agreement calling for 24 years in prison.

Vaughn “Chip” Reeves Jr. will be sentenced July 29 in Sullivan Circuit Court where he has been charged with 10 counts of securities fraud, a class-C felony, for his involvement in Alanar Inc., which duped investors out of millions of dollars intended for church construction projects.

His father, company founder Vaughn Reeves Sr., received a 54-year prison sentence in December after a lengthy trial in Gibson County. Brother Josh was sentenced in February to a 6-year prison term through a plea agreement, and brother Chris was sentenced in May to 12 years in prison through a plea agreement.

Chip Reeves had been scheduled to go on trial in June in Gibson County, but that trial was continued. He signed a plea agreement Tuesday. On each of the 10 counts, Reeves will receive a 6-year sentence, with 1 year suspended to probation. However, only 4 of the 10 counts will be served consecutively, adding up to a 24-year sentence with 4 years suspended to probation, for 20 years of prison time.

Reeves will also receive credit for about two years that he has spent in the Sullivan County Jail awaiting trial.

Special Judge Dena Martin of Greene County has presided in all four criminal cases, and will handle the sentencing hearing July 29.

More information about the prosecution of the cases is available online at www.sullivancountyprosecutor.com.



Lisa Trigg can be reached at (812) 231-4254 or lisa.trigg@tribstar.com.

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