Ex-pastor jailed in Ind. multimillion-dollar fraud

July 2, 2009 1:22:22 PM PDT
A former pastor and his sons charged with multimillion-dollar scheme aimed at church members are being held on $1.5 million cash bond in a western Indiana jail.Sixty-five-year-old Vaughn Reeves and three of his sons were at the Sullivan County Jail on Thursday. Initial court hearings for all four men have been set for July 8.

It wasn't immediately clear whether any of the men had defense attorneys.

The men are accused of duping about 11,000 people into buying bonds for church construction projects, diverting money from new investments to pay off prior investors in a Ponzi scheme and pocketing about $6 million.

U.S. marshals returned the men, whose last known addresses were in Ohio, Iowa and Kentucky, to Indiana on Wednesday to face the charges.