Showing posts with label Indiana. Show all posts
Showing posts with label Indiana. Show all posts

Saturday, March 7, 2015

Embezzlement investigation snares Fortville PTO officer

The PTO treasurer at Fortville Elementary School has been asked to step aside as the organization launches an investigation into its finances.
The former treasurer, 39-year-old Marcy Smitley, is accused of stealing more than $120,000 from a homeowners association she managed on the south side of Indianapolis. Smitley faces 21 felony counts, including theft and forgery, Fox59 reports.
She's also served as PTO treasurer for two school years, according to the PTO president. However, the district said they've seen no signs of theft from the PTO account.
"My reaction was just amazement. I was shocked," said William Riggs, superintendent of the Mt. Vernon Community School Corporation. "She's done a good job of being a volunteer."
Riggs said the district got tipped off by a local paper.
Marion County prosecutors said Smitley took approximately $127,983 from the homeowners association at the Windslow Crossing condominium complex on the south side from 2009 to 2014. Smitley was working as a manager of that HOA, collecting dues, paying bills, and getting bids for various jobs on the property, according to a board member.
Investigators said she wrote unauthorized checks to her own management company. By May of last year, HOA leaders were suspicious and found the alleged fraud.
Smitley was booked in jail and bonded out last week. That's when the school got wind of the charges.
"That's something that they'll go through their receipts and their revenues and take a look at, but there's nothing I'm aware of that's inappropriate at this point," said Riggs.
Riggs said PTO funds are separate from school funds. The accounts typically don't carry large balances, no more than $5,000, and money from fundraisers is quickly reinvested in the school.
Still, PTO President Mary Jo Adams told us by phone that they are reviewing every transaction to make sure no money in their account is missing. She anticipates their preliminary investigation will be complete next week.
We went to Smitley's home for comment, but nobody answered the door.

Tuesday, August 12, 2014

Police investigating 6 years of embezzlement from Goshen church in Indiana

Goshen police are investigating a case of embezzlement from a local church spanning at least six years.
The Rev. John Drexler, pastor of Goshen First Brethren Church, 213 W. Clinton St., contacted police Wednesday, Aug. 6, to report the embezzlement, according to a Goshen Police Department report.
Police said in an email that they are working with the church’s accounting service provider to determine exactly how much money was taken.
No suspects have been arrested and no charges have been filed at this time, police said.
Drexler declined to comment on the situation.

Thursday, June 20, 2013

Audit finds N. Indiana school treasurer embezzled $280,000 before committing suicide

A state audit has found that the treasurer of a northern Indiana school district embezzled about $280,000 before police say she committed suicide soon after being questioned.

The thefts weren't suspected until several Tippecanoe Valley School Corp. checks and district credit card receipts for personal items were found by an investigator inside a purse that had been stolen from 50-year-old Sherri Adamson, according to a Kosciusko County Sheriff's Department report released Wednesday.

An officer and the district superintendent confronted Adamson at a Jan. 7 meeting, during which she said it was a mistake then fled after being told she would be taken to the sheriff's office for a formal interview, The Rochester Sentinel and The Journal Gazette reported. Officers found Adamson fatally shot herself inside her SUV in woods near her rural Rochester home.

The State Board of Accounts audit found Adamson made about $245,000 in improper credit card charges since June 2010 along with nearly $35,000 in checks made to herself or her creditors.

Adamson had been the treasurer of the 2,000-student district since July 2007. The district covers parts of Kosciusko and Fulton counties about 50 miles west of Fort Wayne.

District Superintendent Brett Boggs said the district expected full restitution of the embezzled money from public official bonding that covered Adamson. Boggs said much of the embezzlement happened during a time when the district was without a deputy treasurer and Adamson was covering the responsibilities of both positions.

Friday, May 31, 2013

South Bend teacher accused of embezzlement in Indiana

South Bend Police are investigating a possible embezzlement case involving a teacher at Dickinson Intermediate Fine Arts Academy. The police report shows the case stems from money collected for the school's yearbook.
"There was some discrepancy about where the funds had landed so they filed a report for us to look into that and the case is very much in its infancy right now,” said Sergeant Ian McQueen of the South Bend Police Department.
The police report states the principal, Mr. Sims arranged for teacher Dan Santos to collect money for this year's yearbooks.
On May 21st the principal discovered that Santos had put the money into his personal bank account and there were no invoices or any other documentation of any sales.
The following day Santos returned with a personal check for $3416 to cover the entire cost of every yearbook ordered and also handed over $400 in cash.
But the school would not accept the check and decided to have the cops investigate. They filed the police report last Friday.
The South Bend School Corporation is not willing to issue a statement or speak about the matter.
Santos said he cannot comment because that is the police of the school district.
School board member Bill Sniadecki is wondering why school officials didn't inform the board about this case until Thursday.
"It's a little shocking to me that for one the board did not hear about this,” said Sniadecki.
Principal Sims ordered us off of the property while we were talking to parents and students who seemed to be defending Mr. Santos.
"I signed up for year book and he's a really, really, really nice teacher. And he is a good teacher too,” said Vinson.
South Bend Police say at this point they're not sure whether this case is a criminal or civil case.

Wednesday, May 29, 2013

Ex-administrator sentenced for church embezzlement in Indiana

FROM TECHNOLOGYINSIGHT.COM


A judge says a former administrator of a Muncie church was brazen in embezzling more than $130,000 over a nine-year period.

The judge sentenced 42-year-old Angela Renee Linder of Yorktown to 17 months in prison during a federal court hearing Tuesday in Indianapolis.

The Star Press reports Linder testified she suffers from bipolar disorder that caused her to go out of control with credit cards from Muncie's Union Chapel United Methodist Church.

Assistant U.S. Attorney Gayle Helart says Linder used the church's money for personal expenses ranging from trips and home renovation projects to fees at fertility and weight-loss clinics.

Linder called her actions "appalling and deeply wounding." She apologized to the church and her family for the shame she caused.

Just because an organization is a nonprofit doesn't mean it shouldn't be doing all it can to manage its finances. Especially for agencies that have more restrictive budgets and intend to provide their communities with services, it is critical that internal operations run smoothly to prevent crimes before they occur.
The Star Press reported that a former administrator at a Muncie, Indiana, church was recently sentenced to 17 months in prison on embezzlement charges. Angela Linder stole more than $130,000 from Muncie's Union Chapel United Methodist Church over the course of nine years. She is also required to pay $138,000 in restitution, split between the church and an insurance company that compensated the organization for its losses.
The news provider noted that Linder stole the funds using several credit cards in addition to checks from the church's accounts. The money was used for personal expenses, including home renovations, vacation trips, and visits to fertility and weight loss clinics.
According to Managing Your Church, there are a few major ways that nonprofits can prevent embezzlement from taking a toll on their ability to serve the public. First, it is key that employees are compensated fairly, as one reason workers may misappropriate funds is that they feel they are underpaid. Another important step to take is to make sure internal controls are well-managed, and this includes not leaving just one person in charge of money.
Additionally, using audit solutions is critical. The source explained that leaders should not underestimate the positive effect internal and external audits can have on a nonprofit establishment. External audits are valuable because experts may be able to catch wind of loopholes or compliance issues that employees might not initially notice, while internal audits can be performed more frequently by staff to make sure all procedures and policies are working correctly.

Monday, May 20, 2013

Church thief gets forgiveness from new church in Indiana.




FROM THE STARPRESS.COM -


For many East Central Indiana residents, the community’s churches — and other places of worship — are a welcome source of fellowship, inspiration and moral support.

But what does one do after allegedly stealing almost $200,000 from a local congregation?

One possibility is to find a new church.

Angela Renee Linder, a 42-year-old rural Yorktown resident, is set to be sentenced in nine days, in U.S. District Court in Indianapolis, over allegations she embezzled nearly $200,000 during the nine years she worked as an accounting administrator at Union Chapel United Methodist Church on Muncie’s north side.

The charge, wire fraud, carries a maximum 20-year prison term and $250,000 fine, but Linder’s sentence is certain to be far less severe than that, given that she and her attorney, Mark McKinney, have negotiated a plea deal with federal prosecutors.

In recent days, McKinney submitted nearly 50 letters of support for Linder to be considered by U.S. District Court Judge Tanya Walton Platt before she sentences Linder on May 28.

Several of the letters are from those who have attended church with the defendant, but not at Union Chapel.

Those letters come instead from members of the Yorktown Church of the Nazarene, where Linder and her family have worshiped in recent years.

The letters contain what are no doubt sincere endorsements of Linder as a caring wife, mother and Christian.

Some of the letters don’t address Linder’s misdeeds, or possible punishment, in any fashion. Others specifically refer to the possible sentence Judge Platt could impose, and describe the devastating impact the Yorktown woman’s incarceration would have on members of her household.

“I personally don’t think she should be taken away from her family for one stupid mistake,” one friend wrote the judge.

Prosecutors might suggest the theft of $200,000 over a period of several years, involving hundreds of individual misdeeds, could represent more than a single “mistake.”

The Yorktown church’s family pastor, Brian Couch, said Linder was “vigilant protecting” her family, “as much as possible, from societal harm.”

Senior Pastor George Ballard wrote that he believed Linder had made a sincere effort “to move her family forward by sitting with them and explaining her misguided deeds, and (she) has a tremendous repentant heart for anyone she has wronged.”

“With this, I believe that Angela is fully aware that there are consequences for errors, restitution for justice to be served, and a peace of knowing she is in God’s hands either way,” Ballard added.

Several of the letters — both from Yorktown Church of the Nazarene members and those who came to know Linder and her husband through their work with the fire department and ambulance crew in the Daleville area — note her founding of the “Children’s Fire Clothing Rescue,” providing replacement clothing for youngsters whose homes and belongings had been damaged by fire.

The congregation of Union Chapel United Methodist Church might deserve a shout-out for those efforts as well, for providing what local economic officials might call “seed money.”

Court documents suggest Linder set up her charity using stolen money that Union Chapel members had tithed to their own church.

The most poignant letters, perhaps, come from members of Linder’s family.

Her husband, Robert, asked Judge Platt to consider his wife’s service as an EMT, recalling one of her first calls, to an October 2007 accident on Interstate 69 that killed five members of an Amish family and injured 11 other people.

“I finally noticed that Angie was sick,” Linder wrote, apparently referring to the circumstances surrounding her alleged criminal activity. “After we got her help and in a therapy program, then I noticed just how sick and bad her illness is.

“She has changed with the daily medications she takes. I do know with my professional job that mental illness can be deadly.”

The letter doesn’t put a time frame on his discovery of his wife’s problems.

She worked at Union Chapel from February 2001 to March 2010, and is accused of using the church’s credit cards to pay for family vacations, home improvement projects, meals at various restaurants and medical expenses, and to buy items including clothing, wine, gasoline and cosmetics.

(Page 3 of 3)


According to U.S. Attorney Joe Hogsett’s office, Angela Linder, in addition to drawing her regular salary, paid herself more than $54,000 between 2004 and 2006 — the year she married Brian Linder — by falsely listing herself as working at a community center associated with Union Chapel.

Authorities said Linder’s theft spree apparently began in 2003 and lasted until her employment at the Muncie church ended in 2010.

Letters, we get letters
Nearly every time a story concerning embezzlement appears, we receive communication from readers asking why we haven’t reported on accounts they’ve heard, usually through the grapevine, of money being stolen from local workplaces or organizations.

If the victims of those purported crimes have elected to not involve law enforcement in the resolution of their problems, such developments are far more likely to remain private — unless public funds are involved. And that’s hardly a coincidence.

Delaware County Prosecutor Jeffrey Arnold last week told The W/R Report he has yet to receive final reports from Indiana State Police on two ongoing theft investigations.

One involves the alleged embezzlement of funds from the Muncie Fraternal Order of Police lodge. The other focuses on the reported theft of more than $4,000 from a safe at the Delaware County Fairgrounds.


Senior Pastor George Ballard wrote that he believed Linder had made a sincere effort “to move her family forward by sitting with them and explaining her misguided deeds, and (she) has a tremendous repentant heart for anyone she has wronged.”

“With this, I believe that Angela is fully aware that there are consequences for errors, restitution for justice to be served, and a peace of knowing she is in God’s hands either way,” Ballard added.

Several of the letters — both from Yorktown Church of the Nazarene members and those who came to know Linder and her husband through their work with the fire department and ambulance crew in the Daleville area — note her founding of the “Children’s Fire Clothing Rescue,” providing replacement clothing for youngsters whose homes and belongings had been damaged by fire.

The congregation of Union Chapel United Methodist Church might deserve a shout-out for those efforts as well, for providing what local economic officials might call “seed money.”

Court documents suggest Linder set up her charity using stolen money that Union Chapel members had tithed to their own church.

The most poignant letters, perhaps, come from members of Linder’s family.

Her husband, Robert, asked Judge Platt to consider his wife’s service as an EMT, recalling one of her first calls, to an October 2007 accident on Interstate 69 that killed five members of an Amish family and injured 11 other people.

“I finally noticed that Angie was sick,” Linder wrote, apparently referring to the circumstances surrounding her alleged criminal activity. “After we got her help and in a therapy program, then I noticed just how sick and bad her illness is.

“She has changed with the daily medications she takes. I do know with my professional job that mental illness can be deadly.”

The letter doesn’t put a time frame on his discovery of his wife’s problems.

She worked at Union Chapel from February 2001 to March 2010, and is accused of using the church’s credit cards to pay for family vacations, home improvement projects, meals at various restaurants and medical expenses, and to buy items including clothing, wine, gasoline and cosmetics.

According to U.S. Attorney Joe Hogsett’s office, Angela Linder, in addition to drawing her regular salary, paid herself more than $54,000 between 2004 and 2006 — the year she married Brian Linder — by falsely listing herself as working at a community center associated with Union Chapel.

Authorities said Linder’s theft spree apparently began in 2003 and lasted until her employment at the Muncie church ended in 2010.

Letters, we get letters
Nearly every time a story concerning embezzlement appears, we receive communication from readers asking why we haven’t reported on accounts they’ve heard, usually through the grapevine, of money being stolen from local workplaces or organizations.

If the victims of those purported crimes have elected to not involve law enforcement in the resolution of their problems, such developments are far more likely to remain private — unless public funds are involved. And that’s hardly a coincidence.

Delaware County Prosecutor Jeffrey Arnold last week told The W/R Report he has yet to receive final reports from Indiana State Police on two ongoing theft investigations.

One involves the alleged embezzlement of funds from the Muncie Fraternal Order of Police lodge. The other focuses on the reported theft of more than $4,000 from a safe at the Delaware County Fairgrounds.




Sunday, March 31, 2013

Church embezzlement hearing rescheduled in Indiana

A hearing at which a rural Yorktown woman is expected to plead guilty to embezzling almost $200,000 from a Muncie church is now scheduled for May 28.

Angela Renee Linder, 42, is charged with wire fraud in U.S. District Court in Indianapolis. A change-of-plea and sentencing hearing had been set for May 23, but it was recently rescheduled.

The charge is a federal offense that carries a maximum 20-year prison term and $200,000 fine. Court records reflect Linder and her attorney have negotiated a plea agreement.

Linder worked at Union Chapel United Methodist Church from 2001 through May 2010, and was in charge of handling payroll, preparing tax returns and the church’s credit card accounts, according to U.S. Attorney Joe Hogsett’s office.

She is accused of using those credit cards, and writing fraudulent checks drawn on church accounts, to pay for her personal expenses, and with paying herself more than $50,000 in unearned wages.

Thursday, January 31, 2013

Indiana woman embezzled $200K from church while working as its accountant


 A central Indiana woman faces federal charges alleging that she embezzled nearly $200,000 from a church while working as its accountant and used the money for vacations, clothing and other personal indulgences.
Angela Renee Linder, 42, is charged with wire fraud, a federal offense that carries a maximum 20-year prison term and $250,000 fine. She was scheduled to appear Wednesday afternoon in U.S. District Court in Indianapolis for an initial hearing.
The Star Press reports that Linder worked as an accounting administrator for Union Chapel United Methodist Church from 2001 to 2010. Her duties included handling the Muncie church's payroll and its credit card accounts.
Federal prosecutors said that Linder used her access to the church's finances to bilk it out of nearly $200,000 and used the money for vacations to Chicago and Gatlinburg, Tennessee, to buy clothing, pay for meals and finance home improvements.
Court records indicate Linder and her attorney, Mark McKinney, have negotiated a plea agreement with federal prosecutors.
U.S Attorney Joe Hogsett says Linder will plead guilty at a May 23 hearing.
In her proposed plea agreement, Linder is said to have "demonstrated a recognition and affirmative acceptance of personal responsibility for her criminal conduct," according to court documents. The paperwork is signed by Linder, McKinney and U.S. Attorney Gayle L. Helart.
She allegedly used the church's credit cards and wrote fraudulent checks drawn on church accounts to pay for numerous personal expenses.
Linder also is accused of stealing about $2,500 from the church to set up a fund "purportedly for the purpose of assisting children whose families were victims of fire-related disasters."
Gregg Parris, senior pastor at Union Chapel, released a statement Tuesday saying his congregation will weather the financial scandal but that the Linder case made them feel violated.
"We were very disappointed to learn our former accountant was misappropriating church funds for personal use," Parris said. "Needless to say, when trust is violated, it does harm to everyone involved, especially in a setting where trust is so highly regarded."

http://www.thestarpress.com/assets/pdf/C720023922.PDF

Saturday, August 25, 2012

Indiana church's ex-bookkeeper pleads guilty to embezzling more than $364 thousand for personal use

From http://www.greenfieldreporter.com-

A northeastern Indiana church's former bookkeeper has pleaded guilty to embezzling more than $364,000 in church funds.

Beth Boger of Garrett pleaded guilty Thursday to all 10 counts contained in an indictment issued last year by a federal grand jury. Those charges range from wire fraud to tax evasion.
The Journal Gazette reports (http://bit.ly/Pj1XAs ) that as part of her guilty plea, Boger agreed to repay $364,436 for her conduct and an additional $50,385 in taxes due.
Court documents allege that for nearly five years, Boger embezzled funds from St. Joseph Catholic Church in Garrett and used the money to support her household and lifestyle. She allegedly embezzled the money between June 2004 to April 2009.
Boger will be sentenced at a later date.



Friday, September 23, 2011

Church reports embezzlement in South Bend, Indiana

South Bend police are investigating an alleged embezzlement at the New Jurasalem Baptist Church in the 200 block of North Johnson Street.

The suspects in the case, a man and a woman, are reportedly former employees of the church. They are accused of embezzling about $2,500, according to a police report.
Police say the alleged misappropriation originated from a First Source Bank checking account the two were authorized to use. One of the suspects reportedly had access to write checks.
The alleged offenses occurred between Aug. 11 and Sept. 12.
The case has been turned over to a fraud investigator. No arrests have been made

Wednesday, August 24, 2011

SW Ind. church's ex-secretary faces theft charges

FROM WXIX.COM -


A southwestern Indiana church's former secretary faces theft charges for allegedly embezzling more than $51,000 in church funds.

State Police say 45-year-old Denise Purcell of Vincennes was arrested Wednesday on four counts of theft. She remained jailed Wednesday afternoon at the Knox County Jail on a $6,500 bond.
Purcell had been the administrative assistant and financial secretary at Community United Methodist Church in Vincennes.
Police say an investigation that began in January found that Purcell allegedly used two church credit cards to purchase numerous items for her personal use between February 2007 and August 2010. That amount totaled more than $51,000.
Purcell had worked at the church for about nine years before she resigned in September 2010

Monday, June 13, 2011

Church rocked by allegation of theft in Indiana

FROM THE JOURNALGAZETTE.NET

Apparently, 44-year-old Beth Boger had quite a good scheme going.

For nearly five years, according to court documents, Boger, the bookkeeper for St. Joseph Catholic Church in Garrett, used the church’s funds to support her own lifestyle, taking more than $364,000 for herself from June 2004 to April 2009.
In May, a U.S. District Court grand jury in South Bend indicted the Garrett woman on 10 counts, ranging from wire fraud to tax evasion.
Like any business or non-profit, churches are not immune to internal thefts and embezzlement, something that may have gotten worse as the economy went sour. And like a business, churches need to protect themselves from such crimes, experts said.
If victimized, the churches must work to regain the trust of their congregation, as well as replacing what was taken.
Last week, Boger, a demure woman with glasses and short auburn hair, appeared before U.S. District Magistrate Judge Roger Cosbey in Fort Wayne for an initial hearing on the charges, which could put her behind bars for years.
A plea of not guilty was entered on her behalf and she remains free on bond.
Attempts to contact her were unsuccessful.
The Roman Catholic Diocese of Fort Wayne-South Bend remains tight-lipped about Boger’s alleged thefts because of the ongoing investigation and pending trial.
But court documents detail Boger’s alleged scheme to defraud the church through her access to its books, making money look as if it went anywhere but to her personal account.

Accents by Beth
According to the federal indictment, Boger owned a business called Accents by Beth.
Beginning June 3, 2004, Boger wrote checks to her business, drawn on the checking account of St. Joseph Catholic Church in Garrett.
She would then deposit that check into her business account and, a few days later, transfer the money into her personal checking account, according to court documents.
That money would then be used to support her household and lifestyle, though court documents offer no specific examples.
But the church never knew the checks went to Accents by Beth, according to court documents.
Instead, Boger would show in the church’s books that the money paid expenses for the St. Martin’s Clinic, a local non-profit.
And then, when the cleared checks were returned from the bank to the church, Boger would alter the payee from Accents by Beth to a vendor used by the church, according to court documents.
In 2006, Boger’s scheme pulled in $96,245. In 2008, it was $69,825, according to court documents.
The indictments allege not only the wire fraud with the checks but also evading the payment of income taxes.
Because she reported that she and her husband made only $7,788 in income for 2006, they owed no income taxes.
But when federal investigators took into account the funds Boger allegedly embezzled that year, the family actually had taxable income of $104,033, according to court documents.

Recovering
Churches are by their nature trusting places and may not have sufficient controls in place to guard their finances.
In early 2009, a former employee of Lakeview Wesleyan Church in Marion was charged with stealing more than $275,000 from the church, where he was director of finances.
William Jeremiah Six, 28 at the time, used the money to pay for motorcycles, cars and a vasectomy, according to court documents.
He was eventually convicted of two counts of theft and given a largely suspended prison sentence, court officials said.
And members of the church were left to pick up the pieces.
According to Mike Bonner, the large Grant County church has put most of what happened behind it, and Six is still reimbursing the church for what he took.
“We thought things were going fine,” said Bonner, a leader in the church.
Six was responsible for three ministry units within the church and the finances of each one, Bonner said.
The church operates many ministries, including a school and a counseling center.
Six would present fabricated financial reports to church administrators to conceal his thefts, Bonner said.
The church discovered Six’s theft through anomalous W-2 forms containing incorrect information.
When church officials confronted Six, the rest of the fraud came out, Bonner said.
Bonner said the betrayal of trust may dig a little deeper for a congregation than it would a typical business because within a church family there is a stronger expectation that trust won’t be broken.
After the thefts were discovered, Lakeview Wesleyan staff worked with accountants to help hone the church’s policies and procedures, recognizing that the complex ministry lent itself to fraud, Bonner said.
Each ministry unit had its own system of accounting, and now they all have one.
We have survived,” Bonner said.


Protecting assets


Fort Wayne-based Brotherhood Mutual Insurance specializes in church insurance.
“We feel very much a mission not to just insure them, but to help them protect their people, property and reputation,” said Mitzi Thomas, assistant vice president of marketing and communications.
Because thefts within a church damage its reputation in a community, the company has seen an increase in interest in Brotherhood Mutual’s resources on how to prevent such activities, Thomas said.
In conjunction with Christianity Today, an Evangelical Christian magazine, Brotherhood Mutual launched a website – churchsafety.com – to help churches protect themselves.
Within the past year, articles about embezzlement and financial security have been among the most viewed on the site, Thomas said.
“People who would never consider putting their hand in the plate are driven by job loss to do that,” she said. “I think the economy has a big thing to do with this.”
It can take church officials awhile to discover they’ve been victimized and then to confront the offender, Thomas said.
“Churches have so much on their plates,” she said. “They want to be trusting, and most churches consider themselves a community.
“One of the last things you want to do is to think badly about someone you care about.”

Wednesday, December 8, 2010

Ex-pastor going to prison for duping investors in Indiana

A judge sentenced a southern Indiana church financier to 54 years in prison Tuesday for pocketing millions of dollars that investors believed would be used to build churches.

Former pastor Vaughn Reeves, 66, had little reaction as officers escorted him from the courthouse in Sullivan, about 80 miles southwest of Indianapolis, said his attorney, who promised to challenge the conviction and the sentence. Reeves was convicted on nine counts of securities fraud in October.
"There's going to be an appeal on a lot of grounds," attorney Dale Webster said after the hearing.
Investigators said Reeves and his three sons used their now-defunct company, Alanar, and sales pitches that included prayers and Bible passages to dupe about 11,000 investors into buying bonds worth $120 million secured by mortgages on construction projects at about 150 churches.
Instead, Reeves and his sons diverted money from new investments to pay off previous investors, pocketing $6 million and buying two airplanes, sports cars and vacations, investigators said.
Prosecutors have said the case was a prime example of affinity fraud, in which scammers prey on people who share a common interest, such as religious affiliation, ethnicity or age.
"What they did in their company hurt a lot of people," said Jack Newman, 73, of Terre Haute, a retired vice president of marketing who said he invested about $26,000 with Alanar and so far has recovered just 20 cents on the dollar. "Justice needed to be served."
One of the victims who testified at Tuesday's sentencing hearing said he wasn't able to buy health insurance after investing $600,000 in church bonds from Alanar, Sullivan County Prosecutor Bob Hunley said. As a result, Steve Duncan testified that he went blind after developing an eye condition that would have been preventable.
Reeves' sons are scheduled to go on trial in March.
Special Judge Dena Martin sentenced their father to consecutive six-year terms for each of the nine fraud counts, which alleged that he victimized about 2,900 investors who lost a total of $13.1 million, Hunley said.
Among aggravating factors, Martin found Reeves targeted people over age 65 and used religion to influence them, Hunley said.
"We're very happy with the judge's decision," Hunley said.
The judge gave Reeves credit for cooperating with investigators after he turned himself in.
Alanar used a modified Ponzi scheme in which it diverted investors' money from their building projects to speculative investments and to interest payments on other bonds, according to the Indiana Secretary of State's Office, whose Securities Division assisted prosecutors in the case.
Alanar encouraged church members to sell the bonds to fellow congregants using sales pitches that included prayers and Bible passages.
"Never sell the facts, sell warm stewardship and the Lord," Alanar training materials said, according to the Securities Division.
Martin ordered public defenders to handle Reeves' appeal. Webster, Reeves' current public defender, said the new attorneys haven't been selected yet.

Monday, December 6, 2010

Two cases of embezzlement go to court Monday in Indiana

Two cases of embezzlement in the Michiana area go to court on Monday.

The former treasurer of the Goshen High School band is scheduled to learn her sentence. Vincenta Linda Barrios pleaded guilty last month to four counts of felony theft. Barrios admitted to stealing more than $10,000 from the band's Boosters fund.
Meanwhile, the former commander of the Indiana State Police Toll Road post has his first court appearance on Monday after being arrested last week.
Dallard Tackett, 58, faces 17 criminal charges, including six counts of forgery, 10 counts of theft and one count of official misconduct. Police say Tackett stole more than $90,000 from the department. He is being charged in Elkhart County where most of the transactions took place. Tackett resigned back in august after allegations first surfaced.

Sunday, October 24, 2010

Woman arrested for embezzling thousands from church in Indiana

Indiana State Police have arrested a former treasurer of an Petersburg, Ind. church.After an investigation, ISP says 68-year-old Phyllis Jones embezzled over $257,000 from the Gospel Center Church.Jones was arrested after she turned herself in at the Pike County Jail.She was later released after posting bond.
The alleged misappropriation of funds started in January 2003, with the most recent incident occurring in April.

Tuesday, October 19, 2010

Buchanan PTO embezzler gets jail in Indiana

Good people can make bad choices. That was the message Berrien County Trial Judge Scott Schofield gave Buchanan resident Jennifer Mollberg when he sentenced her Monday for embezzling more than $33,000 from a Buchanan school organization."You may be a good person, but you made a series of terribly poor choices," Schofield told Mollberg. "One of the lessons I hope the community learns is that even good people are capable of terrible choices."You have the opportunity to teach your children that even good people can be at terrible risk of making poor choices, and you have the opportunity to teach them how to recover," he said. "You feel guilt and shame and you should."Mollberg was the treasurer of the Ottawa Elementary Parent Teacher Organization and embezzled the money in a period between Jan. 1, 2006, and July 30, 2010.
The embezzlement was discovered when Ottawa Elementary Principal Karin Falkenstein reviewed the P.T.O.’ s financial records and found that the fundraising account was overdrawn. The school district has since put checks and balances in place.Mollberg, 44, of Broceus School Road in Buchanan, was sentenced Monday to 90 days in jail for embezzlement over $1,000 and less than $20,000 involving a not for profit/ charitable organization.Schofield said he would consider an early release from jail before the Christmas holiday with the remainder of her jail time added to the 90 days tether that she must served after she gets out of jail.She was also placed on three years of probation and ordered to perform 200 hours of community service. She can not work or volunteer in any position where she has control of other people’s money.She must pay $2,110 in fines and costs and the remaining $4,080 owed in restitution. She and her family have repaid all the money taken except that amount and plan to repay that this week, defense attorney Tim Dowling said.Schofield commended Mollberg for already paying most if not all of the money she took, but said she had betrayed the trust of the school and the community. "You betrayed their trust in a major, major way," he said.He said he fashioned Mollberg’s sentence so that it was similar to other embezzlers’ sentences in recent years. He cited other embezzlement cases involving the Niles schools, the Rotary Club and Polly’s Place women’s shelter.Mollberg said she was ashamed. "I am so ashamed of what I’ve done," she said. "I did intermingle the P.T.O.’ s money with my own. It was wrong to take it, I had no business taking it. The school entrusted me with the money and (I) took advantage of that."Dowling said the embezzlement had been life shattering for Mollberg and her family. "She’s worn the shame and humiliation like a scarlet letter," he said. "She’s paid back all the money and she’s willing to do anything."