ILNews

Judges remand securities fraud case on statute-of-limitation issue

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Court of Appeals has ordered a trial court to reconsider whether it should discharge certain charges of securities fraud because the charges fall outside the statute of limitation.

Vaughn A. Reeves Jr. faces 10 counts of Class C felony aiding, inducing, or causing securities fraud. In July 2005, the United States Securities and Exchange Commission obtained an injunction against Alanar, a company run by Reeves’ family, to cease operations. Alanar used a Ponzi-like scheme to run the financing company geared toward churches and nonprofits.

Reeves was charged on June 30, 2009, alleging that for each count from September 2000 to July 2005, he knowingly or intentionally aided, induced, or caused another person to commit securities fraud. There is a five-year statute of limitation for the charge, but the probable cause affidavit invoked the concealment of evidence exception in Indiana Code Section 34-41-4-2(h)(2) to explain why the statute of limitation didn’t apply.

Reeves asserted that evidence showed the state had knowledge of potential wrongdoing by the company before 2005. The trial court denied his motion to dismiss, citing the concealment of evidence exception.

On interlocutory appeal in Vaughn A. Reeves, Jr. v. State of Indiana, No. 77A04-1005-CR-292, the appellate judges upheld the denial of Reeves’ motion to dismiss on charges that include offenses that allegedly occurred on or after June 30, 2004, as they would still fall within the five year statute of limitations. Acts occurring between September 2000 and June 29, 2004, fall outside that period.

The Court of Appeals needed to look at whether the state met its initial burden of making sufficient allegations in the charging information that the offenses Reeves committed were within the applicable statute of limitation. The judges found the charging information didn’t contain any allegation of the concealment of evidence exception or alleged dates of the concealment. The state didn’t allege it lacked sufficient evidence to charge Reeves or that his offense couldn’t have been discovered by due diligence, wrote Judge Carr Darden.

“We note, however, that the probable cause affidavit does contain specific allegations regarding the concealment of evidence exception that would have put Reeves on notice that the State intends to rely on the concealment of evidence exception for the purpose of bringing all the alleged acts within the five-year statute of limitation,” he wrote. “Therefore, under the specific facts of this case, we remand to the trial court for consideration, as set forth in Indiana Code section 35-34-1-4(d), of whether it will discharge the defendant as to the dates specified above or deny the discharge upon determining that the prosecutor would be entitled to cure the information by amendment.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  2. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  3. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  4. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

  5. ACLU. Way to step up against the police state. I see a lot of things from the ACLU I don't like but this one is a gold star in its column.... instead of fighting it the authorities should apologize and back off.

ADVERTISEMENT