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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

ADVERTISEMENT