Faithful are victims at both ends of church scam - 13 WTHR Indianapolis

Faithful are victims at both ends of church scam

Updated:
INDIANAPOLIS -

The government is still trying to clean up the financial mess left behind by a southern Indiana brokerage firm whose leaders scammed thousands of investors in dozens of states out of $120 million they believed would help build churches.

The government is trying to get the investors' money back, and much of that comes from small, independent churches that took loans from the firm called Alanar.

Lawyers who are cleaning up after the scam are trying to work out financial arrangements to allow congregations to maintain ownership of their houses of worship. But they don't always succeed.

The attorney handling Alanar's receivership says some congregations have abandoned their churches because they don't have the money.

But Indianapolis attorney Michael Rusnak said Wednesday that foreclosing on churches is a last resort.

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