A Belgrade man has been convicted of running a Ponzi scheme that took $5.38 million from at least 140 investors in 20 states.
The Bozeman Daily Chronicle reports a Gallatin County jury on Wednesday found 52-year-old Richard Reynolds guilty of two counts of fraudulent practices and single counts of theft and operating a Ponzi scheme. Sentencing is set for March 11.
Prosecutors alleged that between 2008 and 2011, Reynolds used his relationships with church leaders to solicit investors. County Attorney Marty Lambert said Reynolds and his wife used more than $4.3 million on personal expenses.
Defense attorney Andy Breuner argued that state investigators froze Reynolds' assets before the investors' money could reach its full potential. Breuner said he plans to appeal some pretrial rulings.