Greg Loles, team principal the the Grand Am Champion team Farnbacher Loles, surrendered to Federal Authorities Tuesday after a two week stay in a Bridgeport, CT hospital following a reported suicide attempt.
He faces two counts, wire fraud and mail fraud, felonies that each carry a 20 year maximum sentence. He is accused of, starting in 2001, "Madoffing" 6 to 8 million dollars taken from his own church and fellow parishoners with the promise of a steady 7% return. The money was never invested.
This confirms much of what had been rumored for the last 6 weeks. Not yet come to light is what happened to the Farnbacher-Loles clients rumored to have put money down for 2010 race cars.
Below is the arrest affidavit from the FBI alleging the two felony counts and detailing how Loles diverted funds both for personal use and to the Farnbacher-Loles race team.
More Info in this article from NewsTimes.com
LOLES Gregory Affidavit[1]
end of post
Well. That sucks.
ReplyDelete-Freep
Do racing teams make money - ever? I know they have been successful but was Loles dumb enough to think that successfully campaigned racing team could replenish the funds he was spending? Wouldn't running a race team cost substantially more than what he took in from fellow church members?
ReplyDeleteMurph-- well some guys will do whatever it takes to play with the big boys...
ReplyDeleteAll those church donations up in smoke (tire, race fuel, and otherwise!)