December 15, 2009
Farnbacher-Loles Owner Surrenders to Federal Authorities, Faces 20 Years
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
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