Basically junk bonds backed by various church building projects.  There was a scandal involving he sale of them in my neck of the woods a few years back, so they are not very popular here anymore.

Don’t know…don’t attend church. 

frumhere: Don't know...don't attend church. 

----------------------------------------------

Spoken with heavy southern slang:

I'm a-layin' my hands on your post, you spawn of S-A-T-A-N!! Be gone you spirit of the damned! Leave this carnal vessel of the NASD and possess him/her no more!! (frumhere then falls backward to the ground, with a confused look on his faced) 

Arise my son/daughter, you are now redeemed and your U-4 has been wiped clean. Go forth and sell, sell, sell!!

[quote=Indyone]

Basically junk bonds backed by various church building projects.  There was a scandal involving he sale of them in my neck of the woods a few years back, so they are not very popular here anymore.

[/quote]

Thanks Indyone! Can you give me more info who sells them? I have a  client that is thinking about investing a very large sum into these things!   His wife is a nut case!

Thanks for your input!

Do a google search on Alanar, Inc. & SEC for an eye opener for your client.  If you want more info, pm me and I’ll give you the atty/website.  Vaughn Reeves and sons, Sullivan IN,  had a group of 37 bond funds with 50 million, and 120 million in church bonds. SEC in July 05 shut them down.  Charged with “affinity fraud.”  I’ve had several families walk into our office in a daze.  One had all their ira rollover/401k money, 500 thousand into the bonds and funds. Several other 100k+.  No interest & no idea whether they’ll get anything back. 

My timeline reference was a little off, but that's the group I was referring to, Cerberus...a very sad story.  I always tell people to beware anyone who uses religeon to sell investments...odds are, they are hiding something.

I'm not sure who is selling them these days...even before the SEC shut those shysters down, I hadn't seen them offered as investment alternatives for some time in these parts.

[quote=Indyone]

My timeline reference was a little off, but that’s the group I was referring to, Cerberus…a very sad story.  I always tell people to beware anyone who uses religeon to sell investments…odds are, they are hiding something.

I'm not sure who is selling them these days...even before the SEC shut those shysters down, I hadn't seen them offered as investment alternatives for some time in these parts.

Literally on the same office floor we had a firm that sold church bonds from the 1940’s-1990’s.  Churches from all over the country would contact them needing financing to build a new church.  Usually it would just be $1-$2 million.  The job of their firm was to professionally solicit all of the members of the church and church’s near by of the same faith and try and get people to invest.  The rates were reasonable and from what I was told, they only had a few churches ever default in their entire time.  As I understood it the firm averaged 1 per month for a long time.

Well imagine if you are a young broker and given a new stack of 400 names every month and they are told by their minister that you are calling and they should invest with you.  Think they got any business?  You bet they did.  Not many millionares in the listing but plenty of middle income Americans willing to transfer their retirement plans if it meant they could help out the broker who was doing so much for their church!