Former LSD Bishop Accused of Defrauding Church Members

Former LSD Bishop Accused of Defrauding Church Members

A former bishop in the Church of Jesus Christ of Latter-Day Saints (“LDS”) was accused of defrauding members of his congregation or investors whom he met through his position in the LDS church.  Chad Reid fraud

Chad Bennett Reid, 57, of South Ogden, was criminally indicted for securities fraud and engaging in a pattern of unlawful activity.

The prosecutors charged Reid with defrauding at least three investors out of more than $100,000 between March 2005 and February 2009.  His misconduct may have caused over $270,000 in losses from as many as 31 investors, according to the prosecutors.

Reid first sold a “once-in-a-lifetime opportunity” in a company called NetFundz, to a member of his ward, the regulators alleged.  Subsequently, Reid recruited more victims to invest in NetFundz by assuring them that they will make huge profits when the company gets sold, the regulators stated.

Reid indicated he had received a $50 million offer for NetFundz, but rejected it because he believed he could get as much as $200 million – to – $500 million for the company, said the regulators.

Subsequently, Reid promoted another company, called Saveclick, which, he claimed, would provide and manage student loans for college students, according to the charges filed against him.

As money he received from his investors became due and investors started contacting Reid, they were unable to get a hold of him, according to court documents.  While he appears to have paid some of the money he collected, a large amount is still due.

Reid is due back in court on January 16.  On that date, he is to decide whether or not to have a preliminary hearing on the evidence presented against him.

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