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Belgrade Man Guilty in $5.3 Million Securities Case

Richard Reynolds faces up to 60 years in prison

December 12, 2013

HELENA – A Bozeman jury found Richard Reynolds guilty last night of six felony charges for bilking 141 victims out of $5.3 million through investor theft and running a massive Ponzi scheme. 

Reynolds, 52, held a chair over his head in an effort to shield his face from reporters as he left the Gallatin County courtroom after the jury deliberated for just under three hours before finding him guilty on all counts.

He faces a maximum of 60 years in prison and a $170,000 fine. Reynolds is scheduled to be sentenced on March 11, 2014.

Attorneys in the office of Montana Securities Commissioner Monica J. Lindeen had been working on the case for several years and prosecuted Reynolds with the Gallatin County Attorney’s Office.

“White collar criminals are no less dangerous than any other. Mr. Reynolds took advantage of the trust people placed in him and robbed them of their life’s savings.” Lindeen said. “I thank the jury for their time and wisdom. I thank the witnesses for coming forward and telling their stories. And I thank my team and the team in Gallatin County for all their hard work. Together, we brought a criminal to justice.”

Reynolds was charged in 2012 with two counts of fraudulent practices, one count of theft, one count of operating a Ponzi scheme, one count of failing to register as a securities salesperson and a final count of failing to register a security.

Between 2008 and 2011, Reynolds, who also went by the alias of “Richard Adkins,” used relationships he formed with pastors, ministers and other religious individuals to bring investors into his Ponzi scheme. Reynolds stole from 141 investors scattered across Montana, 19 other states and four foreign countries. After soliciting funds from investors, he pocketed more than $4.3 million and invested only about $8,000.