According to a report by the New Haven Register, Gregory Loles – the team principal behind the Farnbacher-Loles race team and its associated performance shop – has been fingered in an embezzlement scandal involving the St. Barbara Greek Orthodox Church of Orange, Connecticut.

The church's followers raised $6.3 million to fund a new building of which Loles was in charge of managing, and the Porsche dealer and racing magnate was also reportedly administering several member's college and retirement funds, with one person claiming to have lost as much as $4 million.

The federal authorities are involved, but haven't released a statement yet. Expect all the sordid details to be revealed in the coming days, so consider this developing...

[Source: New Haven Register via Axis of Oversteer via 0-60 | Image: Chris Graythen/Getty]

 

RELATED STORY: Fraud uncovered at St. Barbara's in Orange

“Sadly and tragically, this potential fraud seems to be of massive magnitude — making the federal investigation and involvement very appropriate,” Blumenthal said. “We are reviewing whether there are potential violations of state statutes and how we can pursue them and aid the federal investigation. We understand the FBI is actively involved, and we would commonly defer to federal criminal authorities in their criminal investigation. But there may well be state statutes that merit our investigation.”

Several parishioners at a private emergency meeting held Sunday afternoon to explain to parishioners the potential fraud asked, but were not told, how Loles came to be in charge of the money, which could total more than $1 million, according to two church members who spoke on condition of anonymity.

Calls placed to Loles’ home in Easton, and a Porsche dealership and service center he owns in Danbury, were not returned.

Joseph Martini, an attorney representing the church, remained tight-lipped about specifics Monday.

“I have been very careful in saying we are a possible victim of a fraud here. The FBI has been contacted, and I think they should be the ones to investigate this,” Martini said. “We are also conducting our own investigation and will share information in any way that can help the FBI. Clearly, the FBI is doing its investigation, and we’re doing our own investigation to try to figure out what happened.”

The church community had recently raised millions to help finance a $6.3 million building project.

Asked what assurances parishioners have future donations will be safe, Martini responded: “It would be safe to say the church is going to do everything in its power to make sure any money and donations given to the church will be in safe hands.”

The depth of the alleged fraud is believed to extend beyond church funds to individual church members.

People at the emergency meeting said they had invested entire retirement savings and college funds with the man placed in charged of the church’s finances, state Rep. Themis Klarides, R-Derby, said after the meeting.

One person at the meeting claimed to have lost $4 million, sources said.

Assistant Police Chief Edward Koether said he has been in contact with the church’s lawyer and is leaving the investigation to the FBI, unless local police participation is requested.

“It’s a case that best fits their (the FBI’s) expertise,” Koether said.

Blumenthal said federal authorities have broader laws and jurisdiction that are likely more applicable to a potential financial fraud.

“The reason for deferring to federal criminal authorities is they have stronger and broader laws that can produce more effective remedies in cases of fraud that may cross state lines, and clearly there is a multi-state aspect to this potential crime,” Blumenthal said. “We are prepared to investigate as long as it will not interfere with the federal inquiry, which we will seek to assist.”

An FBI spokesman could not be reached for comment.

In 1995, Loles registered a finance firm called Apeiron Capital Management Inc. with the secretary of the state. Ads for Apeiron Capital Management listing Loles’ name and a now non-working telephone number ran in church newsletters as late as 2007.

But according to a 1997 Securities and Exchange Commission news release, Apeiron’s broker-dealer registration with the regulatory body was canceled that year for failing to “comply with applicable requirements of the Securities Investor Protection Corp.” or failing to “be a member of a self-regulatory organization.”

SEC registration is required for handling more than $25 million of total investments. A search of state databases shows no record of Loles being a certified financial planner.

Loles is also registered with the secretary of the state as the principal of Farnbacher Loles Motor Sports, LLC., an independent repair shop that specializes in after-market performance upgrades to Porsches. He also is part owner of a racing team.

The business is near Danbury Municipal Airport. Farnbacher Loles Motor Sports also has a racing team that operates on both sides of the Atlantic Ocean, according to the company’s Web site.

Church members have been reluctant to talk publicly about the alleged embezzlement, and church officials told parishioners it is a private matter and should not be discussed with the press.

Reached by phone, former church council President James Bitzonis said: “Our attorneys are handling it and I’ll leave it to them to speak.”

Source: New Haven Register

 

The real sad story is that all the employees including Spencer *** whom we all know to be a great guy have lost their jobs just before Xmas. I know that one of the guys has just had twins.

The good news is that Spencer & Crew have setup shop 10mins away and are open for business and are willing to help everyone, please lend your support to a great bunch of people who have misfortune to be part of this.

Spencer can be reached at 203 733 1454.

 

Thanks, I was trying to track Spencer down. Need some work done, and Spencer and crerw are the best.

 

That is a good news

 

Spencer and the crew are top notch... sorry to hear this news, keep your heads up high. You guys are the best around.

 

Funny I saw one of the transporters last weekend at Road Atlanta for a NASA event. Looked like they had two customers there with them.

-Troy

 

Hope they pull through...good products

 

Shady. Time to change my avatar.

 

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.

Good luck to the Farnbacher family,Spencer and the crew. Hope they have great success in the future.

 

So is shop equipment for sale now? In the market for a good transporter.


-Troy