—– Seattle Scam Targets Church Members, Senior Citizens (Julie Scuderi/HedgeCo.net; April 1)

The Securities and Exchange Commission has charged John H. Min and his company, Dime Financial Group LLC, in an investment scheme targeting churches and senior citizens.

The Tacoma, Washington resident was accused of bilking over $6 million from church members by leading them to believe their contributions were going to charitable causes in third world countries. By setting up a not-for-profit entity and convincing investors that Dime was a low-risk investment for retirement funds, Min was able to sign up over 60 investors since 2005.

Investors were told their money was going to be traded in the Forex market and that returns could be as high as 800 percent annually. Instead, Min lost about $5 million in the Forex market and used about $1.4 million of his client’s money to fund his lavish lifestyle and pay for private school tuition for his children.

To hide his massive losses on the Forex market, Min doctored performance reports to showcase high returns. To keep a flow of new clients coming in, Min “associated himself with a tight-knit religious and philanthropic community.”

“Investors need to be wary of possible fraud schemes even when the person offering the investment appears to be part of a humanitarian, religious or other community of trust,” said Marc Fagel of the SEC’s San Francisco Regional Office.

In addition to the SEC seeking a civil injunction and the return of investor funds, Min also faces criminal charges.

 

—– New Jersey Church Leaders Admit Fiscal Scam (Martin C. Daks/NJBiz.com; April 6)

The pastors of a Randolph [New Jersey] church had to answer to a higher authority after settling allegations that they diverted congregation donations for their own use.

Eric Simons and his wife, Marianne, the pastor and assistant pastor, respectively, of Church Alive Inc. – also known as Randolph Christian Church – and assistant pastor Philip DuPlessis used church funds to buy a 78-foot schooner and a $1.6 million property in Mendham that the Simonses used as a residence, according to state Attorney General Anne Milgram. The church officials also paid themselves $150,000 in “honorariums” and spent $39,395 on “life-coaching” classes and licensing for Eric Simons, who operates a for-profit life-coaching business.

Last week, Milgram said the Simonses and DuPlessis agreed to reimburse donors and to immediately resign from the church’s board. As part of the settlement, a fiscal monitor will take control of Church Alive’s banking and financial accounts. Further, the Simonses and DuPlessis are barred for 10 years from serving on any financial board.

“Congregants were told their donations would be put into a building fund. Instead, the donations were commingled with other church funds that were solely controlled by the Simonses and DuPlessis,” Milgram said in her announcement.

 

—– New York Church Leaders Charged In $12 Million Fraud; Elderly Parishioners Targeted In “Especially Egregious Scam,” SEC Alleges(InvestmentNews.com; April 14)

The Securities and Exchange Commission today charged seven leading members of a church in Queens, New York, for orchestrating a fraudulent investment scheme that targeted mostly elderly parishioners.

The seven individuals defrauded investors of more than $12 million by making numerous misrepresentations, including promises of returns as high as 75%, to encourage them to invest in two hedge funds – the Logos Fund and the Donum Fund, both of New York.

Instead of investing the money as promised, the defendants misappropriated millions of dollars to furnish their own lavish lifestyles, according to a statement from the SEC.

“Affinity fraud is a particularly sinister scam that exploits investors in close-knit communities,” Robert Khuzami, director of the SEC’s Division of Enforcement, said in the statement.

“(This) action is especially egregious, as church leaders targeted their own parishioners and betrayed the sincere trust placed in them.”

The SEC also charged the two entities used to carry out the fraudulent scheme: Jadis Capital Inc. – the hedge fund manager of the Logos Fund and the Donum Fund – and Jadis Capital’s subsidiary – Jadis Investments LLC – a registered investment adviser and the investment manager of the funds.

 

—– New York “Pastors” Accused Of Defrauding Immigrants (North Country Gazette; April 16)

QUEENS, New York: Two men who operate a storefront church in Corona are charged with defrauding at least 70 Queens immigrants – primarily from the Ecuadorian community – of more than $500,000 by promising to help them expedite various immigration related matters – including getting them U.S. Visas and permanent immigration status.

Gregorio Gonzalez, 56, of 119 New St., Mamaroneck; his sister, Maria Gonzalez, 52, of 55-08 97th Place in Corona; and Gerardo Bello, 21, also of 119 New St. in Mamaroneck have been arrested.

Gregorio Gonzalez and Bello are each charged with second-degree grand larceny, second-degree criminal possession of stolen property and first-degree scheme to defraud. Maria Gonzalez is charged with second- and third-degree grand larceny and second- and third-degree criminal possession of stolen property. If convicted, the defendants each face up to 15 years in prison.

District Attorney Richard Brown said that, according to the charges, the three defendants met with the victims at various Queens locations – including their church, Iglesia Pentecostal Roca de Salvacion Eterna, located at 98-14 41st Avenue in Corona and Maria Gonzalez’s apartment – between April 1, 2008, and October 31, 2008. They are accused of promising them U.S. Visas and permanent immigration status for various fees – usually ranging from $6,000 to $10,000, in the form of cash or personal checks.

The District Attorney said that four search warrants were executed at various Queens locations – including the residence of defendant Maria Gonzalez on March 23. Among the alleged items recovered was $75,000 in cash and a list of approximately 100 individuals – many of whom had complained to the District Attorney’s Office.

Gregorio Gonzalez and Bello were expected to be arraigned Thursday afternoon in Queens Criminal Court in Kew Gardens. Maria Gonzalez was arraigned last month on two criminal complaints. In each case, bail was set at $5,000. Her next court date is May 12.

Brown said that an investigation was initiated last month when victims contacted his office, as well as the NYPD’s 110th Precinct Detective Squad…..

 

And then there’s this story about a still-developing scandal in South Africa:

 

—– Pastors Say Church Used Them To Make Millions (Cecil Motsepe/The Sowetan; March 20)

JOHANNESBURG, South Africa: The Universal Church of the Kingdom of God, the country’s fastest growing charismatic church, is little more than a money-making scam, say pastors who have been left to fend for themselves after making a fortune for the church.

The unhappy pastors say that they were even forced to undergo vasectomies to prevent them having children so they would not carry around any “baggage”.

Pastors and followers of the church (UCKG) are encouraged to surrender their wealth upon joining the church.

Although they had reservations about the church, they decided to break their silence after some of them were off-loaded because of ill-health.

When Pastor Michael Louw, 49, joined the church 16 years ago, his banker wife surrendered her car and her pension.

“When you join, they tell you that pastors are not supposed to own anything, not a house, a car or even a bank account. I used to make money for them, but today I am sleeping in a sleeping bag,” said Louw.

“When people warned us that these Brazilians were here to make money we did not want to believe them. But now we know. They brainwashed us into believing that God would take care of us, but when they kick us out we have nowhere to go,” he said.

Congregations run as many as six services a day in which members are constantly exhorted to make donations.

“There is not a single service in which we are allowed to preach without asking for contributions,” said Louw.

Sowetan recently visited the church in Brixton and in central Johannesburg. Different pastors continually emphasised the importance of giving the church money.

“Give in abundance and you will be blessed,” said one pastor.

The congregation was then presented with Nedbank deposit slips to “give to God”.

Prophet Paul Sibeko of the Soweto branch in Diepkloof said he made R6million in one campaign.

“When I was shot by intruders inside the church, my leaders never asked what happened. All they asked was if I had made the target.

“I replaced a pastor who was making R7000 [about $800 US] a month in Mpumalanga. I ended up making R60000 [about $6700 US] a month. You are not allowed to make less than the previous amount,” said Sibeko, who served the church for 13 years.

Their disillusionment was echoed by George Ndionga, 40, who quit as pastor last year after 11 years.

“My branch in Ebony Park used to make R90000 [about $10,000 US] a month; in Springs I would make between R35000 and R45000. When I left they gave me a mere R6000 [about $675 US],” Ndionga said.

“What they do is unbiblical. Deuteronomy 15 says you may release a slave after he had served you for six years, but you can’t let him go empty- handed. I got nothing. It’s like I just came out of jail,” said Ndionga who gave up his business to join the church.

Ndionga said he was sidelined because of a knee injury.

Asked if he believed the church was a scam, Ndionga said: “In the beginning it was a church for saving souls, but things changed. They used to be concerned with the number of people we recruited, but now they are concerned with the amount of money we bring in,” Ndionga said

“If you don’t make money, they put you aside. We have been brainwashed,” he said.

The church’s chief executive Elvis Presslin dismissed the claims.

“There is no basis to this claim. The UCKG is the only church that has its books independently audited every year even though we are not obliged to do so. All assets belong to the church. The pastors and the bishops do not own anything,” Presslin said.

Pastor Godfrey Adolf, 40, said: “They have turned us into their moneymakers.”

He has been with the church for 17 years.

“When they came into the country they had nothing, but today they are rich. They told us to give up all we had. We realised too late that these people were a family and were running a business,” he said.

Adolf, who heads the Lawley branch near Lenasia, said a congregant once made a R100000 [about $11,000 US] donation.

“When they build cathedrals, it is simply to make more money. The sad part is that this money comes from our poor people. I am also quitting. This is probably my last day,” Adolf said.

Pastors Samuel Mpiza and Erick Dube told us that they were off-loaded after the one was injured on duty and the other one was accused of being defiant.

UCKG spokesperson Nametso Mofokeng confirmed that their pastors undergo vasectomies.

“There are countries where pastors are, where conditions may not be as favourable for a pastor with children, and for this reason pastors are advised of this possibility and the challenges they may face. No pastor is forced to undergo a vasectomy. Those pastors who have undergone this medical procedure have done so of their own accord,” said Mofokeng.

She added that the church has in some cases offered financial assistance for this procedure….

 

According to an April 17 follow-up story by the same reporter that was headlined Universal Church “Ruined Our Lives”, “The wives of two pastors of the Universal Church of the Kingdom of God are among those who are accusing the church of ruining their lives. The alleged deception follows a recent report in Sowetan in which dozens of pastors described the country’s fastest growing charismatic church as ‘a money-making scam’…. Rose Chuene, 28, said she had just been promoted to be a manager for waiters at the Caesar’s Palace in Kempton Park when the church leaders convinced her to quit her job. ‘They told me I would only be allowed to get married to my pastor fiancé on condition that I leave my job. I had to also cut all ties with my family,’ Chuene said…. Chuene’s husband Donald said: ‘When the bishops fired me they encouraged my wife to leave me for another pastor.’ Percy Makalema, 23, from Chiawelo in Soweto, said he too was taken for a ride by the church. He said the church turned him against his parents…. [Church spokesperson Elvis] Presslin said all pastors and their spouses are taken care of by the church. But Mavis Lekganyane, 34, who was running ‘a successful fashion business’ disagrees. ‘Apart from my business, I was working as a fashion designer. I had to give up all that in order to get married. They told me not to be afraid as the church would provide for us. Once I had given every thing up they started ill-treating us,’ said Lekganyane….

 

And all that’s merely *some* of the news from just the last 4 weeks!

Maybe churches ought to start posting this notice on their front doors -

“WARNING: Entering this building and joining our congregation may be hazardous to your financial health!”

(And just for the record: No, I don’t know of *any* atheist or humanist organization that I’ve been associated with in any way that has ever been charged with ripping off its members. For some reason, atheist and humanist leaders on both the local and national level seem to be far less interested in money than the gOdly are. Go figure!)