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An Overview of Religious Financial Fraud
Christian News Today Ephesians 5:11 & Mark 4:22
EPHESIANS 5:11 And have no fellowship with the unfruitful works of darkness, but rather expose them. 12 For it is shameful even to speak of those things which are done by them in secret. 13 But all things that are exposed are made manifest by the light, for whatever makes manifest is light. 14 Therefore He says: " Awake, you who sleep, Arise from the dead, And Christ will give you light." MARL 4:22 For there is nothing hidden which will not be revealed, nor has anything been kept secret but that it should come to light.
An Overview of Religious Financial Fraud The $34 Billion Scandal http://christianheadlines.com/blog/2011/01/08/an-overview-of-religiousfinancial-fraud/ The January 2011 issue of the International Bulletin of Missionary Research reported that Christian religious leaders will commit an estimated $34 billion in financial fraud in 2011 while $31 billion will be spent on global missions. Researchers from the Center for the Study of Global Christianity estimate that Christian religious leaders will commit $90 million in financial crimes daily and the fraud is growing at a rate of 5.97% each year. If the researchers are correct, religious financial fraud among Christians will almost double in 14 years to $60 billion annually by 2025. 1 Dr. David Barrett, the first editor of the World Christian Encyclopedia and a researcher for the Center, has been studying religious financial fraud for more than 20 years. According to Dr. Todd Johnson, the Center‘s director, these statistics were the result of Barrett ―developing a balance sheet for global Christianity.‖ Barrett was ―trying to understand the totality of Christian finance.‖ 2 A Global Problem Barrett and Johnson in the reference book ―World Christian Trends‖ reported, ―Probably 80% of all cases are kept private or swept under the carpet, but each year a rash of megathefts (over $1 million each) is uncovered and publicized in the secular media.‖ 3 Here is a small sample of religious financial scandals from around the world:
Brazil: Bishop Edir Macedo, head of the Universal Church of the Kingdom of God, and 9 of his associates have been charged with
An Overview of Religious Financial Fraud
embezzling more than $2 billion. 4 Canada: Televangelists Ron and Reynold Mainse allegedly recruited investors in a Ponzi scheme. 5 China: A whistleblower goes to jail for speaking out after donations for earthquake victims were stolen. 6 Italy: Police confiscated 23 million euros in a Vatican bank as part of an investigation into money laundering. 7 Ukraine: Pastor Sunday Adelaja charged with fraud in promoting a business venture to his congregation that lost $100 million. 8 United Kingdom: Church treasurer Derek Klein embezzled funds to pay for a stamp collection. 9 United States: Trent Huddleston, former senior ant at Oral Roberts University, alleges that more than $1 billion was money laundered annually by of the Oral Roberts University board. 10
Common Funding Sources of Religious Thieves 1. The Offering Plate — In 2002 NBC Dateline aired an exposé on Benny Hinn. Mike Estrella, a former Benny Hinn Ministries employee responsible for counting the money given at Hinn‘s crusades, said that he observed Gene Polino, Hinn‘s CEO, embezzle thousands of dollars from the crusade collection buckets.11 Wikipedia describes this practice as ―skimming‖ which ―refers to taking cash ‗off the top‘ of the daily receipts of a business …‖ 12 This form of fraud is hard to detect but occassionally the skimmers are caught. A member of St. Ita Catholic Church‘s finance committee marked a $100 bill before placing it in the offering plate. The bill disappeared before the church could deposit it in the bank. A priest later acknowledged taking the money. 13 2. The Ministry Checking and Credit Card — Jason Reynolds, the finance director of National City Christian Church, used the church credit card to acquire a Lexus SUV and Land Rover. He also embezzled over $200,000 by writing himself checks. 14 These forms of fraud can be reduced by requiring two signatures for checks and by insisting on lower credit limits for credit cards. 3. Investments — In 1999 the Baptist Foundation of Arizona filed for bankruptcy after accumulating $530 million in liabilities. Dishonest s engaged in a cover-up to hide bad investments. William Crotts and his associates set up more than 90 dummy corporations to hide financial losses and used a ponzi scheme to cover old investments. 15
An Overview of Religious Financial Fraud New Church Ventures was the largest dummy corporation formed by the BFA and held $173 million in debts. New Church Ventures had zero employees and provided no funds for building new churches even though that was its stated objective. 16 The Phoenix New Times investigated Jalma Hunsinger, the president of New Church Ventures, and reported on strange insider deals and flipped property fraud. The owner of the Simms Tower offered this $1.9 million building to the BFA for $1 as a tax write-off because the building was contaminated by asbestos. When the Foundation turned down the offer, Hunsinger acquired the building and used it as collateral for a BFA $6.8 million loan. 17 Trinity Foundation Investigates the Televangelists In 1987 filmmaker Harry Guetzlaff‗s production company was failing. Out of desperation he pledged money to televangelist Robert Tilton in hopes for a financial blessing. When Guetzlaff lost his home and approached Tilton‘s organization for help, he was denied any assistence. Guetzlaff went to the Trinity Foundation and told his story to Ole Anthony, director of the Foundation. Anthony launched an investigation into Tilton‘s direct mail operation and assisted the ABC News program PrimeTime Live on a TV exposé.18 The Trinity Foundation has investigated religious financial fraud for 23 years. Trinity investigators have gone through the trash of televangelists to obtain evidence, worked undercover inside ministry offices, assisted TV news programs and newspapers in developing investigative reports, and operated a phone line for victims of fraud (1-800-229-VICTIM). While conducting these investigations the Trinity Foundation has redefined its mission. The Trinity board adopted a 4-point agenda for opposing religious financial fraud. 1. Increase public awareness by continuing to provide information requested by various news media organizations and giving interviews when appropriate. 2. Enable the establishment of civil case law regarding religious fraud. 3. Enable the establishment of criminal case law regarding religious fraud. 4. Work with government agencies toward establishing greater ability for religious, non-profit organizations.19 The IRS Dirty Dozen The United States Internal Revenue Service posts an annual list of the
An Overview of Religious Financial Fraud most common forms of tax fraud they encounter called the ―The Dirty Dozen.‖ In recent years the reports have singled out two specific forms of religious financial fraud.
2008: ―IRS examiners are seeing an upturn in instances where taxpayers try to disguise private tuition payments as contributions to charitable or religious organizations.‖ 20 2005: ―Participants apply for incorporation under the pretext of being a ―bishop‖ or ―overseer‖ of a one-person, phony religious organization or society with the idea that this entitles the individual to exemption from federal income taxes as a nonprofit, religious organization. When used as intended, Corporation Sole statutes enable religious leaders to separate themselves legally from the control and ownership of church assets. But the rules have been twisted at seminars where taxpayers are charged fees of $1,000 or more and incorrectly told that Corporation Sole laws provide a ―legal‖ way to escape paying federal income taxes, child and other personal debts.‖ 21
Common Forms Of Religious Financial Fraud Churches Operating As Tax Shelters The 2004 Internal Revenue Manual of the IRS noted that some churches are being used fraudulently to avoid taxes: ―While desiring to protect churches from undue interference by the IRS, Congress, in enacting IRC § 7611, recognized that an increasing number of taxpayers had used the church form primarily as a taxavoidance device.‖ 22 Realtor and banker George Michael of Lake Bluff, Illinois, claimed that he converted his 15,000 square foot lakefront mansion worth $3 million into a church so that his disabled wife would have a place to worship. Michael‘s neighbors and local government officials claim the home was not a church and that Michael was attempting to avoid paying more than $70,000 in property taxes. After the Illinois Department of Revenue granted a religious tax exemption, local officials went to court to have the tax exemption removed and won in court on July 6, 2009. 23 Conversion and Self Dealing The Atlanta Journal-Constitution reports, ―IRS rules do not bar transactions between a nonprofit group and a business that is owned or controlled by the same person, a practice known as self-dealing.‖ 24 Self dealing is one of the key methods that fraudulent nonprofit executives use to enrich themselves. Here‘s an example of how it works:
An Overview of Religious Financial Fraud A televangelist owns a for-profit company that publishes all of his books and DVDs. Then he sells the books and DVDs at full retail price to his nonprofit rather than at a discount or wholesale price. A televangelist can use this technique to excessively profit from his nonprofit organization. Pastors Mike and Elaine Millé of White Dove Fellowship in Harvey, Louisiana, purchased property costing $850,000 in August 2007 and sold the property to their church about 90 days later for $1,229,112 for a profit of $379,112. This transaction is not just an example of self dealing, it is also flipped property fraud. After learning of the transaction, the Trinity asked the IRS to investigate the Millés and White Dove Fellowship. 25 Excessive Compensation Nonprofit organizations in the United States can lose their tax-exempt status and be required to pay excise taxes if employees receive excessive compensation. Yet this rarely happens. When the Charlotte Observer investigated compensation for charity executives, it reported, ―Most years, fewer than 10 of the nearly two million U.S. nonprofit leaders are penalized for receiving excessive compensation.‖ The newspaper also noted that there is ―roughly one enforcement agent for every 4,000 tax-exempt groups nationally‖ so very few nonprofit organizations get audited. 26 The Charlotte Observer reported that televangelist David Cerullo of The Inspiration network ―was paid nearly 1.7 million‖ in 2008. However, the newspaper left out that Cerullo received $331,881 in nontaxable benefits that year. 27 Cerullo has the highest compensation of any religious broadcaster in the United States that files 990 forms with the IRS. Churches are exempt from filing so some megachurch pastors and televangelists are refusing to make their compensation public. Kenneth Copeland doesn‘t disclose his income but has bragged that he is a billionaire. 28 In 1921 the United States federal government established a tax exemption for ministerial housing expenses to help poor congregations provide housing to clergy. 29 This exemption is now being abused to provide religious leaders with large tax-exempt housing benefits. When Crystal Cathedral filed for bankruptcy, its financial records revealed ―$832,490 in tax-exempt housing allowances given to eight people …‖ 30 WFAA reported that Ed Young of Fellowship Church in Grapevine, Texas, ―was paid $240,000 a year as a parsonage allowance; that‘s in addition what sources say is a $1 million yearly pastor‘s salary. 31 A lawsuit filed by the Freedom From Religion Foundation could result in
An Overview of Religious Financial Fraud this housing allowance being ruled unconstitutional in 2011.
32
Insurance Fraud The Coalition Against Insurance Fraud produces a Hall of Shame list each year to bring attention to insurance fraud. Pastor Gerald Rayborn was featured on the 2004 list for burning down his church for $800,000. 33 Dennis Jay, the Coalition‘s director, reported in Claims Journal that ―Rev. Roland Gray helped stage nearly 200 car crashes plus phony slip-and-fall injuries in restaurants and hotels. He recruited parishioners and even his brother, who also was a minister.‖ 34 After obtaining seven life insurance policies for a blind man, pastor Kevin Pushia hired a hitman for $50,000. Pushia plead guilty. 35 Fraud Among Groups
Nonchristian
Religious
Rabbi Saul Kassin, head of America‘s largest Sephardic synagogue, was arrested in 2009 with four other rabbis for money laundering almost $3 million. 36 Salman Ibrahim established credibility among Chicago Muslims through his involvement in the Shariah Board of America. Ibrahim formed Sunrise Equities Inc., as an Islamic investment company, and paid dividends rather than interest which is prohibit by the Koran. Investors lost $30 million when Ibrahim disappeared from the United States. 37 Religious con artists have been effective at targeting Mormons, costing their victims $1.4 billion. 38 Atheists aren‘t exempt from religious financial fraud. William Murray, son of America‘s most famous atheist, Madalyn Murray O‘Hair, claims his mother embezzled millions of dollars from American Atheists. A former employee of American Atheists ed Murray‘s claims by revealing on the TV program City Confidential that he was told what foreign bank O‘Hair had deposited $18 million. David Roland Waters, another employee of American Atheists, embezzled $54,000 and murdered Madalyn Murray O‘Hair after she disclosed the theft of funds.39 Endnotes 1 Todd M. Johnson, David B. Barrett, and Peter F. Crossing, ―Status of Global Mission, 2010, in Context of 20th and 21st Centuries‖, International Bulletin of Missionary Research, Vol. 35, No.1, page 29, January 2011
An Overview of Religious Financial Fraud 2 Interview of Todd M. Johnson in June 2008 3 David B. Barrett and Todd M. Johnson, World Christian Trends, page 660, 2001 4 ―Brazil evangelical leader accused of fraud: Church founder allegedly siphoned off billions to buy jewelry, businesses‖, AP, August 12, 2010 link 5 Bene Diction, ―Ron Mainse of 100 Huntley Street makes statement on alleged ponzi scheme‖, Bene Diction Blogs On, September 15, 2009, link 6 ―Government Approved Church Leaders Withhold Donated Quake Funds; Whistleblower Christian Sentenced‖, China Aid / Christian Newswire, July 30, 2009, link 7 Nicole Winfield, ―Italian police seize $30M from Vatican in probe‖, AP, September 21, 2010, link 8 Adrienne S. Gaines, ―Sunday Adelaja Accused of ing Investment Scheme‖, Charisma, December 19, 2008, link 9 Aidan Mcgurran, ―Church fraudster told to sell off stamp collection on web to pay back victims‖, London Mirror, April 19, 2008, link 10 April Marciszewski, ―More than $1 billion annually was funneled through ORU, lawsuit claims‖, Tulsa World, February 7, 2008, link 11 ―Benny Hinn has millions of believers and millions in donations‖,NBC Dateline, December 27, 2002, link 12 ―Skimming (fraud)‖, Wikipedia, link 13 ―Priest indicted in Edgewater church theft‖ , Chicago Tribune, August 9, 2008, link 14 Del Quentin Wilber, ―Former church finance director charged in theft scheme‖, Washington Post, December 30, 2009, link 15 ―Baptist Foundation of Arizona‖ Wikipedia, link http://en.wikipedia.org/wiki/Baptist_Foundation_of_Arizona 16 Lawrence C. Mohrweis, ―Lessons from the Baptist Foundation Fraud‖ The A Journal link
An Overview of Religious Financial Fraud 17 Terry Greene Sterling, ―A Shaky Foundation: For the Baptist Foundation of Arizona–and its baffling insider real-estate deals–the devil‘s in the details‖, Phoenix New Times, April 23, 1998, link 18 Burkhard Bilger, ―God doesn‘t need Ole Anthony‖, The New Yorker, December 6, 2004, link 19 Interview of Trinity Foundation member Pete Evans 20 Phishing Scams, ―Frivolous Arguments Top the 2008 ‗Dirty Dozen‘ Tax Scams‖, IRS, March 13, 2008, link 21 ―IRS Announces the 2005 Dirty Dozen‖, IRS, February, 28, 2005, link 22 ―Internal Revenue Manual – 4.76.7 Church Tax Inquiries and Examinations IRC § 7611″, IRS, June 1, 2004 (note: this section was re-written in 2010), link 23 Linda Blaser, ―Judge Removes Religious Tax Exemption From Shore Acres Drive Home‖, Pioneer Local, July 23, 2009, link 24 Ernie Suggs, ―King son‘s firm paid $1.3 million by center‖, Atlanta Journal- Constitution, page A1, Date: May 20, 2005 25 Lee Zurkik, ―Criminal investigation into West Bank televangelist?‖, WVUE, November 17, 2010 link 26 Ames Alexander, ―For too many nonprofits, charity starts at the top‖, Charlotte Observer, December 20, 2009 link 27 The Inspirational Network Inc 2008 – 990, pages 7, 24 (available at guidestar.org) 28 ―Kenneth Copeland is a billionaire‖, Google Video, link (video from KCM Ministers‘ Conference, January 23, 2008) 29 Robert Marus, ―House approves bill to protect minister-housing allowances‖, Associated Baptist Press, April, 19, 2002, link 30 Abby Sewell and Nicole Santa Cruz, ―Bankruptcy filings show generous pay for relatives of Crystal Cathedral founder‖, Los Angeles Times, December 3, 2010 link 31 Brett Shipp, ―Prominent Grapevine pastor linked to luxury‖, WFAA, February 4, 2010, link 32 Stephanie Samuel, Church Legal Expert: Minister Housing Tax Break
An Overview of Religious Financial Fraud Under Attack‖, Christian Post, December 29, 2010, link 33 Merritt Melancon, ―Two plead guilty in 2005 church torching‖, Athens Banner-Herald, June 15, 2010, link 34 Dennis Jay, ―Fraud in the Church Takes Heavy Toll on Congregation, Insurers‖, Claims Journal, August 23, 2010, link 35 ―Pastor its to scam and conspiring to kill blind man‖, Scripps Media, August 28, 2010, link 36 Paul Vitello, ―Syrian Sephardic Communities Shaken by Charges Against a Leading Rabbi‖, New York Times, ,July 23, 2009 link 37 Michael Tarm, ―Prosecutors: $30M Ponzi scheme targeted Muslims‖, Associated Press, November 18, 2010 link 38 John L. Smith, ―How affinity fraud‘ hurts LDS church ‖, Mormon Times, September 14, 2010 link 39 ―Madalyn Murray O‘Hair‖, Wikipedia, link
A REAL PAOC SCANDAL IN TORONTO? Prayer Palace pastor Paul Melnichuk facing sex assault charges Charges against flamboyant preacher relate to two parishioners at mammoth Toronto church that draws more than $3 million in donations each year. Paul Melnichuk attempts to cover his face while leaving the Ontario Court of Justice with son Tom, right, at 1000 Finch Ave W. on Thursday. By: Dale Brazao News, Katrina Clarke Staff Reporter, Alex Ballingall News, Published on Thu Jan 08 2015
An Overview of Religious Financial Fraud The flamboyant and controversial senior pastor of the Prayer Palace has been charged with sexual assault involving a mother and daughter who are parishioners at the mammoth evangelical church in northwest Toronto. Paul Melnichuk, 80, known to parishioners as “Pastor Paul,” surrendered to police Thursday morning, after being notified of a warrant for his arrest. Police say the complainants are a woman in her 40s and a woman who is younger than 20. Both were of the church, founded by Melnichuk and his wife more than 30 years ago. The pastor is charged with five counts of sexual assault. During a brief appearance at the Finch Ave. courthouse Thursday afternoon, the lightly tanned pastor — once described as a movie star and the “religious Mel Lastman or Ed Mirvish” — wore a black leather jacket and white collared shirt. He smiled at his wife, Kathleen, 79 — who sat flanked by son Tom and a blonde woman — as court officers removed his handcuffs. A publication ban prevents the media from reporting what was said in court and the identities of the two women. Sitting in the prisoner’s box, Melnichuk turned his head away from his family and looked to the ground as the Crown read out allegations against him. He let out a deep breath and crossed his legs but showed no emotion. The alleged incidents occurred between May and September 2014 on church property when he was alone with the women, police say. Three of the five charges laid against Melnichuk relate to allegations from the daughter, the other two complaints from the mother. Melnichuk was released on $20,000 bail posted by his wife. “When I first found out about the assaults, it was so hard to believe,” a person close to the alleged victims told the Star. “He used his power to get the family really close to him, to trust him, and when they least expected it, he betrayed that trust, and he violated the family.” Melnichuk and his twin sons, Tim and Tom Melnichuk, both associate pastors at the church, were the subject of a Star investigation in 2007 that focused in part on the wealth the family had garnered while heading a largely poor, mostly black, congregation. Information on The Prayer Palace’s website says Melnichuk is the senior pastor at the church. The mammoth building, at Finch Ave and Highway 400,
An Overview of Religious Financial Fraud resembles a round spaceship with a large cross on the roof that can be seen for miles. “Are you for real?” exclaimed Hyacinthe Houghron, a longtime churchgoer and Melnichuk irer, when told of the charges. Houghron, who left the Prayer Palace seven years ago for personal reasons, said she had never heard any allegations of sexually related misconduct involving Melnichuk. “I don’t even know what to say; this is a shocker to me. I’m really surprised to hear this . . . I just hope that he’s not guilty.” At The Prayer Palace Thursday afternoon, a woman demanded Star reporters leave the property. Parishioners outside would not comment on the allegations. The 2007 Star investigation was part of an ongoing series on Canadian charities and documented the Melnichuks’ lavish lifestyle, which included a personal portfolio of fancy homes in Canada and Florida valued at more than $12 million, and a fleet of fine cars. Each of the Melnichuks owned a multimillion-dollar estate north of Toronto, and they shared a Florida vacation villa. They and their wives drove a fleet of luxurious cars, including a Porsche Cayenne SUV, a Lexus RX 330 SUV, and Mercedes-Benz CLK 320 convertible. The Star probe found that in 2005 the Prayer Palace drew $3 million in donations while doling out a meager $9,443 to “benevolent and charity activities.” In the days following publication of the Star investigation, the Melnichuks took to the stage in the mammoth church, which features coliseum-like seating, preaching that their fortunes had been attained through hard work and wise investments. “You weren’t designed to live in an apartment building. You were designed to own the apartment building you’re living in,” Tom Melnichuk said, calling on his parishioners to think positive. “If you don’t watch it, you’ll be eating at Denny’s for the rest of your entire life.” At the time his son Tom was giving the sermon, Pastor Paul Melnichuk was relaxing in a million-dollar mansion in Bradenton, Fla., where the Star photographed him suntanning on a dock on the Manatee River, under a large carving of a pelican. Upon his arrival back from Florida, Paul Melnichuk flashed a toothy smile and dismissed the controversy.
An Overview of Religious Financial Fraud “I’ve brought a little bit of Florida with me in my suntan,” Melnichuk told the assembled congregants. “You can see my white teeth better . . . I want so much to look like my congregation.” During the weekly Sunday sermons, which were televised and featured a large gospel choir, Pastor Paul often urged worshippers to give generously if they wanted the Lord’s blessings. “What’s a half million dollars to a congregation like this? Peanuts,” Pastor Paul thundered in one sermon, saying the money would go to funding an “evangelical explosion” in Toronto. Property records obtained by the Star Thursday show Paul and Kathleen Melnichuk own three properties in Canada and as well as a large home on a golf course in Lakewood Ranch, Fla., near Sarasota. After selling their King City estate for $2 million in 2009, the Melnichuks purchased a $1.3-million home at Lawrence and Avenue Rd. They then bought home in a golf course near Sarasota in 2013 for $785,000, after selling their Bradenton home for $1.1 million. The couple also owns a property in Simcoe region, purchased in 1986 for $465.000, and a waterfront property in Prince Edward County that they bought for $1.19 million in 2012, property records show. As part of the bail conditions, Melnichuk must reside with his wife at their Picton home or at The Prayer Palace. According to tax information filed with Revenue Canada for 2013, The Prayer Palace Inc. had a total revenue of $3,219,515 and expenses totaling $2,996,511, the majority of which the church says was spent on charitable activities. More than one-third of expenses — more than $1.1 million — went to compensation, with one unnamed person on staff taking in between $200,000 and $249,000, according to the organization’s charity return record. The financial details are more or less the same going back to 2009 (the earliest available), with the exception of 2010, when the Prayer Palace posted $4.5 million in expenditures. More than $2.8 million of that went to compensation, Revenue Canada records show, including two unnamed people who were paid “$350,000 or more” that year. On its website, the Prayer Palace quotes St. Paul’s second letter to the Corinthians in urging people to be cheerful when donating to the church. “Every man according as he purposeth in his heart, so let him give; not grudgingly, or of necessity, for God loveth a cheerful giver.”
An Overview of Religious Financial Fraud The church accepts PayPal. At the end of the Thursday bail hearing, Melnichuk declined to answer questions from the Star as he walked outside, with his son Tom leading the way. The elder Melnichuk pulled his jacket over his head to in an attempt to avoid being photographed while another member of the entourage put his hand over a Star photographer’s lens. “He has no comment,” said his lawyer. Police believe there may be more victims and are encouraging victims to investigators at 416-808-3100. http://on.thestar.com/1AyL1Bj YES MANY PAOC PASTORS ARE CORRUPT, LIARS AND THIEVES IN CANADA Is David Mainse An Unethical Scoundrel Like Benny Hinn? http://www.idoub.com/doc/18020892 https://paoc.org/
The Evangelical Council Of Financial ability Is A Joke http://www.idoub.com/doc/17662575/The-Evangelical-Council-OfFinancial- ability-Is-A-Joke
Franklin's Purse Charity: Controversy spurs Graham to give up one of two salaries | Warren Cole Smith and Rusty Leonard Franklin Graham has long had a reputation for being larger than life and going his own way. His 1997 memoir, Rebel With a Cause, chronicled his prodigal period and his return to God. Eventually, he made it to the top spots at both the Billy Graham Evangelistic Association (BGEA) and Samaritan's Purse (SP), a Christian relief organization ministering to the needy around the world. So Graham may now have a cause, but he never leaves the rebel far behind. In 1992, the Evangelical Council for Financial ability (ECFA) suspended Samaritan's Purse while it investigated the ministry's finances. It was reinstated in early 1993. In 2001, when he also took over as president of the Billy Graham Evangelistic Association, nonprofit experts questioned the wisdom of Graham being paid full-time salaries by both organizations. Ministry watchdog Ole Anthony of the Trinity Foundation said, "It's ludicrous to think he could do two jobs at that level."
An Overview of Religious Financial Fraud This month, Graham and his compensation are back in the spotlight again. When the Chronicle of Philanthropy released its annual list of the top-paid executives in the nonprofit world, Graham appeared twice, at the top of the list for his salary with BGEA, and only slightly farther down for his only slightly less hefty salary with Samaritan's Purse. The two combined gave him a total compensation of more than $1.2 million (including expense allowances) for 2008 and made him the highestpaid executive at a Christian ministry listed in the survey, and one of the highestpaid nonprofit executives of any kind. The news created a media firestorm. BGEA's hometown newspaper, the Charlotte Observer, devoted more than 3,000 words to the controversy in a front-page story that was picked up by newspapers around the country. Graham himself stopped giving media interviews. Instead, his public relations agency issued a defense of the compensation, saying that "due to unusual reporting guidelines related to deferred compensation placed in a 457(f) retirement plan at the BGEA over the past four years, nearly half (44.8 percent) of Mr. Graham's 2008 compensation as reported on the ministry's Form 990 had been previously reported on the 2005, 2006 and 2007 Form 990. This unusual reporting requirement meant that the BGEA had to report three prior years' retirement contributions a second time in 2008. Therefore, in reality, there was no substantial increase in Mr. Graham's compensation in 2008." That may be, but the same reporting guidelines also applied to others in the compensation survey. The only real difference was that BGEA's contributions to Graham's retirement plan were much larger than other organizations' contributions to their executives' plans. Also, Graham's compensation in the years 2005-2007 was over $750,000—at or near the top for Christian ministry executives. Indeed, Graham's compensation was so much greater than the No. 2 religious executive on the list that, even without the double-counting, his combined BGEA/SP salaries would still have put him at the top of the list. So will all of this result in more scrutiny, or possible suspension, from the ECFA? Almost certainly not. Dan Busby, president of the ECFA, also declined to be interviewed by WORLD, but he too issued a statement in response to our questions. His statement said, in part, that "nearly half of Mr. Graham's 2008 compensation as reported on the Billy Graham Evangelistic Association (BGEA) Form 990 had been previously reported on the 2005, 2006, and 2007 Form 990. This unusual reporting requirement resulted in the BGEA reporting three prior years' retirement contributions a second time in 2008. Therefore, there was no substantial increase in Mr. Graham's compensation in 2008." In other words, the ECFA statement was almost a verbatim copy of the statement issued by BGEA and Samaritan's Purse.
An Overview of Religious Financial Fraud Busby's statement went on to say that "ECFA standards are based on the principles of good governance, ability, integrity and transparency, and do not place dollar limits on the compensation of its ' leaders." But Graham himself acknowledged that, despite the elaborate explanations, the situation didn't look good. On Oct. 9, Graham told his staff via a memo that he planned to give up his BGEA salary. His spokesperson, Mark DeMoss, said that Graham had decided the controversy "just wasn't worth it." That means that Graham will receive just one income, the one he gets from Samaritan's Purse— which in both 2007 and 2008 (including all benefits) exceeded $500,000. http://www.worldmag.com/articles/16027 There are some people who have this opinion that the Evangelical Council for Financial ability is an honorable organization. But it is a fact that the Evangelical Council for Financial ability doesn‘t exist for the donors but for the Evangelical ministries to give them a so called umbrella of legitimacy. That is why ECFA never discloses the salaries of any Evangelical ministry leader to the donors which is a true test of why they are in the ministry! The Evangelical Council of Financial ability came into being due to the threats of Congressman Charles Wilson of Texas who had introduced a bill that would have required disclosure "at the point of solicitation unless the Fundamental Evangelical Evangelists would clean up their own house and police themselves. For Southern Baptist Evangelist Billy Graham was embarrassed in 1977 when the Charlotte Observer discovered an undisclosed $23-million fund in Texas, apparently not mentioned in the ings of the Minneapolis headquarters of the Billy Graham Evangelistic Association. As a result Graham's business manager led the formation of the Evangelical Council for Financial ability after Graham said on a national telecast, ". . . there are some charlatans coming along and the public ought to be informed about them and warned against them, " "stated K. Hadden and Charles E. Swann in their book Prime Time Preachers. Jeffrey K. Hadden and Charles E. Swann in their book Prime Time Preachers: The Rising Power of Televangelism (1) stated: In 1977 Senator Mark Hatfield informed a group of evangelical leaders that if they did not assume responsibility for regulating themselves there was every likelihood that legislation would be required. In fact, Congressman Charles Wilson of Texas had already introduced a bill that would have required disclosure "at the point of solicitation." In December 1977 representatives of thirty-two evangelical groups met in Chicago to discuss cooperative efforts. Thomas Getman, chief legislative assistant to Senator Hatfield, told the group, "Legislation is not important; disclosure is."
An Overview of Religious Financial Fraud Getman encouraged "a voluntary disclosure program . . . that will preclude the necessity of federal intervention into the philanthropic and religious sector." Almost two years later Dr. Stanley Mooneyham, president of World Vision, acknowledged, "There is no denying that this threat of governmental action was one of the stimuli'' that produced the December meeting and the subsequent activities which led to the founding of the Evangelical Council for Financial ability. A tax exempt non profit organization and corporation, especially a religious one, is not like a private company which exists for profit? Its revenues come from the donations and gifts of ordinary individual some of whom have sacrificed to give to them. For this is what many Evangelical Evangelists have requested 'their sacrificial giving?" Many Southern Baptists evangelists in America, such as Billy and Franklin Graham, belong to the Evangelical Council of Financial ability that purports to work on behalf of the donor but in reality exists for the spenders. For although ECFA has in its possessions the total compensation of all the religious evangelical non-profit organizations that belong to it, it will not disclose them. Years ago I have requested such information from ECFA but to no avail. Do your own homework on Evangelical Council for Financial ability which Billy Graham founded. It is a fact that Fundamental Evangelical leaders in America, even those who belong to ECFA, never show their total compensation to their donors. They are not stupid. If they disclose anything is just your basic salary but not their personal income tax? So to whom is the Evangelical Council of Financial ability able to? To themselves? Definitely not to their donors or the public as seen by their own words! For the ECFA has as its Mission Statement that it is committed to helping Christ- centered organizations earn the public's trust through developing and maintaining standards of ability that convey God-honoring ethical practices. Also its donor bill of rights states that its responsibility to make sure your charity's standards and guidelines assure you of a "bill of rights" as a donor. You have the right to: 1. Know how the funds of an organization are being spent. 2. Know what the programs you are accomplishing. 3. Know that the organization is in compliance with federal, state, and municipal laws.
An Overview of Religious Financial Fraud 4. Restrict or designate your gifts to a particular project. 5. A response to your inquiries about finances and programs. 6. Visit offices and program sites of an organization to talk personally with the staff. Nothing in the donor's "bill of rights" talks about checking into illegal or unusual expenses or salaries? But ECFA states that it wants to earn the public's trust through developing and maintaining standards of ability that convey God-honoring ethical practices. A simple examination of ECFA seven standards of responsible stewardship shows that it gives nothing to the donor or the public to ensure that there is no hanky-panky other than their word. Unfortunately as shown by the BFA bankruptcy the word of Southern Baptists doesn't mean much! An excellent way to determine responsible stewardship of any ministry that belongs to ECFA is to see the personal income tax of the chairmen of each of the nonprofit organizations who belong to ECFA. One can easily see if an individual is profiting from their own indirectly owned non-profit religious organization? Why is it important to know the salaries of religious leaders? The downfall of Evangelist Rex Humbard says why. From its modest $65 beginning, the Rex Humbard Ministry was now worth millions. And was all paid for by private contributions. Still, like those of many of his fellow television colleagues, Rex's ministry appeared ever on the brink of bankruptcy. On his April 13, 1980, broadcast he made an imioned plea for immediate cash contributions needed to stave off disaster. The program was $2.5 million behind in its obligations, and Humbard was running an average of four months behind in payments to stations for TV time. Humbard's appeals brought in $4 million and wiped out the debt. About the same time, a Cleveland Press writer discovered that Rex and two of his sons, who work with him on the television ministry, had purchased a home and condominiums in Florida valued at $650,000 with down payments of $177,500 in cash. A lot of people have long believed that preachers, especially the evangelical variety, have their hands in the offering plate. In light of this belief, the timing of Humbard's corporate debt and personal investment certainly didn't make him look very good. And he didn't help his own cause any when he told the prying Press reporter, "My people don't give a hoot what I spend that money for But people do give a hoot how much money their favorite minister steals and that is why ministers especially prominent ones hide their salaries. As a result of Rex Humbard's thievery his ministry folded because people and even God does not like crooks in the House of God. If you check out the latest form 990 - 2002 for Billy Graham Evangelist Organization available from Guide Star http://www.guidestar.org/search/ you will
An Overview of Religious Financial Fraud see that Billy Graham is just as much of a crook as ever. At 88 years of age he is still receiving a hundred percent salary of $ 189, 385 and $ 233,979 for other allowances and is working less than ten percent of the time! The same with Clifford B. Barrows who is receiving $ 164,442. They both should have been put out to pasture a long time ago and should have stopped taken a salary that they have not earned! And yes Billy used his organization to financially his children including $ 600,000 to Franklin Graham, $ 210,000 to Ned Graham and $ 300,000 to Ann. Ned Graham who was originally slated to take over Billy Graham Evangelist Organization instead of Franklin received less money because he is the black sheep of the family. What gave Billy Graham the right to take money donated to preach the gospel to give to the of his family especially Ned Graham? Nothing! Jeffrey K. Hadden and Charles E. Swann in their book ―Prime Time Preachers‖ stated: Billy Graham was embarrassed in 1977 when the Charlotte Observer discovered an undisclosed $23-million fund in Texas, apparently not mentioned in the ings of the Minneapolis headquarters of the Billy Graham Evangelistic Association. As a result Graham's business manager led the formation of the Evangelical Council for Financial ability after Graham said on a national telecast, ". . . there are some charlatans coming along and the public ought to be informed about them and warned against them." In my opinion Billy Graham has raised up two sons Ned and Franklin who are as deceitful as their father. Ned Graham, the son of Billy Graham, Southern Baptist minister, president East Gates International, a group that distributes Bibles in China told Christianity Today in an interview that he had abused alcohol and spent an "inappropriate amount of time" with two women on his staff. Grace Community Church, Southern Baptist Convention, in Auburn, Washington-which counted Ned Graham, his wife, and their two sons as established the fact that Ned Graham was an adulterer, alcoholic, wife ab, and drug and revoked Graham's ministerial credentials. It directed Graham to stop using the title reverend. Yet in a style reminiscent of Jimmy Swaggart, who refused to be defrocked by the Assembly of God denomination, Ned Graham left that congregation for another church. Most of the staff and board of East Gates International resigned amid controversies. East Gates, in Sumner, Wash., withdrew its hip in the Evangelical Council for Financial ability after Ned replaced the board with his sister Ruth Graham McIntyre, brother-in-law Stephan Tchividjian, and business leader Peter Lowe. Graham's sister Gigi Tchividjian has ed the office staff and Ned Graham continues as East Gates president. The ECFA the self-policing organization Billy
An Overview of Religious Financial Fraud Graham helped start requires that a majority of board not be related by blood or marriage, which is no longer the case for East Gates. Nepotism is alive and well in Evangelical ministries? A December East Gates fund-raising letter included a note from his father saying that "Ruth and I are proud of and grateful to God for our son Ned." East Gates has distributed 2 million Bibles to Christians in China, Billy Graham said, encouraging Christians to "back this unique and effective ministry." It is interesting to see the most famous "evangelist" (some say) not being able to educate his children, especially Ned. At the same time, having a bunch of socalled Christians following the leadership of such wreckless person. Franklin Graham wears jeans, boots, denim shirt, and leather jacket. He was a teen rebel who drank, smoked, fought, and led police on high-speed chases. He was kicked out of LeTourneau College. He used to be a rebel and a 'bum' got religion and become more sophisticated and formed "the Samaritan's Purse' so that he can fly around the country and charge things to his non-profit corporation. As a result his ministry, Samaritan's Purse, had a run-in with the Evangelical Council for Financial ability. The ECFA suspended Samaritan's Purse while it looked into Franklin's (Graham) compensation and use of the company plane. Although Billy Graham encourages religious leaders to be open about their salaries and publish their finances none of the Grahams reveal their total compensation nor release their personal income tax as President Obama does and former Presidents Bush and Clinton have done. It's the law of the land that all non profit chairman of corporations must reveal their total salary and that Billy, Ned and Franklin do not to their donors speak volumes of their hypocrisy? Yes, Jesus told us to beware of hypocrites like Dr. Billy Graham and ECFA.
News from the past: News & Record reported on June 15, 2005 that Billy Graham statue unveiled GREENSBORO -- Southern Baptists, citing his work in bringing people to Christ, unveiled a statue Wednesday that honors the Rev. Billy Graham, the world-renowned North Carolina evangelist. The bronze statue was shown as the Southern Baptist Convention neared the end of the annual meeting. It depicts Graham with his mouth open and arms outstretched, a Bible in hand. A cross towers over him. But News & Record didn‘t report that Billy Graham is still a crook, is deceived about his adulterous friend Bill Clinton, told the Whooper of the Century, believes Jews to be Satanic, is friends with liberals who are off the wall, lied about his health, is a false prophet who doesn't tell the truth about anything. The following facts are undeniable and true:
An Overview of Religious Financial Fraud 1) Billy taking 100 % salary at 87 years of age and working less than 10 percent 2) Billy being a friend of Nixon and a bigot against the Jews 3) Billy writing a letter to Nixon to bomb the dykes of North Vietnam 4) Billy unsure that heaven is a right place for him 5) Billy's unconditional of Clinton and his forgiveness of Clinton 6) Billy using a Ghost writer to write his books 7) Billy formed ECFA to protect his interests and cook the books 7) Billly ing a son, Ned, who was a drunk, adulterer, immoral and had no integrity 8) Billy gave his ministry to Franklin who is as deceitful as his father and a bum and a thief
ORAL ROBERTS COMMENTS ON ECFA In 1987 Oral Roberts testified before Congress. His comments are included in the Memo to Grassley. This is an official Senate Finance Committee report. From pages 27-28 It is telling that the witnesses at the 1987 Hearing representing religious organizations required to file information returns were uniformly ive of the Form 990 filing requirement. Oral Roberts did not see self-policing by a voluntary accreditation agency like the Evangelical Council for Financial ability (ECFA) as an adequate substitute to filing reports with the IRS.90 (Note that Oral Roberts University became an ECFA member in 2009). Asked whether his ministry was a member of ECFA, the Rev. Roberts responded: We were invited to be a member of that … but we believed there was no teeth in it; and I think that has been proved by the PTL thing. Ours was so much stronger; our auditing procedures and our filing of the [Form] 990 every year…. We have a corps of auditors…. Anybody in the United States can get a copy of our [Form] 990 report at any time, by writing the IRS; it is available to the media, to everybody in America…. Why wouldn‘t all file a [Form] 990 – why? I have no objection at all. In fact, if it will help, if there is a loss of confidence, let us do something about it. link to document:
An Overview of Religious Financial Fraud http://finance.senate.gov/newsroom/ranking//?id=1f92d378baa2-440d-9fbd-333cdc5d85fc
ORAL AND RICHARD ROBERTS https://www.idoub.com/doc/17098294 Walter hosting blog radio on Jan 31 exposing Benny Hinn and the Roberts http://cdn5.blogtalkradio.com/show/1/461/show_1461365.mp3
Televangelists Senate Probe, But New Commission Formed Friday, 07 January 2011 http://tinyurl.com/2fbjmn3 Sen. Church Grassley‘s probe into high-profile television ministries may be over, but the ranking member of the Committee on Finance‘s investigation has led to the formation of a new commission on ability and policy issues for churches and other religious organizations. Grassley reviewed the activities and practices of six media-based ministries—Joyce Meyer Ministries, Kenneth Copeland Ministries, Creflo Dollar Ministries, Bishop Eddie Long Ministries, Benny Hinn Ministries, and Paula White Ministries—and found no wrongdoing. One of the six ministries, Joyce Meyer Ministries, responded fully to Grassley‘s inquiry and ed the ECFA in March 2009. Benny Hinn of World Healing Center Church also provided complete answers to all questions. Four ministries either did not provide any information or provided incomplete information, according to the Senator‘s office. ―The tax-exempt sector is so big that from time to time, certain practices draw public concern,‖ Grassley says. ―My goal is to help improve ability and good governance so tax-exempt groups maintain public confidence in their operations.‖ Grassley then asked the Evangelical Council for Financial ability (ECFA) to lead an independent, national effort to review and provide input on major ability and policy issues affecting such organizations. The ECFA created the Commission on ability and Policy for Religious Organizations in response. The commission aims to address some of the most challenging tax and policy issues involving religious organizations, such as whether churches should file the same highly-detailed annual information return that other nonprofits must file (Form 990); whether legislation is needed to curb
An Overview of Religious Financial Fraud abuses of the clergy housing allowance exclusion; whether the current prohibition against political campaign intervention by churches and other nonprofits should be repealed or modified; and whether legislation is needed to clarify tax rules covering "love offerings" received by some clergy. "ECFA is honored and humbled to be asked by Senator Grassley to lead the independent effort to obtain input from the religious and nonprofit community on these issues," says Michael Batts, a A with extensive experience in board governance, financial reporting and tax compliance issues for nonprofit organizations. Batts been appointed by ECFA's board to chair the commission. "The conversation that will ensue in the coming months will focus on the significance of the issues raised by the senator's staff and effective ways to address them. It is our hope, as well as the senator's, that solutions will be found without the need for burdensome legislation that creates excessive entanglement between the church and the government. One obvious area that will be explored carefully is the concept of self-regulation." Batts, who is also a managing shareholder of Batts Morrison Wales & Lee, PA, an Orlando-based ing firm dedicated exclusively to serving nonprofit organizations and the former chair of the board of ECFA and is currently a member of ECFA's board and executive committee, says a variety of groups will be consulted in the work of the commission. The commission has not yet determined a timetable for the completion of its work. http://www.charismamag.com/index.php/news/29938-televangelists-senate-probe-but-new-commission-formed#ixzz1AZfMMpqS http://www.idoub.com/doc/17662575/The-Evangelical-Council-Of-Financialability-Is-A-Joke
WALTER KAMBULOW http://walthope.wordpress.com/ http://walthope.tripod.com/ FACEBOOK: WALT KAM https://plus.google.com/u/0/100302133262254344211/posts BENNY HINN THE SCOUNDREL https://www.idoub.com/doc/17673980/ Benny Hinn Exposed NBC DATELINE
An Overview of Religious Financial Fraud http://www.youtube.com/watch?v=NSxqFE_hmcE
Rodney the Fleecer http://tinyurl.com/343w372 Dangerous Dominionsts http://www.idoub.com/doc/38649037/ An Overview of Religious Financial Fraud http://www.idoub.com/doc/24336837 The $50 MILLION DOLLAR LAWSUIT TORONTO AIRPORT CHRISTIAN FELLOWSHIP JOHN ARNOTT STEVE LONG VS WALTER KAMBULOW http://www.idoub.com/doc/33446103 Criminals/Perjurers/Thieves http://tinyurl.com/2ch3vba http://tinyurl.com/2758krh Wolves in Sheep's Clothing http://tinyurl.com/38kcbq6 Third Wave Dangerous, Deceptive And Demonic http://tinyurl.com/288apq7 False Holy Spirit Conference http://www.idoub.com/doc/35527597/ BENNY AND PAULA! THE BEST CHRISTIAN SOAP OPERA OF 2010? http://tinyurl.com/38gkbza LIARS AND PERJURERS IN REVIVAL http://www.idoub.com/doc/33780391/ Signs, Wonders & Miracles http://www.idoub.com/doc/33782544/ Lakeland-Revival http://www.idoub.com/doc/34189317/ Laughing Clark http://www.idoub.com/doc/35148050/ DAN STRADER IS NOT INNOCENT http://www.idoub.com/doc/33762241 Wealth Transfer Theology Is Demonic http://www.idoub.com/doc/29618734 FAILED PROSPERITY http://tinyurl.com/35msnwl SO THE DEMONS FROM HELL PRAISED THE LORD IN WORSHIP AND WHAT HAPPENED? NOTHING! http://tinyurl.com/5tht7ds
Christian News Today Ephesians 5:11 & Mark 4:22
EPHESIANS 5:11 And have no fellowship with the unfruitful works of darkness, but rather expose them. 12 For it is shameful even to speak of those things which are done by them in secret. 13 But all things that are exposed are made manifest by the light, for whatever makes manifest is light. 14 Therefore He says: " Awake, you who sleep, Arise from the dead, And Christ will give you light." MARL 4:22 For there is nothing hidden which will not be revealed, nor has anything been kept secret but that it should come to light.
An Overview of Religious Financial Fraud The $34 Billion Scandal http://christianheadlines.com/blog/2011/01/08/an-overview-of-religiousfinancial-fraud/ The January 2011 issue of the International Bulletin of Missionary Research reported that Christian religious leaders will commit an estimated $34 billion in financial fraud in 2011 while $31 billion will be spent on global missions. Researchers from the Center for the Study of Global Christianity estimate that Christian religious leaders will commit $90 million in financial crimes daily and the fraud is growing at a rate of 5.97% each year. If the researchers are correct, religious financial fraud among Christians will almost double in 14 years to $60 billion annually by 2025. 1 Dr. David Barrett, the first editor of the World Christian Encyclopedia and a researcher for the Center, has been studying religious financial fraud for more than 20 years. According to Dr. Todd Johnson, the Center‘s director, these statistics were the result of Barrett ―developing a balance sheet for global Christianity.‖ Barrett was ―trying to understand the totality of Christian finance.‖ 2 A Global Problem Barrett and Johnson in the reference book ―World Christian Trends‖ reported, ―Probably 80% of all cases are kept private or swept under the carpet, but each year a rash of megathefts (over $1 million each) is uncovered and publicized in the secular media.‖ 3 Here is a small sample of religious financial scandals from around the world:
Brazil: Bishop Edir Macedo, head of the Universal Church of the Kingdom of God, and 9 of his associates have been charged with
An Overview of Religious Financial Fraud
embezzling more than $2 billion. 4 Canada: Televangelists Ron and Reynold Mainse allegedly recruited investors in a Ponzi scheme. 5 China: A whistleblower goes to jail for speaking out after donations for earthquake victims were stolen. 6 Italy: Police confiscated 23 million euros in a Vatican bank as part of an investigation into money laundering. 7 Ukraine: Pastor Sunday Adelaja charged with fraud in promoting a business venture to his congregation that lost $100 million. 8 United Kingdom: Church treasurer Derek Klein embezzled funds to pay for a stamp collection. 9 United States: Trent Huddleston, former senior ant at Oral Roberts University, alleges that more than $1 billion was money laundered annually by of the Oral Roberts University board. 10
Common Funding Sources of Religious Thieves 1. The Offering Plate — In 2002 NBC Dateline aired an exposé on Benny Hinn. Mike Estrella, a former Benny Hinn Ministries employee responsible for counting the money given at Hinn‘s crusades, said that he observed Gene Polino, Hinn‘s CEO, embezzle thousands of dollars from the crusade collection buckets.11 Wikipedia describes this practice as ―skimming‖ which ―refers to taking cash ‗off the top‘ of the daily receipts of a business …‖ 12 This form of fraud is hard to detect but occassionally the skimmers are caught. A member of St. Ita Catholic Church‘s finance committee marked a $100 bill before placing it in the offering plate. The bill disappeared before the church could deposit it in the bank. A priest later acknowledged taking the money. 13 2. The Ministry Checking and Credit Card — Jason Reynolds, the finance director of National City Christian Church, used the church credit card to acquire a Lexus SUV and Land Rover. He also embezzled over $200,000 by writing himself checks. 14 These forms of fraud can be reduced by requiring two signatures for checks and by insisting on lower credit limits for credit cards. 3. Investments — In 1999 the Baptist Foundation of Arizona filed for bankruptcy after accumulating $530 million in liabilities. Dishonest s engaged in a cover-up to hide bad investments. William Crotts and his associates set up more than 90 dummy corporations to hide financial losses and used a ponzi scheme to cover old investments. 15
An Overview of Religious Financial Fraud New Church Ventures was the largest dummy corporation formed by the BFA and held $173 million in debts. New Church Ventures had zero employees and provided no funds for building new churches even though that was its stated objective. 16 The Phoenix New Times investigated Jalma Hunsinger, the president of New Church Ventures, and reported on strange insider deals and flipped property fraud. The owner of the Simms Tower offered this $1.9 million building to the BFA for $1 as a tax write-off because the building was contaminated by asbestos. When the Foundation turned down the offer, Hunsinger acquired the building and used it as collateral for a BFA $6.8 million loan. 17 Trinity Foundation Investigates the Televangelists In 1987 filmmaker Harry Guetzlaff‗s production company was failing. Out of desperation he pledged money to televangelist Robert Tilton in hopes for a financial blessing. When Guetzlaff lost his home and approached Tilton‘s organization for help, he was denied any assistence. Guetzlaff went to the Trinity Foundation and told his story to Ole Anthony, director of the Foundation. Anthony launched an investigation into Tilton‘s direct mail operation and assisted the ABC News program PrimeTime Live on a TV exposé.18 The Trinity Foundation has investigated religious financial fraud for 23 years. Trinity investigators have gone through the trash of televangelists to obtain evidence, worked undercover inside ministry offices, assisted TV news programs and newspapers in developing investigative reports, and operated a phone line for victims of fraud (1-800-229-VICTIM). While conducting these investigations the Trinity Foundation has redefined its mission. The Trinity board adopted a 4-point agenda for opposing religious financial fraud. 1. Increase public awareness by continuing to provide information requested by various news media organizations and giving interviews when appropriate. 2. Enable the establishment of civil case law regarding religious fraud. 3. Enable the establishment of criminal case law regarding religious fraud. 4. Work with government agencies toward establishing greater ability for religious, non-profit organizations.19 The IRS Dirty Dozen The United States Internal Revenue Service posts an annual list of the
An Overview of Religious Financial Fraud most common forms of tax fraud they encounter called the ―The Dirty Dozen.‖ In recent years the reports have singled out two specific forms of religious financial fraud.
2008: ―IRS examiners are seeing an upturn in instances where taxpayers try to disguise private tuition payments as contributions to charitable or religious organizations.‖ 20 2005: ―Participants apply for incorporation under the pretext of being a ―bishop‖ or ―overseer‖ of a one-person, phony religious organization or society with the idea that this entitles the individual to exemption from federal income taxes as a nonprofit, religious organization. When used as intended, Corporation Sole statutes enable religious leaders to separate themselves legally from the control and ownership of church assets. But the rules have been twisted at seminars where taxpayers are charged fees of $1,000 or more and incorrectly told that Corporation Sole laws provide a ―legal‖ way to escape paying federal income taxes, child and other personal debts.‖ 21
Common Forms Of Religious Financial Fraud Churches Operating As Tax Shelters The 2004 Internal Revenue Manual of the IRS noted that some churches are being used fraudulently to avoid taxes: ―While desiring to protect churches from undue interference by the IRS, Congress, in enacting IRC § 7611, recognized that an increasing number of taxpayers had used the church form primarily as a taxavoidance device.‖ 22 Realtor and banker George Michael of Lake Bluff, Illinois, claimed that he converted his 15,000 square foot lakefront mansion worth $3 million into a church so that his disabled wife would have a place to worship. Michael‘s neighbors and local government officials claim the home was not a church and that Michael was attempting to avoid paying more than $70,000 in property taxes. After the Illinois Department of Revenue granted a religious tax exemption, local officials went to court to have the tax exemption removed and won in court on July 6, 2009. 23 Conversion and Self Dealing The Atlanta Journal-Constitution reports, ―IRS rules do not bar transactions between a nonprofit group and a business that is owned or controlled by the same person, a practice known as self-dealing.‖ 24 Self dealing is one of the key methods that fraudulent nonprofit executives use to enrich themselves. Here‘s an example of how it works:
An Overview of Religious Financial Fraud A televangelist owns a for-profit company that publishes all of his books and DVDs. Then he sells the books and DVDs at full retail price to his nonprofit rather than at a discount or wholesale price. A televangelist can use this technique to excessively profit from his nonprofit organization. Pastors Mike and Elaine Millé of White Dove Fellowship in Harvey, Louisiana, purchased property costing $850,000 in August 2007 and sold the property to their church about 90 days later for $1,229,112 for a profit of $379,112. This transaction is not just an example of self dealing, it is also flipped property fraud. After learning of the transaction, the Trinity asked the IRS to investigate the Millés and White Dove Fellowship. 25 Excessive Compensation Nonprofit organizations in the United States can lose their tax-exempt status and be required to pay excise taxes if employees receive excessive compensation. Yet this rarely happens. When the Charlotte Observer investigated compensation for charity executives, it reported, ―Most years, fewer than 10 of the nearly two million U.S. nonprofit leaders are penalized for receiving excessive compensation.‖ The newspaper also noted that there is ―roughly one enforcement agent for every 4,000 tax-exempt groups nationally‖ so very few nonprofit organizations get audited. 26 The Charlotte Observer reported that televangelist David Cerullo of The Inspiration network ―was paid nearly 1.7 million‖ in 2008. However, the newspaper left out that Cerullo received $331,881 in nontaxable benefits that year. 27 Cerullo has the highest compensation of any religious broadcaster in the United States that files 990 forms with the IRS. Churches are exempt from filing so some megachurch pastors and televangelists are refusing to make their compensation public. Kenneth Copeland doesn‘t disclose his income but has bragged that he is a billionaire. 28 In 1921 the United States federal government established a tax exemption for ministerial housing expenses to help poor congregations provide housing to clergy. 29 This exemption is now being abused to provide religious leaders with large tax-exempt housing benefits. When Crystal Cathedral filed for bankruptcy, its financial records revealed ―$832,490 in tax-exempt housing allowances given to eight people …‖ 30 WFAA reported that Ed Young of Fellowship Church in Grapevine, Texas, ―was paid $240,000 a year as a parsonage allowance; that‘s in addition what sources say is a $1 million yearly pastor‘s salary. 31 A lawsuit filed by the Freedom From Religion Foundation could result in
An Overview of Religious Financial Fraud this housing allowance being ruled unconstitutional in 2011.
32
Insurance Fraud The Coalition Against Insurance Fraud produces a Hall of Shame list each year to bring attention to insurance fraud. Pastor Gerald Rayborn was featured on the 2004 list for burning down his church for $800,000. 33 Dennis Jay, the Coalition‘s director, reported in Claims Journal that ―Rev. Roland Gray helped stage nearly 200 car crashes plus phony slip-and-fall injuries in restaurants and hotels. He recruited parishioners and even his brother, who also was a minister.‖ 34 After obtaining seven life insurance policies for a blind man, pastor Kevin Pushia hired a hitman for $50,000. Pushia plead guilty. 35 Fraud Among Groups
Nonchristian
Religious
Rabbi Saul Kassin, head of America‘s largest Sephardic synagogue, was arrested in 2009 with four other rabbis for money laundering almost $3 million. 36 Salman Ibrahim established credibility among Chicago Muslims through his involvement in the Shariah Board of America. Ibrahim formed Sunrise Equities Inc., as an Islamic investment company, and paid dividends rather than interest which is prohibit by the Koran. Investors lost $30 million when Ibrahim disappeared from the United States. 37 Religious con artists have been effective at targeting Mormons, costing their victims $1.4 billion. 38 Atheists aren‘t exempt from religious financial fraud. William Murray, son of America‘s most famous atheist, Madalyn Murray O‘Hair, claims his mother embezzled millions of dollars from American Atheists. A former employee of American Atheists ed Murray‘s claims by revealing on the TV program City Confidential that he was told what foreign bank O‘Hair had deposited $18 million. David Roland Waters, another employee of American Atheists, embezzled $54,000 and murdered Madalyn Murray O‘Hair after she disclosed the theft of funds.39 Endnotes 1 Todd M. Johnson, David B. Barrett, and Peter F. Crossing, ―Status of Global Mission, 2010, in Context of 20th and 21st Centuries‖, International Bulletin of Missionary Research, Vol. 35, No.1, page 29, January 2011
An Overview of Religious Financial Fraud 2 Interview of Todd M. Johnson in June 2008 3 David B. Barrett and Todd M. Johnson, World Christian Trends, page 660, 2001 4 ―Brazil evangelical leader accused of fraud: Church founder allegedly siphoned off billions to buy jewelry, businesses‖, AP, August 12, 2010 link 5 Bene Diction, ―Ron Mainse of 100 Huntley Street makes statement on alleged ponzi scheme‖, Bene Diction Blogs On, September 15, 2009, link 6 ―Government Approved Church Leaders Withhold Donated Quake Funds; Whistleblower Christian Sentenced‖, China Aid / Christian Newswire, July 30, 2009, link 7 Nicole Winfield, ―Italian police seize $30M from Vatican in probe‖, AP, September 21, 2010, link 8 Adrienne S. Gaines, ―Sunday Adelaja Accused of ing Investment Scheme‖, Charisma, December 19, 2008, link 9 Aidan Mcgurran, ―Church fraudster told to sell off stamp collection on web to pay back victims‖, London Mirror, April 19, 2008, link 10 April Marciszewski, ―More than $1 billion annually was funneled through ORU, lawsuit claims‖, Tulsa World, February 7, 2008, link 11 ―Benny Hinn has millions of believers and millions in donations‖,NBC Dateline, December 27, 2002, link 12 ―Skimming (fraud)‖, Wikipedia, link 13 ―Priest indicted in Edgewater church theft‖ , Chicago Tribune, August 9, 2008, link 14 Del Quentin Wilber, ―Former church finance director charged in theft scheme‖, Washington Post, December 30, 2009, link 15 ―Baptist Foundation of Arizona‖ Wikipedia, link http://en.wikipedia.org/wiki/Baptist_Foundation_of_Arizona 16 Lawrence C. Mohrweis, ―Lessons from the Baptist Foundation Fraud‖ The A Journal link
An Overview of Religious Financial Fraud 17 Terry Greene Sterling, ―A Shaky Foundation: For the Baptist Foundation of Arizona–and its baffling insider real-estate deals–the devil‘s in the details‖, Phoenix New Times, April 23, 1998, link 18 Burkhard Bilger, ―God doesn‘t need Ole Anthony‖, The New Yorker, December 6, 2004, link 19 Interview of Trinity Foundation member Pete Evans 20 Phishing Scams, ―Frivolous Arguments Top the 2008 ‗Dirty Dozen‘ Tax Scams‖, IRS, March 13, 2008, link 21 ―IRS Announces the 2005 Dirty Dozen‖, IRS, February, 28, 2005, link 22 ―Internal Revenue Manual – 4.76.7 Church Tax Inquiries and Examinations IRC § 7611″, IRS, June 1, 2004 (note: this section was re-written in 2010), link 23 Linda Blaser, ―Judge Removes Religious Tax Exemption From Shore Acres Drive Home‖, Pioneer Local, July 23, 2009, link 24 Ernie Suggs, ―King son‘s firm paid $1.3 million by center‖, Atlanta Journal- Constitution, page A1, Date: May 20, 2005 25 Lee Zurkik, ―Criminal investigation into West Bank televangelist?‖, WVUE, November 17, 2010 link 26 Ames Alexander, ―For too many nonprofits, charity starts at the top‖, Charlotte Observer, December 20, 2009 link 27 The Inspirational Network Inc 2008 – 990, pages 7, 24 (available at guidestar.org) 28 ―Kenneth Copeland is a billionaire‖, Google Video, link (video from KCM Ministers‘ Conference, January 23, 2008) 29 Robert Marus, ―House approves bill to protect minister-housing allowances‖, Associated Baptist Press, April, 19, 2002, link 30 Abby Sewell and Nicole Santa Cruz, ―Bankruptcy filings show generous pay for relatives of Crystal Cathedral founder‖, Los Angeles Times, December 3, 2010 link 31 Brett Shipp, ―Prominent Grapevine pastor linked to luxury‖, WFAA, February 4, 2010, link 32 Stephanie Samuel, Church Legal Expert: Minister Housing Tax Break
An Overview of Religious Financial Fraud Under Attack‖, Christian Post, December 29, 2010, link 33 Merritt Melancon, ―Two plead guilty in 2005 church torching‖, Athens Banner-Herald, June 15, 2010, link 34 Dennis Jay, ―Fraud in the Church Takes Heavy Toll on Congregation, Insurers‖, Claims Journal, August 23, 2010, link 35 ―Pastor its to scam and conspiring to kill blind man‖, Scripps Media, August 28, 2010, link 36 Paul Vitello, ―Syrian Sephardic Communities Shaken by Charges Against a Leading Rabbi‖, New York Times, ,July 23, 2009 link 37 Michael Tarm, ―Prosecutors: $30M Ponzi scheme targeted Muslims‖, Associated Press, November 18, 2010 link 38 John L. Smith, ―How affinity fraud‘ hurts LDS church ‖, Mormon Times, September 14, 2010 link 39 ―Madalyn Murray O‘Hair‖, Wikipedia, link
A REAL PAOC SCANDAL IN TORONTO? Prayer Palace pastor Paul Melnichuk facing sex assault charges Charges against flamboyant preacher relate to two parishioners at mammoth Toronto church that draws more than $3 million in donations each year. Paul Melnichuk attempts to cover his face while leaving the Ontario Court of Justice with son Tom, right, at 1000 Finch Ave W. on Thursday. By: Dale Brazao News, Katrina Clarke Staff Reporter, Alex Ballingall News, Published on Thu Jan 08 2015
An Overview of Religious Financial Fraud The flamboyant and controversial senior pastor of the Prayer Palace has been charged with sexual assault involving a mother and daughter who are parishioners at the mammoth evangelical church in northwest Toronto. Paul Melnichuk, 80, known to parishioners as “Pastor Paul,” surrendered to police Thursday morning, after being notified of a warrant for his arrest. Police say the complainants are a woman in her 40s and a woman who is younger than 20. Both were of the church, founded by Melnichuk and his wife more than 30 years ago. The pastor is charged with five counts of sexual assault. During a brief appearance at the Finch Ave. courthouse Thursday afternoon, the lightly tanned pastor — once described as a movie star and the “religious Mel Lastman or Ed Mirvish” — wore a black leather jacket and white collared shirt. He smiled at his wife, Kathleen, 79 — who sat flanked by son Tom and a blonde woman — as court officers removed his handcuffs. A publication ban prevents the media from reporting what was said in court and the identities of the two women. Sitting in the prisoner’s box, Melnichuk turned his head away from his family and looked to the ground as the Crown read out allegations against him. He let out a deep breath and crossed his legs but showed no emotion. The alleged incidents occurred between May and September 2014 on church property when he was alone with the women, police say. Three of the five charges laid against Melnichuk relate to allegations from the daughter, the other two complaints from the mother. Melnichuk was released on $20,000 bail posted by his wife. “When I first found out about the assaults, it was so hard to believe,” a person close to the alleged victims told the Star. “He used his power to get the family really close to him, to trust him, and when they least expected it, he betrayed that trust, and he violated the family.” Melnichuk and his twin sons, Tim and Tom Melnichuk, both associate pastors at the church, were the subject of a Star investigation in 2007 that focused in part on the wealth the family had garnered while heading a largely poor, mostly black, congregation. Information on The Prayer Palace’s website says Melnichuk is the senior pastor at the church. The mammoth building, at Finch Ave and Highway 400,
An Overview of Religious Financial Fraud resembles a round spaceship with a large cross on the roof that can be seen for miles. “Are you for real?” exclaimed Hyacinthe Houghron, a longtime churchgoer and Melnichuk irer, when told of the charges. Houghron, who left the Prayer Palace seven years ago for personal reasons, said she had never heard any allegations of sexually related misconduct involving Melnichuk. “I don’t even know what to say; this is a shocker to me. I’m really surprised to hear this . . . I just hope that he’s not guilty.” At The Prayer Palace Thursday afternoon, a woman demanded Star reporters leave the property. Parishioners outside would not comment on the allegations. The 2007 Star investigation was part of an ongoing series on Canadian charities and documented the Melnichuks’ lavish lifestyle, which included a personal portfolio of fancy homes in Canada and Florida valued at more than $12 million, and a fleet of fine cars. Each of the Melnichuks owned a multimillion-dollar estate north of Toronto, and they shared a Florida vacation villa. They and their wives drove a fleet of luxurious cars, including a Porsche Cayenne SUV, a Lexus RX 330 SUV, and Mercedes-Benz CLK 320 convertible. The Star probe found that in 2005 the Prayer Palace drew $3 million in donations while doling out a meager $9,443 to “benevolent and charity activities.” In the days following publication of the Star investigation, the Melnichuks took to the stage in the mammoth church, which features coliseum-like seating, preaching that their fortunes had been attained through hard work and wise investments. “You weren’t designed to live in an apartment building. You were designed to own the apartment building you’re living in,” Tom Melnichuk said, calling on his parishioners to think positive. “If you don’t watch it, you’ll be eating at Denny’s for the rest of your entire life.” At the time his son Tom was giving the sermon, Pastor Paul Melnichuk was relaxing in a million-dollar mansion in Bradenton, Fla., where the Star photographed him suntanning on a dock on the Manatee River, under a large carving of a pelican. Upon his arrival back from Florida, Paul Melnichuk flashed a toothy smile and dismissed the controversy.
An Overview of Religious Financial Fraud “I’ve brought a little bit of Florida with me in my suntan,” Melnichuk told the assembled congregants. “You can see my white teeth better . . . I want so much to look like my congregation.” During the weekly Sunday sermons, which were televised and featured a large gospel choir, Pastor Paul often urged worshippers to give generously if they wanted the Lord’s blessings. “What’s a half million dollars to a congregation like this? Peanuts,” Pastor Paul thundered in one sermon, saying the money would go to funding an “evangelical explosion” in Toronto. Property records obtained by the Star Thursday show Paul and Kathleen Melnichuk own three properties in Canada and as well as a large home on a golf course in Lakewood Ranch, Fla., near Sarasota. After selling their King City estate for $2 million in 2009, the Melnichuks purchased a $1.3-million home at Lawrence and Avenue Rd. They then bought home in a golf course near Sarasota in 2013 for $785,000, after selling their Bradenton home for $1.1 million. The couple also owns a property in Simcoe region, purchased in 1986 for $465.000, and a waterfront property in Prince Edward County that they bought for $1.19 million in 2012, property records show. As part of the bail conditions, Melnichuk must reside with his wife at their Picton home or at The Prayer Palace. According to tax information filed with Revenue Canada for 2013, The Prayer Palace Inc. had a total revenue of $3,219,515 and expenses totaling $2,996,511, the majority of which the church says was spent on charitable activities. More than one-third of expenses — more than $1.1 million — went to compensation, with one unnamed person on staff taking in between $200,000 and $249,000, according to the organization’s charity return record. The financial details are more or less the same going back to 2009 (the earliest available), with the exception of 2010, when the Prayer Palace posted $4.5 million in expenditures. More than $2.8 million of that went to compensation, Revenue Canada records show, including two unnamed people who were paid “$350,000 or more” that year. On its website, the Prayer Palace quotes St. Paul’s second letter to the Corinthians in urging people to be cheerful when donating to the church. “Every man according as he purposeth in his heart, so let him give; not grudgingly, or of necessity, for God loveth a cheerful giver.”
An Overview of Religious Financial Fraud The church accepts PayPal. At the end of the Thursday bail hearing, Melnichuk declined to answer questions from the Star as he walked outside, with his son Tom leading the way. The elder Melnichuk pulled his jacket over his head to in an attempt to avoid being photographed while another member of the entourage put his hand over a Star photographer’s lens. “He has no comment,” said his lawyer. Police believe there may be more victims and are encouraging victims to investigators at 416-808-3100. http://on.thestar.com/1AyL1Bj YES MANY PAOC PASTORS ARE CORRUPT, LIARS AND THIEVES IN CANADA Is David Mainse An Unethical Scoundrel Like Benny Hinn? http://www.idoub.com/doc/18020892 https://paoc.org/
The Evangelical Council Of Financial ability Is A Joke http://www.idoub.com/doc/17662575/The-Evangelical-Council-OfFinancial- ability-Is-A-Joke
Franklin's Purse Charity: Controversy spurs Graham to give up one of two salaries | Warren Cole Smith and Rusty Leonard Franklin Graham has long had a reputation for being larger than life and going his own way. His 1997 memoir, Rebel With a Cause, chronicled his prodigal period and his return to God. Eventually, he made it to the top spots at both the Billy Graham Evangelistic Association (BGEA) and Samaritan's Purse (SP), a Christian relief organization ministering to the needy around the world. So Graham may now have a cause, but he never leaves the rebel far behind. In 1992, the Evangelical Council for Financial ability (ECFA) suspended Samaritan's Purse while it investigated the ministry's finances. It was reinstated in early 1993. In 2001, when he also took over as president of the Billy Graham Evangelistic Association, nonprofit experts questioned the wisdom of Graham being paid full-time salaries by both organizations. Ministry watchdog Ole Anthony of the Trinity Foundation said, "It's ludicrous to think he could do two jobs at that level."
An Overview of Religious Financial Fraud This month, Graham and his compensation are back in the spotlight again. When the Chronicle of Philanthropy released its annual list of the top-paid executives in the nonprofit world, Graham appeared twice, at the top of the list for his salary with BGEA, and only slightly farther down for his only slightly less hefty salary with Samaritan's Purse. The two combined gave him a total compensation of more than $1.2 million (including expense allowances) for 2008 and made him the highestpaid executive at a Christian ministry listed in the survey, and one of the highestpaid nonprofit executives of any kind. The news created a media firestorm. BGEA's hometown newspaper, the Charlotte Observer, devoted more than 3,000 words to the controversy in a front-page story that was picked up by newspapers around the country. Graham himself stopped giving media interviews. Instead, his public relations agency issued a defense of the compensation, saying that "due to unusual reporting guidelines related to deferred compensation placed in a 457(f) retirement plan at the BGEA over the past four years, nearly half (44.8 percent) of Mr. Graham's 2008 compensation as reported on the ministry's Form 990 had been previously reported on the 2005, 2006 and 2007 Form 990. This unusual reporting requirement meant that the BGEA had to report three prior years' retirement contributions a second time in 2008. Therefore, in reality, there was no substantial increase in Mr. Graham's compensation in 2008." That may be, but the same reporting guidelines also applied to others in the compensation survey. The only real difference was that BGEA's contributions to Graham's retirement plan were much larger than other organizations' contributions to their executives' plans. Also, Graham's compensation in the years 2005-2007 was over $750,000—at or near the top for Christian ministry executives. Indeed, Graham's compensation was so much greater than the No. 2 religious executive on the list that, even without the double-counting, his combined BGEA/SP salaries would still have put him at the top of the list. So will all of this result in more scrutiny, or possible suspension, from the ECFA? Almost certainly not. Dan Busby, president of the ECFA, also declined to be interviewed by WORLD, but he too issued a statement in response to our questions. His statement said, in part, that "nearly half of Mr. Graham's 2008 compensation as reported on the Billy Graham Evangelistic Association (BGEA) Form 990 had been previously reported on the 2005, 2006, and 2007 Form 990. This unusual reporting requirement resulted in the BGEA reporting three prior years' retirement contributions a second time in 2008. Therefore, there was no substantial increase in Mr. Graham's compensation in 2008." In other words, the ECFA statement was almost a verbatim copy of the statement issued by BGEA and Samaritan's Purse.
An Overview of Religious Financial Fraud Busby's statement went on to say that "ECFA standards are based on the principles of good governance, ability, integrity and transparency, and do not place dollar limits on the compensation of its ' leaders." But Graham himself acknowledged that, despite the elaborate explanations, the situation didn't look good. On Oct. 9, Graham told his staff via a memo that he planned to give up his BGEA salary. His spokesperson, Mark DeMoss, said that Graham had decided the controversy "just wasn't worth it." That means that Graham will receive just one income, the one he gets from Samaritan's Purse— which in both 2007 and 2008 (including all benefits) exceeded $500,000. http://www.worldmag.com/articles/16027 There are some people who have this opinion that the Evangelical Council for Financial ability is an honorable organization. But it is a fact that the Evangelical Council for Financial ability doesn‘t exist for the donors but for the Evangelical ministries to give them a so called umbrella of legitimacy. That is why ECFA never discloses the salaries of any Evangelical ministry leader to the donors which is a true test of why they are in the ministry! The Evangelical Council of Financial ability came into being due to the threats of Congressman Charles Wilson of Texas who had introduced a bill that would have required disclosure "at the point of solicitation unless the Fundamental Evangelical Evangelists would clean up their own house and police themselves. For Southern Baptist Evangelist Billy Graham was embarrassed in 1977 when the Charlotte Observer discovered an undisclosed $23-million fund in Texas, apparently not mentioned in the ings of the Minneapolis headquarters of the Billy Graham Evangelistic Association. As a result Graham's business manager led the formation of the Evangelical Council for Financial ability after Graham said on a national telecast, ". . . there are some charlatans coming along and the public ought to be informed about them and warned against them, " "stated K. Hadden and Charles E. Swann in their book Prime Time Preachers. Jeffrey K. Hadden and Charles E. Swann in their book Prime Time Preachers: The Rising Power of Televangelism (1) stated: In 1977 Senator Mark Hatfield informed a group of evangelical leaders that if they did not assume responsibility for regulating themselves there was every likelihood that legislation would be required. In fact, Congressman Charles Wilson of Texas had already introduced a bill that would have required disclosure "at the point of solicitation." In December 1977 representatives of thirty-two evangelical groups met in Chicago to discuss cooperative efforts. Thomas Getman, chief legislative assistant to Senator Hatfield, told the group, "Legislation is not important; disclosure is."
An Overview of Religious Financial Fraud Getman encouraged "a voluntary disclosure program . . . that will preclude the necessity of federal intervention into the philanthropic and religious sector." Almost two years later Dr. Stanley Mooneyham, president of World Vision, acknowledged, "There is no denying that this threat of governmental action was one of the stimuli'' that produced the December meeting and the subsequent activities which led to the founding of the Evangelical Council for Financial ability. A tax exempt non profit organization and corporation, especially a religious one, is not like a private company which exists for profit? Its revenues come from the donations and gifts of ordinary individual some of whom have sacrificed to give to them. For this is what many Evangelical Evangelists have requested 'their sacrificial giving?" Many Southern Baptists evangelists in America, such as Billy and Franklin Graham, belong to the Evangelical Council of Financial ability that purports to work on behalf of the donor but in reality exists for the spenders. For although ECFA has in its possessions the total compensation of all the religious evangelical non-profit organizations that belong to it, it will not disclose them. Years ago I have requested such information from ECFA but to no avail. Do your own homework on Evangelical Council for Financial ability which Billy Graham founded. It is a fact that Fundamental Evangelical leaders in America, even those who belong to ECFA, never show their total compensation to their donors. They are not stupid. If they disclose anything is just your basic salary but not their personal income tax? So to whom is the Evangelical Council of Financial ability able to? To themselves? Definitely not to their donors or the public as seen by their own words! For the ECFA has as its Mission Statement that it is committed to helping Christ- centered organizations earn the public's trust through developing and maintaining standards of ability that convey God-honoring ethical practices. Also its donor bill of rights states that its responsibility to make sure your charity's standards and guidelines assure you of a "bill of rights" as a donor. You have the right to: 1. Know how the funds of an organization are being spent. 2. Know what the programs you are accomplishing. 3. Know that the organization is in compliance with federal, state, and municipal laws.
An Overview of Religious Financial Fraud 4. Restrict or designate your gifts to a particular project. 5. A response to your inquiries about finances and programs. 6. Visit offices and program sites of an organization to talk personally with the staff. Nothing in the donor's "bill of rights" talks about checking into illegal or unusual expenses or salaries? But ECFA states that it wants to earn the public's trust through developing and maintaining standards of ability that convey God-honoring ethical practices. A simple examination of ECFA seven standards of responsible stewardship shows that it gives nothing to the donor or the public to ensure that there is no hanky-panky other than their word. Unfortunately as shown by the BFA bankruptcy the word of Southern Baptists doesn't mean much! An excellent way to determine responsible stewardship of any ministry that belongs to ECFA is to see the personal income tax of the chairmen of each of the nonprofit organizations who belong to ECFA. One can easily see if an individual is profiting from their own indirectly owned non-profit religious organization? Why is it important to know the salaries of religious leaders? The downfall of Evangelist Rex Humbard says why. From its modest $65 beginning, the Rex Humbard Ministry was now worth millions. And was all paid for by private contributions. Still, like those of many of his fellow television colleagues, Rex's ministry appeared ever on the brink of bankruptcy. On his April 13, 1980, broadcast he made an imioned plea for immediate cash contributions needed to stave off disaster. The program was $2.5 million behind in its obligations, and Humbard was running an average of four months behind in payments to stations for TV time. Humbard's appeals brought in $4 million and wiped out the debt. About the same time, a Cleveland Press writer discovered that Rex and two of his sons, who work with him on the television ministry, had purchased a home and condominiums in Florida valued at $650,000 with down payments of $177,500 in cash. A lot of people have long believed that preachers, especially the evangelical variety, have their hands in the offering plate. In light of this belief, the timing of Humbard's corporate debt and personal investment certainly didn't make him look very good. And he didn't help his own cause any when he told the prying Press reporter, "My people don't give a hoot what I spend that money for But people do give a hoot how much money their favorite minister steals and that is why ministers especially prominent ones hide their salaries. As a result of Rex Humbard's thievery his ministry folded because people and even God does not like crooks in the House of God. If you check out the latest form 990 - 2002 for Billy Graham Evangelist Organization available from Guide Star http://www.guidestar.org/search/ you will
An Overview of Religious Financial Fraud see that Billy Graham is just as much of a crook as ever. At 88 years of age he is still receiving a hundred percent salary of $ 189, 385 and $ 233,979 for other allowances and is working less than ten percent of the time! The same with Clifford B. Barrows who is receiving $ 164,442. They both should have been put out to pasture a long time ago and should have stopped taken a salary that they have not earned! And yes Billy used his organization to financially his children including $ 600,000 to Franklin Graham, $ 210,000 to Ned Graham and $ 300,000 to Ann. Ned Graham who was originally slated to take over Billy Graham Evangelist Organization instead of Franklin received less money because he is the black sheep of the family. What gave Billy Graham the right to take money donated to preach the gospel to give to the of his family especially Ned Graham? Nothing! Jeffrey K. Hadden and Charles E. Swann in their book ―Prime Time Preachers‖ stated: Billy Graham was embarrassed in 1977 when the Charlotte Observer discovered an undisclosed $23-million fund in Texas, apparently not mentioned in the ings of the Minneapolis headquarters of the Billy Graham Evangelistic Association. As a result Graham's business manager led the formation of the Evangelical Council for Financial ability after Graham said on a national telecast, ". . . there are some charlatans coming along and the public ought to be informed about them and warned against them." In my opinion Billy Graham has raised up two sons Ned and Franklin who are as deceitful as their father. Ned Graham, the son of Billy Graham, Southern Baptist minister, president East Gates International, a group that distributes Bibles in China told Christianity Today in an interview that he had abused alcohol and spent an "inappropriate amount of time" with two women on his staff. Grace Community Church, Southern Baptist Convention, in Auburn, Washington-which counted Ned Graham, his wife, and their two sons as established the fact that Ned Graham was an adulterer, alcoholic, wife ab, and drug and revoked Graham's ministerial credentials. It directed Graham to stop using the title reverend. Yet in a style reminiscent of Jimmy Swaggart, who refused to be defrocked by the Assembly of God denomination, Ned Graham left that congregation for another church. Most of the staff and board of East Gates International resigned amid controversies. East Gates, in Sumner, Wash., withdrew its hip in the Evangelical Council for Financial ability after Ned replaced the board with his sister Ruth Graham McIntyre, brother-in-law Stephan Tchividjian, and business leader Peter Lowe. Graham's sister Gigi Tchividjian has ed the office staff and Ned Graham continues as East Gates president. The ECFA the self-policing organization Billy
An Overview of Religious Financial Fraud Graham helped start requires that a majority of board not be related by blood or marriage, which is no longer the case for East Gates. Nepotism is alive and well in Evangelical ministries? A December East Gates fund-raising letter included a note from his father saying that "Ruth and I are proud of and grateful to God for our son Ned." East Gates has distributed 2 million Bibles to Christians in China, Billy Graham said, encouraging Christians to "back this unique and effective ministry." It is interesting to see the most famous "evangelist" (some say) not being able to educate his children, especially Ned. At the same time, having a bunch of socalled Christians following the leadership of such wreckless person. Franklin Graham wears jeans, boots, denim shirt, and leather jacket. He was a teen rebel who drank, smoked, fought, and led police on high-speed chases. He was kicked out of LeTourneau College. He used to be a rebel and a 'bum' got religion and become more sophisticated and formed "the Samaritan's Purse' so that he can fly around the country and charge things to his non-profit corporation. As a result his ministry, Samaritan's Purse, had a run-in with the Evangelical Council for Financial ability. The ECFA suspended Samaritan's Purse while it looked into Franklin's (Graham) compensation and use of the company plane. Although Billy Graham encourages religious leaders to be open about their salaries and publish their finances none of the Grahams reveal their total compensation nor release their personal income tax as President Obama does and former Presidents Bush and Clinton have done. It's the law of the land that all non profit chairman of corporations must reveal their total salary and that Billy, Ned and Franklin do not to their donors speak volumes of their hypocrisy? Yes, Jesus told us to beware of hypocrites like Dr. Billy Graham and ECFA.
News from the past: News & Record reported on June 15, 2005 that Billy Graham statue unveiled GREENSBORO -- Southern Baptists, citing his work in bringing people to Christ, unveiled a statue Wednesday that honors the Rev. Billy Graham, the world-renowned North Carolina evangelist. The bronze statue was shown as the Southern Baptist Convention neared the end of the annual meeting. It depicts Graham with his mouth open and arms outstretched, a Bible in hand. A cross towers over him. But News & Record didn‘t report that Billy Graham is still a crook, is deceived about his adulterous friend Bill Clinton, told the Whooper of the Century, believes Jews to be Satanic, is friends with liberals who are off the wall, lied about his health, is a false prophet who doesn't tell the truth about anything. The following facts are undeniable and true:
An Overview of Religious Financial Fraud 1) Billy taking 100 % salary at 87 years of age and working less than 10 percent 2) Billy being a friend of Nixon and a bigot against the Jews 3) Billy writing a letter to Nixon to bomb the dykes of North Vietnam 4) Billy unsure that heaven is a right place for him 5) Billy's unconditional of Clinton and his forgiveness of Clinton 6) Billy using a Ghost writer to write his books 7) Billy formed ECFA to protect his interests and cook the books 7) Billly ing a son, Ned, who was a drunk, adulterer, immoral and had no integrity 8) Billy gave his ministry to Franklin who is as deceitful as his father and a bum and a thief
ORAL ROBERTS COMMENTS ON ECFA In 1987 Oral Roberts testified before Congress. His comments are included in the Memo to Grassley. This is an official Senate Finance Committee report. From pages 27-28 It is telling that the witnesses at the 1987 Hearing representing religious organizations required to file information returns were uniformly ive of the Form 990 filing requirement. Oral Roberts did not see self-policing by a voluntary accreditation agency like the Evangelical Council for Financial ability (ECFA) as an adequate substitute to filing reports with the IRS.90 (Note that Oral Roberts University became an ECFA member in 2009). Asked whether his ministry was a member of ECFA, the Rev. Roberts responded: We were invited to be a member of that … but we believed there was no teeth in it; and I think that has been proved by the PTL thing. Ours was so much stronger; our auditing procedures and our filing of the [Form] 990 every year…. We have a corps of auditors…. Anybody in the United States can get a copy of our [Form] 990 report at any time, by writing the IRS; it is available to the media, to everybody in America…. Why wouldn‘t all file a [Form] 990 – why? I have no objection at all. In fact, if it will help, if there is a loss of confidence, let us do something about it. link to document:
An Overview of Religious Financial Fraud http://finance.senate.gov/newsroom/ranking//?id=1f92d378baa2-440d-9fbd-333cdc5d85fc
ORAL AND RICHARD ROBERTS https://www.idoub.com/doc/17098294 Walter hosting blog radio on Jan 31 exposing Benny Hinn and the Roberts http://cdn5.blogtalkradio.com/show/1/461/show_1461365.mp3
Televangelists Senate Probe, But New Commission Formed Friday, 07 January 2011 http://tinyurl.com/2fbjmn3 Sen. Church Grassley‘s probe into high-profile television ministries may be over, but the ranking member of the Committee on Finance‘s investigation has led to the formation of a new commission on ability and policy issues for churches and other religious organizations. Grassley reviewed the activities and practices of six media-based ministries—Joyce Meyer Ministries, Kenneth Copeland Ministries, Creflo Dollar Ministries, Bishop Eddie Long Ministries, Benny Hinn Ministries, and Paula White Ministries—and found no wrongdoing. One of the six ministries, Joyce Meyer Ministries, responded fully to Grassley‘s inquiry and ed the ECFA in March 2009. Benny Hinn of World Healing Center Church also provided complete answers to all questions. Four ministries either did not provide any information or provided incomplete information, according to the Senator‘s office. ―The tax-exempt sector is so big that from time to time, certain practices draw public concern,‖ Grassley says. ―My goal is to help improve ability and good governance so tax-exempt groups maintain public confidence in their operations.‖ Grassley then asked the Evangelical Council for Financial ability (ECFA) to lead an independent, national effort to review and provide input on major ability and policy issues affecting such organizations. The ECFA created the Commission on ability and Policy for Religious Organizations in response. The commission aims to address some of the most challenging tax and policy issues involving religious organizations, such as whether churches should file the same highly-detailed annual information return that other nonprofits must file (Form 990); whether legislation is needed to curb
An Overview of Religious Financial Fraud abuses of the clergy housing allowance exclusion; whether the current prohibition against political campaign intervention by churches and other nonprofits should be repealed or modified; and whether legislation is needed to clarify tax rules covering "love offerings" received by some clergy. "ECFA is honored and humbled to be asked by Senator Grassley to lead the independent effort to obtain input from the religious and nonprofit community on these issues," says Michael Batts, a A with extensive experience in board governance, financial reporting and tax compliance issues for nonprofit organizations. Batts been appointed by ECFA's board to chair the commission. "The conversation that will ensue in the coming months will focus on the significance of the issues raised by the senator's staff and effective ways to address them. It is our hope, as well as the senator's, that solutions will be found without the need for burdensome legislation that creates excessive entanglement between the church and the government. One obvious area that will be explored carefully is the concept of self-regulation." Batts, who is also a managing shareholder of Batts Morrison Wales & Lee, PA, an Orlando-based ing firm dedicated exclusively to serving nonprofit organizations and the former chair of the board of ECFA and is currently a member of ECFA's board and executive committee, says a variety of groups will be consulted in the work of the commission. The commission has not yet determined a timetable for the completion of its work. http://www.charismamag.com/index.php/news/29938-televangelists-senate-probe-but-new-commission-formed#ixzz1AZfMMpqS http://www.idoub.com/doc/17662575/The-Evangelical-Council-Of-Financialability-Is-A-Joke
WALTER KAMBULOW http://walthope.wordpress.com/ http://walthope.tripod.com/ FACEBOOK: WALT KAM https://plus.google.com/u/0/100302133262254344211/posts BENNY HINN THE SCOUNDREL https://www.idoub.com/doc/17673980/ Benny Hinn Exposed NBC DATELINE
An Overview of Religious Financial Fraud http://www.youtube.com/watch?v=NSxqFE_hmcE
Rodney the Fleecer http://tinyurl.com/343w372 Dangerous Dominionsts http://www.idoub.com/doc/38649037/ An Overview of Religious Financial Fraud http://www.idoub.com/doc/24336837 The $50 MILLION DOLLAR LAWSUIT TORONTO AIRPORT CHRISTIAN FELLOWSHIP JOHN ARNOTT STEVE LONG VS WALTER KAMBULOW http://www.idoub.com/doc/33446103 Criminals/Perjurers/Thieves http://tinyurl.com/2ch3vba http://tinyurl.com/2758krh Wolves in Sheep's Clothing http://tinyurl.com/38kcbq6 Third Wave Dangerous, Deceptive And Demonic http://tinyurl.com/288apq7 False Holy Spirit Conference http://www.idoub.com/doc/35527597/ BENNY AND PAULA! THE BEST CHRISTIAN SOAP OPERA OF 2010? http://tinyurl.com/38gkbza LIARS AND PERJURERS IN REVIVAL http://www.idoub.com/doc/33780391/ Signs, Wonders & Miracles http://www.idoub.com/doc/33782544/ Lakeland-Revival http://www.idoub.com/doc/34189317/ Laughing Clark http://www.idoub.com/doc/35148050/ DAN STRADER IS NOT INNOCENT http://www.idoub.com/doc/33762241 Wealth Transfer Theology Is Demonic http://www.idoub.com/doc/29618734 FAILED PROSPERITY http://tinyurl.com/35msnwl SO THE DEMONS FROM HELL PRAISED THE LORD IN WORSHIP AND WHAT HAPPENED? NOTHING! http://tinyurl.com/5tht7ds
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