Archive for the ‘financial mismanagement’ Category

Delaware money battle ignites more legal threats

September 4, 2012 3 comments

The festering  fallout after the November 2011 trial of embattled Delaware Bishop Thomas Holsey has flared up again.

This time, charges of perjury and what could amount to receiving stolen property have been aired, implicating  the Church of God in Christ’s top leaders including its Presiding Bishop and 1st Assistant Presiding Bishop.

In response, threats of lawsuits and legal challenges have surfaced after Holsey sent a letter to Board of Bishop’s Chair John Sheard, demanding assistance in recouping loans from his jurisdiction totaling over $700,000.  The largest indebtor?: Bishop PA Brooks who is accused of receiving almost $200,000 of some four million dollars of “missing money”. In response, both Blake and Brooks have released open letters of defense against the charges.

Brooks wrote to Delaware jurisdictional leaders that Bishop Blake had removed Holsey for insubordination and even cited Titus 1:7 requiring that a bishop be blameless as biblical justification for the removal from office.

“As of July 16th, 2010, due to Bishop Thomas Holsey [sic] refusal to cooperate with the Episcopal Oversight Committee (EOC), having no other remedy to protect the best interest of the Jurisdiction but to place interim leadership; pursuant to page 5, paragraph (a) and pages 17 and 18, of the Official Manual, over the Jurisdiction. As noted, “Given the gravity and the emergency nature of the situation”, Bishop Blake has appointed me as the interim Jurisdictional Bishop until such time things are stable or other leadership protocols are defined an [sic] implemented.” [source]

Holsey later faced a trial of his peers, but according to some sources the verdict was overturned. Then in July, a letter from a group claiming to represent the Board of Bishops demanded Bishop Blake cease from “degrading” Holsey’s character. An intervention was staged during the 2012 AIM convention in Birmingham.

Shouldn’t a bishop be blameless?

With all of the accusations, charges, counter-charges and legal threats, wouldn’t such actions  disqualify a bishop according to 1 Timothy 3:2? A bishop must be blameless, it reads. By blameless, it should be understood that sinless perfection is not the standard, but rather that a bishop’s life should be above reproach before consecration and remain above reproach after consecration. If Holsey is in violation of Titus 1:7 and 1 Timothy 3:2, wouldn’t Blake and Brooks both be equally at blame until the matter is free and clear? Neither’s episcopal career has met the “above and beyond reproach” plumbline test.

All letters associated with this story can be found under the Letters and Document section.

MD Pastors accuse COGIC General Secretary of gross misconduct

August 10, 2012 2 comments

Report COGIC Abuse has obtained a copy of a letter sent to COGIC officials decrying alleged ungodly actions by the church’s current General Secretary. In addition, COGIC officials have ignored the Pastor’s pleas for help. Pastors in the Greater Maryland First Jurisdiction say that this current letter is the second attempt in over two years demanding the national church investigate Bishop Joel Harley Lyles Jr. Several serious allegations noted include mismanagement (or theft) of $140,000 received from embattled Delaware Bishop Thomas Holsey and “illicit conduct”, presumably sexual in nature.

In August 2010, Bishop Sedgwick Daniels, the General Board’s go to man, told GMF pastors and elders at a meeting following the Bishop’s Breakfast, that Bishop Blake and the General Board had received the original July 26th letter, and would be returning to Maryland to meet with leaders to discuss the concerns said letter referenced. To date, the new letter alleges, there has been no examination from the national church or the local Jurisdiction.

An excerpt from the letter dated July 13, 2012:

“Since the July 28, 2010 letter, there have been conversations concerning Bishop Lyles involvement with illicit activity. These allegations include supposed conduct with Pastor Edwin Bass, Pastor Derrick Hutchins and others. I am inclined to believe these statements based on similar concerns made to me years prior to his becoming Jurisdictional Prelate.
I write on behalf of many hurt and disappointed members of our local churches and the Greater Maryland Jurisdiction. I am concerned about the operation, spiritual welfare and appearance of our church to others for the present and future. As one who has known Bishop Lyles since childhood and was also a champion and spokesman of his candidacy to many Pastors to become Jurisdictional Prelate, this letter is not written out of personal animosity, but out of pure concern for me body of Christ. I reiterate that I am asking for the Board of Bishop’s to hold an investigation regarding the financial practices. Episcopal conduct, moral turpitude. and the mistreatment of certain Pastor’s, Jurisdictional Officials, and members of the Greater Maryland First Jurisdiction by Bishop Lyles.”

The letter was addressed to Bishop John H. Sheard, Chair Board of Bishops, Bishop B. Collins. Vice Chairman, Bishop Larry Shaw, Secretary Board of Bishops and Bishop Roy Dixon, Chair, Grievance Committee.

Two years is a long time to wait for someone to acknowledge your complaints and act on them. If the allegations are true, the lengthy delay from COGIC officials only benefit Lyles who could possibly conceal evidence, influence witnesses or worse deny the whole thing. Historically, the wheels of justice in COGIC don’t just turn slowly, several of the wheels have fallen off.  Even with its constitution, policies and procedures, pastors and laymembers of the church seem to be treated as common sharecroppers in the fields of its aristocratic acting bishops.

According to Elder Ron Stidham who founded, the reason why officials haven’t responded is due to a nebulous, unpublished policy which works in favor of bishops not complaintants. Officials have numerous loophole type factors that can seriously derail complaints against a  bishop. Although there have been proposals, there is no policy which requires officials to respond to a complaint in any given time.

Read or download the entire letter

COGIC Charities Executive hit with federal ‘African gold scheme’ lawsuit

May 2, 2012 1 comment

Aside from serious issues with sexual crimes and sexual immorality, some leaders in the COGIC seem to also have other problems controlling their lust for money.

A Church of God in Christ Charities executive and his church in Brockton, MA are defendants in a federal lawsuit which claims a fraudulent attempt to make money off an African gold scheme.  In the US, federal courts are not courts of general jurisdiction, thus only certain types of cases or issues may be filed in a federal lawsuit.

Dr. Alexander Hurt, Sr. and the Dominion Christian Church of God in Christ are accused by the Pennsylvania based American Capital  Holdings of cheating them out of an estimated $232,000. Its not clear whether Hurt had ever had any success with buying African gold.

The Enterprise News reported that Hurt devised a scheme that never produced the promised payout for the investor.

A city church and its pastor have been sued in federal court for what the plaintiff says was a failed scheme to make money off African gold.

The suit, filed April 24 in U.S. District Court, claims the Dominion Christian Church and its pastor, Alexander Hurt, took money from a Pennsylvania company, American Capital Holdings LLC, that was never returned, and the company never saw any payout from its initial investment.

In October 2011, the suit alleges, Hurt approached American Capital Holding and said he would be able to buy discounted gold from Uganda and sell it at a profit. The company says it paid Hurt an initial payment of $150,000 that was supposed to turn around into a profit of $300,000 within 15 days.

The initial money was supposed to be protected be a corporate bond, which the suit claims was never issued.

Hurt told the company he had success doing this and was making a “substantial” return on his investments, according to the suit.

On Feb. 25, American Capital says, it received an email from an account belonging to Hurt that said he had gone to Africa, but had “lost the gold, all the money and nearly lost my life.”

In the email printed in the suit, Hurt claims he was kicked out of his church and was being hunted by a Congolese agent.

“That money was going to change both of our lives and get our reputation back,” the email stated.

American Capital Holdings is seeking a return of the $232,000 it says it paid to Hurt, along with interest and attorney fees. They also want a full accounting of what happened to the money, according to the suit. They are also asking the court for double or triple damages for alleged violations of state and federal law including the RICO anti-racketeering statute.

According to an email allegedly sent by Hurt to ACH, he blames to loss of the money and gold on his “greed”.  You can review the full suit here (pdf).

Hurt is listed on COGIC’s official site as a board member and  ironically as executive Director, Search Committee Chair of COGIC Charities.  COGIC Charities is the the “benevolent arm” of the  denomination providing money to causes such as disaster relief. In addition, under Bishop Charles Blake, in 2008 COGIC Charities began awarding scholarship money to students. According to the website, Blake has directed the charity to give “the most dollars for scholarships in the organization’s history”.

Although this case does not involve church funds, nevertheless its troubling. If Hurt did indeed take the $232k, what did he do with it? Is this a sign of a man with serious financial problems?

Given the nature of the lawsuit —and Hurt’s  connection to an arm of the church whose focus is money management, it would be wise for the denomination to remove Hurt until this has been legally resolved.

Presiding Bishop comments on COGIC sex crimes and money issues

March 29, 2012 1 comment

In 2009, according to documented testimony by COGIC’s presiding bishop, the denomination on average pays out approximately $800,000 annually to settle clergy sexual abuse legal claims.

But a year later, in a  2010 report to the General Assembly, Bishop Blake told delegates that financial payouts for “settlements” had dramatically increased.

After “expressing concern” over the denomination’s  financial health due in part to improper financial recordkeeping, the minutes reflected that  “Bishop Blake noted the need for adjustments to be made and highlighted the fact that approximately $1.7 million is spent on legal fees and settlements.”

Then, as if to connect then segue:

“Bishop Blake expounded on the problem of sexual misconduct by clergy and emphasized that such criminal activity must be properly reported.  He also intimated that the general church could not pay legal expenses for local and jurisdiction litigation.”

Even though the church’s chief lawyer Enoch Perry  falsely informed the church’s general assembly that in over 100 years of COGIC there had “only been 20-25 processed cases of  sexual misconduct”. Perry did not say what constitutes a sexual abuse case nor why with such a low number of cases, the church pays out such large sums of money to compensate victims each year.

His GA testimony was in sharp conflict with Bishop Blake’s $800k statement. The math between the two statements were worlds apart.

Another note of interest:  Given the prior numbers and statements from the Perry, no one (at least not on record) ever questioned the presiding bishop as to why settlement payouts had increased and who the money was paid to.

As we pointed out here, COGIC’s own “sexual abuse policy”  approved by Blake says that “The local jurisdiction and the National Church can all be held liable for of the acts of one individual.” This was the case in Washington State where after a legal defeat in the case of Supt Charles Smith, the church had to pay a $1 million dollar settlement. The jurisdictional headquarters was later sold.  And several years prior in Illinois (5th jurisdiction) the church paid $1.5 million settlement (see this) because of a failure of leadership to discipline a known sexually immoral pastor.

April 2010 GA Minutes (contains cited remarks)

April 2011 Minutes

November 2011 Minutes

LA state accuses COGIC Pastor of misusing $250k Katrina assistance money

August 24, 2011 2 comments

New Orleans – An audit conducted by the state of Louisana says Supt  John Pierre of Living Witness Church of God in Christ misused nearly a quarter of a million dollars given to him to help citizens in the wake of the Hurricane Katrina.   The state  contends that Pierre converted to personal use nearly $74,000 in rebuilding grants, without reporting the income to the Internal Revenue Service or state tax officials. In addition, he “misspent” another $160,000.

According to the report published in the New Orleans Times-Picayune , Pierre recieved the money in 2008 but grossly mismanaged, misspent and could not account for thousands of dollars.

A state audit released today claims the pastor of a Central City church known for its drug addiction programs misspent or wasted at least $160,000 in relief grants after Hurricane Katrina.

In addition, the State Inspector General’s audit also said that Elder John Pierre of Living Witness Church of God in Christ converted to personal use nearly $74,000 in rebuilding grants, without reporting the income to the Internal Revenue Service or state tax officials.

The report recommended that the state begin efforts to recapture the money and consider whether to open a criminal prosecution.

The state’s full report quotes Pierre as acknowledging that some funds were misspent. But in a formal reply attached to the report over the signature of Robert Jenkins, his lawyer, Pierre flatly denies “all wrongdoing and allegations.”

“While I’m anxious to tell my side of the story, I’ve been advised by my counselor not to make any statements,” Pierre said Wednesday.

The inspector general’s report charged that in 2008 the church received $250,000 from the Louisiana Disaster Recovery Foundation, a private non-profit established to distribute Katrina relief donations.

The money was intended to convert a Central City building at 1518 Oretha Castle Haley Blvd. into low-income housing for recovering addicts.

But the audit found the building still uninhabitable and said $135,000 was diverted to the church’s “daily operating expenses.”

Another $25,000 grant from the Department of Health and Hospitals was supposed to add 10 beds to a building at 1835 Terpsichore St. the church uses to house recovering addicts.

The report says Pierre used all the money on architectural services, and the building remains unusable.

The inspector general said much of the money was comingled. Its examination of church bank accounts found that in 2008 and 2009 Pierre issued himself 11 checks totalling $32,810, “including a $20,000 check … classified as an anniversary gift.”

He also paid himself $41,000 in regular housing allowances, the report said.

The church allegedly also paid two church members a total of nearly $10,000 “as honorariums for services performed.”

The church reported none of those payments on W-2 forms sent to federal or state tax authorities, the report said.

It appears Pierre had big dreams when he learned he was getting the money. His website says they “fully believe that this year marks a new beginning for all God’s people. Following the devastating effects of hurricane katrina with the blessings of our Lord, Living Witness Ministries is embarking upon a major capital rebuilding and expansions project. We have expanded our ministry’s mission to include housing development to provide decent and affordable housing for those families of the Diaspora who have a desire to return home to New Orleans.”

Unfortunately, the investigation found that Pierre, once he got his hands on the money, forgot all about the grand plans to revitalize the neighborhood and helping victims of the storm. Not only did he prove to be a extremely poor administrator but he has wasted hard earned tax payer money intended to do good. As a “man of God”  Pierre’s actions are completely shameful.

Expose letter predicts financial doomsday for COGIC

March 31, 2011 Leave a comment

In a seven page letter with almost 4000 words[pdf], the Chief Operating Officer for the nation’s largest black pentecostal denomination has accused the church’s top legal man of a plethora of legal, ethical and financial improprieties. The letter, bearing the signature block of Elder James Smith, in effect predicted a looming financial doomsday for the Church of God in Christ and laid the blame at the feet of its  “incompetent” counsel  Enoch Perry III.

The contents of the undated letter was sent anonymously to GCM Watch and Report COGIC Abuse on Monday by a “concerned cogic saint on the east coast”. The letter was also sent to a blog which writes on clergy issues but with no identification of the sender. Its unclear if any other new media outlets received the information. The letter is addressed to the Church of God in Christ’s General Board and copied to its General Secretary.

While GCM Watch was in the process of verifying the authorship and authenticity of the letter, we were informed that Smith —in a telephone conversation with Atlanta-based blogger Kevin Oliver— refused to deny or affirm that he was the letter’s author.

“I told him that we received a letter purportedly written by him. I told him it was posted on and asked him if he were aware of it and if he could confirm he is the author”

“He told me point blank, “I don’t do blogosphere. I don’t who you are or where you’re from and I haven’t seen it so I can’t comment on something I haven’t seen.”

“I then told him that “the blogosphere” is not what it once was, and that a lot of people get their news and information from blogs. I then asked him if I could have his email address so I could send him the article, or if he’d like to go to the site. He again stonewalled me, saying that he had “no interest in discovery” and that it would be inappropriate for him to comment.

Excuse me, but how juvenile and trifling can a person be? Elder Smith, (and yes I know youre reading this blog, just like you read several others)  if you didn’t write the letter, just  be a real man and say “no that letter was not written by me it is a forgery”. Or if you wrote it, just say, yes I wrote the letter.  With duplictious “leaders” like Smith in place in COGIC its no wonder why these the church is falling into darkness.

Oliver said that although he informed Smith the letter was spreading across the internet,  Smith continued railing against “blogs”. Incidentally, GCM Watch was told by a source within COGIC that Presiding Bishop Blake had sent out a warning to church leaders to stay away from blogs on the internet.

Old news

This is no surprise to anyone has read GCM Watch’s comprehensive reports on COGIC clergy sexual abuse and followed our documentation at Report COGIC Abuse. This is old news.  Here’s a review for those who have been vacationing on the planet Krylonogic for the past three years.

Surveying COGIC’s  Justice System

Under oath, COGIC legal counsel Enoch Perry makes stunning admissions

Is COGIC’s “zero tolerance” policy on clergy sexual abuse a failure?

Did Enoch Perry, COGIC’s top lawyer, reveal coverup strategy?

Enoch Perry deposition during Sherman Allen trial

COGIC leader surveys the range of abuses in the denomination

March 16, 2011 Leave a comment

A Peoria based COGIC leader has posted what is probably one of the most extensive surveys of the cross culture of abuse within the nation’s largest black pentecostal denmonination.

Pastor (Superintendent) Harvey Burnett wrote on his Dunamis Word blog that “many saints” had contacted his office about  the  “perception is that we, as a church, must stem a tide  of secularism and political and social liberalism and elitism.”

In response, he issued an urgent call to attention of the church’s espiscopal leadership, namely its powerful, but in the eyes of some, silent bishops. Burnett, a 27 year member of the church, called upon concerned bishops to make advocacy of the people a central platform. The church will be facing elections in 2012.

“Are there officials, especially Bishops, yet within the church that will undertake agenda that will benefit ALL members and factions of the church? This is the question that should be posed and one that I believe is deserving of an answer. Now, to be fair, some of the issues we face are issues based on individual and personal accountability or lack thereof. Then on the other hand public trouble is generated by a few who are visible because they do and allow what the church, especially the Grand Ole COGIC,  is not supposed to do and allow.”

This blog was created to give voice to the victims of abuses as well as document those abuses. It is a void the leadership of the church has repeatedly refused to acknowledge or take substantial measures to resolve. Some, including a former member of the church’s highest judicial department believe is due to the lopsided balance of power given to bishops.

Bishop Samuel P. Nesbitt wrote a scathing report on the church’s constitution which he called “perverse” and unbiblical. Nesbitt and was a dissenting voice on a shocking case of land-property abuse in Witchita, Kansas. 

With the passing of former Presiding Bishop CD Owens, Burnett reflected on the state of the church and its seeming unconcern with injustices committed by fellow members of the clergy.

“Now, that Bishop Owens has passed and we consider and reflect upon the condition of our church and what the 2012 general election will bring, I wonder are there any Bishops within this church who will undertake a platform and effort to correct the wrongs that have continued for so long from the highest levels of the church? Are there yet leaders with the nerve to put themselves in the fray and demand transparency, accountability and a reconstitution and strengthening of the General Assembly as church law requires? Are there leaders who will stand out and demand that this church stand up for those who have been victimized and in favor of churches who have had their rights stripped by leaders who are greedy, flesh centered and misdirected?”

Sexual abuses and deception about the church’s finances continue to plague the administration of current Bishop Charles Blake. Despite promising a new season of fiscal openness and accountability, Blake has shut the door on such promises in relation to clergy sexual abuse.  Both Blake and his chief legal advisor Enoch Perry have intentionally concealed or downplayed multiple major sexual abuse lawsuits against the denomination.

“These statements, were obviously made with a certain hubris and an intent to seemingly dumb-down the issue. the commentary in the minutes “(Who made the comment? and that one singe lawsuit has the potential to bankrupt the church.)” was obviously inserted to not only make a point but to sneer at those who brought contrary opinions about the litigation that the church was and is experiencing regarding these cases. Certainly this was an effort to overs-peak those who ask questions and offer dissent regarding the handling of victims and assets as a result of  sexual abuse cases. The problem is that the statements are misleading as they do not reflect that during the same time frame, COGIC had settled the lawsuit referenced above paying out over $1.5 million and causing the demise of Illinois 5th Jurisdiction. What seems to add insult to injury is that neither do the comments  reflect the other pending lawsuit that COGIC was in the process of fighting which was originally filed in 2007 two years BEFORE the comments made by church officials. That lawsuit was based on the past and multiple sexual abuses and sins of the late Pastor Charles Smith of Seattle, Washington.”

Even as clear evidence proving that the leadership has been duplictious and disengenous with the sacred offices they have been elected to represent, the denial and damage continues. Report COGIC Abuse will document it all until victory is won.

Read the entire summation of Pastor Harvey Burnett’s post Calling out to ALL COGIC Bishops


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