baptist foundation of arizona scandal

"They had their faith shattered and faced the possible loss of all their retirement investments.". The Cacaces were among 11,000 investors who lost a combined $580 million when the Baptist Foundation of Arizona, or BFA, a registered nonprofit, filed for Chapter 11 bankruptcy in 1999 in. helped to further accelerate the demise of a once prestigious and great firm. July 14, 1999 Arizona Corporation Commission accuses Baptist Foundation of Arizona, Arizona Southern Baptist New Church Ventures, Inc. and Christian Financial Partners, Inc. of violating Arizona Securities Act. if (mps.response && mps.response.dart && typeof(mps.response.dart.adunits) === 'object') { 'https' : 'http') + '://pix.nbcuni.com/a-pii.gif?X=piiblock&S=' + mps.pagevars.instance + '&P=' + mps.pagevars.mpsid + '&A=' + i + '&U=' + encodeURIComponent(window.location.href) + '&_=' + window._mpspixZ; Ponzi scheme. Sept. 10, 1999 BFA lays off 72 employees and closes offices in Youngtown and Tucson. June 3, 2010 -- Tina Anderson was only 15 when she said she was forced to stand terrified before her entire Baptist congregation to confess her . or, indirectly, from BFA itself. [8] Indictments were handed down in April 2001; by July 2006, when BFA's president and CEO William Crotts and BFA's Chief Legal Counsel Thomas Grabinski were found guilty at trial on multiple counts of fraud, five other defendants had already pleaded guilty. 2023 Southern Baptist Convention. 'is_sponsored' : '0' , if (typeof mps.getAd != "function") mps.getAd = function(adunit) { lawsuit for $217 million. A non-profit corporation chartered in 1948 to help Southern Baptist causes, the BFA returned about $1.3 million to Baptist causes in 50 years but loaned nearly $140 million to companies owned by three current and former BFA directors. 'pubdate' : '1343999322' , Please make sure your computer, VPN, or The largest bankruptcy of a non-profit in history, the BFA, like Enron, allegedly hid losses. A look back at the Arizona Baptist Foundation struggle plans to church members. console.log('PUB-GDPR-CHECK oneTrustCookie: ', oneTrustCookie); // execute Clearly no. if (result && result.geo && result.geo.country_code) { var setAdblockerCookie = function(adblocker) { bounce back, but by the mid-1990s the only phenomenon that kept BFAs Investors who choose to roll their money into securities may be risking even bigger losses. The foundation says it will pay up to $5-million into a trust intended to pay legal fees to pursue claims against what a spokesman called any third parties that could be held liable for the foundations troubles. d.setTime(d.getTime() + 60 * 60 * 24 * 30 * 1000); The Baptist Foundation of Arizona -- a non-profit fundraiser dedicated to the church. These. The BFA Liquidation Trust, which is seeking to recover the investors funds, immediately took action. The Bear Foundation's contributions to local nonprofits easily number in the tens of millions, and include a $4.5 million contribution to a new Baptist Health Care health center at Brent Lane and . const url = `${window.location.pathname}${window.location.search}`; In 1962, Pastor Glen Crotts became the organization's first president. mps._ext = mps._ext || {}; Art Toalston is a writer based in Nashville and a former editor of Baptist Press. mps._queue.mpsloaded.push(function(){ All rights reserved. 2023 FOX News Network, LLC. Baptist Foundation of Arizona, BFA | Academic Essay Auditors must exchange 2023 FOX News Network, LLC. [14] The court signing off on the settlement meant that the BFA Liquidation Trust had standing should Andersen which was at the time being charged for issues surrounding Enron be unable to make that payment. CNBC_Comscore = 'CNBC_TV'; Two of the most significant entities set up to hide BFAs nonperforming The Arizona Republic reported that Novak had said Andersen's circumstances have changed significantly since it was indicted March 14 on federal charges involving its auditing of Houston-based energy trader Enron. MVPNs were marketed with the notion that they received a higher than average yield and that part of the investment's return was used for God's mission. If more than $40-million in claims are made, investors will have to share the money on a prorated basis, receiving even less than 20 cents on the dollar. The Baptist The BFA was associated with the Arizona Southern Baptist Convention, which was affiliated with the national organization. A Matter Of Lost Souls And Savings - Newsweek Arthur Andersen provided unqualified clean audit opinions on earlier fraud standard, SAS 82. } Oklahoma Baptist foundation loses money in Madoff scandal in 1985, which highlights just how dramatically the foundations mission console.log('PUB-GDPR-CHECK'); of the accounting professions new antifraud initiatives, such as the Controversial Arizona pastor Steven Anderson, the firebrand KJV-Onlyist from Faithful word Baptist Church in Tempe, AZ, has been permanently banned from Youtube, having his entire operation shout down from multiple accounts. In 1997 a former employee sought a job at Buckner Baptist Benevolences in Dallas that BFA was hiding losses in bad bank loans, while conducting a Ponzi scheme, which at one point included a strategy of encouraging elderly people to borrow against their homes and invest proceeds with the Foundation. var pixelurl = ((document.location.protocol === 'https') ? Date.now() : (function() { return +new Date })(); At the center of the scandal is Crotts, a charismatic 53-year-old lawyer, who took over the BFA from his father in 1982. "Arthur Andersen's on-again, off-again $217 million settlement with investors in the Baptist Foundation of Arizona (BFA) scandal is on again," reports The Arizona Republic. mps._queue.adview = mps._queue.adview || []; More information may be obtained by contacting the Foundation at 10255 Old Columbia Rd., Columbia MD, 21046, or by contacting Tom Stolle at (800) 466-5290, ext. Case Study Two Part 1 Baptist Foundation.docx - 1 Case Presented a detailed analysis of The Baptist Foundation of Arizona scandal and won first place among five teams. The collapse of Bryant Financial Associates was a complete scandal that exposed the fraudulent activities of its executives. 'template' : 'special_reports' , 1 (803) 227-6197 kcooper@mybfsc.org. aside any prior beliefs as to managements honesty. const COOKIE_REGEX = /groups=([^&]*)/; Kyle Cooper. More specifically, the litigation was brought by Arizona's Corporation Commission (Securities Division), as well as the state's attorney general. } Arizona Officials Say Andersen Auditors Played Role in Fraud by a Baptist Group. If the audit team had obtained copies of ALOs detailed financial statements, outside an entity that suggests the possibility that management fraud may mps._queue.adclone = mps._queue.adclone || []; Under William Crotts's leadership, the foundation engaged in a major strategic shift in its operations. Former Executives of Collapsed Arizona Baptist Foundation Convicted of 'cag[brand]' : 'none' , Here we see that Andersen chose to victimize BFAs victims yet again.. The Phoenix-based. var dynamic_yield_enabled = 1 baptist foundation of arizona scandal. April 1998 The Phoenix NewTimes, a tabloid, accuses the BFA of many financial irregularities that threatened the foundations stability. if (typeof window === 'undefined') return; Baptist Foundation | Baptist Convention of Maryland/Delaware - BCM/D 5 Costly Cases of Church Fraud - PSK CPA The BFA consistently sold the concept that its main objective was to help its investors serve the work of the Arizona Southern Baptist Convention, while also providing them with favorable returns, as stated in a BFA investor brochure: We are a ministry dedicated to serving the Lord and furthering Southern Baptist and other Christian causes. help restore investor confidence and supersedes the Auditing Standards Boards }); "[3] Instead the BFA decided to hide its debt and began a series of dubious activities. By MICHAEL SCHROEDER Staff Reporter of THE WALL STREET JOURNAL. Unfortunately, the issuing of unqualified opinions, even after receiving The Arizona Southern Baptist Convention was founded in 1928. Another pastor, Manly Perry of Old Path Baptist Church in San Antonio, Texas, posted a video Nov. 19 distancing himself from the New IFB. BFA ultimately filed for bankruptcy, and thousands of elderly investors lost The Baptist Foundation does have a plan to help investors recoup at least a portion of their money. }; mps._queue.gptloaded = mps._queue.gptloaded || []; Founded in 1948 to raise money for Southern Baptist causes, BFA and its subsidiaries and affiliates had marketed securities throughout the United States as retirement vehicles for investors and served as a custodian for tax-deferred Individual Retirement Accounts. operations from collapsing was a constant influx of new investor money that Napolitano and the Arizona Corporation Commission then filed a civil lawsuit against Andersen in January 2001, seeking civil remedies for violations of the Arizona Securities and Consumer Fraud Act. Robert H. Colson, PhD, CPA In 1989, Arizonas Nov. 5, 1999 BFA and the Investor Committee agree on a restructuring plan that includes petitioning to reorganize under Chapter 11 of the Federal Bankruptcy Code. [3], The Arizona Attorney General's Office and the Arizona Corporation Commission conducted the criminal investigation that resulted in the convictions of eight defendants. about the Baptist Foundation of Arizona. In the Midst of Infighting, Anti-LGBTQ Church Network's Website and You have to deal with the embarrassment of it, the cleanup of it, but it doesnt put you out of business., Debra E. Blum is a freelance writer and has been a contributor to, An Update for Readers on Our New Nonprofit Status. [11] Independent of the abuse of process ruling, the original Arizona Superior Court ruling was upheld by the Arizona Court of Appeals in March 2005, at which point National Union paid the $2.5 million to Grabinski. Arizona Baptist Foundation victims still recovering | Cronkite News 'cag[configuration_franchise]' : 'American Greed' , In BFAs early days, it focused its attention July 7, 2020 News Division banned, deleted, faithful word baptist church., Steven Anderson, youtube. The Enron scandal has entered the BFA picture, according to Andersens Phoenix attorney, Ed Novak. Twenty years later, Glen Crotts' son, William Pierre "Bill" Crotts, became the organization's second president. ', window.location); Steven Anderson, Faithful Word Baptist Church and More Sex Abuse Crisis ALO in turn sold the stock to New Church Ventures, in exchange for a $1.6 million reduction in ALOs credit line owed to New Church Ventures. A Church Divided: Sex Worker Scandal Exposes Fault Lines in Anti-LGBTQ They were acquitted of 23 counts of theft. //begin OneTrust Redirect $217 Million New Settlement By Andersen In Baptist Case You may then be asked to log in, create an account if you don't already have one, In the case, it claims that Arthur Anderson gave investors a false sense of security after giving out Anderson issued a clean audit in order to attract new investors. This page contains information The Cult Education Institute has gathered. Andersen and its representatives pretended to negotiate in good faith, but in fact never had any intention of making good on their part of the settlement. Improving and strengthening fraud detection is at the heart The Baptist Foundation of Arizona was founded in 1948 by the Arizona Southern Baptist Convention for the purpose of raising and managing endowment funds to further Southern Baptist causes. First, it was critical for BFA to meet the Treasury regulations The U.S. Supreme Court overturned Andersens conviction in 2005, but it is unlikely the nearly defunct company will ever recover as a respected business. Aug. 7, 1999 BFA sends a letter to all investors revealing it has put a temporary freeze on accepting new investments or redeeming old ones. Two Executives of the Baptist Foundation of America are Convicted . purpose was to finance new Southern Baptist churches in Arizona. Arizona foundation executive convicted - Baptist Standard return false; The largest bankruptcy of a non-profit in history, the BFA, like Enron, allegedly hid losses. 2 Case Study Two Part 1: Baptist Foundation Summary and Research The Baptist Foundation of Arizona was caught hiding important information about its financials when it filed for bankruptcy in 1999. The BFA opens a web site address www.bfaz.org to answer questions. In a short time, it had created a complicated web of dozens of interlocking non-profit and for-profit subsidiaries to operate its real-estate and other investment deals. for ALO and New Church Ventures, but management refused to release the statements. BFA management was highly motivated not to show any losses and to report only document.getElementsByTagName("head")[0].appendChild(script); National Union Fire Insurance Company of Pittsburgh, Pa. United States District Court for the District of Arizona, Religious Prey: Baptist Foundation Of Arizona / Medical Scams: Dr. Mikos, "Elderly couple pays dearly for Baptist fund's trouble", "In the Name of the Father and the Son and the Wholly Owned Subsidiary", "Baptist Foundation of Arizona's Financial Collapse", "Terry Goddard Applauds Verdicts in Baptist Foundation Trial", "Grabinski v. National Union Fire Insurance Company of Pittsburgh, CV 04-01751-PHX-MHM, D. Az", "Final 5 Ariz. Foundation Defendants Sentenced", "Victims of the Baptist Foundation of Arizona | SENTENCES IMPOSED", "BFA Liquidation Trust v. Arthur Andersen, LLP", "Arthur Andersen Reaches Deal (Again) with Baptist Foundation of Arizona Investors", "Religious Prey: Baptist Foundation Of Arizona / Medical Scams: Dr. Mikos", https://en.wikipedia.org/w/index.php?title=Baptist_Foundation_of_Arizona&oldid=1137812926, Christian organizations established in 1948, Baptist organizations in the United States, Baptist denominations established in the 20th century, Articles lacking reliable references from May 2022, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 6 February 2023, at 16:04. It expects that its preferred stock will start paying annual dividends of 6 per cent by 2002. that ALO had a negative net worth of $116 million and had been losing more Massive Southern Baptist Abuse Scandal - The American Conservative Many were elderly and invested their retirement savings in the belief not only that their money was safe, but that part of their earnings would be put to use to advance the Lords work through planting of Southern Baptist churches. Novak contended that Andersen and its insurance company are two separate entities, The Republic reported, while Napolitano depicted the two as one and the same and thus Andersen in actuality is reneging on the settlement. [11] National Union appealed that ruling, leading to Grabinski suing them in July 2004 for damages due to abuse of process; the abuse of process claim was denied by the United States District Court for the District of Arizona in a September 2005 ruling on National Union's motion to dismiss. Under Bill Crotts, the organization diverted over $140 million to two former and one active (as of 1998) director. console.log('PUB-GDPR-CHECK oneTrustCookie matches: ', matches); Yet, in 2002, years after the BFA . Church corruption, questionable gifts live on, long after Bakker scandal Global Business and Financial News, Stock Quotes, and Market Data and Analysis. })(); Several accountants and one attorney became concerned enough to approach senior management about ALOs deficit. Cult Education Institute :: Group Information Archives The Reverend Ed Shaw suggested that the BFA "Explain the situation completely to investors; ask their forgiveness; let them know their gift of principal would help if they choose to give some or all of it.

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