One of televangelist Benny Hinn’s financial secrets was revealed in a recent court ruling: The prosperity gospel is not working for Hinn. World Healing Center Church (WHCC), better known as Benny Hinn Ministries, has been struggling with debt for 15 years.

In an April 7^th United States District Court ruling, Judge Alvin Hellerstein granted summary judgment on behalf of Mail America Communications Inc. which sued WHCC for breach of contract. Before the lawsuit was filed in September 2018, WHCC owed the direct mail company $2,993,221.74.

Judge Hellerstein also required WHCC to pay 4% interest on the unpaid balance and attorney’s fees.

The judge’s amended order provides insight into the finances of Hinn’s organization and confirms rumors that Trinity Foundation investigators have heard though the grapevine. Hellerstein wrote, “For nearly 15 years, Defendant had been falling behind its payment obligations, with over $5.6 million in arrears by early 2012.”

WHCC’s spending priorities are to pay ministry executives first and vendors last, according to an anonymous informant. Continue reading “Judge Reveals Televangelist Benny Hinn’s Dark Financial Secret”

The Crime

After pleading guilty to embezzling church funds, Lara Ford, former business manager and staff services manager at Fellowship Church in Grapevine, Texas, has been sentenced to ten years in prison with the opportunity for early release after serving six months.

An August 26, 2019 updated police report indicated a “total loss of $1,377,14.76” … but the total continued to grow as the investigation continued. Ford’s attorney Lex Johnson told The Roys Report that more than $1.6 million was stolen.

According to the police report, Ford “made transfers to her own checking accounts once or twice a month for the past 7 to 8 years. The amounts were reportedly between $1500 and $1700.”

Ford used Automated Clearing House to transfer at least $363,834 from the church’s Allaso Ranch account and $324,313 from another church account to her personal bank accounts. The thefts were disguised as payments to vendors and refunds for children unable to attend the church camp.

Ford also stole cash from offerings and embezzled money from the church’s housing allowance account, which raises additional questions. According to the police report, Fellowship Church used Automatic Data Processing LLC (ADP) to manage “some of the church’s payroll, mainly the housing allowance about 30 employees receive.”

Is the clergy housing allowance being abused? Are non-clergy employees receiving housing allowances?

Continue reading “Failure of Oversight: Finance Manager Steals $1.6 Million from Fellowship Church”

In the introduction to the book Faith-Based Fraud, author Warren Cole Smith, president of MinistryWatch, asks an important question: “Why do faith-based frauds continue to recur?”

Smith documents the massive increase in independent, non-denominational churches in America, the toxic spread of the prosperity gospel and a decline in financial transparency in both churches and ministries.

Smith notes that bad theology leads to corrupt behavior: “faith-based fraud is almost always predictable, and bad theology is that predictor.”

Throughout the book, Smith skillfully interweaves stories and commentary to explain how ponzi schemes operate and book authors buy their way onto The New York Times Bestseller List.

As a journalist at World Magazine, Smith investigated pastor Mark Driscoll’s use of church funds to purchase 11,000 copies of his book Real Marriage. Smith’s investigation of Todd Bentley’s alleged healings is also retold in Faith-Based Fraud.

Another story told is how the Foundation for New Era Philanthropy’s founder John Bennett fraudulently raised millions of dollars from Christian institutions by claiming anonymous donors would match their donations.

Smith interviewed Albert Meyer, the curious part-time professor at Spring Arbor College that uncovered Bennett’s fraud by asking questions. Smith writes, “And those questions amount to little more than, ‘Where did the money come from?’ and ‘Where did it go?’”

Christians should not be afraid to ask questions of religious leaders. Jesus set an example for us by questioning his disciples. After Judas arrived with the Roman soldiers to arrest the Messiah, Jesus said, “Judas, are you betraying the Son of Man with a kiss?”

Faith-Based Fraud is available in paperback and Kindle digital format.

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Megachurches and ministries are receiving a second round of Paycheck Protection Program (PPP) forgivable loans.

In January, Harvest Bible Chapel received a $2 million loan. Last year the scandal-ridden megachurch received $2,556,200.

In March, Ed Young Jr’s Fellowship Church received $1,520,345, the same amount it received in 2020.

In April, The Relentless Church, pastored by televangelist John Gray, received $1,062,500. The church received $1,250,000 last year.

But do these churches really need forgivable loans which amount to government aid? Recently Ed Young Jr. sold his beach house for a reported $5.5 million.

Gray purchased his wife a $200,000 Lamborghini in December 2018. A month later the Greenville News reported, “Gray was living in a $1.8 million home that was bought by the church in October. Church leaders said the Relentless-owned home was needed to attract a leader of Gray’s caliber.”

To assist small businesses and non-profit organizations in retaining employees during the Covid-19 pandemic, last year Congress passed the CARES Act.

The legislation authorized the Small Business Administration to offer forgiveable loans to small businesses and non-profit organizations so they could retain employees during the Covid-19 pandemic.

In December, Trinity Foundation reported, “At least $78.6 million in loans were given to religious TV networks, independent religious TV stations, TV preachers, and churches/media ministries with national TV programs.  The total would exceed $82 million if we include churches with 24/7 streaming channels in the same class as television.”

The forgivable loans have attracted an alarming number of scammers. Two cases involving religious organizations have received significant media attention. MinistryWatch reported that ASLAN International, a ministry in Florida, received an $8.4 million loan and then purchased a $3.7 million home. According to The Roys Report, Maryland pastor Rudolph Brooks Jr. purchased 39 cars after his church received a $1.5 million loan.

So far, $740 billion in PPP loans have been approved by the Small Business Administration.

2021 Paycheck Protection Program Loan Recipients

Associated Christian Television System – $185,026

Harvest Bible Chapel led by Dr. Jeff Bucknam – $2 million

Total Living International operates Total Living Network – $221,100

The Relentless Church led by televangelist John Gray – $1,062,500

Hillsong NYC LLC – $710, 877

Hillsong Events LLC – $207,919

Hillsong Channel LLC – $228,797

Oral Roberts Evangelistic Association led by televangelist Richard Roberts – $369,235

Churchome led by Pastor Judah Smith – $1,570,313

Fellowship Church led by televangelist Ed Young Jr. – $1,520,345

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Televangelist William Todd Coontz is finally serving a five-year prison sentence for filing fraudulent tax returns and failing to pay his federal income taxes.

On April 3, 2019, WSOC-TV investigative producer Michael Stolp tweeted,”It appears Todd Coontz is officially a prison inmate, but maybe not for long. Per court documents he was scheduled to voluntarily surrender to the Bureau of Prisons yesterday. His attorneys filed a motion for release pending trial, which a 3 judge panel approved 2-1 yesterday.”

Coontz served one day and was then released. Coontz would appeal his tax conviction all the way to the United States Supreme Court, which denied the final appeal on February 22, 2021.

The Federal Bureau of Prisons Inmate Locator reports that Coontz is now serving time at the Pensacola Federal Prison Camp, a minimum security prison in Pensacola, Florida. Coontz is scheduled for release on June 3, 2025.

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In response to the infamous Jim Bakker/PTL scandal, Congress held a hearing in 1987. Pastor D. James Kennedy testified, “I would think that if a person is going to give money to something, that they have … a responsibility to learn where it is going.”

But how can donors make responsible decisions if charities and churches are not transparent about their finances?

James MacDonald’s ministry Walk in the Word (WITW) reported to the Internal Revenue Service (IRS) that it received $0 in donations for a three-year period encompassing July 1, 2011, to June 30, 2014. A Trinity Foundation investigation has determined the ministry failed to report donations from non-profit charitable foundations.

In 2012, WITW received $16,000 from Mitchell Swaback Charities and $11,563 from the National Christian Charitable Foundation.

In 2013, WITW received $2,000 from the Everett D & Geneva V Sugarbaker Foundation, $600 from the Fish Family Foundation of Maine, $10,000 from Mitchell Swaback Charities, $13,590 from the National Christian Charitable Foundation, and $5,000 from the Overbeck Family Foundation.

In 2014, the National Christian Charitable Foundation gave WITW $257,638, but it is difficult to determine if the money was given throughout the year or after the fiscal year ended on June 30^th.

The failure to report at least $58,000 to the IRS should serve as a red flag for supporters of James MacDonald. Where did the money go?

For the fiscal year beginning July 1, 2014, WITW switched from filing the Form 990-EZ to the Form 990-N, which does not disclose total revenue or total expenses.

Although the Form 990-N is restricted to organizations normally receiving $50,000 or less in revenue, WITW used the form while receiving more than $270,000 from foundations in 2015.

More recently, the National Christian Charitable Foundation donated $82,696 in 2017.

The Same Name Game

When two separate organizations operate with the same name or similar names, it creates an opportunity for multiple bank accounts with the same name and opportunities for financial abuses. Trinity Foundation calls this “the same name game.”

While MacDonald served as pastor, Harvest Bible Chapel registered the tradename Walk in the Word Ministries and transferred more than $2 million in assets from WITW to the church.

It is possible that all the charitable foundation donations were transferred from WITW to the church. However, the 990-EZ and 990-N documents do not show such transfers.

Furthermore, many of the charitable foundations giving donations to WITW identify the recipient not just by name, but also by Employer Identification Number (EIN) 36-4218233. Clearly, their goal was to support the media ministry of MacDonald rather than the church.

Continue reading “James MacDonald’s Walk in the Word Failed to Report Donations to IRS”

MinistryWatch recently reported, “An analysis of the financial statements by MinistryWatch, with the assistance of the Dallas-based Trinity Foundation, reveals what the Trinity Foundation calls a ‘suspicious’ pattern of self-dealing between Kanakuk and founder ‘Coach’ Joe White and his family.

Kanakuk Ministries is one of the largest Christian camps in the United States.  Each summer, it serves more than 20,000 children from around the country.  Its fiscal year 2017 revenue topped $35-million.”

Self-dealing occurs when non-profit executives operate a for-profit company which does business with the non-profit organization. This is not illegal unless the for-profit company excessively profits off the non-profit entity.

Self-dealing may represent a conflict of interest. Independent board members should carefully vet such transactions and only approve them if the costs are based on competitive, fair market prices, which Kanakuk Ministries claims to have done.

Kanakuk Ministries rented property from Kukorp LLC and K-Land One LLC of which both are owned by White family members. Kanakuk Ministries also provided a $310,000 loan to Kukorp.

The MinistryWatch investigation revealed, “If you add up all these numbers, Kanakuk Ministries paid the Whites, or entities wholly owned by the Whites, $572,132 in 2017.”

MinistryWatch has published two articles concerning sex crimes allegedly committed at Kanakuk Ministries.

* Website Documenting History of Sexual Abuse at Kanakuk Kamps Goes Live

* Knew of Abuser’s Behavior At Least 6 Years Before Finally Firing Him

MinistryWatch reported, “A civil complaint alleges that there were at least 57 victims, but the prosecutor in his case estimates that the real number could be in the ‘hundreds.'”

Kanakuk Ministries was not on our radar until Warren Cole Smith, president of MinistryWatch reached out with questions. In fact, that is how many of our investigations begin: A journalist, concerned donor, church member or employee calls or emails us with questions or tips.

According to an Association of Certified Fraud Examiners 2020 report, “43% of occupational frauds were detected by a tip.”

If you have a question or inside information about a ministry or church, please share it with us. We are especially interested in tips about fraud (which involves deception – and we are not accusing Kanakuk Ministries of fraud), theft, abusive behavior or excess (such as extravagant spending on homes, vehicles, clothing and private jets).

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