Following the Money Trail of Extravagant Televangelist Salaries…

We discovered recently that Frank Wright, then-president of the National Religious Broadcasters (NRB), sent a letter in 2007(here) to Senator Grassley telling him they were “saddened” by his thorough investigation into financial impropriety of six different televangelists.  One of Mr. Wright’s complaints—he was distressed that the Senate Committee would want to know the names of the people who had recommended salary compensation values for these televangelists.

Our evidence presented to the Senate showed that many of the persons on these “independent” compensation committees recommending multi-million dollar salaries were anything but.

When the IRS sees a multi-million dollar salary, they look to see if there is a compensation study conducted by unrelated and non-disqualified (independent) individuals with nothing to gain or lose when they make their salary recommendation.  However, the Trinity Foundation uncovered a trail of suspicious studies and committees in the early 2000’s.  In one case, we discovered that Robert Tilton’s compensation of $1.5 million was voted on by Tilton’s own lawyer’s employees, hardly an “independent” committee.

In one compensation study cited by the Senate Finance Committee’s staff, a televangelist’s compensation was compared with CEOs of for-profit corporations and media personalities like Oprah Winfrey, Britney Spears, Madonna, Rosie O’Donnell, and David Letterman.

Televangelists are obtaining massive wealth through extravagant salaries base on compensation committee reports using compensation data from for-profit corporation CEOs. David Cerullo of the Inspiration Network (INSP) total was compensated almost $5.7 million in 2013.

According to an interview in the Herald Online (here) “David Cerullo’s compensation is and always has been established by a fully independent executive compensation committee,” the statement said. “This committee compares Mr. Cerullo’s compensation with other executive compensation of similar organizations … including cable television network CEOs, senior media company executives, CEOs of faith-based national ministries, and pastors of churches.”

“Many philanthropy experts say it’s unfair to compare salaries in nonprofit organizations with those in the for-profit world. That’s because nonprofits get substantial tax breaks – a form of public subsidy. In exchange, they’re expected to keep salaries at reasonable levels.”

The consulting company used data obtained by a 2004 Southern Baptist Convention compensation study of ministers’ salaries as a baseline to justify high salaries for their client minister (televangelist) by counting the estimated television audience of millions as “persons reached” (i.e. church members of a sort).

This particular study, first picked a highly paid Baptist pastor of a congregation of 1,000+ paid over $200,000 per year and then used that figure as part of a justification to recommend paying the TV preacher roughly ten times what the pastor was earning—a total of $2 million.

One such consulting company—the law firm of Winters and King, claims they have conducted hundreds of compensation studies. The initial question on its website compensation page (view here) is, “Are you being paid enough?”—a question to be exploited by pastors with an appetite for largess.

Winters and King brags on its website that its compensation evaluations “have proven a valuable tool (i.e., of protection) for clients undergoing IRS audits and inquiries by the Senate Finance Committee”.  The day after Senator Grassley announced in November 2007 that the Senate was investigating six televangelists, Winters and King founder Thomas Winters wrote a press release for “Grassley Six” televangelist Joyce Meyer—that her “ministry fully funds and operates more than 50 orphanages around the world” —a claim we still find impossible to believe.

In light of Winters’ representation of televangelists during the Senate investigations into religious non-profit fraud (2007-2010) we should note his inclusion on Evangelical Council for Financial Accountability’s task force,  the very task force charged by the Senate Finance Committee to help solve the misuse of religious non-profit donor money. It’s a textbook case in conflict of interest—it’s a case of the fox helping design the henhouse.

Thomas J. Winters’ personal website, the Winters’ Publishing Group, claims to have represented more than 30 New York Times best sellers, and to have licensed the movie rights to several works under representation. These authors include a “Who’s Who” of the folks we’ve investigated over the years, including Gloria Copeland, Joyce Meyer, Ed Young, Steve Furtick, and others.

In 2011 the Senate Finance Committee released a report on their investigation’s findings, quoting testimony from a congressional hearing following the infamous Jim Bakker scandal—23 years earlier.  Fundamentally, nothing has changed legislatively.  Government officials then AND now realized one of the main reasons that abuses at some TV ministries go undetected is the total lack of transparency of religious non-profits claiming to be churches.

They quoted now-deceased Dr. D. James Kennedy, “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.”  They also quoted Congressman Dorgan’s response, paraphrased:  BUT HOW CAN THEY if no churches, televangelists, or religious non-profits claiming to be churches are required to submit an IRS form 990? (our emphasis)  No public financial information is available.

Former members say abusive “blasting” at North Carolina church still going on, 22 years later

2012 photo of Jane Whaley, provided to the AP by a
former member of the Word of Faith Fellowship (WOFF)

A nightmarish story we went undercover to research along with Inside Edition in the spring of 1995 is back in the news, and sadly, things have only gotten worse. (Watch a shortened 10 minute clip from the Inside Edition report here)

The Associated Press has published a well-researched exposé (here) of the Word of Faith Fellowship in Spindale, N.C., and its leader, Jane Whaley, detailing the same patterns of abuse we uncovered 22 years ago:

– a constant series of “exorcisms”
– beatings and other physical abuse
– neglect
– public humiliation
– unreported sexual abuse
– hours of shouted “prayer” directed at the devil
– forced separation of family members

One difference is that Word of Faith Fellowship today has twice as many members.

Forty-three ex-members, in separate exclusive interviews, told the AP that the congregants were “regularly punched, smacked, choked, slammed to the floor or thrown through walls in a violent form of deliverance meant to ‘purify’ sinners by beating out devils.”

As part of Trinity’s previous investigation, Pete Evans infiltrated the group and recorded dozens of hours of hidden-camera footage, which he provided to Inside Edition producers at secret rendezvous points. He emerged from the 5-month-long undercover operation with an incredible story, which the AP report confirms.

During hours-long, nightly church services, Evans recalls, entire families, including young children too old for the nursery, would rock back and forth shouting and shaking their fists at Satan while rebuking “systems of witchcraft,” “generational curses” or other maleficent “spiritual systems.” At some point during the service, Jane Whaley or another church leader would call out individuals that she thought needed “deliverance.”

“Whaley would divide the congregation into multiple smaller circles surrounding the called-out souls in order to cast out demons of rebellion, sickness, various ‘evil networks,’ or just plain laziness,” Evans said. “The unlucky human at the core of these circles was encouraged to shout and scream along with the others at whatever lurked within, and the sessions would continue until that person spit or vomited into a small plastic tub conveniently provided for the moment.”

Evans was in the middle of 11 of these sessions, and that allowed him to secretly obtain some graphic footage.

While parents were occupied with “worship,” Evans said, young children and infants in the nursery were tied to their chairs with bed sheets to keep them from fidgeting. Crying infants were taken aside from time to time and screamed at in the tight quarters of the nursery bathroom, in sessions intended to cast out their “demons of rebelliousness.”

The AP article shows that the abuse Evans’ undercover investigation revealed has not only continued, but worsened over the years.

Vatican scraps plans to rid itself of corruption

pope_francis_from_catholic_news_wire
When cardinals elected Pope Francis in 2013, he was given a mandate to eliminate cronyism, inefficiency and corruption in the Vatican.
The Wall Street Journal reported Sept. 7 that Pope Francis has trimmed the powers of Cardinal George Pell, who was charged with cleaning up the city-state’s muddled accounts, in a setback for broader overhaul of Vatican bureaucracy.
Late last year, Pell hired PricewaterhouseCoopers to undertake a comprehensive audit of the Vatican’s finances.
Accounting at the Vatican has never followed unified policies, according to the WSJ article. Annual reports aren’t released, different departments use different accounting principles, data are inconsistent and not comparable. Before Cardinal Pell’s appointment, a panel of cardinals charged with economic oversight met just twice a year. Budgets didn’t exist, and expenditures weren’t itemized.
Already Pell had found about $1.6 billion “tucked away” off the books.
Other officials, led by Cardinal Pietro Parolin, the Secretary of State, known as the pope’s prime minister, let Pell know the audit wouldn’t fly. In June, the Vatican announced it had been scrapped, and soon many of Cardinal Pell’s wide-ranging powers were handed to others.
The whole article is available to WSJ subscribers here:

Money for Refugees ’blesses’ Pat Robertson’s Diamond Mining Operation

New Documentary: Mission Congo

Television is an incredible medium for raising money and one that televangelist Pat Robertson has used to the fullest extent for decades. Graphic images of starving, sick and hungry refugees can open hearts and wallets. For instance, Robertson’s Operation Blessing took in more than $338 million in contributions (and endowments) in 2013.

Five years ago, producers Lara Zizic and David Turner came to Dallas to interview Ole Anthony and gather research for a documentary about Robertson and Operation Blessing.  Now, after years of attempts by lawyers for Robertson’s organization to quash the film, it has finally been released.

It’s one of the most complete exposures of the business of televangelism we’ve seen.  Visit the Mission Congo website (here) and rent or purchase Mission Congo to see how millions of dollars were donated to help Rwandan genocide refugees in the mid-’90s, yet were diverted to Pat Robertson’s diamond mining company.  Toward the end of the film, Ole suggests a simple way to curb this kind of fraud.

Don’t be Conned by the Pay for Prayer Scam… Want your money back?

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Hey YOU,  If you are one of the close to 125,000 people who PAID for the “Christian Prayer Center” to pray for you between 2011 and 2015, PLEASE READ ON.  This fraudulent organization has been directed by the Washington State attorney general to give you your money back! However, you have less than 3 months to apply to get your money back.

The trusted magazine, Christianity Today, reported that their whole website and Facebook page was a big fat FAKE, it was a LIE…  The sites creator, Benjamon Rogovy pocketed over $7 million dollars.   Rogovy also targeted the entire Spanish Speaking world as well with his pay for prayer scam website, Oracion Cristiana.

The testimonials of healings were fake.   The impression that they had several pastors on staff to pray for you was a lie.  They had none.  Please read the Christianity Today article here.
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Yonggi Cho Church to be Audited

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On February 21st, 2014, Pastor Yonggi Cho was convicted of embezzling over $12M from his large Korean mega-church over a period of years. Now, the Korean authorities are set to audit the world’s largest church, the Yoido Full Gospel Church, based on suspicion that over $60 million dollars were embezzled by Pastor Cho and his associates. General account funds and money given for overseas missions were diverted as severance pay without approval from the church.  Read more about this from the Korea Times, here.

When Cho was convicted 2 and 1/2 year ago, journalist Lee Grady offered these important suggestions for church members and church leadership:

    1. 1. Never build a cult of personality.
    1. 2. Develop a culture of openness.
    1. 3. Insist on financial transparency.
    1. 4. Don’t build a family dynasty.
    1. 5. Beware of creating a greed monster.
    1. 6. Never tolerate a spirit of entitlement.”

Ole Anthony Explains Why Televangelists Hop Aboard the Trump Shuttle

donald-trump

Christian Post reporter Michael Gryboski recently asked Ole Anthony here at the Trinity Foundation what he thought about televangelist Mike Murdock’s endorsement of Republican Presidential candidate Donald Trump. Anthony told CP that “it’s not surprising that Murdock is drawn to Donald Trump, because both of them like making outrageous statements.”  Ole also said, “Mike Murdock’s endorsement of Trump – along with the whole spate of pastoral political endorsements – is an attempt to get credibility and to be ‘next to power.’ Spiritually, it’s the worst kind of heresy.”   Read the article here.

Forgive our tongue-in-cheek headline … Trump’s company, the “Trump Shuttle” went broke.   “The Trump Shuttle never turned a profit and collapsed within a year. Because he had taken out so much debt to finance the project, Trump was forced to default on his loans and lost the company to his creditors,” according to the National Review, which also reported that Trump praised China’s government for its handling of the Tiananmen Square Massacre in 1990.

Helping the Fardettes (An Update)

Katrina in the hospital

 

Larry and Darcy

(Update at bottom of post)
Katrina Fardette, 28, of Cocoa Beach, Fla., has Lupus, and her condition is worsening.
After giving to televangelists for many years, none would help.
Her parents, Larry and Darcy left their home in California to help their daughter, but her medical expenses (and their own physical disabilities) drained their finances. Darcy is plagued with Irritable Bowel Syndrome and Larry with severe arthritis, which has prevented both of them from working.
The couple ended up living week to week in a Motel 6.
Because they had sent various televangelists and ministries almost $20,000 over the years, the Fardettes sent requests to 18 different ministries, expecting someone to respond to their plight.
Incredibly, not one responded with any help.
A small Episcopal church in Jacksonville, Fla., is helping them. Trinity Foundation has contributed funds as we’ve been able. But their needs require more than a piecemeal solution.

Why are we involved? The Fardettes reached out to Trinity Foundation after we were mentioned as investigators of religious fraud in comedian John Oliver’s HBO program “Last Week Tonight.” (Their experience has only confirmed what we’ve discovered over the years – televangelists care more about expanding their own lavish lifestyles than the needs of their followers).
We hope this crowdfunding campaign will provide Katrina the real help she needs, lift the Fardettes out of their desperate situation and confirm their trust in God and human compassion.
Update:
Thank you to everyone that donated to the Fardettes. We raised slightly more than $2,000 for them, less than what we had hoped for, but enough to tide them over until they could get established in a new home.

HBO’s John Oliver Mocks Money Hungry TV Preachers

John Oliver broadcast

John Oliver and his staff created their own church to illustrate the absurdity of IRS enforcement of existing religious non-profit guidelines. As of this writing about 4.4 million people have viewed this blistering satire and critique of Robert Tilton, Mike Murdock, Gloria Copeland, and Creflo Dollar as well as giving honorable mention to TBN, Daystar TV, and Inspiration Ministries (a/k/a INSP, formerly, the Inspirational Network). Like a modern-day Elijah mocking the prophets of Baal, John Oliver calls out the televangelists. Great work John Oliver and your fine crew!

CBS This Morning exposes Creflo Dollar’s self-indulgence… “Almighty Dollar”

 

Creflo Dollar's Georgia mansion
Creflo Dollar’s Georgia mansion

Thank you CBS This Morning for helping expose Dollar’s madness.  Yesterday, CBS’ morning program, CBS This Morning, ran a piece about Creflo Dollar’s request for his donors to help him buy a $65 million dollar luxury jet. subtitled “Almighty Dollar”.

From CBS’ interview with Ole Anthony: “In Creflo’s church, there is no accountability. He runs it like a fiefdom,” said Anthony, president of the Trinity Foundation in Texas, a church fundraising watchdog group. “The chairman of the board of Texas Instruments or AT&T can have a whole fleet of jets, but they’re not begging for money from people and getting a tax write-off in order for them to establish such a lifestyle,” Anthony added.

CBS This Morning co-hosts Gayle King, Norah O’Donnell, and Charlie Rose each reacted with shock and/or sadness at the contrast between Dollar’s indulgent lifestyle and a supportive church member having to ride the bus to get herself to Dollar’s church.