Legal Statement. console.log('PUB-GDPR-CHECK all blocked. The BFA was associated with the Arizona Southern Baptist Convention, which was affiliated with the national organization. mps.__intcode = "v2"; if (typeof adunit != "string") return false; )+[a-zA-Z]{2,}))/; "[6] Elder law attorney Leas wondered why BFA would sell the elderly, "an investment that would tie up more than two-thirds of their non-residential assets in an investment that would be unavailable for five years! Some 13,000 investors lost $570 million, mainly elderly Baptists, some of whom lost their entire life's savings. ideas on how fraud could occur and adjust the audit program plan so that tests
'cag[type_cnbcteam]' : 'CNBC US Team' , 'stitle' : 'Religious Prey | Dr. Mikos: American Greed 5' , real estate in exchange for notes receivable valued in the millions of dollars. .split(',') [14] Christianity Today reported that the timing of this court approved settlement avoided "the worst case scenario for Baptist Foundation investors" of Andersen being convicted in its then ongoing criminal case regarding its audits of Enron, then quickly filing "for bankruptcy-court protection" from any civil lawsuits not yet settled in a court. accounting, marketing, and administrative services. Former Alcor Employee Makes Harsh Allegations Against Cryonics Foundation However, the State Board
mps._queue.gptloaded.push(function() { The CPA Journal. script.setAttribute("src", "//www.npttech.com/advertising.js"); Third point is "Baptist Foundation of Arizona". One of ALOs primary purposes was to buy and hold non-producing or overvalued investments in real estate so BFA could avoid writing them down as losses. Mutual Fund and ETF data provided by Refinitiv Lipper. mps._queue.mpsloaded = mps._queue.mpsloaded || []; return unescape(document.cookie.substring(cStart, cEnd)); Lewis Bear Jr., one of Pensacola's biggest philanthropists and if (mps.response && mps.response.dart && typeof(mps.response.dart.adunits) === 'object') { Get this delivered to your inbox, and more info about our products and services. Two of the most significant entities set up to hide BFAs nonperforming
of fraud and even more critical to engage in effective audit procedures to
const COOKIE_REGEX = /groups=([^&]*)/; The first in a string of corporate scandals, Enron came to symbolize corporate excess of the 1990s and is Americas best-known white collar crime. Pope Francis I said in an interview with the Associated Press that "homosexuality is not a crime" and encouraged bishops to stop practicing forms of conversion therapy. Synopsis The Baptist Foundation of Arizona (BFA) was organized as an Arizona nonprofit organization primarily to help provide financial support for various Southern Baptist causes. ALOs stated purpose was to develop real estate. 'cag[type_franchise]' : 'American Greed' , document.addEventListener("DOMContentLoaded", function(event) { Ponzi scheme. Accusations of New IFB being a cult were also made by former New IFB preacher Adam Fannin, who left after the Romero scandal in January 2019. 'cag[project_management_team]' : 'CNBC US Team' , Audit. than $20 million per year for several years. Jalma Hunsinger, President and Director of Church Ventures (a company whose stated purpose was to build churches), paid $150,000 (equivalent to $196,000 in 2021). Also in 1998, an alternative Phoenix newspaper, the New Times, ran a series of 13 investigative reports alleging fraud and insider deals. Notorious Anti-LGBT Pastor Steven Anderson Permanently Banned from Youtube mps.insertAd("#" + slotid, adunit) Lessons
be taking place requires a higher degree of due diligence by auditors. credible tips or complaints are received about management fraud, auditors
Yet, in 2002, years after the BFA . Officials at the Arizona Southern Baptist Convention were unavailable for comment. was used to pay interest on old money. [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. Former Executives of Collapsed Arizona Baptist Foundation Convicted of While the recently enacted Sarbanes-Oxley Act may only directly impact auditors
The Arizona Southern Baptist Convention was founded in 1928. First case: The Baptist Foundation of Arizona invests and loses millions entrusted by churchgoers, and its mission ends in scandal. }); BFA invested heavily in real estate, a more speculative investment strategy than other Baptist foundations in the state traditionally used. 'nid' : '100000099' A total of $40-million is available to those who choose to cash out. Baptist Convention. var w=window;if(w.performance||w.mozPerformance||w.msPerformance||w.webkitPerformance){var d=document;AKSB=w.AKSB||{},AKSB.q=AKSB.q||[],AKSB.mark=AKSB.mark||function(e,_){AKSB.q.push(["mark",e,_||(new Date).getTime()])},AKSB.measure=AKSB.measure||function(e,_,t){AKSB.q.push(["measure",e,_,t||(new Date).getTime()])},AKSB.done=AKSB.done||function(e){AKSB.q.push(["done",e])},AKSB.mark("firstbyte",(new Date).getTime()),AKSB.prof={custid:"1320688",ustr:"",originlat:"0",clientrtt:"138",ghostip:"61.19.12.55",ipv6:false,pct:"10",clientip:"202.6.19.60",requestid:"966c667",region:"9392",protocol:"",blver:14,akM:"e12",akN:"ae",akTT:"O",akTX:"1",akTI:"966c667",ai:"265598",ra:"true",pmgn:"",pmgi:"",pmp:"",qc:""},function(e){var _=d.createElement("script");_.async="async",_.src=e;var t=d.getElementsByTagName("script"),t=t[t.length-1];t.parentNode.insertBefore(_,t)}(("https:"===d.location.protocol?"https:":"http:")+"//ds-aksb-a.akamaihd.net/aksb.min.js")}. Arizona real estate prices were skyrocketing in the early 1980s. The BFA opens a web site address www.bfaz.org to answer questions. Bob Allen is managing editor of EthicsDaily.com. The Arizona Republic reported that Novak had said Andersens circumstances have changed significantly since it was indicted March 14 on federal charges involving its auditing of Houston-based energy trader Enron. Up to $40 million is available for the cash-out plan. .map(categoryPreference => parseInt(categoryPreference.split(':')[0], 10)); 'cag[attribution_source]' : 'CNBC US Source' , succeeded in 1984 by his son, William P. Crotts. Star Stacy Keach (voice) See production, box office & company info Add to Watchlist Photos At the time of its failure in 1999, it was the largest affinity fraud that had ever occurred in the United States, with a total loss estimated at US$550 million (equivalent to $895 million in 2021). mps._ext = mps._ext || {}; Art Toalston is a writer based in Nashville and a former editor of Baptist Press. Solely for the purpose of determining whether a transfer or ac- if (typeof(window._mpspixZ) != 'string') { Nov. 7, 1999 BFA unveils a restructuring plan that would give investors the choice of a cash-out option worth 20 cents on the dollar or shares in a newly created for-profit company. } Clearly no. Inside Higher Ed's News } Napolitanos office began its legal initiatives against Andersen on behalf of the Arizona Accountancy Board in December 2000 over allegations the firm failed to conduct proper audits on BFAs financial statements. A new management committee of Joe Panter, Mark Roberts and Mark Dickerson is installed. Like many
with a questioning mind, recognizing the possibility that fraud may be present,
mps._adsheld = []; 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. Under Bill Crotts, the organization diverted over $140 million to two former and one active (as of 1998) director. The clause was depicted as a housekeeping measure, Arizona Attorney General Janet Napolitano said, according to the paper, which quoted her as declaring, Arthur Andersen lied., Napolitano, according to a news release from her office, will be seeking severe penalties against Andersen LLP (formerly Arthur Andersen) and others., This is an absolute outrage, Napolitano said. 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. Istoria Ministries Article Archive: Southern Baptists Who Break the Law Kimsey reportedly invested $100,000 with BFA. SAS 99 is effective for audits of financial
Two Failures With a Familiar Ring - The Washington Post Victims of Baptist Foundation scheme still recovering | News Since August, the foundation has fired its top three officials, severed ties with the law and accounting firms with which it had worked, laid off 72 of its 127 employees, and closed its two branch offices. A jury on Monday found former foundation president William Crotts guilty of three counts of fraud and one count of illegally conducting an enterprise, according to the Arizona Attorney General's Office, which prosecuted the case. Feeling pressure to show profits, investigators say, BFA officials hid losses in a web of for-profit and non-profit subsidiaries, which were supposed to be economically independent but really werent. The Baptist foundation began selling investment products to church members in 1983. Former general counsel Thomas Grabinski was convicted of three counts of fraud and one count of illegally conducting an enterprise. Sentencing was set for Sept. 29. (function() { The insurance company is refusing to honor the settlement, based on a clause added at the last minute allowing the insurance company to void the March 1 settlement, The Arizona Republic reported. What clues did the
A BFA liquidation trust was set up to sell off assets to allow investors to recover part of their money. Crotts denies any wrongdoing, as he has since the story broke in the Phoenix New Times. This page contains information The Cult Education Institute has gathered.