BFA Plan Met With Suspicion
The Arizona Republic, Feb. 18, 2000
By Hal Mattern
The latest liquidation plan offered by the bankrupt Baptist Foundation of Arizona was greeted with suspicion Thursday by investors, many of whom are concerned about losing their life savings.
Although they said they were encouraged by the plan, some investors said they wouldn't be happy until the "con men and cheats" responsible for the financial mess are prosecuted.
The new plan, which will be filed today with the U.S. Bankruptcy Court, calls for the foundation to sell off its $240 million in assets over the next few years, returning about 40 cents on the dollar to investors through quarterly payments.
Foundation officials also are planning to file a $300 million to $400 million lawsuit today against former BFA officials, lawyers and accountants.
"Forty percent isn't what we wanted, but 40 percent of something is better than 10,000 percent of nothing," said Lee Burns, a 67-year-old retiree living in Lake Havasu City.
Burns, who has $80,000, most of his life savings, invested in the foundation, said he hopes the "con men and cheats operating under the guise of the Baptist Church" are prosecuted.
"I would like to see them go after these guys criminally and burn them all," he said.
Anne Cacace of Sun City, whose family invested $100,000 in the foundation, said she is happy to see progress being made "because they are spending a lot of money" on the bankruptcy case.
Web sites follow bankruptcy case
Investors in the Baptist Foundation of Arizona can now turn to the Internet for updates on the foundation's bankruptcy case.Fennemore Craig, the Phoenix law firm representing the official unsecured creditors' committee, has launched a new page at www.fennemorecraig.com to provide information and updates on the case.
Lawyers representing investors in class-action suits against former BFA officials also are starting a site at www.bfaclassaction.com, but it wasn't operating as of Thursday.
Meanwhile, the restructuring plan submitted today by the foundation will be placed on the U.S. Bankruptcy Court's site at www.ecf.azb.uscourts.gov.
