Judge warns church to halt money-doubling program

A Pennsylvania judge threatens leaders of a Tampa religious group with jail time.

The Tampa Tribune, January 21, 1999
By Michael Fechter

Greater Ministries International Church must shut down in Pennsylvania - perhaps its most lucrative state for a money-doubling financial program - or see its founder and president jailed.

Commonwealth Judge Eunice Ross found the Tampa-based Ministries in ``willful violation and contempt'' of a temporary injunction issued Nov. 2, which bars the group from promoting its money-doubling financial programs there. Ross ordered a total refund of money collected from Pennsylvanians since then.

She issued a permanent injunction against the group's new health benevolence program, calling it a pyramid scheme. And she gave Greater Ministries International until March 1 to appear in her court to document the refunds and provide a sealed list of all state residents on the group's mailing list.

She ordered founder and president Gerald Payne to appear in court that day to swear he will abide by her order. Ross reserved the right to have Payne arrested if he refuses.

Fines for violations of the November injunction will be issued at the March 1 hearing.

Payne could not be reached for comment. Greater Ministries lawyer Al Cunningham did not respond to a request for comment.

An affidavit submitted in his name last Thursday suggests that Payne may not comply.

``As pastor of Greater Ministries International Church, I cannot, by reason of my religious convictions regarding the Lordship of Jesus Christ over the church, submit the ministries of the church to governmental authorities. To do so would recognize a sovereign greater than Jesus Christ with authority over the church and its ministries,'' the affidavit said.

Greater Ministries' dispute with Pennsylvania authorities goes back to 1995 and 1996, when securities regulators first ordered the organization to stop soliciting and accepting money from Pennsylvania residents in its money-doubling Faith Promises program.

When Greater officials ignored those orders, the state attorney general sought the injunction that took effect Nov. 2.

Based on biblical references, people in Faith Promises expect their money to double in 17 months or less. State regulators and federal investigators suspect the program is a Ponzi scheme in which new money coming in pays earlier investors.

It has spread to all 50 states and abroad and could be worth hundreds of millions of dollars, but Pennsylvania is viewed as its most productive state. Meetings at hotel ballrooms and expo halls there in 1997 and 1998 routinely drew 500 to 1,000 people.

A November meeting in Lebanon, Pa., attracted at least 800 people and was among the events that prompted state officials to seek the contempt order.

Greater Ministries is struggling to keep Faith Promises going. The organization acknowledged its financial duress in a Dec. 14 letter to participants, saying it was discontinuing monthly payments to those who had given money to the program.

A recording at a telephone number provided to program participants said the change is the result of ``a banking system problem that has nothing to do with Greater's strength or integrity.''

The group lost about $20 million in uninsured deposits when Colorado regulators shut down Best Bank in Boulder for insolvency last summer.

Greater Ministries claims to make money in international trading and through 200 gold and diamond mines but has provided specific information only about one operation in Liberia.