Officers raid Greater Ministries
A federal judge prohibits Greater Ministries International Church from moving or selling assets, or destroying records.
The Tampa Tribune, August 6, 1999
By Michael Fechter
TAMPA - Backed by armed U.S. Marshals and police officers, a court-appointed receiver seized possession of the Tampa headquarters of Greater Ministries International Church late Friday.
The four-story building was being searched floor-by-floor as accountants began taking inventory of its contents. Off- duty sheriff's deputies have been hired to secure the headquarters for at least the next two weeks, an official said.
Just hours earlier, unbeknown to Greater Ministries officials, a Tampa federal judge signed a restraining order forbidding the organization and its leaders from moving or selling assets or property.
The judge also prohibited Greater Ministries from destroying or hiding documents, including any relating to its controversial ``Faith Promises'' program.
Greater Ministries is facing intense scrutiny and civil and criminal proceedings on a number of fronts.
A long-running investigation led this spring to a 20-count indictment in Tampa's federal court. The investigation focused on mail fraud and money laundering allegations against six Greater Ministries officers.
Pennsylvania, California and Ohio have cease-and-desist orders against Greater Ministries for selling unregistered securities.
Friday, state officials from Alabama and Ohio asked U.S District Judge Richard A. Lazzara to appoint a receiver because, among other things, ``massive and ongoing frauds are being perpetrated.''
The state officials named six individual defendants in their complaint in addition to Greater Ministries: co-founders Gerald and Betty Payne, and officers Don and Brenda Hall, David Whitfield and John Krishak.
Each of the six, except Brenda Hall, is a co-defendant in the federal fraud and money-laundering case, set for trial in October.
The Alabama and Ohio officials told Lazzara that Greater Ministries has violated broker-dealer licensing rules and antifraud regulations, and ignored the cease- and-desist orders.
Greater Ministries and its officers were not told of the hearing.
``Whatever happened to due process?'' asked Barbara Ketay, legal associate with Greater Ministries. ``I don't know what we're going to do; we'll just have to work it out.''
State officials had told Lazzara that the organization has moved millions of dollars overseas at times. As such, they said, there was a ``great danger that as soon as this suit becomes known to the defendants, they will promptly take steps to put all assets possible ... beyond the reach of plaintiffs ... investors, and creditors.''
Lazzara wrote that he was concerned that property, documents and other evidence might be lost, destroyed or concealed if the temporary restraining order wasn't issued immediately.
Lazzara appointed West Palm Beach securities lawyer James W. Beasley Jr. as receiver, instructing him to report back to the court on the defendants' activities. Lazzara has scheduled an Aug. 20 hearing to consider the states' request to expand the temporary restraining order.
J. Michael Rediker, acting as special assistant attorney general for Alabama and special counsel for the attorney general of Ohio, said late Friday that Greater Ministries' computer system would be examined to see ``whether it has been compromised.''
Rediker knew of no plans to remove anything from the building.
``We will just be slogging through whatever we find,'' Rediker said as the search of the building continued. ``Preserve the status quo is the idea. Freeze everything in place.''
After gathering at a nearby police substation, police, sheriff's deputies and U.S. Marshals in unmarked cars and a van pulled swiftly to the front of the former bank building shortly after sundown Friday and went inside.
A second group of marshals, one carrying a shotgun, jogged across the street past the American flag at the entrance. They encountered no resistance, and began searching the building.
Meanwhile, a support team led by a police tank waited with other officers at a nearby bridge.
Chief Deputy U.S. Marshal Larry Cooper said the main job was to ``make sure things were safe for everyone.''
The goal was to evacuate the building completely and then turn it over to the officials.
This spring's federal indictment said Greater Ministries' conspiracy and fraud dates back at least to March 1993.
Citing Scripture, the group promised to double a person's money in 17 months or less, with monthly cash payments sent through the mail.
But very little of the money truly was invested, the indictment said. Instead, the cash from later investors was used to make payments to earlier investors, the classic component of a Ponzi scheme.
The conspiracy and mail fraud counts carry maximum penalties of five years in prison and a $250,000 fine. The money-laundering counts can lead to 20-year sentences and $500,000 fines.
Gerald Payne faces three separate financial charges, each with a maximum sentence of 10 years in prison and a $250,000 fine.
Gary Sprott, Milton D. Carrero also contributed to this article.
