Greater Ministries building seized

As a court-appointed receiver backed by U.S. Marshals takes control, a judge prohibits Greater Ministries International Church from selling assets or destroying records.

The Tampa Tribune, August 7, 1999
By Michael Fechter

TAMPA - Backed by armed U.S. Marshals and police officers, and with an armored vehicle waiting nearby, 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 had signed a restraining order forbidding the group and its leaders from moving or selling any assets.

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 court proceedings.

Friday's show of force likely was triggered by the affiliations of some Greater Ministries officers with tax protest and extremist political movements. Two defendants in a pending trial of ministry officials have identified themselves as ``sovereign citizens'' outside the jurisdiction of state and federal courts.

Officials said they were worried about the possible presence of guns inside the building, at 715 E. Bird St. There were no reports that any weapons were found.

A long-running investigation led this spring to a 20-count indictment in Tampa's federal court, focusing on mail fraud and money laundering allegations against six Greater Ministries officers.

Pennsylvania, California and Ohio have ordered Greater Ministries to stop 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.''

In addition to Greater Ministries, the state officials named six individual defendants in their complaint: 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 continues to trade unregistered securities.

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 may 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.''

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 entered.

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.

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. But very little of the money truly was invested, the indictment said. Instead, the cash from later investors was used to pay earlier investors.

Gary Sprott, Milton D. Carrero also contributed to this article.