Lawyers aim to trace church money

While a court-appointed receiver scours church offices, Greater Ministries members pray outside.

The Tampa Tribune, August 11, 1999
By Michael Fechter

TAMPA - Betty Payne opened the service with a joyous declaration.

``Ain't God good?'' she hollered into a microphone. ``He's fantastic!''

About 50 worshipers gathered around a makeshift sanctuary in the shadow of Greater Ministries International Church's headquarters just before noon Tuesday.

Inside, accountants and lawyers searched offices, safes and vaults, seeking records, cash and even gold and silver that once fueled a financial program potentially worth hundreds of millions of dollars.

They've been at it since Friday, when a federal judge appointed a receiver to go through the records of the church, the subject of a federal fraud prosecution.

The receiver, West Palm Beach attorney James W. Beasley, said he hadn't seen anything to substantiate Greater Ministries' claims that it doubled participants' money through complex interna tional trades and mining operations.

``All the indications are this was yet another Ponzi scheme,'' Beasley said.

For at least five years, participants in Greater Ministries' ``Faith Promises'' program were told their money would double through installment payments over 17 months. Thousands of people sent money, which may have totaled as much as several hundred million dollars, to the Tampa ministry.

``The sad fact is people got taken advantage of and basically swindled,'' Beasley said. ``It was particularly unfortunate because it was done under the facade of a religious organization.''

U.S. District Judge Richard A. Lazzara appointed Beasley as receiver in response to requests from securities regulators in Ohio and Alabama.

The church group, meanwhile, is locked out of its own building. Hillsborough County sheriff's deputies control access to the four-story former bank on Bird Street, which was raided by federal and local law enforcement officers Friday.

To Greater Ministries, the action was an example of the heavy hand of government stifling religious freedom.

A handful of picketers carried signs saying ``Is this Freedom? Is your church next?''

Seven Greater Ministries officials, including Betty Payne and her husband, Gerald Payne, face a 20-count federal indictment charging money laundering and fraud. The trial is scheduled Oct. 4.

First Amendment religious freedoms will be the basis of their defense and attempts to overturn the receivership, said attorney Al Cunningham.

``A church isn't capable of being defined,'' he said. ``This is a religious liberty issue. This is not a security law issue.''

Pastor Don Hall, another co-defendant, made the same point during Tuesday's service.

God created Greater Ministries, Hall said. ``You said it was going to go on until you came, and Lord, you must be coming soon.''

Beasley hopes to trace assets tied to Greater Ministries investors, said Alabama Securities Commission Director Joseph Borg. The assets include property, bank accounts and cash.

Alabama securities agent John Michael Foley called Greater Ministries on June 28 and identified himself as a participant who wanted to invest more money. He was told monthly payments had stopped but that people were still being paid, an affidavit states.

In a flier promoting an October meeting, the group said it is ``still blessing others as the Lord provides. ... Because of court activities, information is limited, but we will share as much as possible.''

Cunningham said he thought the financial program had shut down. He said he was disturbed to hear about mailings soliciting new money because they ``could jeopardize Mr. Payne's liberty.''