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Preying on the faithful: Though Mormons often victims, LDS Church skips fraud-prevention event
Salt Lake Tribune ^ | May 2, 2010 | Tom Harvey

Posted on 05/02/2010 5:39:16 PM PDT by Colofornian

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From the article: ...the one player that all agree has to lend its loud voice to the proceedings if they are to be as effective as possible will be largely silent -- the LDS Church. This is Utah, after all, where The Church of Jesus Christ of Latter-day Saints claims about 60 percent of residents as members. Beyond the numbers, there is the church's organization into close-knit local wards led by male authority figures where members' social and religious lives revolve around shared beliefs in the sacredness and uniqueness of their religion. Those characteristics make Mormons vulnerable to what regulators and government investigators label "affinity fraud" in which groups who through shared associations develop bonds of trust that can be easily exploited by con artists..."There's this notion that if you pay your tithing and do what you're supposed to do, the windows of heaven will be open to you and God will pour you out a blessing such that there's not room enough to receive it," said Keith Woodwell, a church member and director of the Division of Securities, the state's chief investigator of investment fraud. "So it's very easy for someone who has [fraud] as their motive to use that doctrine and say, 'Look, you're a member in good standing and you pay your tithing and you're entitled to be blessed.'" ...the church, after initially signaling to organizers that it would be a key player in the fraud conference that is drawing representatives of other faiths, has chosen not to send a high-ranking authority to speak. A church spokesman declined to say why it was not participating. Mark F. Zimbelman, a Brigham Young University professor of accounting who teaches a class about how frauds are committed, will be the LDS member on the interfaith panel at the Fraud College. But he said will not be speaking for the church. The church's decision is a disappointment for organizers, who wanted a strong LDS presence to send a message about safe investments. "I don't think any church has done enough, including the Mormon Church," said attorney Brent Baker, a former Securities and Exchange Commission lawyer and a specialist in securities fraud cases.

From the article: But organizers saw the involvement of the LDS Church as crucial, given the level of fraud perpetrated in its ranks and what many perceive as its muted response to the problem. "I think more needs to be done" by the church, said Francine Giani, a church member and executive director of the state Department of Commerce. "A couple of years ago we saw a statement that was read over the pulpit that I was happy about, but we should see more and we should see it often." In a written statement, LDS Church spokesman Scott Trotter said church leaders have been warning members for years about the dangers of fraud and get-rich-quick schemes. "These messages have been delivered over the pulpit in General Conference, in official letters from church leadership, and in articles found in official church publications," he said.

From the article: Barbara Bowden knows the pitch all too well. She and members of her family invested about $1 million with a former LDS bishop, mostly because of his standing in the church. "Bill Hammons reached a great deal of people in the church, and I know he did perpetuate the fact that he was a bishop or had been a bishop and that was first and foremost your reason for trusting him," said Bowden. Hammons of St. George is facing trial this year on 10 felony fraud-related charges for allegedly helping bilk dozens of people out of tens of millions of dollars. Hammons, who denies he knowingly participated in a crime, was the largest fundraiser for VesCor Capital, the entity associated with what appears to be the biggest financial fraud case in Utah history. VesCor owner Val E. Southwick, who is serving a lengthy prison sentence for his role, displayed LDS symbols in his Ogden office, and was known to sometimes push his Mormon temple recommend across his desk at potential investors. Southwick has been excommunicated, the church confirmed on Friday.

1 posted on 05/02/2010 5:39:17 PM PDT by Colofornian
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To: All
From the article: Worst in the country » Fraud is a long-standing problem in the state, stretching back decades as it ebbs and flows, coming back each time with a vengeance, said James Malpede, who Leads the FBI's white-collar crime unit in the state. Utah has lost its ranking as the top state per capita in fraud but it remains a huge problem. "I'd say per capita it is one of the worst in the country," said Malpede. How bad? The agency is mostly limiting itself to investigating cases in Utah involving $20 million or more. "Most of what we're working on is $25 million and up, and a lot of what we're working on is $100 to $150 million and more," said Malpede. Attorney Baker said he came up with an estimate of the amount of money Utahns lost to big fraud schemes in 2009 based on cases in which charges have been filed and those he knows of where no actions have yet been brought. "I did a rough calculation of Ponzi schemes I saw over the last year that came through Utah and I would say it was at least $750 million."
2 posted on 05/02/2010 5:43:11 PM PDT by Colofornian
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To: Colofornian
inability of government to deal with the problem,

But that doesn't seem to slow them down with 'solutions'

/johnny

3 posted on 05/02/2010 5:43:49 PM PDT by JRandomFreeper (Gone Galt)
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To: All; Alex Murphy
I've seen over a dozen mainstream media articles on affinity financial fraud in the Lds church over the past 14 months. California. Texas. Colorado. Utah. Etc. (And they were all posted on FR; some by Alex Murphy; some by others; some by myself).

When will the Lds church wake up and take a more assertive leadership role?

4 posted on 05/02/2010 5:46:30 PM PDT by Colofornian
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To: Colofornian

No church or state wants it’s minions financially educated. Too troublesome. Better they get fleeced ( by others of course ).


5 posted on 05/02/2010 5:49:42 PM PDT by Leisler
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To: Colofornian
What an odd thing to admit to: "There's this notion that if you pay your tithing and do what you're supposed to do, the windows of heaven will be open to you and God will pour you out a blessing such that there's not room enough to receive it," said Keith Woodwell, a church member and director of the Division of Securities, the state's chief investigator of investment fraud. "So it's very easy for someone who has [fraud] as their motive to use that doctrine and say, 'Look, you're a member in good standing and you pay your tithing and you're entitled to be blessed.' "

God is not Santa Claus. Where do they get this stuff? Not from the Bible.

6 posted on 05/02/2010 6:07:36 PM PDT by svcw (Habakkuk 2:3)
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To: Colofornian

I was one of the lucky young returned missionaries that was hired after college by Xerox Corporation in 1967. I was sent to the San Francisco branch in Mountain View California. I was able to ascend very quickly in the corporation because of the church training of selling concepts. Selling copiers was very easy. Ethics was another matter.

As a young manager I sought out and hired several RM’s because of the belief that RM’s were already trained to sell, which they were. Then I noticed a certain attitude that was sort of like the Romney approach which in my opinion lacks ethics. Seems like nothing matters but getting the order. I too had that opinion sorry to say. And as long as you bear fervent testimony everything is right. I left the church thirty years ago.


7 posted on 05/02/2010 6:15:21 PM PDT by Utah Binger (Mount Carmel Utah, 20 Miles North of Fredonia Arizona)
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To: Utah Binger

So the LDS Church teaches you salesmanship techniques without ethics? Why do they do that? I’ve never heard of any other religion that teaches sales.


8 posted on 05/02/2010 6:21:12 PM PDT by Jack Hydrazine (?)
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To: Jack Hydrazine

Just saying that my perspective is slightly different than your question. If out of context you are asking whether ethics is an issue I would say that most likely the young ascending salesmen in the corporate world are doing everything they can to be accepted and use all the methods to make the deal. If their ethics differ and they need to fudge a bit they will.

Young Mormons are no different, however are way ahead of the game because of their ability to handle concepts.


9 posted on 05/02/2010 6:36:42 PM PDT by Utah Binger (Mount Carmel Utah, 20 Miles North of Fredonia Arizona)
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To: Jack Hydrazine; Utah Binger
So the LDS Church teaches you salesmanship techniques without ethics? Why do they do that? I’ve never heard of any other religion that teaches sales.

The "milk before meat" video of a Mormon class, shows how Mormons are taught to sell their religion and avoid revealing truths at too early a stage to potential converts.

10 posted on 05/02/2010 7:08:43 PM PDT by ansel12 (Romney-"I longed in many respects to actually be in Vietnam and be representing our country there")
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To: svcw
The sort of scams that nail Mormons regularly have been well-practiced by the scam artists for a very long time. They know what works, and it's not just with Mormons.

Many times you'll find someone with a background in one of the many non-LDS Mormon groups who wends his way into an isolated stake, and next thing you know he's sold millions of dollars of life and casualty insurance ~ and then he/she disappears!

Other times it's one of the fellows from the older (circa 1702 for post Scandinavian appearances) congregations flying under the name Church of the First born. (NOTE: do not rely on the SPLC definitions of these groups ~ they are so wrong on so many counts it's unbelievable ~ they want to restrict the non-Mormon related COTFB to just the 19th century Laestidians ~ which is bizarre).

Some COTFB frauds against LDS folks have been limited to the standard bad-insurance deal. Others are more serious. Warren Jeffs' family come to mind as probable COTFB types who moved in on some isolated but otherwise wealthy independent non-LDS Mormons and turned them into a regular gravy train for the Jeffs and a couple of other families under the title FLDS.

That deal was the rough equivalent of how Mr. Howell, calling himself "David Koresh" took over a small SDA (Seventh Day Adventist) denomination ~ one of his grandmothers claimed COTFB affiliation in the Tulsa area, and he endedup being taken out of business by Bill Clinton whose baby daddy was a member of another COTFB group in Arkansas (which gives you some links to REAL Gypsies and REAL traditional scams).

11 posted on 05/02/2010 7:12:29 PM PDT by muawiyah ("Git Out The Way")
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To: svcw

Isn’t this the Prosperity Gospel that many Evangelicals follow??...real question...saw some guy on religion TV talking about “seed money” and the like...magritte


12 posted on 05/02/2010 7:15:22 PM PDT by magritte ("There are moments, Jeeves, when one asks oneself "Do trousers matter?")
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To: ansel12
oh yeah the 'milk before meat' video.

That was my favorite. What was its title again?

13 posted on 05/02/2010 7:27:36 PM PDT by GreyMountainReagan ("Pray for America")
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To: svcw
Where do they get this stuff? Not from the Bible.

Which Bible do you use? Mine says:

Malachi 3:10 "Bring ye all the tithes into the storehouse, that there may be meat in mine house, and prove me now herewith, saith the Lord of hosts, if I will not open you the windows of heaven, and pour you out a blessing, that there shall not be room enough to receive it."

You may interpret it differently, but the text is there...

14 posted on 05/02/2010 7:44:15 PM PDT by PoolQue ("The best government is that which governs least.")
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To: GreyMountainReagan; Elsie
oh yeah the 'milk before meat' video. That was my favorite. What was its title again?

It keeps getting pulled from youtube, but someone here has a link, perhaps Elsie.

15 posted on 05/02/2010 7:49:19 PM PDT by ansel12 (Romney-"I longed in many respects to actually be in Vietnam and be representing our country there")
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To: magritte
Isn’t this the Prosperity Gospel...

(For the Mormons? Yes!)

And they got it direct from their founder:

"And if ye seek the riches which it is the will of the Father to give unto you, ye shall be the richest of all people, for ye shall hae the riches of eternity: And it must needs be that the riches of the earth is mine to give: (original LDS "Book of Commandments, Chapter XL, vv. 33-34 (Now D&C 38:39) (Joseph Smith, Jan. 1831)

"Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion." (Smith, D&D 124:11, 1838)

"And send ye swift messengers, yea, chosen messengers, and say unto them: Come ye, with all your gold, and your silver, and your precious stones, and with all your antiquities; and with all who have knowledge of antiquities, that will come..." (D&C 124:26, 1838)

For traditional Christians, it was more "Come all ye faithful" (Christmas hymn). For Smith it was, "Come ye, with ALL your gold and silver."

16 posted on 05/02/2010 7:54:47 PM PDT by Colofornian
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To: magritte

Yea, its the “name and claim it”, stuff. Disgusting.


17 posted on 05/02/2010 8:39:38 PM PDT by svcw (Habakkuk 2:3)
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To: PoolQue
I would argue that blessing does not necessarily equal cash. What this article seems to be saying for the LDS is that if they tithe (which is a returning to God a portion of what He has given us) He will give you cash.
That is not what “blessings” means. God is not Santa Claus.
18 posted on 05/02/2010 8:44:01 PM PDT by svcw (Habakkuk 2:3)
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To: muawiyah

Wow.


19 posted on 05/02/2010 8:46:40 PM PDT by svcw (Habakkuk 2:3)
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To: svcw

What are you talking about?


20 posted on 05/02/2010 9:14:42 PM PDT by restornu
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