Posted on 09/07/2023 10:04:33 AM PDT by Morgana
Messiah Lutheran Church in Joliet, Illinois, received the shock of their lives after government officials ordered them to repay nearly $800,000 in tithes given to them over the last ten years, and the clock is ticking. A FAQ created by the church explains:
An unexpected, devastating crisis threatens the permanent closing of Messiah in Joliet, Illinois, a large congregation that has served the community for over 120 years. And this despite no wrongdoing or accusation of wrongdoing by the church.
In January of 2021, the Securities and Exchange Commission’s (SEC) Receiver filed a federal lawsuit against Messiah demanding payment to the SEC of $780,165, the full 10 years of donations that had been given to the church by a local business. The SEC accused the local business of recent fraudulent financial dealings (by defrauding numerous investors)
The church accepted those donations in good faith and is not accused of wrongdoing. However, the donations are no longer available to meet the SEC’s demand because they have been used in ministry over the last ten years.
Illinois law does not offer any protection despite no wrongdoing on the part of the church. It allows for the claw back of donations to charities based on accused misdeeds of the donor. There are no laws in Illinois to protect nonprofit charities, so no charities in Illinois are safe from facing this same scenario.
The church said it tried for years to settle with the SEC receiver in a way that wouldn’t financially cripple their church, but that the SEC “rejected multiple settlement offers put forth by Messiah on the basis that, even if Messiah did not have the money to pay the judgment sought, a judgment could be enforced against Messiah’s real estate.”
So far the church has repaid $480,000 from cash reserves and donations and needs to raise another $300,000 within the next two months, or else they say they’ll be forced to sell their building and property to repay the balance owed.
“The SEC should yes, be able to go after the company who made the donations, but they should have to get whatever money that company owes out of a suit against the company, not by asking the church to pay the money back. The ONLY fraud is on the part of the company, not the church.”
The company has no money. Do you believe it OK to keep stolen goods?
The company has assets the SEC can demand be sold by the SEC putting a lien on them.
In legal circles, “clawbacks” are referred to as “Voidable Transfers”. Every State has a (”Uniform Voidable Transfer Act”) UVTA statute. It is routinely used in bankruptcies and civil judgment collections. There are around 11 different factors courts will look at when deciding whether to void a transfer of personal or real property.
“The company has assets the SEC can demand be sold by the SEC putting a lien on them.”
The lawsuit seeks those assets, however
It was a ponzi scheme. The only assets were other peoples monies which he gave away
A group I've never heard of before - LCMC - "Lutheran Congregations in Mission for Christ". Claims to not be a denomination, but an association of independent congregations.
LCMC is anti queer / no woman preachers that look like men/ no social justice stuff.. At least that’s how it was recently. Makes sense now, doesn’t it..
The church doesn’t seem to think it’s right either, and has been paying the money back…..the SEC is forcing the remaining balance immediately threatening the unwitting church (trying to do the right thing) with closure. How is that right?
A money grab by the government. And if they get away with it you can bet they’ll go after more church organizations. It’s a huge untapped source of revenue that they’re salivating about.
Thanks. It seems like another way to subjectively target something.
Correction. I may have to eat my words .
I was thinking LCMS (Lutheran Church Missouri Synod)
😔😝
As a teen, I was arrested for receiving stolen property that I didn’t know was stolen. The cop said I should have known.
“the SEC is forcing the remaining balance immediately threatening the unwitting church (trying to do the right thing) with closure.”
You made that up! As part of the judgement from 2019 an installment plan was set up. Penalties accrue if not me but no threats of closure.
“A money grab by the government.”
No! A lawsuit from an investor.
“So far the church has repaid $480,000 from cash reserves and donations and needs to raise another $300,000 within the next two months, or else they say they’ll be forced to sell their building and property to repay the balance owed.”
I saw this movie. Any chance they raised a couple of orphans who became musicians?
I like how your mind works.
This is what they get for preaching somethign bigger than government.
McCarthy stopped the 87,000 new agents, don’t you know?
We’re only hiring 86,999.
“the SEC is forcing the remaining balance immediately threatening the unwitting church (trying to do the right thing) with closure.”
Nope. The SEC seized the assets of the ponzi company and appointed a receiver who the filed a civil suit reclaim lost money for the investors. The judge in that suit, not the SEC is deciding the repayment criteria.
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