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.
“This is what they get for preaching somethign bigger than government.”
Nope. This is what you get when a Civil lawsuit is filed to recover stolen money.
investigate the mormons!
“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.”
Take out a loan ...
“How is the SEC involved anyway in the first place?”
The company was shutdown by the SEC for ponzi scheme violations and assets seized by the SEC which the appointed a receiver for the company to reclaim lost money.
The receiver then filed a civil lawsuit against the “pre seizure” company and officer and several other entities including this church.
Ghastly. It’s an LCMC—Lutheran Congregations in Mission for Christ.
Maybe the church was helping the crook launder some money.
I think the Lutherans are getting as bad as the Presbyterians. Used to be Missouri, Wisconsin, and ELCA. Look like this group has around 900 churches and I’ve never heard of them. So now I’m wondering what other Lutherans I haven’t run across.
Incorrect.
A receiver is appointed by either regulators or bankruptcy judges. Receivers are EXTREMELY evenhanded in executing clawbacks — often, their own compensation on winding down the scheme is tied to how much can be recovered.
I have seen a CA High School get sued by a receiver because their football stadium had gotten $3MM of upgrades with ponzi scheme thefted monies. The school was having a tough time coming up with the scratch to repay the people that lost everything in the scheme they benefited from...
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