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For decades, the WatchTower Society has repeatedly portrayed its' Jehovah's Witness members as "the most honest people on earth", supposedly because Jehovah's Witnesses are members of "the only true religion on earth". The following state and federal employment related criminal and civil court cases are not intended as evidence that Jehovah's Witness Employees are more dishonest than other employees, but rather are intended to demonstrate that Jehovah's Witnesses are just as dishonest, or honest, as are other members of the human population -- whether religious or non-religious.

Mounting evidence, however, seems to indicate that a higher than normal percentage of Jehovah's Witness Investments-Insurance Salespersons are turning to crime. See below all the Investments-Insurance related cases which have become public over the past decade just since the flood of information provided by the internet. (Just for fun, try to keep track of how many times the word "California" occurs just on this first page of this 10-page section.)

One can't help but wonder how many Jehovah's Witnesses and others have been ripped off by fellow JWs over the decades because JWs were taught NOT to report the crime to authorities in order to not harm the reputation of the WatchTower religion. I actually have personal experience of such occurring. In the mid 1960s, a Jehovah's Witness whom I recall as being described as a WatchTower Society "Special Pioneer" moved through our area selling a worthless stock investment to local JWs and to whomever local JWs would vouch for his honesty and integrity. My very poor father, grandfather, and one great-uncle (now all deceased) lost every single penny they gave to that Jehovah's Witness Conman to invest for them. None of my poorly educated relatives knew anything at all about investing in "stocks", but did so solely because they believed everything that the JW Pioneer told them, while also believing that someone in his position in the WatchTower Society would never deceive them. When they shortly discovered that they had been SCAMMED, the only ones to whom the JW Pioneer and Scam was reported were other WatchTower representatives -- who would promise to "do something about it", but never did. I personally recall the very last "sit-down" in the latter 1960s with a newly moved-in Congregation Servant, named Ralph Moore, who on hearing about such promised that he would get to the bottom of the matter. Like all of the others before him, after he left to investigate such, not only was nothing done, but you could not even get him to further discuss the matter. (2012 UPDATE/KARMA ALERT. I only recently learned that the JW Elder/Special Pioneer -- now in his 70s -- whom I believe was the MAIN JW Elder to whom my relatives reported the JW Pioneer Conman, and whom did little or nothing about it, and whom probably tainted later inquiries by other JW Elders, recently had his retirement interrupted, and has had to begin supplementing his Social Security as a parttime janitor. WHY?  Elderly JW Elder's retirement fund was recently wiped out after he invested the assets with one of the JW Conmen listed below!!!)

Readers specifically interested in the topic of Jehovah's Witness Honesty and Integrity should be aware that related financial dishonesty court cases are scattered throughout this website -- specifically the JW BUSINESSOWNERS page and the JW DISABILITY page. Readers should also refer to the 15 PACKED webpages of other types of criminal court cases which are posted on our JW CHILDREN website linked from this website's Homepage.

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A recent, and possibly current, WATCHTOWER BETHELITE named Jeffrey Malone, aka Jeff Malone, previously of the Arlington, Texas area, once held significant responsibilities and corporate titles -- President, Director, Officer, etc.  -- with multiple intertwined but now defunct Texas corporations which had been under multiple state investigations since 2004, or earlier, and was finally forced out of business in 2012 by the Federal Trade Commission (FTC). Jeffrey Malone is believed to have been the President of the IAB Group of companies since around 1989. It is not known when Jeff Malone stopped running IAB on a daily basis, or when Jeff Malone and his wife, Karen Malone, went to work at WatchTower World HQ in Brooklyn, New York, but Jeffrey Malone was still listed as a Corporate Director on the 2011 IRS 990 linked below.

These intertwined corporations include but are not limited to the INTERNATIONAL ASSOCIATION OF BENEFITS, INTERNATIONAL ASSOCIATION OF BUSINESSES, INDEPENDENT ASSOCIATION OF BUSINESSES (2011 - IRS 990), INTERNATIONAL MARKETING AGENCIES INC. OF DELAWARE, and INTERNATIONAL MARKETING AGENCY. (Some of these corporate names are also used in similar incorporations in multiple individual states. If readers have a difficult time keeping straight the three similar IAB -- don't feel bad. Even one of IAB's Florida sales agents publicly stated the name incorrectly on multiple occasions.)

One can only wonder how many of the individuals named in the plethora of state and federal legal documents relating to this now defunct interstate "Not-Health Insurance" alleged Marketing SCAM were/are also "exemplary Jehovah's Witnesses". IAB had multiple affiliates and sales agents scattered across the United States, and it takes zero stretch of the imagination to assume that some of those individuals were fellow Jehovah's Witnesses of the President of the company. Jeff Malone also has a son with the same/similar name, thus it is not known if or how he may have been connected to IAB. Notably, an "Andrea Malone" aka "Andrea Brown Malone" (??Malone's daughter-in-law??) is included as a Director/Officer in multiple legal documents relating to IAB, including the 2011 IRS 990 linked above.

Sometime prior to 2011, the Malone Family appears to have been replaced in its day-to-day operation of the IAB companies by the Wood Family, also of the Greater Dallas-Forth Worth area. INTERESTINGLY, the WOOD FAMILY is a large, extended family of Jehovah's Witnesses -- dating back to the early 20th century (possibly to Russell's days). Despite the fact that James Wood founded IAB around 1982, neither James C. Wood or other Wood Family members consistently show up on 21st century IAB legal filings that we have found until around 2011. Significantly, neither Jeff Malone, Andrea Malone, nor any of their immediate Malone Family relatives are named in any of the federal court legal filings -- not as a Defendant, or otherwise -- despite the fact that the FTC makes note of the fact that IAB's illegal activities date back to 2005 (see multiple state investigations/actions posted below). However, six Wood Family members are named as Defendants in the 2012 FTC civil prosecution linked below -- James Wood (father), Tressa Wood (mother), James J. Wood (son), Michael Wood (son), Gary Wood (James Clayton Wood's brother), and Suzanne Wood.


FEDERAL TRADE COMMISSION v. INTERNATIONAL ASSOCIATION OF BUSINESSES, JAMES CLAYTON WOOD, TRESSA KAY WOOD, JAMES JOSHUA WOOD, MICHAEL JACOB WOOD, GARY D. WOOD, AVIS SUZANNE WOOD, ET AL. Despite multiple state investigations, multiple state agency actions, and one state court case (some of which are linked below), the aforementioned corporations continued doing business until 2012, when the Federal Trade Commission finally put them out of business. Click link to read voluminous details. Will appointed IAB "Receiver", Charlene Koonce "clawback" past donations made to the WatchTower Cult???


Alleged Fraudsters Stole Millions of Dollars from Consumers Seeking Health Insurance

October 2014 FTC Press Release (edited)

A group of marketers who allegedly tricked consumers into buying phony health insurance are permanently banned from selling healthcare-related products under a settlement with the Federal Trade Commission.

The settlement resolves claims that the defendants, who operated as the bogus trade association Independent Association of Businesses (IAB), preyed on consumers who sought health insurance. Consumers submitted their contact information to websites purportedly offering quotes from health insurance companies. They paid an initial fee ranging from $50 to several hundred dollars, and a monthly fee ranging from $40 to $1,000 purportedly for comprehensive health insurance coverage, but instead they were enrolled in an IAB membership. The program included purported discounts on services such as identify-theft protection, travel, and roadside assistance, as well as certain purported healthcare related benefits, including limited discounts and reimbursements on visits to certain doctors or hospitals, subject to broad exclusions and limitations.

In 2012, the FTC charged the IAB defendants and those who ran IAB’s largest telemarketing operation with violating the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). A federal court halted the operation until the case was resolved. A settlement order announced in 2013 bans the telemarketing defendants from selling healthcare-related products.

The settlement order announced today permanently bans the remaining defendants from selling healthcare-related products. They are IAB Marketing Associates LP, Independent Association of Businesses, HealthCorp International Inc., JW Marketing Designs LLC, International Marketing Agencies LP, International Marketing Management LLC, Wood LLC, James C. Wood, his sons, James J. Wood and Michael J. Wood, and his brother, Gary D. Wood. It also resolves the FTC’s claims against relief defendant Tressa K. Wood, James C. Wood’s wife, who benefitted from but did not participate in the alleged scheme.

The order also prohibits the defendants from violating the TSR, misrepresenting material facts about any goods or services, and selling or otherwise benefitting from consumers’ personal information.

The order imposes a $125 million judgment that will be partially suspended once the defendants surrender assets valued at almost $2 million, including $502,000 in IRA funds and personal property that includes five luxury cars (a Lamborghini, two Mercedes, a Porsche, and an MG Roadster). A separate settlement order requires relief defendant Avis. K. Wood to pay $60,000 from an IRA account that was funded by the defendants’ allegedly unlawful activities.


In this Augusr 2008 BIZJOURNALS magazine article, the operator of United States Benefits LLC, named Timothy Thomas, is quoted as telling that reporter that the Nashville, Tennessee based UNITED STATES BENEFITS LLC was the "marketing arm" of Arlington, Texas based INTERNATIONAL ASSOCIATION OF BENEFITS.

FEDERAL TRADE COMMISSION v. UNITED STATES BENEFITS ET AL was a 2010-11 Tennessee federal civil prosecution which basicly put this reported IAB affilliated Nashville, Tennessee insurance marketing company out-of-business, and fined the business $15,738,941.00.

UNITED STATES v. TIMOTHY THOMAS and KENNAN DOZIER THOMAS is an ongoing 2014-16 Tennessee federal prosecution of the owners/operators of UNITED STATES BENEFITS. Timothy Thomas, age 52, was indicted on charges of wire fraud, mail fraud, money laundering, and criminal contempt. Tim Thomas’ wife, Kennan Dozier Thomas, age 56, faces charges of money laundering and criminal contempt.  The contempt charges are based on the Thomas’ transfer of funds, in violation of an order freezing assets of USB. Outcome unknown.


TEXAS v. INTERNATIONAL ASSOCIATION OF BENEFITS FKA INTERNATIONAL ASSOCIATION OF BUSINESSES was a 2005-06 Texas court case in which the Attorney General of Texas alleged that IAB had engaged in "false, deceptive and misleading acts and practices", in violation of the Texas Deceptive Trade Practices - Consumer Protection Act. IAB was also alleged to have violated the Texas Telemarketing Disclosure and Privacy Act by failing to include proper notice provisions in its solicitations. The Texas OAG and IAB reached a settlement in which IAB was permanently enjoined from numerous specified violations of Texas law, and ordered to pay $150,000.00 in fines/costs.


ILLINOIS v. INTERNATIONAL ASSOCIATION OF BENEFITS ET AL was a 2005-06 Illinois court case in which the Attorney General of Illinois alleged fraud, misleading sales practices, etc. The Illinois OAG and IAB reached a settlement in which IAB was permanently enjoined from numerous specified violations of Illinois law, and ordered to pay $100,000.00 in fines/costs.


IN RE INTERNATIONAL ASSOCIATION OF BENEFITS ET AL was a 2010-11 Montana administrative action which resulted in a conditionally suspended $5000.00 fine, but IAB was ordered to pay $3500.00 costs based on alleged violations which occurred in 2008.


IN RE INTERNATIONAL ASSOCIATION OF BENEFITS was a 2007 Florida administrative action which resulted in $9000.00 fine/costs imposed on IAB after the Florida Office of Insurance Regulation discovered numerous violations of the Florida Insurance Code after a review in 2006. Note that "Jeffrey Malone" is still indicated as "President" in November 2007. Also note that signature of IAB's Executive Vice-President has been "hidden" on this public copy.


WASHINGTON v. INTERNATIONAL ASSOCIATION OF BENEFITS, AKA INDEPENDENT ASSOCIATION OF BUSINESSES, FKA INTERNATIONAL ASSOCIATION OF BUSINESSES, INTERNATIONAL MARKETING AGENCY, INTERNATIONAL MARKETING AGENCIES INC OF DELAWARE, JEFFREY MALONE, ET AL was a CEASE and DESIST ORDER issued in February 2012 by the State of Washington Insurance Commissioner. Jeffrey Malone and Andrea Brown Malone were named as two of the multiple Respondents in this Order given their positions as CORPORATE DIRECTORs. Outcome unknown.


CALIFORNIA v. INTERNATIONAL ASSOCIATION OF BENEFITS wss a 2005 CEASE and DESIST ORDER issued by the Department of Managed Health Care, which had determined that per California law that the unlicensed IAB was marketing Health Insurance products to California consumers. Outcome unknown.


Both the states of Indiana (2009) and Alaska (2005 and 2007) each issued Cease and Desist Orders against IAB which were eventually rescinded. In the case of Indiana, IAB was fined $500.00 and issued a license as a "Discount Medical Program Organization". It is possible that California also eventually licensed IAB as a "DMPO", but Washington did not. It is possible that some states chose to license "DMPOs", while other states would not do such.

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Visitors to our website should note that we have a two-page DISABILITY section where we post well-documented "disability" cases. However, over the years, we have received numerous "tips" about "exemplary" Jehovah's Witnesses who allegedly are "working the system", while going about their regular proselytizing activities as Jehovah's Witness Elders, Ministerial Servants, Pioneers, etc. We have not posted many, if any, of these "tips" because we do not post undocumented or unverifiable scenarios. However, a reliable source recently sent us a "tip" about one of their JW relatives which has re-stirred in us an interest in this category. Thus, we are TEMPORARILY placing a notice in this higher-traffic HONESTY-DISHONESTY section that we welcome from readers reports about Jehovah's Witnesses who are "working" the Social Security Disability, Worker's Compensation, Bankruptcy, etc. systems. Such cases can be submitted via our CONTACT PAGE. Please divide lengthy submissions into multiple emails. We will NOT contact you for further information, since we have no time to carry on fruitless exchanges of email, so be as thorough and specific as possible. Additionally, if you know about such abuse that amounts to illegal activity, you really should report the matter to the affected government agency.


One Tipster reports that a JW Family with children moved into their rural, isolated congregation during the 1990s from a large urban congregation over 1000 miles away. The New JW Family painted themselves as "needgreaters" who were looking to "serve where the need was great". The new JW Family actually followed through with their plans for both the two parents and their teenaged children to regular and auxiliary "pioneer".

Local JWs were concerned by the NG Family's plan to support themselves with a carpet-cleaning business -- given the fact that that rural congregation had already lost several previous needgreater families who had attempted to support themselves with carpet-cleaning businesses which were failures due to the sparsely populated area where only a small number of homes had carpeting. As the local JWs had expected, during NG Family's first year in the community, the children of the NG Family occasionally let it slip that their JW Father was barely making enough money from his carpet-cleaning business to pay for the advertising in the local newspaper. Occasionally, local JWs would inquire of the NG Parents whether they needed help, but the NG Parents would always say that "Jehovah was providing", although there were rumors that the NG Family was accepting "help" from certain local JWs whom the NG Family required to be very discreet with their financial assistance. NG Family made it through their first year, then a second year, and then a third year. Although living spartanly, the NG Family seemed to be prospering.

Then, while off work the day before Thanksgiving, Tipster worked in field service with the NG Family. Concerned with NG Family's finances, Tipster had offered the use of his own van and gasoline, but NG Father related that he preferred to drive his own van. At the end of field service, Tipster offered to buy lunch for NG Family at a local restaurant, but instead, NG Father invited Tipster back to their home for lunch, which Tipster hesitantly accepted due to believing that NG Family was barely making ends meet. Once at the home of NG Family, Tipster was shocked to see a better television and stereo system than the ones that he owned. The NG home was well decorated, and during a trip to the bathroom, Tipster observed a fully stocked large pantry that would make a restaurant envious. The NG home's furnishings simply did not match the NG's whoopty automobiles nor the inexpensive clothing the NG Family wore out in public.

About a year later, Tipster learned from one of his non-JW relatives that a local manufacturing plant was attempting to hire a parttime janitor with carpet-cleaning experience to work from 10:00 PM until 2:00 AM five nights per week at a rate which matched the fulltime weekly wage at other smaller local employers. Tipster immediately thought of NG Father, whose work experience was perfect for the job -- with the job's 20 nighttime hours per week being perfect for the auxiliary pioneering father. Tipster immediately telephoned NG Father with what Tipster believed to be a "blessing from Jehovah". Well, NG Father did not consider the prospective employment to be a blessing. Tipster relates that NG Father gave him a chewing out that came as close to being a cursing out that Tipster ever received from a non-relative JW Elder. NG father let Tipster know that he was doing just fine supporting his family with his carpet-cleaning business, and that working from 10:00 PM until 2:00 AM five nights per week would destroy his spiritual life with his wife and children.

Tipster relates that he was shocked at NG Father's reasoning, and decided that he needed to do some further inquiring into NG Family's financial situation. It took Tipster several months, but Tipster finally discovered that NG Family was receiving WELFARE and FOOD STAMPS, and was being regularly financially "helped" by an old widow in the congregation, who was herself living at poverty level. Tipster also eventually learned that this was nothing new for NG Family -- that this was how NG Family "existed" when they lived in the previous large city. Tipster was also eventually told by the aforementioned "poor widow" that one of the children had let it slip one day that BOTH NG Father and NG Mother, whom had never mentioned nor ever shown the slightest bit of physical or mental impairment, were receiving MONTHLY DISABILITY CHECKS of unknown variety.


Another Tipster reports a very similar story about a new JW Family who moved into their congregation in the early 2000s from a congregation over 500 miles away. The new JW Family painted themselves as "needgreaters" who had become familiar with their new congregation through non-JW relatives who lived in a nearby county. The "needgreater" badge seemed to fit given that the JW Husband/Father was an Elder in the family's previous congregation. However, once arriving in the new congregation, only the JW Wife and the older children ever occasionally Auxiliary Pioneered from time to time, while JW Father declined being re-appointed as an "elder", so that he could busy himself in a new carpet cleaning business which quickly prospered. NewJW advertised in the local newspaper "Deep Cash Discounts", and that is exactly what he gave when providing responding prospects with his advertised "Free Estimates". If paid upfront, in "cash", NewJW would clean a homeowner's carpet for far less than any competitor, and word spread quickly through the local community, and NewJW stayed very busy. Notably, NewJW informed local JWs that he preferred not to work for "businesses", but preferred to work only for homeowners, and NewJW had even related that he would make excuses so as not to have to respond to businessowners who wanted an estimate. Local JWs were not that stupid. They knew that NewJW was working "under the table" for a reason. For several years, it simply was assumed that New JW was cheating the IRS on taxes -- a crime which few Jehovah's Witnesses consider to be a "real" crime, and a situation which many JWs actually envy. However, about three years after New JW Family had moved into the area, their youngest daughter spent the night with another JW Family whom had a young daughter. Sometime during that sleep-over, New JW Family's youngest daughter inadvertantly and naively made mention of the fact that her JW Father received a MONTHLY DISABILITY check. Young daughter further revealed that her JW Father had been hurt at his previous construction job, and that their family had received "a lot of money" before they moved to the new congregation.



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The subject of "Jehovah's Witnesses" and "Bankrupcty" is a topic which has gnawed at us for years, because an entire website could be constructed on this topic alone if not for the fact that public legal records do not lend themselves well to the coverage of Bankruptcy specifics. Additionally, a "book" could be written on the teachings and culture of the WatchTower Cult which lead to its Jehovah's Witness members being forced to reach out to Bankruptcy laws to save their arses from years, decades, or even a lifetime of poor financial decisions. Instead, for the time being, we will simply recount a few of the recent bankruptcy-related "cases" which have come to our attention -- and continues to "grate" on our arse.

During the past 6-8 months, we have received varying amounts of information on at least three "cases" where elderly Jehovah's Witnesses have filed for bankruptcy during the final few months of their lives in order to protect the family home as an asset of their estate which could be "left" as an "inheritance" to their surviving Jehovah's Witness Children, or "others". Since the facts of all three cases are essentially duplicates of each other, we will relate only the case for which we received the most specific details.


This case involves a prominent JW Family whose patriarch was a prominent JW Elder for decades, including holding the position of "City Overseer" for a number of years, and whose matriarch claimed to be "one of the 144,000", or "one of the anointed remnant", in a large million+ metropolitan area where only 2-3 other elderly JWs were recognized as such. Although this super-JW couple had devoted their lives to working for the WatchTower Cult, in their "spare time", they had managed to rear and educate two otherwise wholesome JW Daughters.

City Overseer died in the latter 2000s, while he was in his late 70s -- thus, the vast majority of his end-of-life medical expenses would have been covered by medicare/medicaid. (For those readers who -- like ourselves -- once swallowed the alarming sales spiel of the Medicare Supplement industry regarding "deductibles' -- we had an elderly relative without Medicare Supplement insurance, who died after weeks in the hospital, with the bills amounting to nearly six figures. Most providers did not even bill for the Medicare deductible. Out of nearly $100,000.00 in medical and doctor bills, the Executor paid out only about $1500.00 for Medicare deductibles.) Five years later, Anointed Wife repeated her husband's end-of-life scenario. During the early part of Anointed Mother's last 12 months of life, Anointed Mother spent a couple weeks in the hospital. On discharge, instead of her two local JW Daughters taking their quickly fading Anointed Mother into one of their own homes, the two JW Daughters listened to the advice of local JW Elders with legal connections. JW Daughters took Mother back to the Mother's home, and took turns caring for her there, in order to maintain Anointed Mother's "residence" in the home. At the same time, JW Daughters "assisted" Anointed Mother to file Bankruptcy to protect Anointed Mother's Home (their "inheritance") from years and decades of accumulated debts which "Armageddon" thus far had failed to wipeout for their JW Parents. Bankruptcy was final only 3-4 months before Anointed Mother's death. JW Daughters inherited the $150,000.00 family home free and clear. Unprotected creditors and taxpayers became financially responsible for decades of poor financial decisions made by a JW Family whom had been influenced -- if not "taught" such -- by the WatchTower Cult.

Apparently, this Jehovah's Witness end-of-life "bankruptcy" strategy has been and is being taught across the United States via the WatchTower "grapevine". Notably, this end-of-life "bankruptcy" strategy also protects the homes of elderly JWs whom have named the WatchTower Society and/or their local Kingdom hall as beneficiaries in their WILLS. For those Readers who are unaware or have forgotten -- the WatchTower Cult once taught that it was okay for Jehovah's Witnesses to "Rape/Pilpher the Egyptians" (based on the Israelites' theft from the Egyptians the night that they left Egypt" ). This apparently recent phenomenon seems like a new, more recent manifestation of that old WatchTower attitude and teaching.


We recently received another report of an elderly female Jehovah's Witness Landlord, who had filed bankruptcy only a few years previously, and who continued to have "credit" problems, who recently was charged with ID Theft in regard to possessing and using an unauthorized credit card. Reportedly, a former tenant in that JW Landlord's home discovered that years after having moved from the JW Landlord's home that there was an active-but-delinquent credit card in their name being used from that former rental address. That JW Landlord is rumored to have used their "standing in the community", along with pleading "unintentional mistake", and paying off the delinquent balance, to keep from being fully prosecuted.


UNBELIEVABLE!!! After posting the above, before even signing out of this session, we ran a background check on a JW Elder who had caught our attention for another section, and he had filed bankruptcy in 2004, and had had a home foreclosure in 2010.



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SECURITIES AND EXCHANGE COMMISSION v. FREDERICK ALAN VOIGHT, DAYSTAR FUNDING LP, F.A. VOIGHT & ASSOCIATES LP, RHINE PARTNERS LP, TOPSIDE PARTNERS LP, INTERCORE INC., and INTERCORE RESEARCH CANADA INC. is an ongoing 2015 Texas federal civil court case which names as Defendant the patriarch of a Greater Houston, Texas area family of Jehovah's Witnesses with connections to Texas, California, New Jersey, Nebraska, and Florida. JW family members not named in this lawsuit can be found named in numerous Texas corporate filings of other Voight family connected businesses located at the same Texas addresses but not named in this court case.

Frederick Alan Voight, age 58, of Richmond, Texas (not to be confused with son, Alan Frederick Voight), is alleged by the SEC with operating a $114.1 million Ponzi scheme dating back to 2004 that defrauded more than 300 investors in multiple different offerings of promissory notes issued by F.A. Voight & Associates LP and DayStar Funding LP. Approximately $22 million remains unaccounted for to date.

Frederick Alan Voight’s most recent offering, which promised investors returns as high as 30-42% per year, raised $13.8 million that Fred A. Voight said would be loaned to a startup company named InterCore Inc. to fund its deployment of a "Driver Alertness Detection System", or DADS. Frederick Voight allegedly knew the claims were false because he served on InterCore’s Board of Directors and was aware that the Delray Beach, Florida public company was financially troubled and had no means to pay back the loans. The SEC alleges that Fred Voight used funds from the DADS investors to make Ponzi payments to earlier investors with his companies, or funneled them to InterCore through two of his other partnerships, Rhine Partners LP and Topside Partners LP. The complaint alleges that InterCore sent the funds to its Montreal-based subsidiary, InterCore Research Canada, Inc., where the funds seemingly disappeared.  By routing funds through Rhine and Topside, Fred Voight is alleged to have garnered benefits – including fees and InterCore stock warrants – that he never disclosed to the DADS investors.

The SEC’s complaint charges Frederick Voight and DayStar with securities fraud, and with conducting unregistered securities offerings. Fred A. Voight and Daystar, without admitting or denying the allegations, agreed to settle the SEC’s complaint by consenting to permanent injunctions against committing these violations in the future. They also agreed to asset freezes and other emergency relief, and to pay civil penalties and return allegedly ill-gotten gains with interest in amounts to be set later by the court. Frederick A. Voight also consented to being barred from serving as a public company officer or director and to be barred permanently from participating in the offer, purchase, or sale of any security except for his own personal account.

The SEC named F.A. Voight & Associates, Rhine, Topside, InterCore, and InterCore Research Canada as relief defendants for the purpose of recovering any allegedly ill-gotten gains they received from the fraud. F.A. Voight & Associates, Rhine, and Topside have agreed to asset freezes and other emergency relief and to return allegedly ill-gotten gains in amounts to be set by the court. The SEC will litigate its claims against relief defendants InterCore and InterCore Research Canada.

Additional Frederick A. Voight Biography: From June 1983 until August 1994, Fred Voight owned and operated a chain of retail lumber and home centers in New Jersey and Pennsylvania named Mohawk Lumber Home Centers. From May 1992 until October 1994, Fred Voight served as Chairman of the Board and Chief Executive Officer of Skylands Park Management, Inc., and led the company through two public offerings (IPO courtesy of infamous A.S. Goldmen & Co.) From December 2004 until March 2006, Fred Voight served as a director for Cell Robotics International, Inc., a publicly traded company that was a developer and manufacturer of bio-photonic technologies for clinical and medical research. Fred Voight also served as a director for the DesChutes Medical Products Co., an Oregon company specializing in the design, manufacture, and marketing of innovative products for the medical self-help market, from September 2006 until January 2009, when the company was sold. Fred Voight served as a director of EPV Solar, Inc., a Robbinsville, NJ manufacturing company, from June 1999 through 2010 and as Chairman of the Board from October 2006 until July 2009. Fred Voight also served from November 2010 until January 2013 as the Managing Director, Investments for InterCore Energy Inc. (aka Heartland Bridge Capital, Inc.), a publicly traded clean energy technology company.  Frederick A. Voight has been the Chief Investment Officer of Tristar Wellness Solutions Inc. since February 2013.


IN RE ANTONIO PATRICK, JAG DISTRIBUTION, and SECTION 8 CREATIONS, INC. was a July 2014 State of Missouri "FINAL ORDER TO CEASE AND DESIST AND ORDER AWARDING RESTITUTION AND COSTS, AND IMPOSING CIVIL PENALTIES", in which Antonio Patrick and two of his corporate entities were ordered to cease and desist violating a number of Missouri "securities" laws, and all were ordered to pay a total of $45,430.00 in civil penalties and costs.

Antonio Oono Patrick, age 42, is a one-time WATCHTOWER BETHELITE who once worked as a Computer Analyst at WatchTower World HQ. Antonio O. Patrick's main area of operation is Los Angeles, California, but as seen in this ORDER, there was difficulty locating Antonio Patrick there and in other cities in California. The named corporate entities, which are owned solely by Antonio Patrick, were corporations which Antonio Patrick also has used for other business activities, such as Section 8 Creations which had been used for the purchasing and leasing of vehicles and auto parts.

According to this ORDER, despite the fact that Antonio Patrick was not registered as a securities broker or agent in the state of Missouri, Antonio Patrick offered to sell securities, which themselves were not registered as securities, in the state of Missouri. Patrick stated to prospects that the securities had "no risk", and would return 35%-50%. In October 2009, an investor living in the state of Missouri signed an investment contract with Antonio Patrick and wired $150,000.00 to him. In December 2009, that investor received the proverbial "two" payments from Patrick -- their FIRST and their LAST -- of $1200.00. Although not found, we are assuming that the aforementioned investor is "attempting" to file their own separate civil lawsuit against Antonio Patrick for return of their "investment".

Antonio Patrick, aka Angelo Patrick, also has numerous other business operations not involved in this ORDER, including but not limited to, J&P REALTY TRUST, J&P REALTY CORPORATION, MORELL SYSTEMS, and PATCO MORTUARY TRANSPORTATION SERVICE. Antonio Patrick also may have business connections in Wyoming and Nevada.


NEED INFO FROM READERS ON LONG ISLAND!!! An anonymous tipster is alleging the possibility that the wealthy Family of "Educational Consultants" mentioned in this LINKED ONLINE BOOK CHAPTER is a prominent Family of Jehovah's Witnesses living in the Greater New York City area, plus that the former President and Owner of the now closed multi-state HENDRIKS INSTITUTE mentioned in this book, whom has been described by one newspaper reporter essentially as a "political consultant" -- ROBERT JOHN HENDRIKS a/k/a ROBERT J. HENDRIKS -- is the same ROBERT HENDRIKS who is currently one of the GREATER NYC SPOKESPERSONS for the WATCHTOWER SOCIETY. Please deny or confirm with additional details. (Please note at the bottom of the linked BOOK webpage that the book's author discloses that his book's character "Dave Hendriks" is a composite character used to portray his various interactions with one or more Hendriks family members. That author alleges that he was never paid $2000.00 for his services as a teacher at the the main Long Island location of HENDRIKS INSTITUTE, and that other teachers also went unpaid or were paid with NSF checks.)


JEWISH JOURNAL article dated October 28, 2004, reported on Austrian Jehovah's Witness Leopold Engleitner's then recent Holocaust-related sermon delivered at the Los Angeles Museum of Tolerance. The WatchTower Society's Media Department apparently arranged for the attendance of a Jewish Journal reporter, plus arranged for the Jewish Journal reporter to interview the WatchTower Society's Los Angeles-area spokesperson, David Goldfarb, whom the reporter described in his article as "a Jehovah's Witness church leader in Beverly Hills who grew up Jewish and became a Jehovah's Witness at age 15."

WatchTower Society spokesperson David Goldfarb is also a member of the Board Of Directors at the Los Angeles Museum of the Holocaust. An online David Goldfarb resume indicates that Goldfarb has participated in significant fund-raising for the Los Angeles Museum of the Holocaust.

In June 2008, David Goldfarb spoke at a UCLA School of Medicine seminar promoting the WatchTower Society's prohibition against Jehovah's Witnesses receiving blood transfusions. David Goldfarb's title was listed at the UCLA seminar as, "Chairman, Los Angeles Hospital Liaison Committee for Jehovah's Witnesses". David Goldfarb has been a member of the Los Angeles County Hospital Liaison Committee for Jehovah's Witnesses since 1992.

A LOS ANGELES TIMES article dated February 2, 2012, reported on a Los Angeles area doctor who had been treating Jehovah's Witnesses with leukemia without the normal use of blood transfusions. Quoted at the beginning of the article, and possibly the person who arranged this media event, was David Goldfarb, whom the reporter described as "chairman of the Los Angeles-area Hospital Liaison Committee for the Jehovah's Witnesses."

According to its 1990 corporation filing, David Goldfarb was one of the two founding members of the Virginia Avenue Congregation of Jehovah's Witnesses in Santa Monica, California.


Some of multi-millionaire Jehovah's Witness businessman David Goldfarb's business activities are also "highly interesting". Since at least the early 1990s, and apparently continuing up until just recently, David Goldfarb has been a business partner/associate with another Los Angeles-area Jehovah's Witness named Bill Parodi -- not just in one business, but in multiple business ventures. Some of Bill Parodi's business-related legal interactions are summarized below.

FEDERAL TRADE COMMISSION v. KENNETH TAVES ET AL is a 1999-2000 California federal civil lawsuit in which the F.T.C. prosecuted an INTERNET PORNOGRAPHER for fraudulently charging the credit/debit cards of thousands of persons who had never ever visited one of his 14 PORN websites. At the time, this prosecution was lauded as both the LARGEST CASE EVER involving Pornography, and the LARGEST CASE EVER involving credit card related fraud. The credit/debit card processing service company which acted as the intermediary between Taves, Taves' bank accounts, and the credit card companies, was a Los Angeles area company called AUTOMATED TRANSACTION SERVICES, INC., which just so happened to be owned by -- guess who -- David Goldfarb and Bill Parodi. David Goldfarb testified for the F.T.C. at the TAVES trial. Interestingly, at trial, Taves asserted that ATS and its two owners were co-conspirators in the credit card "thefts". David Goldfarb not only denied conspiring with Taves, but he denied ever suspecting that Taves was committing credit card fraud.

David Goldfarb testified that Automated Transaction Services processed credit/debit card and electronic check payments for Taves' multiple companies and multiple websites from January 1995 until Taves' operations were shut down in December 1998. David Goldfarb testified that he was personally in charge of handling the Taves account at ATS. Interestingly, in calendar year 1997, ATS deposited just under $5 MILLION into Taves' bank accounts. However, starting in 1998, those ATS deposits suddenly jumped to $4 MILLION and more PER MONTH (after Taves began to charge the cards of thousands of persons who had never visited his websites.) ATS earned upwards of $2.7 MILLION from Taves just in 1998, which Goldfarb testified was around 15% of ATS's total income in 1998.

Goldfarb also testified that Bill Parodi and he established a joint bank account in the Caymen Islands, at Taves' request. That joint account was used to receive payments from ATS owed to Taves, which were then transferred into Taves' own Caymen Island account. That joint account then received payments back from Taves' account which were owing to ATS for services performed for Taves' companies.

David Goldfarb also disclosed that Bill Parodi and he owned part of WORLD BANKCARD ASSOCIATES, INC. (the court record is unclear whether Goldfarb and Parodi EACH owned 15% of World Bankcard, or whether they owned 15% combined), which was another "fee-based support service" company which arranged for Taves and other similarly situated "merchants" who were having problems obtaining bank "merchant accounts" to obtain such from certain cooperating Banks willing to do business with them. (At that time, few Banks wanted to be known as doing business with pornographers. World Bankcard "helped" Taves open a "merchant account" at three different banks, and thereafter received a commission from every deposit made into Taves' accounts. See Newspaper article linked below.)

David Goldfarb also disclosed that ATS actually did business with around 200 INTERNET PORNOGRAPHY COMPANIES, each of which had multiple websites (actually, Goldfarb ballparked the figure at "a couple hundred'). How many internet pornography companies even existed in the Los Angeles area back in the 1990s before every home had a computer? Does anyone else suspect that ATS may have been the California PORN INDUSTRY's "go-to" company for credit card processing? Although Goldfarb and Parodi had only founded ATS sometime in 1994, Taves began doing business with ATS when he started his operations in January 1995. How many Americans had home computers in 1994, and how many retailers and other "merchants" were doing online business in 1994, and needed the services of a company like ATS? ATS referred to itself as a "pioneer" in the credit card service industry for a reason -- it was.

Despite David Goldfarb's "hmmmm" testimony, the USDC chose to ignore any possibility that Goldfarb, Parodi, and ATS had conspired with Taves. In fact, in its "opinion", the USDC repeatedly had to re-assert the court's continuing belief in Goldfarb's honesty and credibility. (Had the USDC somehow learned that David Goldfarb was a prominent Jehovah's Witness Leader?)

Goldfarb and Parodi later sold ATS in June 1999 -- probably after it became obvious that their business relationship with the PORN INDUSTRY was going to become public knowledge during the TAVES trial proceedings. ATS was "acquired" by Innuity, Inc. David Goldfarb was elected to Innuity's Board of Directors, and he continued to oversee operations at the former ATS, which underwent a name change, until July 2001. It is not known if Bill Parodi continued working at the former ATS after the acquistion. Innuity sold off the former ATS in 2004, and it is still doing business under a different name.


Click here to read Ken Taves' sworn affidavit given during a later but related 2002 private civil lawsuit, in which Taves alleges that he had no technology background nor skills, and that he depended on the advice and assistance of a network of companies which provided fee-based support services to the PORN industry, including Automated Transaction Services, to handle all of the technological aspects of his operations.

Click "Take The Money and Run (For the Border)" to read author Lewis Perdue's analysis of the TAVES trial in his 2002 book: EROTICA BIZ: How Sex Shaped The Internet.

Click "Porn In The USA" to read a November 2000 newspaper article about internet Pornographers and the financial services industry which supported them, including additional information on TAVES and ATS.

We also believe that David Goldfarb and Bill Parodi employed a number of their fellow JW Elders, Ministerial Servants, and other JWs, including wives, at Automated Transaction Services, who would have known the identity of ATS's clientele. Andy Varble, aka Andrew Varble, believed to be associated with the Westlake Village Congregation of Jehovah's Witnesses, was ATS's "Business Development Manager". We have identified at least two other managers who probably were JWs.

Click this AMICUS CURIE BRIEF link to see who the members of the U.S. Congress and U.S. Senate sought out in 1998 to provide them with expert information regarding the intricacies of credit card processing in the Internet Pornography industry. Yes, one of the experts interviewed was a Manager employed at ATS named Scott Lockwood. Google that name along with the keyterms "jehovah's" and "software".

SECURITIES AND EXCHANGE COMMISSION v. WILLIAM E. PARODI, SR. was a 1988-89 federal administrative action in which William E. Parodi, aka William Parodi, aka Bill Parodi, then age 47, of Woodland Hills, California, consented to be PERMANENTLY BARRED from association with any broker, dealer, investment company, investment advisor, or municipal securities dealer. Bill Parodi's brother, Frederick W. Parodi, then age 35, of Canoga Park, California, also consented to be PERMANENTLY BARRED from the securities industry by the S.E.C. This action resulted from the S.E.C.'s finding that both brothers, while employed as registered representatives at two California brokerage firms, had engaged in excessive and unsuitable trading (churning) of their multiple California Municipality customers' accounts, and had misrepresented and omitted material facts to their multiple California Municipality customers. The Parodi Brothers worked as brokers for First Investment Securities, of Little Rock, Arkansas in 1987, and for E.F. Hutton in 1986. Allegedly, the illegal account "churning" had generated at least $1,750,000.00 in commissions.
More specifically, the S.E.C. alleged that the Parodi Brothers had invested the money of seven California Municipalities, plus three local government agencies, into high-risk bonds, and then "churned" the accounts so as to yield excessive commissions for both the Parodis and the two brokerage firms. Additionally, the customers of the Parodi Brothers alleged that they lost a total of $8,279,000.00 while doing business with them. As examples, the City of Imperial Beach, California invested amounts averaging $195,000.00 over a recent four-month period. However, that account was turned over 20 times through various investments, costing the city $104,000.00 in commissions. The city lost its initial investment, plus $10,120.00. Rancho Palos Verdes invested amounts averaging $1,120,000.00 between May 1986 and March 1987. Allegedly, Bill Parodi, generated $190,000.00 in commissions from the account, which turned over 46 times. The city lost $68,140.00.

THREE VALLEYS MUNICIPAL WATER DISTRICT ET AL v. WILLIAM E. PARODI, SR. ET AL was a 1988-97 California federal civil court case, in which the aformentioned California Municipalities and governmental entities attempted to recover some of the $8,279,000.00 which they allegedly lost while doing business with the Parodi Brothers and their employers. The lawsuit also requested $16 million in punitive damages. Some entities managed to settle their cases. Other plaintiffs litigated their claims only to have the federal courts send their claims to arbitration -- the awards which some plaintiffs believed to be too small.


According to a May 15, 1984 NEW YORK TIMES article, the above scenario was NOT the first time that William E. Parodi had been investigated by the S.E.C. In December 1981, Bill Parodi was co-founder of an Irvine, California brokerage firm called National Money Market Services, Inc. By only early 1984, the New York State Attorney General, Robert Abrams, began investigating National Money Market Services after nearly 40 New York school districts and counties were persuaded by NMMS to invest $20 million with a small government securities dealer recommended by NMMS that filed for bankruptcy in April 1984.
The NYTIMES alleged that Bill Parodi and his partner, Philip L. Kratzer, had no prior securities trading experience before founding National Money Market Services, Inc. in December 1981. However, in their very first year in business, Philip Kratzer and William Parodi placed approximately $1 BILLION in funds; earning $2.1 million in commissions. By 1983, placements had soared to $5.6 BILLION; bringing in $6.8 million in commissions.
Outcome of federal and state investigations are unknown. However, as indicated above, by latter 1986, Bill Parodi and his brother were working as brokers at competing national firms. Phil Kratzer continued to operate National Money Market Services, and he and NMMS were also sued in the latter 1980s by one or more California Municipalities which had lost significant monies investing with NMMS.


UNITED STATES v. RODNEY LEE HATFIELD and UNITED STATES v. LLOYD MYERS. In December 2009, brothers-in-law Rodney L. Hatfield, age 60, of Watsonville, California, and Lloyd Myers, age 52, of Rio Linda, California, were indicted on charges of "mail fraud" and "conspiracy to commit mail fraud" in connection with a company they founded and managed called Landmark Trading Co. LLC, of Salinas, California. Hatfield and Myers organized Landmark for the purpose of offering an "ownership interest" in Landmark, and using the proceeds generated from investors to engage in trading on the foreign currency exchange markets through the FOREX CURRENCY exchange. Most, if not all, of the targeted "investors" were fellow members of the Watsonville California Congregation of Jehovah's Witnesses. Between 2003 and 2007, Hatfield and Myers reportedly collected about $5,000.000.00 from investors with promises to invest in foreign currency exchange markets. Hatfield and Myers allegedly repeatedly told investors they were making money, when in fact they were suffering signicant losses. While the investments were losing money, Hatfield and Myers allegedly diverted hundreds of thousands of dollars to real estate ventures they owned. They also allegedly diverted money from the fund to buy automobiles and pay personal expenses. "Some" of those JW Investors allegedly lost a total of between $1,000,000.00 and $2,500,000.00, while other JW Investors received all or part of their money back. In 2013, Rodney Hatfield pleaded "guilty" to the conspiracy charge only, and was sentenced to 30 months in prison. Disposition of the case against Lloyd Myers is unknown. Myers claimed that he knew nothing about the frauds, which he alleged were committed by Hatfield.


ELIZABETH F. MYERS v. RIO LINDA/ELVERTA COMMUNITY WATER DISTRICT was a 2010-12 federal civil lawsuit which was settled in November 2012 when Water District paid $30,000.00 to Elizabeth Myers -- wife of Lloyd Myers. In 2010, a former general manager of the Rio Linda-Elverta Community Water District terminated Elizabeth Myers as the District's accountant after the District's auditor reported that Elizabeth Myers had used a district credit card for personal expenses, including trips to South Africa and Hawaii. Myers thereafter sued the District in federal court for allegedly violating her right to "procedural due process", and her right to "privacy", after information about the "alleged embezzlement" was leaked to the public and the press before she had full opportunity to defend herself, and before all internal employment procedures had been completed. Reportedly, at some point, Myers reimbursed the District for the alleged personal charges.


UNITED STATES v. WARD was a 2007-8 California federal criminal court case. In August 2007, a former Jehovah's Witness Elder, named Joel Nathan Ward, 50, pleaded guilty to 5 counts of wire fraud, 2 counts of mail fraud, and 2 counts of engaging in a monetary transactions in property derived from specified unlawful activity, a form of money laundering. In April 2008, Joel N. Ward was sentenced to 9 years in prison, and to serve 3 years of supervised release after the completion of his prison sentence. Ward must serve 85% of his sentence, or more than 7 1/2 years, before he is eligible for release. Joel Ward, who claimed that he had no money left, was also ordered to pay $11,275,501.53 in restitution.

Joel Ward, a well known commentator and seminar speaker on Forex trading, ran an elaborate Forex trading scam through two of his companies, the Joel Nathan Ward Forex Investment Group, of Turlock, California, and Learn:Forex, Inc., a Forex trading educational center based in Sacramento, California. Ward also allegedly defrauded investors in a Hurricane Katrina scheme, which involved a real estate investment project in Mississippi, in which Ward allegedly diverted investors' funds to his own use. Joel Ward admitted that he stole the investors’ funds, using the money for his own compensation and expenses, and to purchase the Learn:Forex School in Sacramento. He also admitted that, in order to conceal the theft, he made “Ponzi” payments using other investors’ funds, and that he provided his investors with altered account statements. In a handwritten personal journal, which was recovered during the execution of a search warrant, Ward described himself as a "financial serial killer" and "just another scumbag con artist bilking old people out of their retirement money."

After various federal agencies started investigating Ward in mid 2006, Joel Ward confessed the ongoing fraud to his JW Wife around November 2006, and Ward thereafter sent a series of emails to his victims admitting the theft, asking for their forgiveness, and purposing that if they would allow him to continue doing business legitimately that he could soon recoup the lost funds, and repay them all their money.

Many of Joel Nathan Ward's victims were JW family members and JW friends who publically defended Ward to the authorities and media, including retired newspaper editor Edgar Spitzke, who was an Elder at the Monticello, Kentucky Kingdom Hall of Jehovah's Witnesses, in Wayne County, Kentucky, when he proclaimed:

"I find it hard to believe that he would purposely start a business that had no other purpose but to defraud, especially his closest friends and relatives," said [Ed] Spitzke, who said Ward is his wife's nephew. -- MODESTO BEE, 3/30/2008.

However, several of Ward's victims were in no mood for forgiveness. Ward's JW wife even eventually divorced him. She first showed Ward's aforementioned personal journal to her father, Oren Collett, who was Ward's partner, and Collett reportedly informed the federal authorities of Ward's confessions. Ward was eventually arrested by the F.B.I. in April 2007.

Even after his arrest and guilty plea, Joel Ward continued to plead with victims, prosecutors, and the federal judge to allow him to continue doing business legitimately, so that he could soon recoup the lost funds, and repay his victims all their money. Joel Ward's former mother-in-law, Barbara Collett, who, along with her husband, Oren Collett, lost nearly $100,000.00, told the Wall Street Journal that over half of Ward's victims wanted to forgive him and supported Ward's restitution plan (actually 44 of 79 victims who expressed their opinion). Joel Ward even told the Modesto Bee of his plan:

"Several friends who know my trading ability are willing to put up seed money so I can trade, and my commissions would go into a recovery fund. My former father-in-law and business partner, Oren Collett, would manage the fund and several victims have volunteered to sit on a board of trustees and act as auditors. I would have no direct access to the money."

Gene Myatt, purportedly a Jehovah's Witness businessman in Modesto, California, who lost $50,000.00, was quoted in that same 2007 Wall Street Journal article as supporting Ward's restitution plan: "If Joel goes to prison, no investor will be cared for."  Russ Sharpe, who owns a marketing company in Oakdale, California, and who lost $480,000.00, stated, "I've watched him trade. He can exceed by vast measures what he has lost. ... I have no doubt that Mr. Ward has the capability of making whole this loss." Rohn Ritzema of Elk Grove, California , who lost $320,000.00, and Michael Mello of Sacramento, California, who lost $754,000.00, both urged the judge to give Joel Ward another chance.

However, David Rothell, an insurance broker in Bryan, Texas, who lost $15,000.00, told the WSJ that Ward needed to pay for his crimes. According to the Modesto Bee, Nancy Jones, an auditor from Dallas, Texas, who lost $50,000.00, stated, "If Joel had just come to my house and beat me up, I'd be a whole lot better off today."

Interestingly, the Commodity Futures Trading Association had a finance professor analyse Ward's business records, and he reported that of the $15,000,000.00 that Ward took in from investors, Ward only ever invested $2,000,000.00, and Ward lost $1,840,000.00 of that. In fact, of the two trading accounts in which no employee of Ward also traded, there was a profit of only about $1000.00. Yet, 44 of 79 of Joel Ward's victims still think that Ward is a financial genius. One can't help but wonder how many of those 44 people also believe that they are members of "the only true religion".


S.E.C. v. RONALD J. NADEL, JOSPEH M. MALONE, and RENAISSANCE ASSET FUND. In July 2006, a prominent African-American Jehovah's Witnesses Millionaire, with "Jehovah's Witness Connections" throughout both his home state of California and the entire United States, named Ronald Jay Nadel, of San Clemente, California, was charged by the Securities and Exchange Commission (SEC) with various financial civil illegalities which were alleged to have been committed between 1999 and 2004 while operating Renaissance Asset Fund, Inc.

Notably, a 1981 media article labels Ron Nadel as being musician Larry Graham's "personal manager", and quotes Nadel denying rumors that Larry Graham (now PRINCE's JW mentor) had been then recently "disfellowshipped". Nadel also updated the reporter regarding singer George Benson's status as a JW -- relating that Benson had been recently baptized. Ron Nadel's "connections" were especially tight amongst the "African-American" and the "entertainment industry" segments of the Jehovah's Witnesses communities in both California and Las Vegas. Indications are that Nadel's connections included certain "Circuit Overseers" and "District Overseers", including some who may have been conveniently transferred out of the area just in the nick of time -- including to work at WatchTower Society headquarters.

Included in the S.E.C.complaint was a second Jehovah's Witness named Joseph Michael Malone, of Newport Coast, California, who was Renaissance Asset Fund's "Investor Relations Representative". The SEC alleged that Ronald Nadel and Joseph Malone defrauded $16,000.000.00 from nearly 200 investors, many of whom were elderly, and most of whom were Nadel's and Malone's fellow Jehovah's Witnesses. Joseph Malone allegedly was Ron Nadel's "second-in-command", and knew nearly everything illegal that Nadel was doing behind the scenes. However, the S.E.C. could prove only that Joe Malone received a significant salary of $230,000.00 from Nadel for his efforts. Before working for Ron Nadel at Renaissance Asset Fund, Joseph Malone worked for fellow Jehovah's Witness, Kenneth Baum, at Senior Resources Asset Fund (see below).

The S.E.C.'s complaint alleged that from March 1999 through April 2004, the defendants raised at least $16 million by selling promissory notes to investors. The defendants raised funds for multiple purported projects, including a general fund, an outlet mall, an international currency exchange, and a Swiss bank. Some of the purported projects did not exist, and others were unsuccessful. The defendants misrepresented to investors that their investments would earn returns ranging from 10% to 25% in as little as four months. The defendants also sent false account statements to investors setting forth the fictitious profits their investments had purportedly earned. Based on the returns shown in these fraudulent account statements, many investors reinvested their principal and purported profits in other Renaissance projects. The defendants operated Renaissance’s programs as a Ponzi scheme, paying earlier investors with funds raised from later investors. Nadel also used investor funds to pay for personal expenses, including country club memberships, car leases, and retail purchases. The majority of investors in Renaissance never received the interest or return of their principal the defendants had promised. The complaint charged Renaissance, Nadel, and Malone with fraud and with violations of the broker-dealer registration requirements. The complaint sought permanent injunctions prohibiting future violations of the securities laws, an accounting, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.
In January 2008, the SEC issued an Order which found that on Sept. 4, 2007, a final judgment was entered by consent against Nadel and Malone permanently enjoining the pair from future violations of federal securites laws. The Order barred Nadel from association with any broker or dealer with the right to reapply for association after five years to the appropriate self-regulatory organization, and Malone from association with any broker or dealer with the right to reapply for association after three years to the appropriate self-regulatory organization. Nadel and Malone consented to the issuance of the Order without admitting or denying any of the findings in the Order. [Those SEC attorneys are tough cookies!!!]
INTERESTINGLY, neither Nadel nor Malone did any jail or prison time, because they apparently were never criminally prosecuted!!! Why? No public info relating to "disgorgement", or restitution, can be located. Why? Readers should understand that while Nadel and Malone were the "principals", and the only ones prosecuted, there were DOZENs of area Jehovah's Witness Elders and their wives, Ministerial Servants and their wives, and other regular JWs who worked for years at Renaissance Asset Fund as salespersons, clerical staff, etc. Only about $1,000,000.00 of the $16,000,000.00 obtained from investors was ever actually invested. Either some of these JWs had to know or suspect what was occurring, or these JWs were the most ignorant group of people living in and around Orange County. There are easily googled discussion forum postings which NAME several JW Elders who worked for Ron Nadel. Anonymous posters allege that it was these Elders, Presiding Overseers, and even Circuit Overseers, and their relatives and family members, who were the only ones who received any "Ponzi Scheme" repayments of interest and principal, so as to serve as "testimonials" for the non-elite JWs being scammed later on in the scheme. Interestingly, try to find any attempts after this prosecution for recovery of the monies paid to these witting/unwitting co-conspirators on behalf of the non-elite victims.


The investment scam which first brought the SEC's scrutiny on Renaissance Asset Fund was a failed outlet mall development project located in Dacono, Colorado. Renaissance Asset Fund allegedly bilked at least $7,500,000.00 from 126 JW investors between 1999 and 2002. The California business entity filing for FIRST DACONO DEVELOPMENT, LLC lists two Members for this Limited Liability Company. One Member is Ron Nadel. The second Member, who is also listed as the Registered Agent, is Stephen K. Swanson. In addition to being a Ronald Nadel associate and employee, Stephen Swanson is alleged during this time period to have been a Presiding Overseer at one of the Santa Monica, California Congregations of Jehovah's Witnesses. 


A second investment scam operated by Ronald Nadel and Renaissance Asset Fund was International Currency Exchange, Inc., which was a California corporation formed in January 2000. Little is known about its business operations, if any. However, the corporate filing lists a prominent Las Vegas Jehovah's Witness Elder, named Carmine J. Baccari, as both its "Registered Agent", and its "President". Carmine Baccari's relatives included "Bethelites" then but no longer working at WatchTower Society HQ. In the latter 1990s, Carmine Baccari was also the Principal or President of two now defunct Las Vegas corporations called Quest Funding, Inc., and Benchmark Financial Group, Inc.


In 2002-03, Joseph Michael Malone was also the Principal of another financial services operation located in San Juan Capistrano called "Ap Canopy Funds LLC". The "Manager" of Ap Canopy Funds LLC was officially listed as "Alan Long", who was an Elder at the San Juan Capistrano Kingdom Hall of Jehovah's Witnesses.


S.E.C. v. KENNETH E. BAUM and SENIOR RESOURCES ASSET FUND.  In July 2006, the SEC also settled administrative cease-and-desist proceedings against Kenneth E. Baum, of Hemet, California, and his Senior Resources Asset Fund, LLC, based on his business relationship with Ron Nadel and Renaissance Asset Fund. With his "consent", the S.E.C. ordered Senior Resources Asset Fund and Kenneth Baum to cease and desist from selling unregistered securities, and ordered Kenneth Baum,  to cease and desist from acting as an unregistered broker-dealer.

The S.E.C. alleged that between February 2001 and October 2002, that Senior Resources Asset Fund issued unregistered securities in the form of promissory notes. These notes purported to bear interest at rates ranging from 10% to 15% per year, and to mature two years from the date of issuance. Ken Baum, the manager and director of Senior Resources Asset Fund, offered Senior Resources notes and other unregistered securities to at least 28 investors and received transaction-based compensation in connection with his sales. As a result of this sale of unregistered securities, Senior Resources Asset Fund and Kenneth Baum willfully violated multiple S.E.C. regulations.

The Order directed Senior Resources Asset Fund and Ken Baum to cease and desist from committing or causing violations or future violations of the Securities Act, and ordered Baum to cease and desist from committing or causing violations or future violations of the Exchange Act. It ordered disgorgement and prejudgment interest against Senior Resources Asset Fund and Kenneth Baum. The Order further barred Kenneth Baum from association with any broker or dealer for a period of three years.


IN RE KELLY R. KONZELMAN and PACIFIC LENDING FUND LLC, KENNETH BAUM and SENIOR RESOURCES ASSET FUND LLC, RONALD NADEL and RENAISSANCE ASSET FUND INC, AND RONALD NADEL and ASSET LENDERS GROUP LLC was a State of California administrative action which preceded the above federal S.E.C. action. In August 2005, the California Department of Corporations issued a "DESIST AND REFRAIN ORDER" against these four JEHOVAH'S WITNESSES MINISTERS and their various co-conspiring business entities.

This ORDER identifies Kelly Robert Konzelman as not only the principal of Pacific Lending Fund, but also as the Vice-President of Renaissance Asset Fund. This ORDER requires that these four JWs and their companies to STOP selling unregistered securities, and for those individuals who were not even licensed security brokers, to STOP selling securities. They variously were also ordered to STOP making untrue statements of material facts, and STOP failing to make statements of necessary material facts. Most, if not all, of the illegalities of which the State of California complained related to the illegalities described above in the eventual federal complaint.



The National Credit Union Administration conducted an investigation of the respondents' sales practices and alleged the following violations of federal law:

1. Sales to federally insured Credit Unions of Certificates of Deposit with unlawful maturity periods.

2. Orally misrepresenting to federally insured Credit Unions the maturity periods of Certificates of Deposit.

3. Engaging in unsafe and unsound sales practice when a salesman named Frank Chavez misrepresented on multiple occasions that his name was "Steve Miller".

4. Engaging in unsafe and unsound sales practice by attempting to place nonmember deposits federally insured Credit Unions.

The now defunct SAN CLEMENTE FINANCIAL GROUP was a San Clemente, California based Jehovah's Witnesses owned-operated investment firm in which many if not most lower level employees were also Jehovah's Witnesses. In addition to the individuals named above, the Order also mentions salespersons Bruce Carter and Russ Fowler (Russell Fowler) as having allegedly engaged in unlawful sales activities.


IN THE MATTER OF COOKE B. CHRISTOPHER, IN THE MATTER OF THOMAS H. SUNDERLAND, and IN THE MATTER OF SAN CLEMENTE FINANCIAL GROUP were three separate December 2000 "STIPULATION AND CONSENT TO ISSUANCE OF ORDER OF PROHIBITION" obtained by the NATIONAL CREDIT UNION ADMINISTRATION BOARD and agreed to by the respondents. The three Orders of Prohibition prohibited all respondents from further participation in any manner in the affairs of any federally insured financial institution, including but not limited to selling or placing investments with federally insured credit unions or providing investment advice to them.


TENNESSEE SECURITIES DIVISION v. SAN CLEMENTE SECURITIES, INC. was a 1998 Tennessee state administrative action against another SAN CLEMENTE FINANCIAL GROUP affiliate -- this one operating out of New York City, in 1996. The alleged "offending" salespersons were Peter Liounis, Oleg Feldman (aka Alex Feldman), and Shaun Douglas Neal. Tennessee alleged that the three named salespersons sold shares in Sports Vision Technology, Inc., which were not registered with the state, nor exempt from registration. It was further alleged that the three salespersons made false statements of material fact, and omitted necessary material facts, regarding the financial status of SVT, regarding potential risks associated with investment in SVT, and listing of the stock with NASDAQ. Cooke B. Christopher and SAN CLEMENTE SECURITIES, INC. consented to a $10,000.00 fine, three years probation, and cooperative monitoring of the firm's compliance with Tennesse law.


ARKANSAS SECURITIES DEPT v. SAN CLEMENTE SECURITIES, INC., COOKE B. CHRISTOPHER, THOMAS H. SUNDERLAND, DAVID ALAN MULLENAX, and ROBERT MABREY MULLENAX DBA MULLENAX FINANCIAL GROUP was a 1999 Arkansas state administrative action. This state Suspension of Registration Order mentions that the Christopher Family Trust owned 50% of SAN CLEMENTE FINANCIAL GROUP, while Tom Sunderland owned the other 50% share. David Mullenax and his brother Robert Mullenax were the local Little Rock, Arkansas agents of SAN CLEMENTE FINANCIAL GROUP, who did business under the name MULLENAX FINANCIAL GROUP.

Here is a summary of just some of the interesting allegations and findings made by the State of Arkansas in this Suspension of Registration Order which ordered the named parties to Cease and Desist doing business in the State of Arkansas:

Regulators in seven states and the National Credit Union Administration have initiated proceedings and entered orders against San Clemente Securities. Each of those proceedings involves allegations of violations occurring with the offer and sale of securities represented to be Bank CDs. Allegations include sales by unregistered representatives and sales of unregistered securities. Regulators have initiated seven disciplinary proceedings against Cooke Baille Christopher. Actions include allegations of sales of unregistered securities and sales by unregistered agents. Regulators have initiated six disciplinary proceedings against Thomas H. Sunderland. Sunderland has been named individually for sales of securities in Florida as an unregistered agent and in other jurisdictions for failure to supervise.

The named parties sold Certificates of Deposit in Arkansas which did not exist at the listed bank. Annual percentage yield figure customers were shown and offered did not accurately reflect the "APY" the actual issuing bank was offering. With every offer, the various employees of San Clemente Securities and Mullenax Financial Group inflated the APY shown to the customer.

Unregistered employees of San Clemente Securities effected transactions in Arkansas, including Christopher and Sunderland. In February and March 1999, Eddie Leon Dubar, an Arkansas resident, offered and sold CDs to Arkansas residents. At the time the transactions were effected, Eddie Dubar was not registered to sell securities in Arkansas. Mark Zerebny, of Hemet, California, also sold a CD to an Arkansas resident despite not being a registered agent in Arkansas. Other unknown California employees of San Clemente Securities sold CDs to Arkansas residents.

San Clemente Securities, Cooke Christopher, Tom Sunderland, Dave Mullenax, and Bob Mullenax made misrepresentations or omissions of material facts to and otherwise engaged in a course of business which operated as a fraud or deceit to residents of Arkansas. Such violations constitute grounds to suspend or revoke the registrations of San Clemente Securities, Dave Mullenax, and Bob Mullenax, and fine San Clemente Securities, Cooke Christopher, Dave Mullenax, and Bob Mullenax.

David Mullenax and Robert Mullenax misrepresented products they offered and sold, guaranteed customers they could not incur losses, and made untruthful representations that securities sold could subsequently be traded. San Clemente Securities, Dave Mullenax, and Bob Mullenax represented to customers they would not be charged commissions or fees when in fact commissions and fees were charged. San Clemente Securities, Dave Mullenax, and Bob Mullenax used advertising and sales material in such a fashion as to be deceptive and misleading.


HERITAGE SAVINGS BANK v. SAN CLEMENTE SECURITIES, INC., COOKE B. CHRISTOPHER, THOMAS H. SUNDERLAND, ET AL was a 2000 Texas federal court case in which Heritage Savings Bank, in Terrell, Texas, alleged that the named defendents had committed securities fraud and bank fraud resulting in a loss of $1,500,00.00 to the bank.

It was alleged that from 1994 to 2000, Cooke Baille Christopher and Thomas H. Sunderland schemed to defraud Heritage by inducing them to enter into investment contracts to purchase Certificates of Deposit and other securities issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association which would be held and managed for the investors by another corporation owned and operated by Christopher and Sunderland called United Custodial Corporation. Christopher and Sunderland created and used SCS and UCC specifically to carry on this fraudulent scheme. The defendants also represented to Heritage that if it purchased these CDs and FHLMC and FNMA securities through SCS, that SCS would place a corresponding amount of below-market-rate CDs on deposit with Heritage. As part of their scheme, the defendants falsely and fraudulently failed to advise Heritage that SCS and UCC would subtract undisclosed fees and commissions of 20% - 50% of the amount invested; that only part of its investment in any CD was federally insured; that the investment confirmations and statements they sent to Heritage were false and intentionally misleading; that money paid to Heritage when it liquidated an investment prior to maturity was actually money invested by Heritage in another investment or by other persons; that Heritage had no ownership in any investment that would be purchased in UCC’s name and, that in 1997, SCS, along with defendants Cooke B. Christopher and Thomas H. Sutherland, had been banned by the National Credit Union Association from doing business with federally insured credit unions because of their deceptive practices. Outcome unknow.



In February 2000, the National Association of Securities Dealers fined SAN CLEMENTE SECURITIES and Cooke B. Christopher $15,000.00 for failing to maintain sufficient net capital, and failing to report numerous customer complaints to the NASD.

In June 2000, SAN CLEMENTE SECURITIES filed to withdraw its membership from the National Association of Securities Dealers.

In July 2000, the NASD charged SAN CLEMENTE SECURITIES and its two owners and officers, Cooke Christopher and Thomas Sunderland, with fraudulent conduct in connection with the promotion and sale of the CDs. Salespersons Jeffrey Schwertfeger, Jeffrey Katz, and Gennaro (Jerry) Chiappetta were charged with fraudulent misrepresentations and omissions. Salespersons Douglas Eichenberger, Justin Irving, Randy Rondberg, and Jeffrey Vann were charged with making misrepresentations and/or failing to disclose information to investors in connection with CDs.


IN THE MATTER OF COOKE BAILLE CHRISTOPHER, THOMAS HENRI SUNDERLAND, DOUGLAS GRANT EICHENBERGER, and RANDY TRAGER RONDBERG was a December 2000 disciplinary action by the S.E.C., which was consented to by the name parties. San Clemente Securities was expelled from the N.A.S.D. Cooke Christopher was barred from association with any NASD member in any capacity. Tom Sunderland was censured, fined $40,000.00, and suspended from association with any NASD member in any capacity for two years. Doug Eichenberger was barred from association with any NASD member in any capacity, and required to disgorge $13,950.00 in commissions. Randy T. Rondberg was censured and fined $10,000.00, which included disgorgement of $481.63.


Cooke B. Christopher and Thomas H. Sutherland CLOSED up operations in April 2000 as federal regulators began close scrutiny of their operations. In June 2000, the F.D.I.C. sent a formal Alert Letter to banks across the United States, which asked bank to pay close attention to any transactions they have done with the firm. The F.D.I.C. suspected that the nation's banks may have lost TENS OF MILLIONS OF DOLLARS after SAN CLEMENTE SECURITIES took large hidden fees from the investments of its bank customers. Bank and securities authorities in nine states have taken administrative action against SAN CLEMENTE SECURITIES, the FDIC letter said.

In January 2001, SAN CLEMENTE SECURITIES filed Chapter 7 bankruptcy claiming Liabilities of 3.3 million and Assets of only $470,000.00.


UNITED STATES v. COOKE B. CHRISTOPHER, THOMAS H. SUNDERLAND, NILS GRIFFIN, and JEFFREY A. VANN was a 2003-07 Texas federal case. The two officers and two sales representative of San Clemente Securities, Inc. were accused in a June 2003 federal indictment of a total of 81 counts, including one count each of "Continuing Financial Crimes Enterprise", Conspiracy, "False Statement To Financial Institutions", Securities Fraud, and Investment Advisor Fraud, plus multiple counts of both Mail Fraud and Wire Fraud, committed against multiple Texas individuals, financial institutions, and even one Lutheran Church. Notably, this indictment alleged that the defendants had grossed $5,000,000.00 during just one 24 month period.

In March 2004, Nils Griffin pleaded guilty to "Obstructing Examination of a Financial Institution" and "Aiding and Abetting". Nils Griifin was fined $10,000.00, assessed $100.00, and was sentenced to 5 years probation.

Jeffrey A. Vann also pleaded guilty to one count in 2004/5, and received four years probation, 400 hours of community service, and was assessed $100.00.

In June 2007, Cooke B. Christopher and Thomas H. Sunderland pleaded guilty to 57 counts and were each sentenced to 60 months in prison, with two years supervised supervision thereafter.


Also see:








Sherel Joseph Pizzolato, father, and Matthew Brian Pizzolato, son, age 26, of Tickfaw, Louisiana, are reputed to be members of an extended multi-generation family of JEHOVAH'S WITNESSES living in Louisiana. Sara [Crouch] Pizzolato, originally from Oregon and West Virginia, is wife of Sherel "Sonny" Pizzolato and mother of Matthew Pizzolato.

On November 20, 2009,  Matthew B. Pizzolato, age 26, was arrested for allegedly running a $19.5 million Ponzi scheme. A federal grand jury in New Orleans returned a 64-count indictment against Matt Pizzolato for allegedly stealing investments from 160 elderly clients from the New Orleans and Baton Rouge areas. The indictment included 52 counts of mail fraud, two counts of wire fraud, seven counts of money laundering, one count of securities fraud, and one count each of witness tampering and obstruction of justice.

The 26 year-old Pizzolato was allegedly the head of 20 different companies in Baton Rouge, Covington, Hammond, and Lake Charles. Young Pizzolato allegedly had preyed on elderly clients since at least 2005 -- promising them steep returns on investments in certificates of deposit, U.S. Treasury bills, and other guaranteed and insured investments. Instead, Matt Pizzolato allegedly used his clients' money to bankroll a luxurious lifestyle -- purchasing or leasing a BMW, Mercedes Benz, Range Rover and Corvette. Matt Pizzolato also built a $600,000.00+ home in Ponchatoula, and allegedly bought a $35,000 engagement ring for his fiancee. Pizzolato family members and their friends also allegedly benefited -- allegedly receiving millions of dollars in payments.

Of the $19.5 million he collected, Matthew Pizzolato distributed about $2.8 million back to his clients in the form of "lulling payments, " or supposed returns on their investments, in order to quell any suspicions that he was a fraud. Federal authorities learned of Pizzolato's business activities after receiving a tip from the Louisiana Office of Financial Institutions (LOFI), which oversees state-chartered banks and financial firms. LOFI issued a cease-and-desist order against Sherel J. Pizzolato, Matthew B. Pizzolato, and OTHERS in January of 2008, ordering them to stop selling securities through Gulf Region Guaranty Inc., Gulf States Guaranty LLC, Allegiance Financial LLC, and Cornerstone Wealth Management LLC. Other business entities alleged to be affiliated with Pizzolato include:

Acadian Guaranty Group, LLC; Annuity Presets, LLC; Annuity Recovery Services, LLC; Anova Marketing Systems, LLC; Anova Marketing Systems, LLC; Anytime Fitness of Sulphur, LLC; Global Assured Financial, Inc.; Green Pelican Group, Inc.; Gulf South Guaranty, Inc.; GRG Holdings, LLC; GRG I, LLC; GRG II, LLC; Matt P, LLC; National Insurance Advisors, LLC; Pelican Guaranty Group, Inc.; and Spectrum Lending Group, LLC.

In addition to the federal criminal court cases, four civil court cases, including one class-action lawsuit, were filed earlier in 2009 by investors seeking return of their investments. The defendants in the ongoing class-action lawsuit include alleged "principals" of the various business entities named above:

Matthew B. Pizzolato, Sherel J. Pizzolato Jr., and David Compton -- all of Tickfaw; Jeremy Jallans, of Laplace; Shana Morgan, of Denham Springs; Perry Dixon, of St. Amant; William Guidry and Sharon Dixon, both of Lacombe; Jeremy Rowe, of Gonzales; Jeremy Galaviz and Heath Huguet, both of Covington; and John Compton, of Ponchatoula.

In July 2010, then 26 year-old Matthew Brian Pizzolato "took the fall", and pleaded guilty to 21 federal counts, including mail fraud, wire fraud, money laundering, securities fraud, and witness tampering involving his operation of what federal prosecutors said was the "Largest Ponzi Scheme in Louisiana's History". Matthew Pizzolato was sentenced to the statutory maximum of 30 years in federal prison, and was ordered to pay over $15,000,000.00 in restitution to the 165 victims he defrauded. Subsequent appeals to the USCA and even SCOTUS have failed or been denied.

Although he had only a GED and an eighth-grade education, Matthew Pizzolato told clients that he was one of the top 10 financial planners in the country; possessed special training in investing; was a certified estate planner; and had graduated from law school.

Status of other civil and criminal cases against other family members and business associates is unknown.


UNITED STATES v. ABRACZINSKAS was a 2001-2 Florida federal criminal court decision. In February 2002, William Abraczinskas was convicted on one count of money laundering and on one count of conspiracy to commit money laundering, and was sentenced to 121 months in federal prison. William Joseph Abraczinskas, 38, of Warren, Oregon, was a prominent Jehovah's Witness Millionaire International Banker-Investor-Entrepeneur, who over the years has done business, both domestic and international, in a number of different states and foreign countries; often with a number of different business associates who are variously characterized as "investors", "partners", "principals", "employees", "owners", "corporate officers", etc. Some of these associates have been identified as being Jehovah's Witnesses, while some others also were probably JWs or family members of JWs. Some of Bill Abraczinskas' business associates were members of his own family, and some were members of  William Abraczinskas' wife, Kerrylee Harrington Abraczinskas' family. A "Leon Tucker Harrington" a/k/a "Tucker Leon Harrington" has been named by various other websites in some of Bill J. Abraczinkas's business dealings, as has a person, who may be Canadian, named "Richard A. Downes".

Sometime during the 1990s, William J. Abraczinskas had formed a business in Oregon called Globallink LLC, which conducted various domestic and international banking and other business operations under various subsidiaries using forms of the Globallink name. Abraczinskas' also conducted a wide variety of other business dealings through multiple other corporations, some of which are discussed below. At some point prior to 2001, the business operations of Globallink LLC and William J. Abraczinskas had caught the attention of the Federal Bureau of Investigation, and the F.B.I. set up a "sting" in Miami, Florida, to see what Abraczinskas would do when presented with the opportunity to "launder" drug proceeds for a Mexican Drug Cartel. Abraczinskas agreed to use offshore bank accounts belonging to Globallink LLC to launder the cartel's drug money for a mere 10% fee.


UNITED STATES v. ABRACZINSKAS. Limited details. Apparently, Bill Abraczinskas was sent to a minimum security federal "resort" for white-collar criminals, because sometime thereafter, he and another prisoner escaped. Both were eventually caught and prosecuted. Abraczinskas was sentenced to have an additional 15 months to be tacked onto his original sentence. However, Abraczinskas won this appeal to have the sentenced reviewed, which seems to make little sense given that the sentencing range was 12 to 18 months.


HAMBLETON BROTHERS LUMBER COMPANY v. BALKIN ENTERPRISES, INC. ET AL is a 2005 USCA decision, in which William Abraczinskas, his wife Kerrylee Harrington-Abraczinskas, and a corporation owned by Abraczinskas, called Financial Investments, Inc., are Defendants-Appellees. Here are some excerpts which refer to Abraczinskas and Financial Investments' role in the events that gave rise to this lawsuit:

"... [Jim] Ballinger was formerly the president of Balkin Enterprises, an Oregon corporation that had entered into a contract with Hambleton Brothers in 1994 giving Hambleton Brothers the right to all merchantable timber on a particular parcel of land for a period of just over three years. Before Hambleton Brothers could log the property, it was sold by one William Abraczinskas, an unauthorized individual purporting to be Balkin's agent, and then logged by another company. Hambleton Brothers, gaining nothing for the funds it had paid for the logging rights, brought suit ... ... ...

"On July 5, 1995, William Abraczinskas signed an unrecorded warranty deed transferring the Fruitland real estate from Balkin to Financial Investments, Inc. for ten dollars. Although Abraczinskas signed the deed purporting to be Balkin's vice president, he was not an employee, officer, or shareholder of Balkin. Ballinger and Kinsey knew Abraczinskas and had conducted business with him on a prior occasion, but neither authorized him to engage in any transaction on behalf of Balkin Enterprises. Financial Investments was Abraczinskas's own company. After several other rapid property transactions, Cascade Pacific Land & Timber bought a timber deed to the Fruitland real estate and logged the property. ... ... ...

"On July 7, 1995, Financial Investments deeded the Fruitland property to Sherry Miles for $129,000, for which Miles signed a promissory note. Financial Investments sold the note to Great Northwest Investments on July 12, 1995. Miles deeded the property to MGM Development, Inc. on February 16, 1996. On August 1, 1996, MGM Development granted a timber deed for all timber on the Fruitland property to Cascade Pacific Land & Timber for $32,000. ... ...

"... Ballinger was named as a defendant, along with Balkin Enterprises, Kinsey, Mr. and Mrs. Abraczinskas, Financial Investments, and Trevor Coxen, the president of Financial Investments.  On October 24, 2001, the district court granted Hambleton Brothers's motion for entry of default against Balkin and Financial Investments. ... ... ...

"... Instead, the loss to Balkin caused by Abraczinskas, with his complex and covert scheme of fraudulent land transfers, cannot be viewed as reasonably foreseeable by the incorporators of Balkin.


Interestingly, sometime prior to 2001, William Abraczinskas also had started a business in Montana called The Bank Exchange. Sometime around 2000-1, Bill Abraczinskas sold The Bank Exchange to fellow Jehovah's Witnesses, Darryl K. Willis and Dale A. Erickson (see next summary). The State of Montana apparently closed down The Bank Exchange sometime in early 2002 (prior to Willis' and Erickson's arrests for the Anderson Swindle), because it allegedly was being used in a scam involving the formation and operation of offshore credit unions . However, Willis and Erickson (nor Abraczinskas) were ever prosecuted for any TBE dealings, possibly because the State of Montana did not want to expend the additional resources given the pending Anderson Swindle prosecutions, and possibly because any investigation of TBE would possibly embarrass or even implicate various Montana politicians and elected officials.

What is extremely interesting is the fact that in April 2000, Globalink LLC signed an exclusive contract with the Montana Department of Commerce to develop its Foreign Capital Depository Program. Under that deal, Globalink LLC  was to conduct due diligence investigations of all persons or entities applying for a depository charter in Montana and make recommendations to the Commissioner of Banking and Financial institutions whether they should be approved. According to multiple webpages, the President of Globalink LLC was a man experienced in international banking operations, named Doug Hamilton, who lived in Whitefish, Montana. According to the October 2001 edition of the Northwest Financial Review, Doug Hamilton and Darryl K. Willis filed Montana's very first application for a depository charter -- First Depository of Montana Inc. -- using a San Diego, California attorney, according to another source.  However, the Montana Banking Board kept asking Darryl Willis for additional information, which he never provided. The application for First Depository of Montana Inc. eventually went unprocessed, despite the unusually strong public support for Willis and Hamilton from a certain Montana State Senator.

Click HERE, and HERE for additional readings on some of William Abraczinskas' other domestic and international business dealings. (Use FIND to search "Abraczinskas" on each webpage.)


"Largest Theft in Montana History"

MONTANA v. ERICKSON and MONTANA v. WILLIS.  Labeled "The Largest Theft in Montana's History", two Jehovah's Witness Elders, Dale A. Erickson, Sr., 54, of Missoula, Montana, and Darryl K. Willis, 64, of Helena, Montana were charged in June 2002, and convicted in 2003, of swindling $7,150,000.00 over a seven year period from a 100 year old woman, named Una Anderson, who had outlived her immediate family. (Interestingly, Dale Erickson was arrested on Thursday, June 27, 2002, not in Montana, but in Windsor, Connecticut.)  After pleading "no contest" in May 2003, Erickson and Willis were sentenced to 10 years in prison, with four years suspended, each for felony charges of conspiracy and theft; three years, with one suspended, for felony conspiracy, and two years, with one suspended, for securities fraud. That amounts to an aggregate 25 years in prison with 10 suspended. Additionally, during the probationary period of their sentence, they may not control anyone's finances. Erickson's and Willis' next parol hearings are believed to be March 2009. Erickson and Willis were also ordered to repay the victim $7,150,000.00 in restitution, and the Duo were given 90 days freedom before the start of their prison terms to recover and to repay some of the victim's money. However, Willis repaid only $402.94, while Erickson repaid nothing.
It is unclear exactly when Una Anderson converted to the Jehovah's Witnesses, but it apparently was not until Anderson was in her mid-90s that her fellow members of the local Deere Lodge, Montana Congregation of Jehovah's Witnesses developed a special interest in her. In 2001, one of Una Anderson's relative reported to Montana's Adult Protective Services that Anderson's house had been taken over by numerous Jehovah's Witnesses, who were there under the guise of "employees" providing various services, and that the victim was "a prisoner in her own house", "under 24 hour watch". Although only Erickson and Willis were ultimately convicted, records showed that so-called "loans" to several other Jehovah's Witnesses were part of the so-called "investments" for which the victim's money was used.
Interestingly, Dale Erickson and Darryl Willis (wife, Leigh Willis, daughter, Darra Norgaard, and son, Brandon Morgan Willis) were both JW Elders in other Montana Congregations of Jehovah's Witnesses, but had been introduced to Una Anderson by Anderson's fellow members in the Deere Lodge JW Congregation. After the convictions of Erickson and Willis, the pair of JW con-artists were publicly condemned to the news media by the local Deere Lodge JW Presiding Overseer, named Michael Murphy. Mike Murphy declared that Willis and Erickson's misuse of their positions of trust as JW Elders did not reflect on or involve members of the local Deere Lodge Congregation of Jehovah's Witnesses. Murphy further claimed that members of the Deere Lodge JW Congregation who cared for Anderson did so with the best of intentions, and that it was a lack of communication between Anderson's non-JW relatives and members of the Deere Lodge JW Congregation that led to the lack of trust of local JWs. Murphy also stated that the members of Una Anderson's local Deere Lodge JW Congregation were "distraught" over the loss of Anderson's companionship after the ripoff.
Sarah Kelson, who was Una Anderson's niece, and who resigned her job at an Arizona university so that she could live with and care for Anderson in Anderson's small, modest home after the local JWs were purged from Anderson's life, lambasted the claims of Michael Murphy. Kelson stated that the Deere Lodge JWs had literally ran Anderson's relatives off when they tried to visit Anderson. Kelson stated that, "There certainly was a lack of trust, but there was no lack of communication. [Mike Murphy] himself ordered me out of this house. He told me I should leave and the [JW Congregation] would take care of everything."  As for Murphy's claims that the local Deere Lodge JWs were "distraught", Kelson agreed with Murphy: "I'm sure they are distraught. They were all sucking money off of her. The piggy bank closed."
Una Anderson died in 2004, at the age of 103, after having lost practically everything that she and her deceased husband had worked hard for all their lives. Eric Anderson, deceased, had tended to their 6400-acre ranch, and Una Anderson had taught school, and later operated a country store and post office in Jens, Montana for 30 years. The couple's only son had died in the 1970s in a ranch accident. The Anderson's had  lived a frugal, spartan life, during which they saved most of their earnings.
In 1995, Dale Erickson approached Anderson and convinced her that if she did not put her assets into a trust fund that the government would get most of her estate when she died. Erickson offered to put her money into various trust funds and have Darryl Willis, a retired investment broker, manage her money. The prosecutors later characterized Erickson as having used "scare tactics", along with bad tax advice, and outright lies. However, since both Erickson and Willis were prominent Jehovah's Witness Elders, Anderson not only fell for the scheme, but she allowed the two JW Con-Men to continue to lie her for seven years as to what they were doing with her money and property. Anderson's ranch, which appraised in 1995 at $5,300,000.00, was sold by Willis and Erickson for only $4,000,000.00 in 1999, and the JW Duo unlawfully paid themselves a $381,000.00 commission, despite the fact that neither man held a real estate license. Afterwards, the two JW Elders never even told Anderson that her ranch had been sold.
Together with Anderson's other monies, Willis and Erickson loaned or "invested" such in businesses in which Willis and Erickson and other family members were the owners. Practically no payments nor dividends were ever repaid back into Anderson's trusts. Yet, Willis and Erickson paid themselves more than $1,000,000.00 in "management and consulting fees." Willis and Erickson, and their families, used Anderson's money to live "high on the hog" from 1995 until 2002. They lived in upscale homes, drove luxury vehicles, and took vacations all over the world.
Over $2,000,000.00 of Anderson's money also made its way into the hands of William J. Abraczinskas and/or Globallink LLC, and possibly even another company which Abraczinskas controlled. The details are unclear and uncertain, but this $2 million of Anderson's money was supposedly an investment related to the establishment of First Depository of Montana Inc., as discussed in the Abraczinskas summary above. Interestingly, in October 2000, Bill Abraczinskas "supposedly" turned over $1,750,000.00 in property and other assets to Willis, Erickson and other creditors to resolve some "supposed" business debt. More interesting is the fact that it was around that same time that the ownership of The Bank Exchange switched from Abraczinskas to Erickson and Willis.
One can't help but wonder who were the other Jehovah's Witnesses involved in this interstate web of deceit who managed to escape the justice system back in the early 2000s, and whether they became caught up in other scams listed on this webpage, or whether they are still at work at other scams, and have yet to be caught. Interestingly, about the time that it became obvious that Montana's Foreign Capital Depository Program might not work out as planned, unknown parties started developing the exact same program in the state of Colorado. A similar program was established in Colorado in late 2003, but interestingly, it had no clients as of 2005.
MASSACHUSETTS v. DeSILVA is an ongoing 2009 Massachusetts criminal court case. After being on the run for three months, Joseph C. DeSilva, age 52, of Tiverton, Rhode Island, was arrested in May 2009 and extradited to Massachusetts to face charges of stealing over $75,000.00 from his current employer, Core-Mark International Inc., of Massachusetts; for whom DeSilva worked as a traveling sales representative. DeSilva was purportedly a "Ministerial Servant" at his local Kingdom Hall of Jehovah's Witnesses.
MASSACHUSETTS v. DeSILVA. In 1996, Joseph DeSilva, then 38, was also prosecuted for stealing over $6,000.00,  from Union Tobacco Company, of Massachusetts; for whom DeSilva also worked as a traveling sales representative. Outcome of that prosecution is unknown.
UNITED STATES v. KENNETH GEORGE NEELY was a 2009-10 Missouri federal criminal court prosecution. In February 2010, a St. Louis, Missouri area JEHOVAH'S WITNESS STOCKBROKER, named Kenneth George Neely, age 56, was leniently permitted to plead guilty to a single charge of "mail fraud", and was sentenced to a mere 37 months in federal prison. Sweet deal considering that Kenneth Neely and his JW Family lived like "royalty" off the ill-gotten, tax-free money for nearly a decade. Ken Neely's employers even were more heavily penalized by state fines and penalties, plus being ordered to pay restitution to Neely's victims.
Investigations by the Missouri Secretary of State - Securities Division, the F.B.I., U.S.P.S. Postal Inspection Service, and the Financial Industry Regulatory Authority, all concluded that Kenneth G. Neely had been operating a classic "Ponzi Scheme" for several years. Neely worked for a number of prominent investment/ brokerage firms from 1987 until July 2009, when Neely, was permanently banned from the industry by the Financial Industry Regulatory Authority. Neely reportedly voluntarily consented to FINRA's ban. FINRA reported that Neely started operating a Ponzi Scheme back in 2001 while Neely was employed at UBS PaineWebber Inc. Neely was thereafter employed by Stifel, Nichaus & Co., Inc. from 2002 until 2007, and finally AXA Advisors LLC, who fired Neely when he reportedly confessed to FINRA, in 2009.
Around 2001, to support his "lavish personal lifestyle" -- including expensive Country Club dues and personal entertainment expenses sometimes exceeding $4,000.00 per month -- Neely reportedly "invented" the "St. Louis Investment Club" and the "St. Charles Real Estate Investment Trust". Neely portrayed membership in the investment club as "exclusive" to his relatives, to eight other Jehovah's Witnesses, and a dozen or so others. (Interestingly, an online posting alleges that Ken Neely was one of most prominent Jehovah's Witnesses in the greater Saint Louis area before his fall. That poster alleges that Neely associated with SL's WatchTower Elite, and even once hosted a "50th - Golden Anniversary Party" for St. Louis's Assembly Hall Overseer at Neely's exclusive Country Club.)
Kenneth Neely took approximately $618,000.00 from 25 or more victims in Missouri, California, Florida and Maryland.. Using the Ponzi Scheme method of paying back some money to earlier investors using money from recent investors, Neely gradually returned about half of the money to some of his earlier investors. To conceal the scheme from the various employers and federal and state authorities, and avoid bank transaction reporting requirements, Neely reportedly instructed investors to make multiple payments to his wife, Jackie Nelly, in small increments of $2,000.00 to $3,000.00. Neely’s mother’s home address was the address of the St. Louis Investment Club. Only Neely himself was ever prosecuted.
Media reports indicate that UBS PaineWebber Inc. paid out more than $120,000.00 to settle four arbitration cases brought by Neely's investors. Stifel, Nichaus & Co., Inc. reportedly settled a lawsuit filed against it by the Missouri Commissioner of Securities for failing to properly supervise Neely by agreeing to pay a total of $1,100,000.00, including restitution to Neely's investors. AXA was fined $100,000.00 for failing to heed numerous red flags shouting Neely's dishonesty.
COMMODITY FUTURES TRADING COMMISSION v. BRETT E. LOVETT was a 2005-07 California federal court decision. In July 2005, the United States Commodity Futures Trading Commission (CFTC) filed a complaint against a Jehovah's Witness, named Brett Edward Lovett, then age 35, of Ontario, California, and Lovett's company, Northwest Asset Fund, of Reseda, California.
Between October 2002 and August 2005, Brett Lovett fraudulently solicited at least $495,000.00 from at least four fellow Jehovah's Witnesses, purportedly to trade commodity futures, through false promises of high returns from a low-risk investment. In fact, Lovett actually deposited the funds into commodity trading, personal checking, and money market accounts maintained in his own name or in the name of his business, Northwest Asset Fund. Lovett misappropriated a portion of those funds for personal use and to re-pay some of his other customers. In furtherance of the fraud, Lovett created and sent fake reports and account statements to at least two of the customers. In November 2007, the federal court issued an order against Lovett ordering him to pay restitution of $181.000.00  to H. Douglas Kelly, and $135,000.00 to Bradford Pate. Lovett was also ordered to pay $320,000.00 in civil penalties. The order also prohibits Brett E. Lovett from engaging in any commodity-related activity, including soliciting funds and engaging in or directing the trading of any commodity futures or options accounts for other persons or entities. Brett Edward Lovett somehow managed to avoid doing prison time for this caper.
NEW JERSEY v. HENRY BAZARTE was a 2007 New Jersey criminal appellate court decision which involved a Jehovah's Witness Elder named Henry Bazarte. The New Jersey appellate court upheld Bazarte's June 2005 conviction on charges of theft by deception, falsifying records, misapplication of entrusted property, and failure to file New Jersey income tax returns for 1999, 2000, and 2001. Bail was revoked, and Bazarte's 8-year prison sentence was reinstated.
Henry Bazarte was a self-employed stock trader and financial consultant, who sometimes did business under the names "TR Associates" or "NRG Associates".  Bazarte scammed five or more fellow Jehovah's Witnesses out of approxiamtely $800,000.00 or more from 1999 through mid 2002. Instead of investing his client's money in agreed on conservative stocks and securities, Bazarte instead used his client's funds to "play the stock market" and pay his personal bills. Despite losing money, Bazarte kept the scam going for nearly four years by using new funds from new investors to pay occasion "profits" to one of the previous investors -- who served as a character reference for Bazarte. Bazarte paid Bruce Keller monthly "profits" of $5000 out of Keller's own $330,000.00, which he had given to Bazarte to invest. Some of the $391,000.00 which fellow Jehovah's Witness, Frank Schembre, gave to Bazarte to invest, was also used to make Keller's monthly payments, as was money from several smaller JW investors. Before his criminal conviction, Bazarte filed bankruptcy in 2002.
The linked decision also indicates a number of other crimes and/or alleged crimes committed by this Jehovah's Witness Elder. Bazarte also stole $4000.00 out of an account shared with another stockbroker. During the 2005 criminal trial, Bazarte was even brazen enough to submit into evidence a "doctored" financial statement. Henry Bazarte also had had many other "honesty problems" pre-dating these 1999-2002 crimes. Prior to 1999, there had been two or more civil lawsuits filed against Bazarte which alleged "misrepresentation" and other civil wrongs in his business operations. There were vague references in Bazarte's licensing records which seemed to indicate a history of wrongdoing dating back to the 1980s. This court even mentions an IRS lien on Bazarte's assets which pre-dated 1994, plus attempts to hide assets from the IRS.



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