JEHOVAH'S WITNESSES FINANCIAL HONESTY: PAGE 1 OF 2

For decades, the WatchTower Society has time and again portrayed Jehovah's Witnesses as "the most honest people on earth". Why? Because, Jehovah's Witnesses are taught that they are "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 Investment Salespersons are turning to crime. See all the cases below which have become public over the past decade just since the flood of information provided by the internet.

One can't help but wonder how many Jehovah's Witnesses and others were ripped off by fellow JWs over the decades because JWs would not report the crime to authorities in order not to harm the reputation of their own religion. I actually have personal experience of such occurring. Back in the early 1960s, a Jehovah's Witness whom I recall as being described as a WatchTower Society "Special Pioneer" moved through our area selling worthless stock investments to Jehovah's Witnesses, and to whomever local JWs would vouch for his honesty. My "very poor" father, grandfather, and one uncle all lost every single penny they gave to that Jehovah's Witness Conman to invest for them. However, the only ones to whom the crime 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.

Readers specifically interested in the topic of Jehovah's Witness Honesty and Integrity should be aware that related court cases are scattered throughout this website -- specifically the JW Business Owners, Managers, and Supervisors page. Readers should also refer to the 8 webpages of other types of thefts and other criminal court cases posted on the JW CHILDREN website linked from this website's Homepage.

*** Alec Sabo was reared as a JW in Carteret, New Jersey. In 1946, at age 26, Alec Sabo moved to Abilene, and married a JW named Evelyn Parker, in May 1947. During WW2, Hayden Covington "unsuccessfully" represented Sabo's brother-in-law in a "draft dodger" case in New Jersey. Given Sabo's age, and having moved long distance away from friends and family soon after WW2 ended, Sabo too may have done prison time during WW2, and may also have been represented by Hayden Covington.

WATCHEN NELSON and ANDREW DASTINOT v. JAMES KAMARA is an EXTREMELY INTERESTING 2009 Delaware state court case, because this court case was a financial dispute between a Jehovah's Witness Female and an African-American Jehovah's Witness PRESIDING OVERSEER. Interestingly, the JW Female wound up taking the Presiding Overseer to public court ONLY after following the WatchTower Society's general rule that Jehovah's Witnesses NOT take fellow JWs to public court, but rather first try to resolve the issue between themselves, and if that fails, to take the matter to the local JW Congregation. Not only did the JW Female follow those directives, but the JW Female even took the matter directly to the WatchTower Society -- evidently, unsuccessfully.

In summary, Watchen Nelson loaned James M. Kamara, owner of Smyrna Real Estate LLC, $60,000.00 in 2005, and $113,830.34 in 2007. James M. Kamara did not make all of the contracted interest payments, nor did he repay the principal. After Nelson was forced to sue Kamara in public court, Kamara countersued Nelson for defamation. Nelson also accused Kamara of assaulting her at some point. Viewers can click on the PDF link to read the case in its entirety. Here are some interesting excerpts from the decision of the Delaware Superior Court (out of published order) :

In the mid 1990s, when visiting local relatives, a Jehovah's Witness living out-of-state would occasionally attend the Sunday meetings at the Mount Vernon, Kentucky Kingdom Hall of Jehovah's Witnesses, in Rockcastle County, Kentucky. After one of such Sunday meetings, knowing about out-of-state JW's past generosity to that Congregation, one of the local Elderettes approached out-of-state JW and began "hinting" at the spartan Kingdom Hall's need for two new chairs for the stage (that's "altar" for non-JWs). Later that week, after returning home, out-of-state JW mailed a check for $1000.00 to the Mount Vernon Kentucky Congregation of Jehovah's Witnesses, along with a note designating that the donation be used to purchase new stage chairs.

About 3-4 months later, when out-of-state JW next visited relatives in Rockcastle County, Kentucky, out-of-state JW looked forward to seeing the Congregation's new stage chairs at the Sunday meetings. However, on entering the Kingdom Hall, out-of-state JW noticed two things. The first thing noticed was that the same old chairs were still on the stage, and the second thing noticed was that the local JW Elders barely acknowledged out-of-state JW's presence in the very small Kingdom Hall. Out-of-state JW "beat themself" for the entire two hour meeting based on the assumption that the $1000.00 donation had been "too stingy" to purchase the desired two chairs. After the meeting, out-of-state JW shamefully approached Husband-of-JW-Elderette to see how much additional money was needed to purchase the two chairs.

Out-of-state JW has long forgotten the exact words of the conversation, but after the hesitant initial inquiry, JW Elder quickly let out-of-state JW know that the Congregation did not need new chairs, or anything else, so the "Body of Elders" had decided to use the $1000.00 donation to re-pay one of the JW Elders for a past "loan" to the Congregation. That's correct, out-of-state JW's $1000.00 went straight into the pocket of one of the JW Elders. Out-of-state JW also received a mini-sermon as to how the $1000.00 donation had not been out-of-state JW's money to begin with, but was "Jehovah's" money. After referencing the specified designation, out-of-state JW was told that once the money was in the hands of the JW Elders that it was their's to do with as they saw fit. They were Jehovah's appointed representatives in the Congregation.

That was not the first time, but rather the second time, that out-of-state JW had been messed-over with regard to a donation made to that Mount Vernon, Kentucky Congregation of Jehovah's Witnesses. The very same JW Elder had previously screwed-over out-of-state JW in connection with a $5000.00 CASH donation that out-of-state JW had secretly handed this same JW Elder some months previously. In fact, a year or so after the $1000.00 conversion, or "theft", out-of-state JW heard via the grapevine that it was this same JW Elder that had pocketed the $1000.00. Does anyone blame out-of-state JW for wondering how much of the $5000.00 CASH donation actually made it into the Congregation's account?

UNITED STATES v. FREDERICK C. FORCELLINA, BANK v. FORCELLINA, and IN RE FORCELLINA were related 2000-02 Connecticut federal, state, and bankruptcy court cases which involved one of the most prominent Jehovah's Witness Elders in the state of Connecticut. Fred Forcellina first received media attention as a Jehovah's Witness in 1951, when at the age of 20, the drafted Forcellina refused to serve in the U.S. Military. During the 1960s and 1970s, there were numerous media articles reporting that Forcellina had conducted JW funerals, conducted JW weddings, and spoke and worked at various WatchTower Conventions, including one at Shea Stadium.

Fred Forcellina supported himself and his JW Wife as a real estate agent and investor -- evidently quite successfully, given that, in 1998, Forcellina boasted to a reporter that he had traveled to NYC to see Frank Sinatra in concert "dozens of times". Forcellina also defended Sinatra's affection for mafia associations. Fred Forcellina's financial condition suffered unknown serious reversal around 2000, when he reportedly lost his entire $3,000,000.00 fortune. By 2001, Forcellina's home was in foreclosure, and he had filed for bankruptcy. In fact, a warrant was issued for Forcellina's arrest due to his failure to attend several bankruptcy proceeding.

On October 16, 2001, while on his way to those bankruptcy proceedings at the federal courthouse in Bridgeport, Connecticut, Fred Forcellina stopped at a payphone at a Fairfield shopping center and made a 9-1-1 call. Forcellina stated that the federal courthouse in Bridgeport, as well as the state courthouses in Norwalk and Stamford, had all been "dusted" -- implying anthrax. Forcellina also threatened that he and "his people" -- implying Al Qaeda -- were also going to "dust" railroad stations and schools. Fairfiled police caught him hanging up the phone, and questioned him, but allowed him to continue to the Bridgeport courthouse, where he was questioned by the F.B.I. Forcellina admitted making the call, and was subsequently arrested. In June 2002, Forcellina pleaded guilty to maliciously making false terrorist threats, and was eventually sentenced to six months in a federal halfway house -- reduced by the two months he had spent in jail. Son, Todd Forcellina, told the judge that his father, Frederick Forcellina, is a loving husband and father who is "always trying to take care of everybody else," and "he never really asked for help from anyone."

FLORIDA v. PAUL is a December 2010 Florida state criminal court case. Francis L. Paul III, age 46, of Crescent City, Florida, was charged with "Exploitation of an Elderly Person" after a more than four-month investigation by DeLand, Florida police. Francis Paul reportedly also uses the alias, Francis P. Lipani III.

DeLand police allege that Francis Paul a/k/a Francis Lipani first met the mentally incompetent 84 year-old Deland female victim when he knocked on her front door with a Bible in his hand. Paul allegedly befriended the vulnerable elderly female and eventually talked her into going into a lawn care business with him. Police allege that Paul had the woman sign blank papers, which he then used to steal approximately $255,000.00 in savings and stocks.

Subpoenaed documents from seven banks showed the beneficiary on many of Frances Paul's bank accounts was the Watchtower Bible and Tract Society.

STATE OF WASHINGTON v. PAUL COOPER, DORIS NELSON, LITTLE LOAN SHOPPE, TEAM SPIRIT AMERICA, ET AL. In January 2010, the State of Washington's Department of Financial Institutions entered a Cease and Desist Order against a multitude of Canadian and American business entities allegedly owned and operated by a resident of Colbert, Washington, named Doris E. Nelson, a/k/a Dee Nelson, a/k/a Dee Foster. While mentioned in this court document, Ralph Gamble, the C.E.O. of one or more affiliates, is not charged in this action.

In this action, Washington's DOFI alleges that Doris Nelson told investors they could earn as much as 60 percent on money Little Loan Shoppe and its numerous affiliates used to make payday loans to consumers. More than 300 American and Canadian investors bought notes worth $29,000,000.00 in U.S. currency and another $26,000,000.00 in Canadian currency. Dee Nelson allegedly told investors that high returns were possible because short-term, high-fee payday loans allowed Little Loan Shoppe to turn their money over several times. However, investors received no payments after March 2009.

In July 2009, the company filed bankruptcy under the name LLS America, LLC. In documents filed with the U.S. Bankruptcy Court, investors claimed Doris Nelson operated the companies as a Ponzi Scheme that paid early investors with money from new investors. DOFI alleges that Doris Nelson is not currently registered to sell her securities in the state of Washington and has not previously been so registered.

Also charged was Paul Cooper, who is believed to now be residing in Mexico. DOFI alleges that Paul Cooper facilitated securities transactions for Little Loan Shoppe, and that Paul Cooper is not currently registered as a broker-dealer or securities salesperson in the state of Washington, and has not previously been so registered.

Although it is yet to be determined whether Paul Cooper, Doris Nelson, or some other individual(s) connected to the named entities is/are Jehovah's Witnesses, the court document states:

Washington's Department of Financial Institutions is also seeking a $150,000.00 fine from Doris Nelson, and a $30,000.00 fine from Paul Cooper. DOFI is also asking that Doris Nelson and Paul Cooper be jointly and severally liable for and pay its' Securities Division the costs, fees, and other expenses incurred in the conduct of the administrative investigation and hearing of this matter of not less than $60,000.00.

Several media and/or web articles report that separate civil actions have been filed by investors in Washington and Florida, and possibly in Nevada, Arizona, and Utah. Those lawsuits reportedly are alleging fraud, conspiracy, breach of contract, and violations of numerous Washington securities and consumer protection laws. Nelson and Gamble have reportedly denied any wrongdoing.

One discussion board alleges that Doris Nelson's current husband, Dennis Foster, a son named Chris Foster or Christopher Foster, a daughter named Amanda Foster, and a step-son named Adam Nelson are/were high level employees of the various affiliates.

2011 UPDATE --- UNITED STATES v. DORIS NELSON. In Septmber 2011, the federal Securities and Exchange Commission charged Doris Nelson with operating an illegal Ponzi Scheme in which she defrauded investors in her company, Little Loan Shoppe, by misrepresenting the profitability and safety of their investments and giving them the false impression that their money was being used to grow her business. Nelson allegedly used the vast majority of new investor money to repay principal and purported returns to earlier investors. Nelson also allegedly used millions of dollars in investor funds for her own personal use.

Nelson allegedly raised over $135,000,000.00 from approximately 660 investors from 1999 to 2008. About 75 percent of the investors were members of the Jehovah�s Witnesses from across Canada, the United States, and Mexico. The alleged JW connection is PAUL COOPER, an unspecified "leader" of the Jehovah's Witnesses, who is from the Spokane, Washington area (and previously Idaho), but who also had a home in Acapulco, Mexico. Cooper allegedly maintained the "trust" of his fellow JWs by "funding charitable works", as a newspaper termed such, but what were likely actually large donations to the WatchTower Society. In fact, one of Cooper's JW victims, a Building Contractor from New Jersey who had retired to Mexico as a WatchTower missionary, named Russell Titmas, told a reporter that he "saw the investment as an opportunity to offer financial assistance to his faith and enhance its missionary work." Russell Titmas, who now claims nearly $500,000.00 in losses, started investing with Paul Cooper in 2006 after first checking out Cooper with several other Jehovah's Witnesses, who all praised Cooper. In fact, a newspaper reports that many of Cooper's JW Victims still believe that Paul Cooper has done nothing wrong. The U.S. Bankruptcy Court is seeking the return of $2,500,000.00 in commissions that Cooper kept from the millions that he solicited from his fellow JWs.

UNITED STATES v. MATTHEW BRIAN PIZZOLATO; COMMODITY FUTURES TRADING COMMISSION v. MATTHEW BRIAN PIZZOLATO, WILLIAM CHARLES GUIDRY, and CAPITAL FUNDING CONSULTANTS LLC.; NUNEZ, ET AL v. SHEREL J. PIZZOLATO, MATTHEW BRIAN PIZZOLATO, ET AL; GUILLORY v. SHEREL J. PIZZOLATO, MATTHEW BRIAN PIZZOLATO, ET AL; DESELLES v. SHEREL J. PIZZOLATO, MATTHEW BRIAN PIZZOLATO, ET AL; and other yet to be identified civil and criminal court cases.

Sherel J. Pizzolato, father, and Matthew B. 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 Brian 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.

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 Jeff Fricke 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.

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:

For decades, the WatchTower Society has also repeatedly portrayed itself as one of the most cost effective and cost efficient organizations on the face of the earth. Why? Because, the WatchTower Society is the group chosen by God and directed by God to do his earthly work in the "last days" of "this system of things".

While reading the following court case summary, ask yourself not only how cost effective and cost efficient was the WatchTower Society for the last quarter of the 20th century with regard to what is assumed to be one of its largest expenditures, but also ask yourself whether such was simply due to incompetence at all levels, or whether such was possibly due to other reasons which seem to ooze out of the Court's opinion.

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.

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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.

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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.

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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.

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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.)

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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.

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LOUISIANA v. KENNEDY and LOUISIANA v. KENNEDY are two ongoing 2009 Louisiana criminal prosecutions. According to July and August articles published in The Advocate, a longtime School Secretary at Scotlandville Magnet High School, in the East Baton Rouge Parish, named Maxine Kennedy, 62, is being prosecuted along with her daughter, Toni Kennedy, 29, (both living at same address) for unauthorized use of a credit card issued to Scotlandville High School.

Per a Spring 2009 audit conducted by the school system's Internal Audit Office, Maxine Kennedy, the school�s secretary, allegedly obtained a Sam�s Club Card without authorization, and over the course of 28 months, used it to buy groceries, furniture, pay utility bills, and make cash advances totaling $51,877.92. Maxine Kennedy allegedly allowed her daughter, Toni Kennedy, to use the school credit card, including for large cash advances, and for a Jehovah�s Witnesses convention.

Interestingly, the audit, which normally was conducted only every three years, was reportedly conducted ahead of schedule after Maxine Kennedy allegedly ratted out another school employee who was selling concessions during hours that concession sales were prohibited.

Both Kennedys pleaded "not guilty" at an August proceeding, and their attorney made comments to the media which would seem to indicate that a plea deal was in the works.

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In May 2001, in Detroit, Michigan, FOX TV affiliate WJBK-2's local television program called PROBLEM SOLVERS aired a segment which featured a Detroit area Jehovah's Witness Elder meeting for "field service" at his Kingdom Hall on Saturday mornings, and thereafter preaching door-to-door on Saturday mornings.

Why would routine JW activities be televised on an expose' television program? Because this Jehovah's Witness Elder was being paid by Detroit Taxpayers for the time that he was spending fulfilling his duties as an Elder at the Kingdom Hall and for the time that he was spending preaching the WatchTower's gospel from door-to-door. This JW Employee was videotaped showing up for work on Saturday morning, clocking in, and then leaving for the Kingdom Hall. Then, after completing his JW activities for the day, he returned to work to clock out.

This Jehovah's Witness Elder was employed by the Detroit school system in its maintenance department, and in the year 2000, he had turned in overtime hours which paid him $43,000.00 over and above his regular wages of $52,000.00.

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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.

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KENNETH GEORGE NEELY. Per numerous July 2009 media reports, a St. Louis, Missouri area Jehovah's Witness Stockbroker, named Kenneth George Neely, was permanently banned from the industry by the Financial Industry Regulatory Authority. Kenneth Neely reportedly voluntarily consented to FINRA's ban.

FINRA reported that Kenneth G. Neely had been a stockbroker since 1987, but that Kenneth Neely started operating a Ponzi Scheme back in 2001 while Neely was employed at UBS PaineWebber Inc. After 2007, Neely was employed by Stifel, Nichaus & Co., Inc., and finally AXA Advisors LLC, who fired Neely when he reportedly confessed to FINRA.

To support his "lavish personal lifestyle", including country club dues and 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. Kenneth Neely took $600,000.00 from at least 25 victims since 2001. 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 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. It is not known if Kenneth Neely, or even others, will face federal or state criminal charges.

Media reports also disclosed that in addition to FINRA's charges that Neely's previous employer UBS PaineWebber Inc. had paid out more than $120,000.00 to settle four arbitration cases brought by investors claiming that Neely had placed them in unsuitable investments.

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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 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."

Many of Joel Ward's victims were family members and close friends -- many of whom were also fellow Jehovah's Witnesses. 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 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".

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COMMODITY FUTURES TRADING COMMISSION v. LOVETT was a 2007 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, 35, of Ontario, California, and Lovett's company, Northwest Asset Fund, of Reseda, California.

Between October 2002 and August 2005, Lovett fraudulently solicited at least $495,000 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. Evidently, Brett Lovett somehow managed to avoid doing prison time. Brett Lovett is also a Corporate Officer of Colonial Global Holdings, of Oxnard, California, but that entity was not named as a Defendent in this case.

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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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SOUTH CAROLINA v. SHEPPARD was a 2007 South Carolina criminal court decison. Labeled "The Largest Bankruptcy in South Carolina's History", HomeGold, Inc., a subprime mortgage lender, and its subsidiary, Carolina Investors, filed for bankruptcy in April 2003, and defaulted on approximately $277,000.000.00 owed to over 8000 lenders and investors -- many of whom were elderly retirees who lost much or most of their lifetime savings. In February 2007, a Jehovah's Witness, named Ronald J. Sheppard, 49, was convicted and sentenced to 20 years in prison on three counts of securities fraud committed while President and CEO of HomeGold, Inc., from 2000 until November 2002.

Sheppard was originally indicted on 11 charges found in a 39 page indictment -- Securities Fraud (3), Bank Fraud , Insurance Fraud (4), Theft, Perjury, and Breach of Trust -- but Sheppard was only tried on the fraud charges. The court dismissed the perjury charge. It is not known whether the State will pursue the remaining 7 charges, but Sheppard will likely be paroled when he is eligible in Spring 2012.

Ronald Sheppard was a multi-millionaire, and a prominent Jehovah's Witness known throughout much of the United States. Sheppard reportedly credited his huge financial success to his being a Jehovah's Witness. Sheppard reportedly showed his appreciation by donating the land and the money to construct the West Columbia Kingdom Hall of Jehovah's Witnesses. Given Sheppard's status, it is most probable that he was an "Elder" in the organization.

Sheppard's wife, Dana Sheppard, who was supported by several weeping friends and family, spoke at his sentencing and asked the judge to consider her husband's charity and kindness when issuing his sentence. Dana Sheppard said that if her husband was guilty of anything, "he is guilty of being generous to a fault."

With regard to the settlement in the separate bankruptcy case, in which investors recouped only about 18c on the dollar, Dana Sheppard attempted to gain the judge's sympathy by proclaiming, "We paid millions of dollars in a civil suit. ... Nearly everything he got from the company he paid back."

The "millions of dollars" to which Dana Sheppard was referring as having been repaid was most likely the $5,000,000.00 which the Sheppards had borrowed from Carolina Investors in the Fall of 2002 to start EMMCO, another subprime mortgage lender, which they founded after Ronald Sheppard left HomeGold. It is doubtful that the Sheppards were required to repay any of the money they received when they sold their interest in HomeSense to HomeGold in 2000, and it is doubtful that it included any of the millions (possibly approaching $10,000,000.00) that Ronald Sheppard received in compensation while President and CEO of HomeGold.

There are a number of affiliated corporations involved in this case in one way or another. Here are some of the names which popped up in the indictment: HomeGold, HomeSense, Carolina Investors, Emergent Mortagage, EMMCO, R-Doc, FlexCheck, and Prevost Montana. Several of Sheppard's business associates have also been either indicted or convicted. It is unknown how many employees of all these businesses were fellow Jehovah's Witnesses. Google names and keyterms for many more details.

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

Included in the complaint was a second Jehovah's Witness named Joseph M. 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 even Nadel and Malone's fellow Jehovah's Witnesses:

From at least 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 in violation of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It also charged Nadel and Malone with violations of the broker-dealer registration provisions of Section 15(a) of the Exchange Act. 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!!!]

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S.E.C. v. KENNETH E. BAUM. In July 2006, the SEC also settled administrative cease-and-desist proceedings against Senior Resources Asset Fund, LLC and Kenneth E. Baum (who according to a JW discussion board is also a Jehovah's Witness) based on their conduct in selling Renaissance Asset Fund investments. With their consent, the Commission ordered both Senior Resources Asset Fund and Kenneth Baum to cease and desist from selling unregistered securities, and ordered Kenneth Baum, of Hemet, California, to cease and desist from acting as an unregistered broker-dealer.

The SEC�s settled Order against Kenneth Baum and Senior Resources Asset Fund makes the following findings, among others.

Between February 2001 and October 2002, Senior Resources 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.
Baum, the manager and director of Senior Resources, 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 their sale of unregistered securities, Senior Resources violated Sections 5(a) and 5(c) of the Securities Act, and Baum willfully violated Sections 5(a) and 5(c) of the Securities Act and the broker-dealer registration provisions of Section 15(a) of the Exchange Act.

The Order directed Senior Resources and Baum to cease and desist from committing or causing violations or future violations of Sections 5(a) and 5(c) of the Securities Act, and ordered Baum to cease and desist from committing or causing violations or future violations of Section 15(a) of the Exchange Act. It ordered disgorgement and prejudgment interest against Senior Resources and Baum but waived payment based on sworn financial statements showing inability to pay. It states that the Commission is not imposing a civil penalty against Baum for the same reason. The Order further barred Baum from association with any broker or dealer for a period of three years. Senior Resources and Baum consented to the issuance of the Order without admitting or denying its findings.

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UNITED STATES v. KNOWLES. In October 2002, a prominent millionaire Jehovah's Witness Elder, with ties throughout both his home state of Florida and the entire United States, named Robert L. Knowles, was convicted and sentenced to 57 months in federal prison, and three year probation, on 24 counts of mail, wire, and securities fraud. The victims of All Diversified Financial Services, Inc. were more than 50 of Knowles' own fellow Jehovah's Witnesses -- most of whom were elderly, widowed, or disabled. In 2003, a federal judge ordered Knowles to repay nearly $4,800,000.00 to his 50 victims. It is unknown how much money actually remained by that time.

Robert Knowles was a prominent Jehovah's Witness Elder, who had regularly delivered speeches at WatchTower Conventions over the years. Knowles reportedly had also served as a "missionary" in Africa. It is unclear whether Knowles was a graduate of the WatchTower Society's missionary school, known as "Gilead", which would make him an "official" WatchTower missionary, or whether Knowles was an "unofficial" missionary, or what is known as a "NeedGreater" within the Jehovah's Witness community.

A Jehovah's Witness Widow, named Elizabeth Morgan, of Fort Lauderdale, lost her deceased husband's life insurance and "medical malpractice lawsuit settlement", amounting to approximately $764,000.00. Morgan wound up having to sell her home and file bankruptcy.

Rose McTygue, an elderly JW from New York, lost $85,000.00 that she had inherited. Rose McTygue's sister, Ann Marie Cozzubbo, of Florida, also lost the $85,000.00 that she had inherited.

Vincent Romano, an elderly JW from Florida, lost $600,000.00. However, Romano related that even one of his own sons had sided with Robert Knowles, which is somewhat typical of JW operated scams.

William Howison and Jeanette Howison lost $55,000.00 of the husband's $70,000.00 "heat stroke" Worker's Compensation settlement. Howison told a reporter that, "... the real judgment comes from God. And that comes soon."

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ALABAMA v. WILSON was a 2003 Alabama court case. In 2003, an Anniston, Alabama Jehovah's Witness, named Celeous Wilson, 31, was sentenced to one year in the Calhoun County jail for "writing bad checks". By March 2004, Wilson was allowed to participate in the county's work release program. However, on March 11, Wilson did not return from a roofing job, and may not have even showed up at the jobsite that day. During the evening of Wilson's third day of freedom, Wilson checked himself into Regional Medical Center for a supposed "psychiatric" condition. Outcome unknown, but sounds as if 'ol Celeous may be saner than most.

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CHAO v. FIDELITY GROUP In February 2001, the federal government's Department of Labor obtained a consent judgment from a New York federal district court, which settled this civil lawsuit which the DOL had been pursuing against two Jehovah's Witness couples: Eugene and Yvonne Duncan, and Dwayne and Carol Samuels. Both Eugene Duncan and Dwayne Samuels were prominent Jehovah's Witness "Elders" in the NYC area, and both had regularly given talks at circuit assemblies and district conventions over the years. Samuels purportedly also served as a substitute "Circuit Overseer" (a/k/a District Sales Manager) in NYC for the WatchTower Society.

Eugene Duncan and Dwayne Samuels were the President and Vice-President, respectively, of Fidelity Group Inc., which essentially marketed health and dental insurance group plans to small employers in New York and 31 other states. Duncan and Samuels created the scheme in 1995. Each owned 50% of Fidelity's stock. In 1998, BLACK ENTERPRISE business magazine honored Fidelity Group Inc by naming FGI to its' "100s Universe"; the magazine's top 100 African-American owned and operated businesses in the United States.

Fidelity Group, Inc. was established to administer the health plan. The "International Workers' Guild" and the "National Association of Business Owners and Professionals" were formed to make it appear that Fidelity Group's health plan was a federally regulated ERISA health plan, and thus not subject to regulation by state insurance laws. However, when later scrutinized by federal and state authorities, it was deemed to actually be a Multiple Employer Welfare Arrangement (MEWA), which are subject to state regulation. In its lawsuit, the Department of Labor referred to IWG as a "sham union", which operated the health plan for employers through "bogus" collective bargaining agreements with the NABOP, which the DOL referred to as a "sham employer association". Yvonne Duncan and Carol Samuels were Corporate Officers of NABOP. Before marketing of the plan was stopped in January 1999, it had over 10,000 participants in 32 states. Unpaid insurance claims were estimated at between $8,000,000.00 and $28,000,000.00.

The DOL's lawsuit filed on Dec. 15, 1998, alleged that nine defendants holding various positions at either FGI, IWG, or NABOP violated ERISA (Employee Retirement Income Security Act) when they:

-- paid excessive administrative fees from health plan assets to Fidelity for its service as the third-party administrator;

-- diverted assets of the health plan to IWG and NABOP in the form of sham union and association fees;

-- failed to monitor and administer the fund's claims processing system and adjudication system, thereby resulting in a $25 million backlog of unprocessed health claims;

-- failed to assure the financial soundness of the plan through the use of adequate underwriting and sound actuarial analysis;

-- failed to establish adequate contribution rates and maintain cash reserves to assure the payment of claims;

-- allowed the plan to become insolvent and used plan money for prohibited purposes; and

-- permitted NABOP and IWG to be created or operated primarily to divert plan assets from the payment of health benefits.

Under the 2001 consent judgment, Eugene Duncan and Dwayne Samuels were each required to restore $250,000.00 under a payment schedule, and restore annually to the plan 50% of their net income over a $50,000.00 threshold for 15 years, up to an $8,000,000.00 cap. The JW Duo also were barred from serving as fiduciaries, receiving compensation, marketing services, and having business dealings with any plan governed by the Employee Retirement Income Security Act. Eugene Duncan later attempted to discharge this obligation by filing bankruptcy, but the DOL successfully intervened in Duncan's 2005 bankruptcy case.

Under the 2001 consent judgment, Yvonne Duncan and Carol Samuels were each required to restore annually to the plan 50% of their net income over a $50,000 threshold for 10 years, up to a $3,800,000.00 cap. They also are permanently barred from acting as fiduciaries or service providers to any ERISA plan.

An earlier settlement with the four plan trustees, Paul Askew (Dwayne Samuels brother-in-law), Charles Bradley (Eugene Duncan's half-brother), Terence Rhue and Noel Shaw, as well as with FGI management-level employees, David Spooner and Lee Jarmolowsky, barred the four trustees for 10 years, and Spooner for life, from activities governed by the Employee Retirement Income Security Act. They may not act as fiduciaries, provide services, receive compensation, market a plan, recruit participants, or sell property to any ERISA plan. Jarmolowsky, who was not involved in the diversion of plan assets, consented to an injunction which permanently prohibited him from acting as a fiduciary to any ERISA plan.

Reportedly, this scheme involved other Jehovah's Witnesses as employees of FGI, IWG, or NABOP. Employees of the sales and marketing entities in the states where the plan was sold, and also business owners and employees covered by the plan, may have also involved some JWs.

Readers should be aware of the existing hole in American law that impacted this scenario. In the United States, the federal government is the primary regulator of the banking and securities industries. However, the insurance industry is primary regulated by the individual states. In this particular case, the DOL took its' best shot under ERISA. However, since this scheme was actually a MEWA, it was subject to state insurance laws, and some individual states, such as South Carolina and North Carolina (see also Long Et Al v. Hammond, Holroyd Et Al v. Requa), have also gone after the above parties, as well as the in-state marketers. A "Marty Geitler" and a "John Branham" (spellings not necessarily correct) were identified in one SC court case as the exclusive "General Agents" who marketed the plan around the U.S.

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GUNNELLS ET AL v. FIDELITY GROUP ET AL. In South Carolina, a class action lawsuit was also filed against the above entities, as well as the insurance agents in SC who marketed this plan. In 2004, ten SC insurance agents agreed to a settlement totaling $1,352,062.00 in order to be released from the lawsuit. Readers interested in knowing whether any of those agents, or whether the multitude of defendants remaining in the ongoing lawsuit (other than those already identified) have any ties to the Jehovah's Witnesses can view the linked webpage.

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UNITED STATES v. SAMUELS and UNITED STATES v. DUNCAN were the 2001 federal criminal trials related to the above. The government outdid itself in these. Limited details, but apparently Samuels and Duncan plea bargained to "littering", since they each received only six months probation. If Samuels would have been jailed in 2001, that would have saved many people from being defrauded in the Vanguarde scheme he already had going.

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UNITED STATES v. SAMUELS is/was a 2005 New York criminal court case filed against the former WatchTower "Circuit Overseer" named Dwayne Samuels (see CHAO v. FIDELITY GROUP), who had been operating a health insurance scheme similar to the Fidelity Group scheme since 1999. The list of new corporations formed by Samuels included: Vanguarde Group, Vanguard Group, Financial Independence & Prosperity Network, Inc., and American Financial Management Association. Outcome unknown.

Samuels was indicted for embezzlement of payments intended to provide health care coverage and for devising a scheme to defraud members of the Wedding & Event Videographers Association (WEVA) and the American Financial Management Association Group (AFMA). AFMA was a corporation set up by Samuels to collect premiums from individuals that were not WEVA members. Samuels allegedly carried out the fraud by falsely representing to WEVA members that Vanguard carried stop-loss insurance coverage to pay claims in excess of the assets that Vanguard had and by embezzling for his personal use payments intended to provide health coverage. Samuels, who was in charge of Vanguard's day-to-day operations including its financial affairs, allegedly failed to pay numerous bills submitted to Vanguard by health care providers for services provided to WEVA and AFMA members. Vanguard marketed the health care benefit program in numerous states including New York, Colorado, Pennsylvania, Florida, New Jersey, Florida, Connecticut and Massachusetts.

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IN THE MATTER OF VANGUARD ASSET GROUP. In 2002, the Florida Department of Insurance filed a Cease & Desist lawsuit against Dwayne Samuels, Vanguarde Group, Vanguard Group, Financial Independence & Prosperity Network, Inc., American Financial Management Association, Anthony Williams, William McCreary, V. DiCarlo, Robert Lenore, and Phil Jackson. This 2002 Florida lawsuit compared Vanguard Group's scheme with that of the Fidelity Group scheme that had been shut down in 1999.

IN THE MATTER OF VANGUARDE ASSET GROUP. In 2003, the Pennsylvania Department of Insurance shut down Dwayne Samuels' illegal insurance operations in that state. Samuels was barred from doing business in Pennsylvania for 20 years, and Vanguarde was fined $338,000.00. Samuels probaby busted a gut laughing when he got that letter.

IN THE MATTER OF VANGUARDE ASSET GROUP. In 2003, the Colorado Department of Insurance also filed a Cease and Desist Order against Dwayne Samuels' illegal insurance operations in that state.

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CALIFORNIA v. LUIS PEREZ (2006), CALIFORNIA v. PAUL RODAS (2006), CALIFORNIA v. OSCAR HIDALGO (2006), CALIFORNIA v. ELIZABETH MIDDLETON WALDO (2006), and CALIFORNIA v. JAVIER CHAVOLLA (2006). Employers who use "temps" should be aware that there purportedly is a syndicate of Temporary Employment Agencies operating across the United States, which are purportedly owned and operated by several different Jehovah's Witnesses, and employ many Jehovah's Witnesse workers, and are under investigation by several states' governments.

This linked magazine article contains partial information, as does the public comment section at the bottom of the article (start with oldest comments). "Googling" the named owners and named businesses will provide additional info which suggests that this syndicate operates in 10 or more states other than just California. The named operators also may already be using different business names in California, and even different business names in other states. Excerpt:

"After a nearly four-year investigation conducted by the Department of Insurance's (CDI) Fraud Division, investigators served arrest warrants on Tuesday against Luis Perez, 37, of Dove Canyon; Paul Rodas, 40, of Costa Mesa; Elizabeth Waldo (aka: Elizabeth Middleton), 58, and Oscar Hidalgo, 31, both of Yorba Linda. An arrest warrant is still outstanding for Javier Chavolla, 36, also of Yorba Linda. All of the suspects were either owners or principal employees of temporary employment agencies known as Checkmate Staffing Inc.; Checkmate Staffing West Inc.; Checkmate Staffing West Inc.; Checkmate Transport Inc; Tower Temps, Inc.; Staffaide Inc.; RPM Staff Leasing; and Tower Staffing Inc."

Perez, Rodas, Waldo, and Hidalgo were charged with one count of conspiracy to commit workers� compensation insurance fraud and one count of conspiracy to commit denial of workers� compensation insurance benefits. Perez was booked into Orange County jail with bail set at $10 million. Waldo was booked into West Valley Detention Center Jail on $500,000 bail. Hidalgo was booked into Orange County jail on $500,000 bail, and Rodas was booked into Orange County jail on $250,000 bail. Outcome of these criminal cases are unknown.

However, in 2003, the State of California went after the corporate entity, Checkmate Staffing, Inc., for failing to pay accurate Worker's Compensation premiums. After agreeing to settle with the State Compensation Insurance Fund for $7.2 million in unpaid workers' compensation premiums, Checkmate filed bankruptcy. Checkmate's attorney also reportedly stated that Checkmate also owed about $30 million in back taxes. The assets of Checkmate and Luis Perez (eight homes) were sold, but apparently did not satisfy the various debts.

According to multiple unconfirmed media articles and discussion board postings, Luis Perez and some of his associates laid low for a while, but are currently back in business.

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OHIO v. TEKLEGRGES was a 2003-4 Ohio criminal court decision. In October 2003, a Jehovah's Witness convenience store clerk, named Abraham Teklegrges, was arrested at one of his employer's five west-side Cincinnati locations on three counts of receiving stolen property. Abraham Teklegrges was an immigrant from Eritrea (Africa). Teklegrges eventually pled guilty to one count in exhange for the other two counts being dropped, and receiving a sentence of time served.

MORE JW FINANCIAL CASES ON THE FOLLOWING PAGE

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