Friday, February 24, 2012

TBN Cover-ups of Salacious Sexual/Criminal Scandals (Update: OC Register 2/23/2012)

http://taxdollars.ocregister.com/2012/02/23/suit-cover-ups-of-sexual-and-criminal-scandals-at-tbn/149534/

Suit: ‘Cover-ups of sexual and criminal scandals’ at TBN

February 23rd, 2012, 9:36 pm posted by

UPDATED
 
Jaw-dropping details about alleged financial digressions at Trinity Broadcasting Network were made in a lawsuit filed Thursday – including the purchase of a $50 million jet through “a sham loan to an alter ego corporation” for the personal use of the Crouches; a $100,000 motor home purchased by Trinity as a mobile residence for Jan Crouch’s dogs; “multiple residential estates” falsely reported as guest homes or church parsonages to avoid income disclosures; meal expenses of up to a half-million dollars per company director; “personal chauffeurs compensated with Trinity funds under the guise of medical payments;” and “multiple cover-ups of sexual and criminal scandals.”

The suit was filed in Orange County Superior Court by Joseph McVeigh against Trinity Christian Center of Santa Ana (which does business as Trinity Broadcasting Network, the largest Christian broadcaster in the world), its International Christian Broadcasting arm, attorneys Davert & Loe (who do legal work for Trinity) and others.
McVeigh accuses Trinity and its lawyers of malicious prosecution in connection with a loan he received through Trinity companies.

So who is McVeigh? He is the uncle, by marriage, of Crouch granddaughter Brittany Koper — who sued Davert & Loe in federal court last month. Koper accused the world’s largest Christian broadcaster of unlawfully distributing charitable assets worth more than $50 million to its principals — and of firing her as its finance director, and beginning a campaign of “malicious retaliation” against her and her family (including McVeigh), for refusing to go along with the scheme.

Trinity paints a very different picture — saying it was Koper and her husband who committed financial misdeeds at Trinity.

‘ABSURD AND CONTRIVED’

While Trinity has not been served “with this absurd and contrived suit, it is nothing more than a tabloid pleading,” said Trinity attorney Colby M. May in an email. “No matter how hard Ms. Koper and her husband try to divert attention from their embezzlement and misappropriation of money, it won’t work (regardless of how many Uncle McVeighs they marshal). As I previously reported to you in the context of Ms. Koper’s suit against Davert & Loe (of which neither TBN and ICB are not parties), the outrageous, false, and unsubstantiated assertions about TBN and ICB, which are embellished in Mr. McVeigh’s suit, are untrue. The claims are nevertheless being echo-chambered in the continuing vain attempt at diversion.

“I simply remind you of the following: (1) Ms. Koper has admitted several times to having embezzled and misappropriated money; (2) the IRS was months ago informed of Ms. & Mr. Koper’s conduct, and they face considerable fines and excise by the IRS; (3) in recognition and admission of their misconduct and dishonest acts, Ms. & Mr. Koper have made partial restitution, but that stopped when they fled to New York, and (4) at no time have any charitable assets of the Trinity Christian Center of Santa Ana Inc. or International Christian Broadcasters been ‘diverted’ to any director, period (except, of course, whatever Mr. & Ms. Koper diverted and embezzled).”

UPDATE: To which Tymothy MacLeod, attorney for Koper and McVeigh, said this by email:

“TBN’s spokesman, Colby May, continues to throw stones recklessly inside TBN’s crystal cathedral, but Mr. May needs to be reminded that all of the so-called ‘embezzlement’ allegations against Ms. Koper and her family were dismissed in both state and federal court, with no finding of liability or wrongdoing whatsoever by Ms. Koper. Nor has Ms. Koper ever admitted to embezzlement, as Mr. May has repeatedly and falsely asserted …. Quite to the contrary, it is Ms. Koper who is blowing the whistle on massive allegations of financial improprieties by TBN’s directors. TBN and Colby May’s childish ‘I know you are, but what am I?’ reaction in the press to these allegations is simply evasive of the real legal questions involved in the legal malpractice and malicious prosecution lawsuits that have been filed thus far. We look forward to meeting TBN in court on these charges.”

For MacLeod’s full statement, click here.

SALACIOUS DETAILS

McVeigh’s suit says that Koper was promoted to finance director because Trinity wanted somebody within the family who would keep its “financial ‘skeletons’ safely in the ‘closet.’”

The suit then delves into much more detail regarding the “unlawful and unreported income distributions to Trinity Broadcasting’s directors” than Koper’s suit does, including:
  • “Multiple jet aircraft, including a $50 million ’Global Express‘ luxury jet aircraft purchased for the personal use of the Crouches through a sham loan to an alter ego corporation set up by the directors of Trinity Broadcasting in Florida, as well as an $8 million Hawker jet aircraft purchased by Trinity Broadcasting for the personal use of director Janice Crouch;
  • “Multiple motor vehicles, including a $100,000 motor home purchased by Trinity Broadcasting as a mobile residence for director Janice Crouch’s dogs; the latest Bentley recently purchased by Trinity Broadcasting for director Paul Crouch, Sr.; the most recent Denali purchased by Trinity Broadcasting for director Janice Crouch; a new Suburban recently purchased by Trinity Broadcasting for director Matthew Crouch; and numerous other vehicles;
  • “Multiple residential estates falsely reported as ‘guest homes’ or ‘church parsonages’ to avoid income disclosures, even though they are maintained by Trinity Broadcasting for Paul Crouch, Sr.’s personal use in Newport Beach, California; another mansion purchased by Trinity Broadcasting for the personal use of Paul and Janice Crouch in Nashville, Tennessee; residential property purchased by Trinity Broadcasting Florida for the personal use of Paul and Janice Crouch in Miami, Florida; residential property purchased by Trinity Broadcasting for the personal use of Paul and Janice Crouch in Irving, Texas; two homes purchased by Trinity Broadcasting for the personal use of Matthew Crouch in Irving, Texas, although one of the homes is used by his sons; three more homes purchased by Trinity Broadcasting for Matthew Crouch’s personal use in Costa Mesa, California (adjacent residential properties occupied by Matthew Crouch, his wife, and his two sons); a cabin in Lake Arrowhead, California purchased by Trinity Broadcasting and reserved solely for the personal use of Trinity Broadcasting board members; another mansion purchased by Trinity Broadcasting San Marcos for Janice Crouch’s personal use in Newport Beach, California; and two more mansions next door to one anothcr that were purchased by Trinity Broadcasting Florida for the personal use of Paul Crouch, Sr. and Janice Crouch in Windermere, Florida.
  • “Multiple other perquisites, including meal expenses on the order of $300,000 to $500,000 per year for each director of Trinity Broadcasting; hundreds of thousands of dollars in additional credit card reimbursements for each director; personal chauffeurs compensated with Trinity Broadcasting funds under the guise of “medical payments”; fictitious ‘rent’ (and expenses) and other ‘donations’ paid to Paul and Janice Crouch for the fictitious use of a home owned by those directors in Newport Beach, California (even though the residence sits empty); and tens of thousands of dollars in ’redecorating’ expenses paid each year for such items as stain removal in the Crouch mansions;
  • “Multiple backchannel distributions, kickbacks, and related schemes, such as tens of millions of dollars distributed through a company owned by TBN director Matthew Crouch, called Gener8xion Entertainment; a revocable trust account scheme by which Trinity Broadcasting’s directors were paid returns above market rate on invested funds, with Trinity Broadcasting paying the difference as undisclosed distributions to the directors; fraudulent accounting schemes by which Trinity Broadcasting luxury assets (such as the $50 million jet aircraft used by Paul Crouch Sr.) are falsely held on the books of other corporations controlled by Trinity Broadcasting’s same directors; falsely reporting income received and controlled by Trinity Broadcasting as income purportedly received and controlled by third-party corporations to avoid financial disclosures and adverse tax consequences; routine assignment of sham ‘business purposes’ to the use of Trinity Broadcasting’s luxury assets (such as frequent vacations around the world on corporate jets); and fraudulent donation and kickback schemes involving third party ‘ministries’ and entities owned or controlled through Trinity Broadcasting’s directors; and
  • “Multiple cover-ups of sexual and criminal scandals, including the cover-up and destruction of evidence concerning a bloody sexual assault involving Trinity Broadcasting and affiliated Holy Land Experience employees; the cover-up of director Janice Crouch’s affair with a staff member at the Holy Land Experience; the cover-up of director Paul Crouch’s use of Trinity Broadcasting funds to pay for a legal settlement with Enoch Lonnie Ford (a former TBN employee who said he had a homosexual affair with Paul Crouch); the cover-up following director Matthew Crouch’s exposure of his genitals to cleaning staff on multiple occasions; under-the-table payments to avoid liability and punitive damages in the ongoing David Rhodes wrongful death suit, including payments funneled through All American TV, Inc., a nonprofit corporation controlled by Trinity Broadcasting’s general counsel, John Casoria; falsification of records transmitted to the South Coast Air Quality Management District in California; and the list continues.
(Note: The bolding of names and numbers is our style here on Watchdog, and is not in the suit itself.)
Trinity Christian Center is a nonprofit in the eyes of Uncle Sam, which means it doesn’t pay taxes on its income. It reported revenue of $175.6 million, expenses of $193.7 million, and net assets of $827.6 million at the end of 2010, according to its tax returns. Its highest-paid officer was Paul Crouch, with compensation of $400,000.

Koper (right), the Crouch granddaughter, has filed reports regarding all this with the Orange County District Attorney’s office, the police, and the California State Bar detailing her accusations, her attorney, MacLeod, has said. She is submitting a report to the Internal Revenue Service as well.

This is not the last of it, either.

“This is the second of four lawsuits that we have now been retained to file by individuals who continue to come forward in connection with the alleged public policy violations at TBN,” MacLeod told us by email. “There is much more to be said on these important issues, and we look forward to getting each of these cases on file on behalf of our clients.”

We’ll keep you posted.

More nonprofits:
More OC Watchdog:
Posted in: Churches • Justice • Nonprofits
at

No comments:

Post a Comment