Founded in 1948, BFA was created as a nonprofit agency of the Arizona Southern
The BFA Liquidation Trust, which is seeking to recover the investors funds, immediately took action. Money & Investing. if (cEnd === -1) { By 1996, ALO was more than $100 million in debt. Oct. 7, 2009 -- It's a practice that appeals to some people but disturbs many others: freezing the deceased in the hope . mps._queue.mpsinit = mps._queue.mpsinit || []; positive results. if (!oneTrustCookie) return true; Reglious Prey: Baptist Foundation of Arizona. In one year, there was an amazing increase in the
In a short time, it had created a complicated web of dozens of interlocking non-profit and for-profit subsidiaries to operate its real-estate and other investment deals. 'site' : 'cnbc-mobile' , var pixelurl = ((document.location.protocol === 'https') ? Arthur Andersen provided unqualified clean audit opinions on
Then, learn how Dr. Mikos, a charming doctor with a lucrative practice, turns out to be a con artist defrauding Medicare. the State Board of Accountancy: Arthur Andersen, without admitting or denying any fault, settled an investors
return true; 'is_sponsored' : '0' , Under his leadership, the organization held strict moral values, including its officers being forbidden to gamble or drink alcohol. function isOneTrustAnyBlocked() { The Baptist Foundation of Arizona was established with the pretense of serving Southern Baptist causes. Former Alcor employee makes harsh allegations against cyronics foundation. A lawyer for Crotts, Michael Piccarreta, said all the foundation's investors would have been paid back if the state hadn't shut it down in 1999 for what the Arizona Corporation Commission said were faulty financial statements. const url = `${window.location.pathname}${window.location.search}`; 207, or tstolle@bcmd.org. 'title' : 'American Greed: Religious Prey: Baptist Foundation of Arizona | Medical Scams' , Its only significant asset was 1,357 acres of undeveloped land in San Miguel County, New Mexico. Aug. 7, 1999 BFA sends a letter to all investors revealing it has put a temporary freeze on accepting new investments or redeeming old ones. Two former executives of the Baptist Foundation of Arizona were convicted Monday on three counts of fraudulent schemes and one count of conducting an illegal enterprise. As a nonprofit company, ALO filed its financial statements each year with
for (var i in mps.response.dart.adunits) { former board members, controlling these new companies. Learning its principal note issuer was ALO, she checked public records and found its unaudited balance sheet listed liabilities of $109.7 million and assets at minus $6.9 million. return unescape(document.cookie.substring(cStart, cEnd)); }; })(); .split(',') This material may not be published, broadcast, rewritten, mps.__intcode = "v2"; Under William Crotts
Market data provided by Factset. (function(){ Accusations of New IFB being a cult were also made by former New IFB preacher Adam Fannin, who left after the Romero scandal in January 2019. In the decade since Vasquez's appeal for help, more than 250 people who worked or volunteered in Southern Baptist churches have been charged with sex crimes, an investigation by the Houston . BFAs counsel is informed that the state investigation could result in proceedings against individuals at BFA as well as the organization itself. One of ALOs primary purposes was to buy and hold non-producing or overvalued investments in real estate so BFA could avoid writing them down as losses. [9], In 2002, Grabinski sued BFA's insurance carrier, National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), for coverage of his legal fees per the Directors and Officers liability coverage purchased from National Union, plus damages. Managing editor at EthicsDaily.com from 2003-2009, Allen wrote more than 1,500 news stories during his tenure. Also in 1998, an alternative Phoenix newspaper, the New Times, ran a series of 13 investigative reports alleging fraud and insider deals. in that it represents the largest cash settlement for a nonprofit case and
Founded in 1948 to raise money for Southern Baptist causes, BFA and its subsidiaries and affiliates had marketed securities throughout the United States as retirement vehicles for investors and served as a custodian for tax-deferred Individual Retirement Accounts. Perceiving a lack of response, most resigned. 'id' : '100000099' , SOCIAL_MEDIA: 8 We re-invest your money and the profit we earn goes to further such ministries as Christian education, care for children and senior adults, missions and new church starts. var setAdblockerCookie = function(adblocker) { July 19, 1999 BFAs board votes to suspend its offer and sale of securities. The most likely cause of this is a content blocker on your computer or network. Start Here; About Us. It was eventually revealed that it had over $500 million in liabilities. Baptist Foundation of Arizona was the largest non-profit in U.S. history. More specifically, the litigation was brought by Arizona's Corporation Commission (Securities Division), as well as the state's attorney general. However,
The Phoenix-based. return _regex.test(_qs); The foundation was created in 1948 by the Southern Baptist Convention to administer endowments to the church. The Baptist Foundation of Arizona was founded in 1948 to raise money to back up Baptist causes and to pay a return for investors. The real estate market did
const OneTrustCategories = { BFA began to invest heavily in the Arizona real estate market, and at the
It eventually grew into an independent nonprofit organization that sold individual retirement accounts and other investments. Start Here; Testimonials; Contact Us; Start Here; Testimonials; Contact Us; Location. Convention required BFA to be a profitable, self-sustaining independent entity. The Baptist Foundation does have a plan to help investors recoup at least a portion of their money. regardless of past experience with the entity or prior beliefs about managements
Jalma Hunsinger, President and Director of Church Ventures (a company whose stated purpose was to build churches), paid $150,000 (equivalent to $196,000 in 2021). Login Here. between the foundation and these corporations were designed to achieve the
Inadequate disclosure of losses on notes receivables due
MVPNs were marketed with the notion that they received a higher than average yield and that part of the investment's return was used for God's mission. Management responded to the new environment by structuring accounting transactions
accounting, marketing, and administrative services. New Church Ventures
propertys book value, not its diminished current value. The foundations bankruptcy marks one of the biggest financial collapses ever by a charity. Two years earlier, the Baptist Foundation of Arizona also failed, wiping out savings of 11,000 investors that had $570 million in the fund. BFAs failure and the subsequent penalties provide
Auditors must broaden the range of information that
By Jonathan Weil Staff Reporter of The Wall Street Journal. A grand jury in April 2001 returned indictments charging former BFA officials with 32 counts of fraud, theft and racketeering. The 1996 information,
'https' : 'http') + '://pix.nbcuni.com/a-pii.gif?X=piiblock&S=' + mps.pagevars.instance + '&P=' + mps.pagevars.mpsid + '&A=' + i + '&U=' + encodeURIComponent(window.location.href) + '&_=' + window._mpspixZ; relationships, transactions, and balances (SFAS 57. const EEA_REGION_COUNTRY_CODES = ['AT', 'BE', 'BG', 'HR', 'CY', 'CZ', 'DK', 'EE', 'FI', 'FR', 'DE', 'GR', 'HU', 'IS', 'IE', 'IT', 'LV', 'LI', 'LT', 'LU', 'MT', 'NL', 'NO', 'PL', 'PT', 'RO', 'SK', 'SI', 'ES', 'SE', 'CH', 'TR', 'GB']; At the time of its failure in 1999, it was the largest affinity fraud that had ever occurred in the United States, with a total loss estimated at US$550 million (equivalent to $895 million in 2021). A new management committee of Joe Panter, Mark Roberts and Mark Dickerson is installed. if (!_qs) { The BFA opens a web site address www.bfaz.org to answer questions. [4], The BFA sold property to the elderly that was marketed as a retirement community with a nursing home. The additional possibility of a bankruptcy filing by Andersen, the newspaper reported April 2, could delay any payment for years and lump the BFA investors in a pool with other Andersen creditors, including thousands of Enron stockholders.. The principal allegation of the lawsuit is that Arthur Anderson ignored clear signs and evidence that one of its clientsthe Baptist Foundation of Arizona (BFA)was engaged in ongoing fraud . Audit. In 1992, records indicated that the company had lost $3.2 million due to questionable transactions. BAPTIST FOUNDATION OF ARIZONA The Baptist Foundation of Arizona (BFA), which Andersen served as auditor, lost $570 million of donor funds. var dynamic_yield_enabled = 1 statements. Editor:
isEEARegionCheck(); 'template' : 'special_reports' , The foundation halted security sales in August, however, when state regulators found that it did not have the money to cover its debts to investors. However, the State Board
For example, Select Trading Group, a subsidiary of ALO, created its own subsidiary, Santa Fe Trails Ranch II. Like many
if (isOneTrustAnyBlocked()) { See Church Loan Guidelines for details or download a Church Loan Application. In 1989, Arizonas
Three former BFA officials have pleaded guilty to felonies in the case while Crotts and four others face fraud and racketeering charges. [1] Grabinski signed documents as an officer for both BFA and a subsidiary. Get this delivered to your inbox, and more info about our products and services. (function() { A jury on Monday found former foundation president William Crotts guilty of three counts of fraud and one count of illegally conducting an enterprise, according to the Arizona Attorney General's Office, which prosecuted the case. The BFA became dependent upon future investors to pay older investors and loan interest. The state also is continuing to press criminal charges against five former BFA executives, including William Pierre Crotts, the former chief executive officer. PHOENIX (BP)The Enron collapse has reared its head in an Arthur Andersen announcement that the accounting firm is backing out of a $217 million settlement with victims of the Baptist Foundation of Arizonas 1999 collapse. } The Arizona Baptist Foundation. Its initial mission was to raise donations and support for Southern Baptist causes. Powered and implemented by FactSet Digital Solutions. The BFA was a church-affiliated charity, one that preyed on the members of its own congregation and operated for years before church fraud detection put a stop to it. fetch('https://geo.cnbc.com/info/').then(res => res.json()).then(result => { We want to hear from you. Arizona real estate prices were skyrocketing in the early 1980s. })(); return Object.values(OneTrustCategories).filter((c) => blockedCategories.includes(c)).length > 0; real estate in exchange for notes receivable valued in the millions of dollars. s.src = "https://fm.cnbc.com/applications/cnbc.com/resources/files/2020/03/28/VisitorAPI.js"; CNBC_Comscore = 'CNBC_TV'; Its initial mission was to raise donations and support
}, mpsopts = { About 11,000 investorsmany of them elderly members of Baptist churches in Arizona and elsewherelost more than $550 million. Mutual Fund and ETF data provided by Refinitiv Lipper. fiduciary requirements governing nonbank passive trustees of IRAs. Please make sure your computer, VPN, or A smaller-but-similar scandal hit Baptists in the 1990s, when 11,000 investors in the Baptist Foundation of Arizona fell victim to a $550 million Ponzi scheme. window._mpspixZ = (function(a){var b="abcdefghiklmnopqrstuvwxyz".split("");a||(a=Math.floor(Math.random()*b.length));for(var c="",d=0;d