Monday, September 19, 2022

Mass Corruption at Church: New York AG Investigation Reveals Harlem Clergy Took Secret Cash as They Sold Churches to Developer

According to New York State prosecutors, senior religious leaders conspired with a developer to sell seven churches in Harlem and Brooklyn in exchange for secret payments — only for the developer to waver from his promise to build new homes for the churches, in some cases demolishing them and letting the sites sit empty for years.

As reported by Nick Garber of Patch, prosecutors maintain that the deals, which netted the three church leaders nearly $2 million combined, were uncovered through an investigation launched by New York Attorney General Letitia James’s office into the developer, Moujan Vahdat. Vahdat and two of the church leaders reached settlements with the state last year, though the accusations against them have not previously been reported. A third pastor also under investigation is still battling the state in court.

According to prosecutors, the churches, all part of predominantly African-American denominations, were often struggling financially and saw the sales as potential lifelines. In a 2015 resolution, one church board supporting the sale to Vahdat wrote:

Not without a struggle, over the past several years we have worked hard to maintain the upkeep of the house of God. We understand that there has been a need for a greater vision from God to move this church forward in its fiscal responsibility and ministry.

However, authorities maintain, behind congregants' backs, church leaders were accepting cash payments and expensive gifts then turning a blind eye as Vahdat revised the sale contracts in his favor, squeezed churches for more money, and in one case, shut off a church’s heat in the middle of winter and allowed its ceiling to collapse onto a parishioner.

According to Patch, Vahdat’s attorney defended his client's conduct, telling the news organization that he remains focused on “bringing vibrant new church facilities to the community.” Indeed, said the attorney, even after the state’s intervention, many of the houses of worship are still doing business with Vahdat to this day.

In a court filing laying out their investigation, prosecutors wrote that Vahdat, a billionaire real estate and telecommunications magnate, began eyeing churches for possible development deals in 2013. However, prosecutors noted that despite his history in the real estate industry, Vahdat had no experience with church developments. But, prosecutors continued, Vahdat soon met Bishop Kevin Griffin, the senior pastor of Childs Memorial Temple Church of God in Christ (COGIC), and by 2014, Griffin agreed to sell his dilapidated Amsterdam Avenue Church building for $2 million to Vahdat, who promised to replace it with an apartment building with space reserved for Childs Memorial. According to prosecutors, Griffin did not reveal to either his parishioners or New York State authorities that he personally received $450,000 once the church sale closed in early 2016 and an additional $440,000 in “finder’s fees” for introducing Vahdat to other church leaders. 

There followed a series of events whereby Vahdat was introduced to three other ministers and he purchased other churches in Harlem and one in Brooklyn using the same modus operandi. While claiming to be serving the Lord, the pastors were enriching themselves and really serving Vahdat. But by early 2018, the state attorney general’s office had begun investigating the church deals after hearing “allegations” that the churches’ sale terms had been changed. According to prosecutors, as the probe loomed, Vahdat asked two of the pastors to produce letters describing the personal payments he gave each of them as "having been made for charitable purposes for use on the churches’ behalf" — adding that he had given them the payments personally only for “expediency” and “convenience.”

According to Patch, clergy members pressed Vahdat in the ensuing months for answers about missing payments he owed to the churches and a lack of progress on the new developments. 

By 2021, state prosecutors intervened in the New York church dealings, reaching settlements with Vahdat in October and with two other pastors -- Rev. Melvin Wilson and Bishop G.M. Ingram -- in November. Vahdat agreed to "neither admit nor deny" the state's accusations, while Ingram and Wilson both promised not to make any public statements denying the investigation's findings.

"The clergy placed their self-interest ahead of the interests of the churches," the attorney general’s office wrote in a virtual presentation delivered to the AME churches in November 2021.

Let us take a close look at the punishment meted out to the offenders:

  • Wilson and Ingram’s settlements both required them to pay back the money they received in a series of installments — plus, in Ingram’s case, the proceeds from his Rolex watch, which he sold for $33,000;
  • Both men are barred from holding a role in any New York-based nonprofit or charity that involves dealing with money, though both can continue holding purely “spiritual” positions;
  • Yet, both Wilson and Ingram appear to maintain active roles in the AME Church. Ingram and his wife were thrown a retirement party in 2021 and were pictured attending an AME board meeting earlier this summer, while Wilson’s LinkedIn profile lists him as the pastor of an AME church in Orange, N.J.;
  • According to the Religious News Service (RNS), on August 31, the AME Church released a statement that condemned "the inappropriate practices of our colleague and the former presiding elder in the New York Conference, who currently pastors in the New Jersey Conference;"
  • Ingram will not take part in any denominational events until 2024, while discipline against Wilson will be determined by the bishop now in Ingram's former role;
  • Vahdat’s settlement, meanwhile, requires him to keep up to date on any payments owed to the churches and cover their legal fees.

I wonder as I conclude, what ever happened to this principle learned at Seminary: "He has shown you, O man (and woman), what is good; And what does the Lord require of you, But to do justly, To love mercy, and to walk humbly with your God? (Micah 6:8, NKJV).

Prof. Vaughn E. James, Texas Tech University School of Law 

 

 

 

https://lawprofessors.typepad.com/nonprofit/2022/09/mass-corruption-at-church-new-york-ag-investigation-reveals-harlem-clergy-took-secret-cash-as-they-s.html

Church and State, Current Affairs, In the News, Religion | Permalink

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