Tag Archives: charged

David Yonggi Cho Scandal Paralleled To The Kong Hee Scandal

24 Monday Feb 2014

Posted by in C3 & Pringles Associations

≈ 1 Comment

Tags

, , , , , , , , , , , , , , , , , , , , , ,

It is of our opinion that one can probably parallel these scandals to some of the scandals in the C3 movement.

The blog ‘Not Under The Table’ writes,

UPDATED 23/2/14: Lessons From the Sentencing of 2 Cho’s – How Christian Leaders Justify Responsibilities

The news broke today in a shocking manner with the following headlines:

1) “David Yonggi Cho, Founder of World’s Largest Church, Found Guilty of Breach of Trust, Corruption” (The Gospel Herald) and

2) “Yoido Full Gospel church leaders found guilty of tax evasion” (The Hankyoreh)

3) “Pastor gets suspended prison term for massive embezzlement” (The Yonhap News Agency)

Dr Yonggi Cho, whom Pastor Kong Hee address to be his “Spiritual Father” and “Senior Pastor” is sentenced to 3-years in jail with 5-year suspension. This means that the jail term is deferred by 5-years and he will go to jail to serve sentence if is found to further misbehave during this 5-year term. It is still a jail sentence.

The court ruled that Dr Cho is guility of the following charges: (1) Tax evasion and (2) causing approximately 13 billion won (US$12 million) worth of losses to Yoido Full Gospel Church by instructing his church officials to buy stocks privately owned by his eldest son priced at 4x higher than market value in 2002.

Yonggi Cho Kong hee

“The criminal activity would have been impossible without the approval of Pastor Cho, who had ultimate decision-making authority,” the court ruled. “By condoning the documents that were being written while he was the head of the church, he was largely responsible for these crimes.” – The Hankyoreh

Earlier, in a Straits Times coverage of the news when investigations first began into the Korean Mega-pastor, Dr Cho had denied any wrong-doing, and dismissed the allegations as “a smear campaign by a very small group of people in his church” and that “those who filed the complaint will have to take responsibility accordingly” (ST, 22 Sep 2011)

When this article was first published, City Harvest Church also issued a statement regarding this matter (http://www.chc.org.sg/_eng/church/church_statementReYonggiCho.php):

CHC Statement

It is not the intention of this blog to judge a great man like Dr Yonggi Cho, who over the past decades had contributed greatly to the growth of Christianity and helped many people. We have our imperfections and do make mistakes, and do eventually pay the price for it.
However, the patterns of denial adopted up to the point of conviction finds close resemblances to what was seen in the “CHC Trial”:

1) Blame Shifting

“While delivering the three-year prison term for the former newspaper chairman, the judge rebuked the younger Cho for attempting to shift the responsibility for his unethical business practices onto his father and other senior church members.” (source)

Church Growth International Korea, the ministry founded by Dr Cho (independent and separate entity from Yoido Full Gospel Church) issued a statement to their Board Members claiming that the Korean judge, Hon. Yongtun Cho said that:

“The court considered that even though Pastor Cho had the final say in the church, he never took the lead in any of the crimes including tax evasion committed on the suggestion of the accounting firm.” (source)

“During the investigation, prosecutors also acquired evidence of tax evasion by David Cho. In 2004, when the Seoul regional tax office judged that this stock sale was a gift and ordered that 10.3 billion won (US$9.48 million) of taxes be paid, David Cho enlisted the aid of an accountant and submitted falsified documents to the tax office to disguise the transaction as a normal stock trade, not as a gift, prosecutors confirmed. He is suspected of using this means to only pay 4 billion won (US$3.68 million) in taxes, evading 6 billion won.” (source)

While he may not be the mastermind, he was unfortunately convicted because he allowed it to happen anyway – apparently rubber stamped whatever his son handed him. The key here is that as a leader, you cannot just claim ignorance and hope to get away. Tax evasion charges aside, he unfortunately gave instruction to siphon the money and ordered the stock purchase – resulting in the inevitable CBT charge which is even more damning and inexcusable – impossible to blame shift this.

Is it true that as long as the fault can be pushed away to another party, it would be “all clear” for the accused? Will it change the mindset of logical thinking adults? Or is it done in an attempt to continue to mislead the unknowing members? Throughout the CHC Trial, we have seen the blame pushed to the auditors, the CAD Investigating Officer and other parties including the media (accused to be bias) – me thinks it’s definitely not true, considering the coverage they gave Serina Wee. News is a business to sell more after all.

The CityNews Article (http://www.citynews.sg/2014/02/chc-trial-defense-establishes-that-evidence-cad-failed-to-seize-was-clearly-relevant-to-case/) was plastered on top of the City Harvest Church website (above the “Special Notices” tab). For the blame on the other parties, just refer to the CityNewsSG articles on their website, and my earlier blog articles. We need to be mindful that such articles coming from a church whose leaders are embroiled in a criminal charge do stir emotions and sentiments among the membership as well as members of the public, depending on where you look at it.

CHC School Of Theology

2) Threat and Warning

Such uses were probably aimed to threaten people who speak up with defamation lawsuits? Will this work? Considering the first line of defense against any form of defamation is the reporting of verifiable facts/truth, the threat would also fall on deaf grounds, no? 

“those who filed the complaint will have to take responsibility accordingly” (ST, 22 Sep 2011)

Didn’t work for you this time Dr Cho. Your 29 elders have the evidence and spoke boldly without fear of your threat.

CHC have used this to their full advantage over a decade ago in silencing businessman Roland Poon who asserted that church funds were used to fund Sun Ho’s Crossover Project. Roland Poon had to issue a public apology. Glad that he is now vindicated for the court has heard that church funds were indeed used to fund Sun Ho’s singing career from as early as 2001, and definitely in 2003.

Roland Poon Apology

Similarly, according to online media, Bobby Chaw, a pastor of CHC, also issued a warning about the media “pre-judging” in relation to the suspension of 9 key CHC staff. This was done through the official statement made by the church on 28 June 2012. It should be noted that as a leader, anything said in public has an influence on its followers. The result of such statements (personally, I view it as a threat, so do some other online media), made in a highly sensitive and emotional context resulted in a witch-hunt and name-calling for the COC by members of CHC. Not too nice to plaster more screenshots, but some are found in earlier posts. Me thinks that COC had been too nice; they should just make public it’s findings there and then – and once and for all put an end to all the name calling on the COC.

3) “Did not make any personal gain”

In an updated statement issued on 22 Feb 2014 regarding the sentencing of Dr Cho, the Management Board of CHC cited “very reliable sources that Dr Cho had no personal gain from any of the investments” (source)

One need not look far to find contradicting reports from the 29 elders who lodged the commission’s against Dr Cho. In fact, they have out forward some very serious allegations in their writing, besides those already charged:

“Ha Sang-ok , who was part of the group for nearly two decades, admits to being involved in some fraud : ” In the last 14 years I have seen and done bad things. I tried to convince the pastor to stop, but he paid no attention. His behavior is not that of a Christian, but like that of a guru of a sect“. (source)

“First, they claim that Cho returned only 64.3 billion won (US$60.2 million) of the 163.3 billion won (US$152.9 million) he borrowed from the church while building the CCMM Building between 1992 and 1998, when he was chairman of the church‘s Mission Society. The remaining 99 billion won (US$92.7 million), they say, was never returned.

It is also being claimed that Cho’s third son Seung-jae’s International Club Management Group bought three floors of the building from the church for 29.5 billion won (US$27.6 million) and sold them back three years later for 37.2 billion won (US$34.8 million) – pocketing the difference of 7.7 billion won (US$7.2 million).

They also claimed that David Cho’s wife Kim Sung-hae, president of Hansei University, has yet to account for 10.5 billion won (US$9.8 million) paid by the church as support for Bethesda Christian University, an institution she runs in the US. The elders also view US real estate purchased by the university for around US$15 million as having been bought with church money.” (Source)

In the corporate statement dated 28 June 2012, Pastor Aries Zulkarnain also states that “no profit was gained by the individuals concerned” (source)

Just highlighting the similarities and at the same time wonder how this has got anything to do with the deeds already done. After all, how would these “reliable sources” know, and can we believe a statement based on unnamed “reliable sources”?

4) Complain is only made by the minority

According to the statement made by the CHC Management Board in 2011, the complain was made by 29 of over 800 elders, hence the implied treatment is that to ignore the minority’s view. If this is not a leading symptom of groupthink, I really don’t know what to call it.

Me thinks that when the minority’s alternate opinion is faced with the majority’s, in a highly charged environment with a charismatic leader, there’s no guessing whose opinion – no matter how truthful or factual will be dismissed. Just think Roland Poon.

Monkey See, Monkey Try to Outdo? Or Flocking Together Birds of Same Feather? 

If we examine the associations Pastor Kong Hee has with his group of  “spiritual fathers” and good friends (let’s not talk about the advisory pastor pair of Phil Pringle and AR Bernard now – will examine them in due time), it is surprising what we can find:

1) Steve Munsey: Regular weekend service and conference speaker in CHC from 2008 to 2011

– Over-indulgence in personal benefits, while failing to make mortgage repayments, resulting in foreclosure order

List of sources:

http://www.nwitimes.com/news/local/lake/munster/local-megachurch-navigates-precarious-path/article_2f3b628a-0f42-5355-a8a0-230b1cb1aab8.html

http://www.salon.com/2013/03/05/indiana_mega_church_faces_foreclosure_partner/

http://www.christianpost.com/news/indianas-largest-megachurch-faces-new-foreclosure-proceedings-90769/

2) Abraham Alex Taneseputra: Considered to be another “Spiritual Father” to Pastor Kong
– accused of embezzling approximately USD500million (4.7T INR)
Sources (google-translated from Bahasa Indonesia, so the language syntax might be off – best read from original source language):

https://www.facebook.com/permalink.php?id=126527234050583&story_fbid=340150022763459 (contains separate articles)

Kong Hee – The Successor to Abraham Alex and Yonggi Cho

In the May 2010 Asia Conference, Dr Cho have laid hands on Pastor Kong and handed the baton to him. It seems that he is the designated successor to Dr Cho, who prophesied that he will outdo his accomplishments.

In another meeting in Indonesia, Alex Abraham also named Pastor Kong to be his successor and prophesied over him that he will have “full vindication” from the Lord. (video recording of service available upon request – link private after being removed)

What is the outcome of such laying on of hands is still to be seen in the coming months, but if there’s any potential of impartation, then whatever is on the hands of the imparter will certainly go to the impartee – might not be a good thing after all.

Bottom line in the Dr Cho case, is that, in the own words of the Management Board, he is “innocent until proven guilty” and all have waited until “due process of the law is complete”. And sorry to note, their “reliable sources” who claimed that this was a “civil suit” have failed them again – it’s a criminal proceeding.

If past history is a good gauge of future occurrences, then everything that was ever said by them just fell to the ground. This is certainly not a happy day for Christianity in Singapore and the world. They can always blame their sources for misleading them, anyway.

Source: UPDATED 23/2/14: Lessons From the Sentencing of 2 Cho’s – How Christian Leaders Justify Responsibilities, Not Under The Table, http://notunderthetable.blogspot.com.au/2014/02/lessons-from-sentencing-of-2-chos-how.html, Friday, 21 February 2014. (Accessed 24/02/2014.)

C3 Asheville Scandal – C3 ‘Pastor’ Nick Dimitris: The Liar (Part 5)

23 Wednesday Oct 2013

Posted by in C3 Asheville Scandal

≈ 9 Comments

Tags

, , , , , , , , , , , , , , , , , , , ,

Recently Dean Sweetman has been commenting on C3 Church Watch. He is the regional director and overseer of the C3 Churches in the Americas. Before reading the below newspaper articles, please familiarise yourself with the background of the scandal that C3 Pastor Nick Dimitris was involved in and how the C3 Church leadership reacted to him.

C3 Asheville Scandal – C3 Pastor Facing Prison (Part 1)
C3 Asheville Scandal – C3 Pastor “Pleads Guilty In Bank Fraud Case” (Part 2)
C3 Asheville Scandal – Sweetmans Do Nothing Against Fraudulent C3 Pastor? (Part 3)
C3 Asheville Scandal – Four “People… Have Pleaded Guilty” Including “[C3] Minister… Nicholas Dimitris” (Part 4)

Back in 2012, there was  a “7 Days of Praise” conference from January 2nd-8th. On the 9th of January, the first article hit the paper about the bank fraud scandal Pastor Nick Dimitris was involved in.

This was when the church first found out about it. Nick Dimitris made the below comment the following Sunday,

“Hey I want to read a statement to you church and give you an update. Emily and I want to update you on some news about our family and the circumstances that has arisen. Over two years ago we purchased property from some folks who are currently under a federal investigation in pursuit for multiple proprieties. These individuals and the bank that provided the financing were allegedly involved in illegal behaviour.

Although we had no knowledge of their misbehaviour, we’ve been required to participate with the federal government in this case since we were the buyers. This has put us in a very difficult position and cooperation was not an option in the matter. Our testimony now is a very critical part of the case against these individuals.

You may have seen information about this in the media. And if so, please realise that the media is very good at misconstruing facts, which is misleading at best. Nevertheless, it sells papers. We cannot control what the media does or how they represent the circumstance.  But let me assure you church, the facts of the matter have been given to our overseers and a team of leaders within the church. And they’re all standing with us in full support and have counselled us to work with the federal government in their process.

Although this is a challenge and a big challenge for us, we will get through it. And this circumstance will not affect the church operations as we move forward. Please pray and stand with us as we build the kingdom and move forward securing location and the future to make accommodations for growth as God builds his church.” – Nick Dimitris, C3 Asheville, 15/01/2012.

Nick Dimitris, on the 15h of January 2012, lied to church members. He claimed, “we had no knowledge of their misbehaviour”. He was heavily involved in the scandal and the courts have charged him guilty.

Fast forward to 2013 and people can see that the front page of the Asheville Citizen Times has the ring leader of the Asheville bank fraud conspiracy, Keith Vinson, in prison today and guilty of all charges.

We have been informed by reliable sources that Keith Vinson had multiple meetings with ‘Pastor’ Nick Dimitris in his office regarding all of these dodgy loans. This was also confirmed by staff and people that worked with Dimitris. 

The above transcript records Nick Dimitris standing in front of C3 Asheville stating that all he did was buy real estate off people who were being investigated. He lied to the church as it was actually a conspiracy.

The transcript says that an oversight team was standing behind him. Stephen Hickson was the oversight for C3 Asheville. He stated plainly that Nick Dimitris should be removed. Dean Sweetman overrode Hicksons decision and Hickson resigned as oversight. The entire deal was a farce and one man (Dean Sweetman) had all the power. Oversight, board, staff, congregation all had zero power other than to leave or resign. In saying this, we would like Dean Sweetman to offer his side of the story.

Dean Sweetman, who visits this website, says he’s been waiting for the final outcome. With some of the things stated in the article below, Dean Sweetman should be very concerned in standing and defending Nick Dimitris. He hasn’t been sentenced yet but this article highlights the fact that all of the guys, including Nick, are guilty.

So what is Dean Sweetman going to do with ‘Pastor’ Nick Dimitris?

The Asheville Citizen Times reports, 

Seven Falls’ Vinson guilty
Developer faces up to 30 years in prison

ASHEVILLE — A federal jury convicted failed Seven Falls developer Keith Vinson on Thursday in what prosecutors described as a illegal conspiracy involving millions of dollars intended to save his “beautiful dream.”

Vinson was found guilty on all charges contained in a 13-count indictment that alleged conspiracy to commit bank fraud, conspiracy to defraud the United States, misapplication of bank funds, wire fraud and money laundering.

Some counts carry penalties of as much as 30 years in prison and a $1 million fine.

Vinson had been free on pretrial release but was jailed Thursday night to wait for sentencing, which will happen at a later date.

“When you risk the funds of federally insured banks through fraudulent loans and transactions, be prepared to pay the price,” U.S. Attorney Anne Tompkins said in a statement. “Today’s outcome will finally bring some justice to those defrauded by Vinson.”

Seven Falls filed for bankruptcy in 2009. The development was planned to accommodate 900 homes and an Arnold Palmer-designed golf course on 1,400 acres, potentially adding $1.25 billion to Henderson County’s tax base.

Vinson had “straw borrowers” take out illegal loans to prop up the development in hopes of preventing foreclosure, Assistant U.S. Attorney Don Gast said in closing arguments to the jury Thursday.

“These were sham transactions,” Gast said in Vinson’s fraud trial in U.S. District Court. “He knew the banks couldn’t loan him any more money. He sent in straw borrowers to borrow on his behalf.

“Mr. Vinson and his co-conspirators turned this sad tale into a crime. This was a conspiracy and a fraud, and it was one that caused two banks to collapse, and that’s what causes taxpayers to have to eat those losses.”

Defense attorney Clark Fischer argued that the government’s case was based on “speculation and conjecture” as well as “guilt by association” with other defendants who pleaded guilty to the scheme.

Vinson didn’t know about or participate in obtaining the illegal loans used to buy lots in Seven Falls, Fischer said.

“The evidence is very clear that Keith Vinson made bad business decisions,” he said during closing arguments Thursday.

“He clearly bit off more than he could chew. Keith Vinson stands before you as a failed businessman, but he committed no crime.”

Jurors deliberated Thursday for more than four hours following eight days of testimony. The evidence included 26 witnesses and hundreds of documents.

Vinson declined to testify, and the defense elected not to put on any evidence. He showed little or no emotion as the judge read the jury’s verdict. Vinson did shake his head and appeared upset as the prosecution motioned to revoke his pretrial release.

Reporters were asked to leave the courtroom for about five minutes as specific details of his income were discussed and his cross-examination with Gast became testy at times.

Assistant U.S. Attorney Mike Savage said Vinson began the venture with a $25 million bank loan to be repaid with money from the sale of lots. But Vinson ran out of money in 2008 when the economy tanked and the sales dried up.

The prosecutor said Vinson and his fellow conspirators came up with a “lot loan scheme” that involved straw borrowers buying lots with loans they didn’t intend to repay. Vinson was unable to borrow more money because of rules designed to limit banks’ exposure to any one borrower.

Gast cited the testimony of real estate investor and codefendant Avery Ted “Buck” Cashion III, who said he often talked with Vinson about the conspiracy to obtain illegal loans.

“All of that fraud involves that man,” said Savage, pointing to Vinson in the courtroom Thursday. “Is there any reasonable doubt? The answer is no.”

But Clark said Vinson never asked anyone to make an illegal loan and that it was Cashion who directed the scheme. Cashion testified that Vinson never told him lie to bank officials.

“It was Buck who was in the banks every day trying to get these deals done,” Clark said. “Keith Vinson was not a conspirator with Buck Cashion. There is no evidence Keith Vinson did anything improperly.”

Clark said Vinson wasn’t present at any loan application or signing.

Ten co-defendants already had pleaded guilty in connection with the scheme, which left Vinson as the only conspirator left to stand trial.

According to the 27-page indictment, Vinson and others “devised and executed various schemes to defraud federally insured banks and others to forestall the failure of their luxury residential development.”

Three defendants who had been scheduled to be tried along with Vinson entered guilty pleas last month. Former Pisgah Community Bank President Thomas ”Ted” Durham Jr. and retired appraiser Aaron Ollis each pleaded guilty to conspiracy to defraud the United States. Accountant George M. Gabler pleaded guilty to withholding information about a crime.

Cashion and real estate investor Raymond “Ray” Chapman Jr. pleaded guilty last month to one count each of conspiracy to defraud the United States.

Durham and former Bank of Asheville President George Gordon “Buddy” Greenwood “conspired to conceal the risks posed by Seven Falls-related loans from their shareholders, auditors and regulators,” court records state.

Greenwood pleaded guilty to bank fraud charges and was sentenced in May 2012 to four years in federal prison. According to court records, Greenwood was involved in illegal loans to Vinson totaling nearly $6.8 million.

Problems with Seven Falls played a key role in the fall of the Bank of Asheville.

The Federal Deposit Insurance Corp. shut down the bank in January 2011 and transferred its assets to Troy-based First Bank because of big losses on loans.

Pisgah Community Bank also failed because of the conspiracy, according to the government.

Source: Clarke Morrison & Romando Dixson, Seven Falls’ Vinson guilty, The Asheville Citizen Times, http://www.citizen-times.com/article/20131018/NEWS/310170091/Seven-Falls-Vinson-guilty, 18/10/2013. (Accessed 20/10/2013.)

C3 Asheville Scandal – Four “People… Have Pleaded Guilty” Including “[C3] Minister… Nicholas Dimitris” (Part 4)

05 Saturday Oct 2013

Posted by in C3 Asheville Scandal

≈ 30 Comments

Tags

, , , , , , , , , , , , , , , , , ,

Recently Dean Sweetman has been commenting on C3 Church Watch. He is the regional director and overseer of the C3 Churches in the Americas. You can read some of his responses to the C3 Asheville scandal in the comment sections of these articles.

Court News Update
The House Of The Rising Sun

Before reading the below newspaper articles, please familiarise yourself with the background of the scandal that C3 Pastor Nick Dimitris was involved in and how the C3 Church leadership reacted to him.

C3 Asheville Scandal – C3 Pastor Facing Prison (Part 1)
C3 Asheville Scandal – C3 Pastor “Pleads Guilty In Bank Fraud Case” (Part 2)
C3 Asheville Scandal – Sweetmans Do Nothing Against Fraudulent C3 Pastor? (Part 3)

Ask yourself this question – in light of Nick Dimitris being charged guilty in 2011, has Pastor and ‘Executive Regional C3 Americas Overseer’ Dean Sweetman handled himself well on this blog and over the scandal in Asheville? Have your say below.

The Citizen Times Reported,

2 plead guilty in Seven Falls case

ASHEVILLE — Two more defendants charged with conspiracy in an elaborate scheme to illegally obtain more than $23 million to forestall failure of the bankrupt Seven Falls development pleaded guilty this week.

Real estate investors Avery Ted “Buck” Cashion III and Raymond “Ray” Chapman Jr. each face up to five years in prison and $250,000 fines when they are sentenced, according to court records.

The defendants pleaded guilty in U.S. District Court in Asheville to one count of conspiracy to defraud the United States. Terms of the plea agreement with prosecutors remain sealed.

Prosecutors allege Cashion and Chapman were involved in a scheme with Seven Falls developer Keith Vinson to have “straw borrowers” buy lots in the development they did not intend to repay. Vinson was unable to borrow more money because of rules designed to limit banks’ exposure to any one borrower.

Vinson and the other remaining three defendants – accountant George M. Gabler, former Pisgah Community Bank President Thomas “Ted” Durham and retired appraiser Aaron Ollis – are scheduled to go on trial Oct. 7.

Source: Clarke Morrison, 2 plead guilty in Seven Falls case, The Citizen Times, http://www.citizen-times.com/apps/pbcs.dll/article?AID=2013130920016, 20/09/2013. (Accessed 05/10/2013.)

The Citizen Times also recently reported,

Vinson arraigned on Seven Falls indictment
New Seven Falls indictment reflects co-conspirators’ pleas

ASHEVILLE — Developer Keith Vinson was arraigned Thursday on charges contained in a new grand jury indictment alleging an elaborate conspiracy to obtain more than $23 million in illegal loans to prop up his failing Seven Falls development.

The indictment replaces one filed last year as a way to streamline Vinson’s trial, which is set to begin Monday in U.S. District Court in Asheville, prosecutors said in court papers.

The superseding bill reduces the number of criminal counts from 48 to 13. The charges include conspiracy to commit bank fraud, conspiracy to defraud the United States, misapplication of bank funds, wire fraud and money laundering.

Some charges carry penalties of as much as 30 years in prison and a $1 million fine.

Prosecutors said the new indictment reflects the fact that all of Vinson’s 10 alleged co-conspirators have pleaded guilty.

“In order to avoid confusing the jury,” the indictment reorders the remaining counts and updates the status of the other defendants, court records state. Since the document doesn’t add any new counts or “substantive allegations,” the government believes there’s no need to delay the trial.

According to the 27-page indictment, Vinson and others “devised and executed various schemes to defraud federally insured banks and others to forestall the failure of their luxury residential development and golf resort in Henderson County, North Carolina, known as Seven Falls.”

Three defendants who had been scheduled to be tried along with Vinson entered guilty pleas last week. Former Pisgah Community Bank President Thomas “Ted” Durham Jr. and retired appraiser Aaron Ollis each pleaded guilty to conspiracy to defraud the United States. Accountant George M. Gabler pleaded guilty to withholding information about a crime.

Magistrate Judge Dennis Howell told Durham and Ollis they each face maximum sentences of five years in prison, while Gabler could spend up to three years behind bars.

Assistant U.S. Attorney Don Gast said that as part of their plea agreements with prosecutors, the defendants agreed to assist the government in the case.

Prosecutors allege Vinson and other defendants were involved in a scheme to have “straw borrowers” buy lots in the development with loans they did not intend to repay. Vinson was unable to borrow more money because of rules designed to limit banks’ exposure to any one borrower.

Seven Falls filed for bankruptcy in 2009. The luxury development was planned to accommodate 900 homes and an Arnold Palmer-designed golf course on 1,400 acres, potentially adding $1.25 billion to Henderson County’s tax base.

Weeds have overtaken the golf course, and overgrowth has made it hard to see the pro shop, one of the few structures on the property, which has suffered severe erosion.

Real estate investors Avery Ted “Buck” Cashion III and Raymond “Ray” Chapman Jr. pleaded guilty last month to one count each of conspiracy to defraud the United States.

Durham and former Bank of Asheville President George Gordon “Buddy” Greenwood “conspired to conceal the risks posed by Seven Falls-related loans from their shareholders, auditors and regulators,” court records state.

Greenwood pleaded guilty to bank fraud charges and was sentenced in May 2012 to four years in federal prison. According to court records, Greenwood was involved in illegal loans to Vinson totaling nearly $6.8 million.

Problems with Seven Falls played a key role in the fall of the Bank of Asheville. The Federal Deposit Insurance Corp. shut down the bank in January 2011 and transferred its assets to Troy-based First Bank because of big losses on loans.

Four other people also have pleaded guilty to being involved in schemes to make or receive straw loans. They are former Pisgah Community Bank officials Robert Craig Gourlay and David G. Smith, minister and real estate investor Nicholas Dimitris and former banker Andrew Quinn Hager.

In the early 1980s, Vinson served just more than two years in prison in Florida for felony convictions for forgery, obtaining property under false pretenses and grand theft.

He was convicted in 1982 in Jacksonville, Fla., according to records from the Duval County Clerk of Court, the Clay County Clerk of Court and the Florida Department of Law Enforcement. Vinson was sentenced to five years and spent 25 months in a Florida prison, receiving parole in February 1984.

Source: Clarke Morrison, Vinson arraigned on Seven Falls indictment…, The Citizen Times, http://www.citizen-times.com/article/20131004/NEWS/310040036/, 03/10/2013. (Accessed 05/10/2013.)

“City Harvest Church’s Kong Hee’s statement regarding charges”

26 Thursday Jul 2012

Posted by in News Articles

≈ 1 Comment

Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

From the todayonline.com website:

City Harvest Church’s Kong Hee’s statement regarding charges

Updated 11:43 PM Jul 25, 2012

SINGAPORE – Founder of City Harvest Church, Kong Hee, has released a statement on the charges brought against him. The following is his statement in full.

“The Prosecution has brought 3 charges against me, which I have carefully considered with my lawyers.

“I do maintain my integrity, and will rigorously defend that integrity against these charges.

“I have and will continue to place my faith and trust in our judicial system. I will explain the facts and circumstances to the Court, and am confident that I will be vindicated.

“Sun and I would like to take this opportunity to thank God for all the people who have blessed us with their love, kindness and prayers during this challenging period of time. We have been tremendously humbled by the support and encouragement from the public, family and friends. We especially thank all those from City Harvest Church and the Christian community at large. They have been a constant source of strength.

“I respect the Court proceedings which are underway, and will not make any comment about the charges until the appropriate time and forum.”

Source: http://www.todayonline.com/Hotnews/EDC120725-0000160/City-Harvest-Churchs-Kong-Hees-statement-regarding-charges Accessed 26 July 2012 1230 hrs

“6th City Harvest Church executive charged”

26 Thursday Jul 2012

Posted by in News Articles

≈ 6 Comments

Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

From the channelnewsasia.com website:

6th City Harvest Church executive charged

By Qiuyi Tan/Claire Huang | Posted: 25 July 2012 0952 hrs

SINGAPORE: Another person has been charged in relation to the City Harvest Church court case.

City Harvest Church’s former finance manager, Serina Wee Gek Yin, was read 10 charges – six related to criminal breach of trust and four to falsifying accounts.

She joins five others, including founder Kong Hee, who were charged last month with misappropriating money from the church’s building fund.

Some S$24 million was allegedly transferred from the church’s building fund account to two companies as bond investments.

These were alleged to be “sham transactions” meant to mask the diversion of the church’s building fund to finance the pop music career of Sun Ho, the wife of Kong Hee.

A further sum of $26.6 million was allegedly used to create the impression that the sham bonds had been fully “redeemed”, a process called “round-tripping”.

Wee, 35, was the first amongst the defendants to arrive in court on Wednesday, wearing a black dress and sunglasses.

She was accompanied by her husband and her lawyers.

Court papers said she was involved in a conspiracy to misappropriate millions of dollars of church funds which were allegedly channelled into bond investments.

Wee allegedly instigated a church accountant to record false entries in the church books on four occasions.

In court with Wee were the five other church members who had been charged earlier.

They are Kong Hee, senior pastor Tan Ye Peng, investment manager Chew Eng Han, finance manager Sharon Tan, and board member Lam Leng Hung.

From as early as 7.30am Wednesday, City Harvest Church supporters gathered at the carpark outside the Subordinate Courts.

They began to stream into the court at around 8am.

The court session lasted all of 15 minutes and every minute was filled with tension.

Supporters of the church packed the public gallery within minutes of the courtroom opening, while people from the media and the defence lawyers of the six accused persons filled the other half of the courtroom.

Kong Hee is represented by Mr Edwin Tong, while the rest have engaged senior counsel.

During the session, prosecution and defence came to agreement that the next mention will be 5 weeks later, on 30 August, so that all cases can be brought up at the same time.

All six are claiming trial and are out on bail of S$500,000 each.

– CNA/cc/ir/wm

Source: http://www.channelnewsasia.com/stories/singaporelocalnews/view/1215562/1/.html Accessed 26 July 2012 1230 hrs