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F ederal agents arrested seven key staff of the Tampa, Florida–based Greater Ministries International Church (GMIC) at their homes on March 12, accusing them of fraud, conspiracy, and money laundering in connection with the organization's purported double-your-money investment plan.

Since the early 1990s, the group's controversial "gifting ministry," based on Luke 6:38, had claimed the ability to double its donors' investments in 17 months from the profits of gold and diamond mines in Liberia and international trading in precious metals (CT, Jan. 11, 1999, p. 16). Tens of millions of dollars were invested by thousands of Christian "gifters" all over the country.

The program has been called a Ponzi scheme by state regulators and made the subject of cease-and- desist orders in three states. But in the past month, legal challenges to Greater Ministries became much more serious.

The first blow came March 1 when a Pennsylvania state judge imposed $6.4 million in fines.

Then came the arrests. Agents from the IRS, Secret Service, Post al Inspection, and other agencies all took part in the probe, which produced a 19-page indictment alleging 17 counts of conspiracy to commit wire and mail fraud, and numerous money laundering and other financial offenses.

Those arrested included Gerald Payne, 62, GMIC's pastor and leader; Payne's wife, Betty, 59, Greater's secretary; Don Hall, 57, missions director; David Whitfield, 46, financial director; Andrew John Krishak, 47, disbursements director; James Chambers, 66, a director; and Patrick Talbert, 50, former legal department head.

All except Talbert were still active in Greater Ministries' operations. Talbert left the church after being indicted in 1997 on state fraud charges. His trial on the state charges is pending.

READY TO FIGHT: In Pennsylvania, the massive fines were the outcome of a contempt of court action brought by state Attorney General Mike Fisher (CT, March 1, 1999, p. 21). Judge Eunice Ross ruled last fall that Greater's gifting pro gram was an unregistered investment plan, which violated the state's securities laws. She ordered Greater to cease solicitations for it in the state and refund any gifts made during the term of the injunction.

Ross imposed the fines after Gerald Payne filed an affidavit on February 24 stating that he would not comply with the refund order, because "to do so, I would have to deny my faith in God." State officials also presented evidence that solicitations had continued in the state, both by mail and at a November public meeting in Lebanon, Pennsylvania.

GMIC supporters crammed into Ross's courtroom in Harrisburg, murmuring "amens" when Greater's attorney, Al Cunningham, asserted that the state's actions violated its constitutionally protected exercise of religious freedom.

Responding to a query from CT, GMIC issued a statement on March 4 declaring that "overall the hearing was very successful. Our position regarding the Lord ship of Jesus Christ was made very clear and established for the record. We are ready and willing to 'stand and fight' by taking this case all the way to the United States Supreme Court."

In Florida, law enforcement sources told CT that the federal investigation that produced the March 12 arrests went into high gear in 1997 after a state appeals court ruled that a revised version of Greater's gifting program was not a security and overturned a state cease-and-desist order against it.

The federal indictment charged that GMIC's gifting program is "a fraudulent investment scheme," which used the funds of later investors to repay earlier ones. At the arraignment, Assistant U.S. Attorney Robert Mosakowski said GMIC would be free to continue operating as a church; only the Ponzi scheme was being shut down.

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April 26 1999, Vol. 43, No. 5