PTL: A Year after the Fall

Today “Jim” and “Tammy” are household names. But barely more than a year ago, the Bakkers were known only to the subculture of televised religion. Some 140 television stations carried their daily show; nearly 13 million homes had access to it on cable. Jim and Tammy were on top of the Christian broadcasting world.

Then it happened: Jim Bakker, preempting a major exposé in the Charlotte (N.C.) Observer, announced his resignation from PTL, admitting to a sexual episode in 1980 with church secretary Jessica Hahn. Subsequent investigations into PTL would produce nightmarish evidence of moral and financial misconduct. Last summer a federal grand jury began investigating the financial abuses of Bakker’s PTL. Many believe the result will be indictments of Bakker and others formerly in his inner circle.

The scandal at least temporarily slowed the flow of funds to other television ministries. Even the positive-thinking Robert Schuller has turned to crisis appeals for funds, something he has tried to avoid throughout his ministry. Both Schuller and Oral Roberts have lost viewers, in part due to the negative publicity coming from the PTL scandal. And most observers predict even more damage as a result of last month’s startling revelations of sexual immorality surrounding the nation’s most-watched television evangelist, Jimmy Swaggart (see story on p. 47).

PTL founder Jim Bakker and his wife, Tammy, at one point said their days of ministry might be over. But the Bakkers, now in Palm Springs, California, are about to launch another television ministry. According to Norm Bakker, Jim’s brother, Jim and Tammy have laid ambitious plans for Heritage Springs, a complex similar to PTL’S Heritage USA, “only bigger.” The estimated cost: $2 billion.

Richard Dortch became president of PTL after Bakker resigned. But revelations about his role in the cover-up led to his dismissal. Later, the Assemblies of God revoked his ordination. Today he is president of the Clearwater, Florida-based Life Challenge, a nonprofit ministry Dortch started last June. The ministry serves high-profile people who have undergone major life crises.

Losing Battle?

Television preacher Jerry Falwell immediately succeeded Bakker at PTL, but relations between the two soured when Falwell became aware of allegations of homosexuality and other moral improprieties in Bakker’s past. Under Falwell, PTL filed for bankruptcy. But when a judge ruled last fall that PTL creditors and contributors could submit their own reorganization plan, Falwell and his board pulled out.

Today the mission to save PTL falls largely on the shoulders of David Clark, who last October was appointed by a bankruptcy court as PTL trustee. A former vice-president of marketing at the Christian Broadcasting Network, Clark admits to having reservations about moving to PTL because of concerns for his reputation.

But he ultimately decided that “in spite of all that happened, there was a valid and solid ministry here. There are a lot of good people at PTL for the right reasons.” Clark said PTL, the only allgospel network in America, has “an incredible impact on the nation.”

In the past year, 30 television stations have dropped the daily PTL show; and about 1.5 million fewer homes, according to Clark, have access to PTL on cable. Still, the ministry’s assets are estimated at between $175 million and $200 million. There are, however, some 1,400 financial claims against the ministry, including those filed by the IRS, totaling about $65 million.

On May 2, when direct court supervision of PTL will cease, Clark expects to become PTL president and chairman of a newly appointed, nine-member board. In addition to the nonprofit ministry, the reorganization plan calls for the creation of a seven-member board to govern a profit-making entity, which will supervise activities such as the 2,300-acre Heritage USA theme park.

By May 2, PTL must raise $4.2 million over and above normal operating expenses to cover costs associated with the bankruptcy process. It must come up with an additional $5.5 million by September.

Clark said the key to PTL’S comeback is programming. For a long time, he said, the television program was “a real-estate show, selling lifetime partnerships.” He added, “Having done ten years of research in religious broadcasting, I know that audiences want a program that meets their needs.” Clark said the new PTL is emphasizing inspirational testimonies and music, and Bible teaching.

PTL has challenged all 1,400 claims against it, mainly to buy time to examine each more closely. One of the claims—for $1.3 million—was filed by Jim and Tammy Bakker. Last month in response, PTL filed a $52 million countersuit against the Bakkers and their former top aide, David Taggart. Nearly $6 million of this is for overpayments. The rest is based on PTL revenue losses resulting from mismanagement.

The suit seeks no punitive damages. Clark said PTL would simply like to recover the money. “Our hope is that in the discovery process we can determine whether the money is hidden away,” Clark said. “It’s hard to imagine someone could spend that, especially when housing, cars, and other extras were supplied by the ministry.”

Unanswered Questions

As the new PTL moves forward under Clark, many questions about the old PTL remain unanswered, not the least of which is if there was criminal wrongdoing. The Bakkers, Taggart, and Richard Dortch (see story on page 46) are the names most often mentioned in association with criminal prosecution.

Dortch criticized evangelical leaders for jumping to conclusions about misconduct at PTL “when all the facts have not yet come to light.” He said the jury is still out on the propriety of the actions of those who represented Jessica Hahn in dealing with PTL. For her part, Hahn has implied she feels used by those representatives. She said there is a “missing link” to the story, which she plans to reveal in her third Playboy magazine article.

Also, a recent documentary on public television’s “Frontline” raises questions about the timing of government investigations into the PTL controversy. The documentary strongly suggests that the Internal Revenue Service, the Federal Communications Commission, and the Department of Justice were aware in 1980 of evidence of possible criminal wrongdoing, but held off for political reasons.

Former U.S. Attorney Charles Brewer said on “Frontline” that PTL received special treatment from the justice department. Speculating as to why, Brewer said the “fundamentalist/charismatic Christian movement” has “become a very important component of Republican Presidential politics.”

By Randy Frame.

A Year To Forget

March 19, 1987: Jim Bakker, confessing adultery, resigns from PTL; announces he is turning the ministry over to Jerry Falwell.

April 28, 1987: Richard Dortch, PTL president, is dismissed by Falwell following revelations of his role in a cover-up attempt.

May 4, 1987: Bakker and Dortch lose their credentials as Assemblies of God ministers.

June 12, 1987: PTL declares bankruptcy.

August 1987: A federal grand jury begins investigating PTL records to determine if Bakker and his former top aides are guilty of mail fraud and tax evasion.

September 9, 1987: The Bakkers file a claim against PTL for a minimum of $ 1.3 million in money they say PTL owes them.

October 8, 1987: Falwell and his board resign from PTL a day after a court rules that PTL creditors and partners may file their own reorganization plan.

November 1, 1987: David Clark assumes duties as PTL’S bankruptcy trustee.

December 16, 1987: The Internal Revenue Service, in an effort to revoke PTL’S tax-exempt status, claims the Bakkers and other top PTL officials received almost $15 million in excessive compensation from 1981 to 1987. A judge’s restraining order temporarily prevents revocation of tax-exempt status.

December 22, 1987: The reorganization plan submitted by PTL’S new leadership is approved in bankruptcy court.

February 1, 1988: The new PTL leadership files a $52 million counterclaim against the Bakkers and top aide David Taggart, based on overcompensation and mismanagement.

May 2, 1988: The newly reorganized PTL is scheduled to begin operating; it is also the deadline for raising over $4 million above operating expenses.

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