The Herald Bulletin

Afternoon Update

Local Business

June 23, 2014

Judge approves final fraud repayment to Church of God members

Creditors to receive almost 70 cents for every dollar invested

INDIANAPOLIS – A federal judge has agreed to close a case involving almost $85 million in investment fraud and the Church of God.

On Monday, U.S. District Court Southern District of Indiana Judge David Hamilton approved the final terms of the case and granted permission for properties causing a financial drain on Church of God assets to be abandoned.

Pending any objections and upon completion of the final terms, the case will be closed sometime in September or October.

Unsecured creditors will receive almost 70 cents on every dollar of their investment after repayment, said Terence Banich, an attorney representing the officials overseeing the repayment to investors.

That means someone who invested $100,000 could receive about $70,000 back from their original investment.

According to court documents, Church Extension of the Church of God repaid unsecured noteholders more than $57 million from 2003 to 2009.

Barry Bentley, asset restoration receiver for Church Extension of the Church of God, said the money was paid in 23 different installments to about 3,000 creditors.

A final installment to noteholders of approximately $750,000 has been approved by the court before the case is closed. Any unclaimed funds owed to investors will be turned over to the Indiana Attorney General's Office as unclaimed property.

In the end, records show more than $73 million was recovered after the liquidation of church assets and other funding including $2 million in private contributions. Expenditures, however, including $10 million for professional fees associated with the case reduced the overall repayment of funds to creditors.

Hamilton said, in reviewing his case notes, he felt those involved in the selling of investment notes made several bad and even foolish decisions that were followed by a cover-up. He said the poor judgments resulted in a gap between the assets and liabilities.

“It’s more of the same old cliché, if you find yourself in a hole, stop digging,” he said.

Text Only
Local Business
  • Stone Brewery not locating in Indiana

    Three communities in Indiana, including the city of Anderson, will not be the home of Stone Brewing Co.’s East Coast facility.

    August 21, 2014

  • sheryl myers Daleville gets first look at reservoir project The Imagine Mounds Lake project made a stop in Daleville on Thursday as residents came out to ask questions and see how the proposed reservoir might affect their lives.

    August 20, 2014 2 Photos

  • NWS - HB0821 - Warner Bodies - JC 1 Elwood welcomes manufacturing company Warner Bodies

    The relocation of a manufacturing plant to Madison County brings both revitalization and new jobs to the area.

    August 20, 2014 3 Photos

  • Historic barn tour and workshop Sept. 19 Across Indiana, barns of all ages and types have been successfully rehabilitated for modern farming and other uses. On Sept. 19, Indiana Landmarks offers BARN AGAIN!, a workshop to help owners maximize use of vintage barns.

    August 20, 2014

  • NWS - HB0820 - Kennedy Google- JC 2 Google X captures heart, imagination of AU professor After spending the summer working at Google's secret research laboratory in Mountain View, California, Scott Kennedy has decided to stay.

    August 19, 2014 3 Photos

  • Residential electric rates increasing by 9 percent The electric rates for residential customers of Anderson Municipal Light & Power will increase by 8.96 percent for the final three months of the year.

    August 19, 2014

  • Indiana experiences growth in manufacturing sector Known for its strength in traditional and progressive manufacturing, Indiana gained more than 5,500 jobs in the manufacturing sector last month and has maintaining a 5.9 percent unemployment rate from June.

    August 19, 2014

  • NWS - HB0819 - Mounds Reservoir - JC 1 People get a view of proposed reservoir

    Local residents are being given the opportunity to discuss the benefits and challenges that face the development of the proposed Mounds Lake reservoir.

    August 19, 2014 3 Photos

  • FEA - HB0819 - Mommy Monday - JC 3 Mommy and me time

    Babette Bargo of Anderson said she brought her daughter to Community Hospital’s first Mommy Monday to meet other mothers and children after her sister-in-law told her about the event.

    August 18, 2014 2 Photos

  • Reservoir would reduce tax revenues If the proposed Mounds Lake reservoir becomes a reality by 2021, local taxing units could lose an estimated $1.9 million in revenues.

    August 18, 2014

Stocks
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide