|
-------- Original Message --------
| From: |
G. Arthur Joy |
| Subject: |
IRS Criminal Investigation |
| Date: |
Fri, 30 Nov 2007 12:19:27 -0700 |
|
REAPING THE WHIRLWIND: The IRS Criminal Investigation of 3ABN
Recently there has been much discussion on Black SDA Forums, etc,
regarding the source of information that led to the IRS Criminal
Investigation. The inference has been made that the source of the
investigation, and therefore the beneficiary of any financial reward,
was either Robert Pickle or Gailon Arthur Joy.
We have watched the unfolding of this investigation for over a year
now and have repeatedly warned various directors and even the New
President of the pending process, each time suggesting they be
pro-active, open and transparent. Later, as the investigation gained
steam we went so far as to suggest that they contact the IRS to work
out a consent decree and fine. That list included a conference
President, the Chairman of the board, and the New President, and we
have borne the ridicule of each one, with disdain in some cases. They
now REAP THE WHIRLWIND.
In the Lawsuit brought against this journalist and Robert Pickle
they have made the allegation of Defamation Per Se, on the basis that
we have made certain allegations regarding transactions that
constitute criminal activity. The transactions are real and
documented, the question of criminality is left with the prosecutors
who have apparently found sufficient cause to open a criminal
investigation.
The entire story really begins in April of 2006 in the trust
services department of 3ABN in balmy southern California, just
outside the gates of Loma Linda University, to some us still
stubbornly known as CME (College of Medical Evangelists). There, the
Director of 3ABN Trust Services, Leonard Westphal, is reported to
have had a significant falling out with the entire staff of the Trust
Services division. The issues related to concerns regarding the
interpersonal skills of Mr Westphal with Trust Services Clients,
certain processes and procedures which the staff found questionable
and ultimately some rather rash statements attributed to Leonard
Westphal that would lead to an EEOC (Equal Employment Opportunity
Commission) complaint by some staff members.
The staff is said to have coalesced into a team determined to
correct the issues. They put together packages of documentation
providing evidence to support their concerns with various documents
and appropriate cover-letters, sending them to Mollie Steenson, Danny
Lee Shelton and Chairman Walter Thompson. Leonard was recalled to the
Illinois Campus in April and while there shot some film footage
promoting trust services. When he arrived back in sunny Southern Cal,
he was followed by Mollie Steenson. Mollie spent most of a week
interviewing all the staffers and at the end of the week Mollie
Steenson is said to have summarily dismissed the support staff,
leaving the alleged perpetrator, Leonard Westphal, in place.
At least some of the alleged victims / disaffected / dismissed
employees filed complaints with the California Dept of Fair Housing
and Employment in Los Angeles which opened a case file #
37A-AS-10394. The allegations are said to have included Racial
Discrimination, Sexual Harassment and Retaliation and sought
compensation for lost wages and emotional distress. Two staffers are
said to have kept a log of abuses and made these available to
Investigators.
A hearing was scheduled for Sept 21, 2006, before the Hearing
Examiner and just before the hearing, attorneys for 3ABN claimed
exemption from State regulation as a religious organization and the
Dept. counsel concurred and referred the file to the Federal EEOC
office, that months later accepted jurisdiction.
In the interim, an attorney for one of the complainants became
certain that some of the activity described and documented may be
violation of the Federal Internal Revenue Service IR Code and is said
to have arranged a meeting with former 3ABN staffers and an IRS
Special agent in the criminal investigations unit in San Bernadino.
There were several meetings as statements were taken and
documentation given. Less than a month later, Special Agent CS of San
Bernadino had transferred the file to Special Agent CM of Fairview
Heights, Illinois, just outside Saint Louis, Missouri.
In October, CM opened a file and began taking statements from
various persons, mostly former 3ABN staffers, and collecting
documentation of various transactions. As their investigation was
under way, I crossed paths on several occasions. Based upon reports
from various people who gave statements or documents, the reported
designation of this particular Special Agent was C--M--, IRS.CI, a
clear reference to the criminal investigations unit.
Shortly after discovering the trail of people who had been
interviewed by IRS.CI we made several efforts to contact the Illinois
Conference President and 3ABN Board member, --- Denslow. During one
contact in late 2006 when the IRS Criminal Investigation came up,
Denslow clearly was skeptical at the notion and indirectly contacted
3ABN's business office to see if there was any IRS investigation
going on and was assured that there was no such thing. Danny made
reference to it later in broadcasts and scoffed at the notion.
Noticeably, the IRS Investigative trail went cold in mid-December
and I did not cross paths for months until late March of 2007. The
reason is unknown, although, the time frame co-incidentally coincided
with the firing of the US Attorney for Illinois by AG Gonzales and the
confirmation of her replacement.
The investigation maintained a steady pace and rumors were afoot
throughout Southern Illinois for several months. The lawsuit was
brought by 3ABN and Danny Lee Shelton against this journalist and
Robert Pickle in April of 2007. And the IRS criminal investigation
plodded on.
Sometime in the late spring we received word that a local politician
was stating that the IRS was after Danny Shelton, but gave no
specifics. It was not until summer 2007 that the investigation moved
from phone statements to the field phase and they began visiting
various former staffers and taking formal statements. However, there
were key parties that had not been interviewed and we were fairly
certain that until those statements were in hand they would not be
complete enough for an actual charge.
Then in late August, we were informed that those key parties were
scheduled for interviews and realized the case would be open to the
public within weeks. We had growing evidence that people were clearly
telling 3ABN administrators that something was up and one party that
had been interviewed told Pastor Lomacang of the interview, and he
was warned it was most likely just an impostor, that no IRS
investigator would have approached him that way.
We were informed that one former director was interviewed and
promptly contacted the 3ABN Board Chairman. Given the influence of
that former director, it would be a safe assumption that he made
other parties of interest aware as well.
As Danny was introducing 3ABN's new President, James Gilley, there
was growing evidence that Danny was grossly aware of an Investigation
and taking steps to disgorge assets that would be problematic such as
the sale of his own 4300 sq ft home and a horse barn for a dozen
horses on 18 acres. He sold the home, according to land records for a
mere $290,000 and held a $220,000 mortgage from James Gilley to
himself. He also was reportedly given title to a 40 acre tract by the
3ABN Board at the fall Board meeting in late September 2007, did not
take title, pulled a permit to build a 2800 square foot house for
$165,000, foundation poured and framed under 3ABN title. Shortly
after this process, The Fjarli Foundation filed a release of the
$200,000 lien taken to help Danny pay Linda for her portion of the
house post divorce. We assume that it is probable that Fjarli did not
know about an individual account that Danny did not disclose until
rather belatedly after Linda's attorney pushed for discovery, and
which Danny kept well hidden from Linda prior to the divorce, that
contained an astounding $190,000. In fact it is reported to have been
established and hidden well from Linda while running up her
liabilities to establish credit well before Dr Arild Abrahamsen came
into the picture. Was he preparing for a divorce??? Of course that
sum is nothing compared to the rather healthy mid to low six figure
account that he reportedly hid from the board of directors at a bank
in Michigan related to Remnant Publications royalties while 3ABN ran
up a $3,000,000 dollar deficit in support of his Ten Commandments
Twice Removed campaign boondoggle and reportedly had to borrow from
trust funds to cover the deficit.
Despite all of this activity, as late as Sept 2007, Danny on 3ABN
Live scoffed at the notion of an IRS investigation and commented that
the IRS doesn't go around behind your back doing investigations but
comes right up to your front door. Just a few days later they did
just that!!!
In Sept we had made contact with James Gilley indirectly and then
directly to warn that he needed to deal with this crisis immediately.
His response was classic head in the sand -- he was hired to deal with
the future and would not deal with the past -- and went on to express
disdain for the premise that those who were trying to destroy 3ABN
would be willing to help save 3ABN. Scorned again!!! Really tough to
get a date with that 3ABN board. Although we are pretty good at
handling rejection by now---what's this, number ten or so???
In late September, after key statements were taken by the IRS
Criminal Investigation unit, this journalist made comment that I
expected that there would be an IRS visit to the campus very shortly.
On Sept 28 we began to hear the first rumors of an IRS visit to the
3ABN campus and how they had taken boxes of documents. In late
October, the Board held an emergency meeting in the Worship Center of
3ABN for a day and a half to deal with the IRS criminal Investigation
Crisis. On Tuesday, November 27, 2007 the 3ABN Board held a special
meeting in St Louis, Missouri, with rumors racing up and down the
halls of 3ABN that the Board had gone to work out a deal with the
IRS.
Unfortunately, the "rumors" so frequently ignored by the 3ABN Board
and Executives have been largely true, and given the sums provable
for personal inurement alone, the consent decree and the fine to
settle such a substantial claim could run seven figures and require
significant improvements in oversight, constituency and governance.
Issues the Chairman has repeatedly asserted they have various clean
bills of health from accountants and attorneys.
And to think that we could have addressed all this and more either
directly with a "reasonable" board or via an ecclesiastical process
last year leaves one dismayed and aghast at the indignant refusal to
listen to the stock-holders in the pews and of course, yours truly,
the nobodies.
Just who the new constituency will be is not yet clear, although the
latest word from the Pacific Union is that Central California
Conference President, Jerry Page, will serve as the new Chairman of
the board and other sources have told us that the Upper Columbia
Conference President, Max Torkelsen, has also agreed to join the
board. It won't be long and the GC will have a controlling interest
on the board that President Folkenberg worked so hard to achieve ten
years ago and was rebuffed by Danny Lee Shelton.
Where Danny fits into the process long term is unclear. He reportedly
remains on the staff as a "consultant" and still retains his office
while 3ABN has put on an addition to include the new President's far
more spacious office complete with his own private bath. Danny is a
frequent host on 3ABN Live and has an agreement to acquire forty
acres from the 3ABN Board that has "cost 3ABN tax money for several
years" according to 3ABN Board Chairman Dr Walter Thompson. Many
observers seem to feel it is business as usual but a board grappling
with the current problems cannot possibly continue business as usual.
Many observers wonder just what the directors must think about Danny's
administration in retrospect with all the problems they must deal with
from this period -- and one must also ask the inevitable question, is
it the devil attacking 3ABN or is 3ABN simply REAPING THE
WHIRLWIND???
Either way, 3ABN will need our prayers and support as never before
as they weather the storm.
Gailon Arthur Joy,
AUReporter
Save3ABN.com
| 
