.map(categoryPreference => parseInt(categoryPreference.split(':')[0], 10)); Last July, two executives from the Baptist Foundation of Arizona were convicted of fraud and racketeering after more than 11,000 investors lost more than $550 million perhaps the largest case of Christian fraud in American history. var mps = mps || {}; Second, The Baptist Foundation of Arizona (BFA) was a Southern Baptist charity, which executed an affinity fraud on unwitting worshippers in the Southern Baptist community in Arizona, leading to the largest collapse of a religious financial institution in U.S. history. var d = new Date(); BFA management was highly motivated not to show any losses and to report only Crotts denies any wrongdoing, as he has since the story broke in the Phoenix New Times. These. earlier fraud standard, SAS 82. In 1989, Arizonas The Baptist Foundation of Arizona -- a non-profit fundraiser dedicated to the church. real estate bubble burst and property values declined substantially. Presented a detailed analysis of The Baptist Foundation of Arizona scandal and won first place among five teams. The Baptist Foundation of Arizona (BFA) was a Southern Baptist charity, which executed an affinity fraud on unwitting worshippers in the Southern Baptist community in Arizona, leading to the largest collapse of a religious financial institution in U.S. history. DIRECTOR OF OPERATIONS. accounting treatment desired by management. The BFA now owes investors $200 million more than it did in 1995. Site by Mere. Managing editor at EthicsDaily.com from 2003-2009, Allen wrote more than 1,500 news stories during his tenure. let cStart = document.cookie.indexOf(`${name}=`); Lewis Bear Jr., one of Pensacola's biggest philanthropists and script.setAttribute("src", "//www.npttech.com/advertising.js"); }; Auditors must exchange The foundation was created 51 years ago by the Arizona Southern Baptist Convention to raise money and manage the endowments of Southern Baptist charities, and through its history, the foundation has provided a total of $1.3-million in gifts to church causes. honesty and integrity. Final Defendant in Baptist Foundation Case Pleads Guilty BAPTIST FOUNDATION OF ARIZONA The Baptist Foundation of Arizona (BFA), which Andersen served as auditor, lost $570 million of donor funds. Arizona real estate prices were skyrocketing in the early 1980s. Profits from investments were supposed to be used to fund the churches' ministries and numerous charitable causes. Scandals and stock market crashes . In 1962, Pastor Glen Crotts became the organization's first president. 'subtype' : 'primetime_show' , The BFA opens a web site address www.bfaz.org to answer questions. One of the key provisions of SAS 99 New Era, which solicited investments largely from Christian institutions, folded in 1995 after taking in about $350-million in what had amounted to a Ponzi scheme. "[3] Instead the BFA decided to hide its debt and began a series of dubious activities. The following were among the major GAAP violations alleged by to mitigate the real estate losses. SOCIAL_MEDIA: 8 mps._queue.mpsloaded = mps._queue.mpsloaded || []; purpose was to finance new Southern Baptist churches in Arizona. if (typeof mps.getAd != "function") mps.getAd = function(adunit) { Former Executives of Collapsed Arizona Baptist Foundation Convicted of "These verdicts are a victory for thousands of victims who believed the promises made by the defendants," Attorney General Terry Goddard said in a statement. })(); [14] The court signing off on the settlement meant that the BFA Liquidation Trust had standing should Andersen which was at the time being charged for issues surrounding Enron be unable to make that payment. The foundation's bankruptcy marks one of the biggest financial collapses ever by a charity. "Arthur Andersen's on-again, off-again $217 million settlement with investors in the Baptist Foundation of Arizona (BFA) scandal is on again," reports The Arizona Republic. There are thousands and thousands of people in our communities who have lost their savings or what they counted on for monthly income, says C. Truett Baker, former president of the Arizona Baptist Childrens Services, an agency of the states Southern Baptist Convention. d.setTime(d.getTime() + 60 * 60 * 24 * 30 * 1000); Your investment actually touches the lives of countless numbers while you earn a very attractive interest rate. The Baptist Foundation of Arizona was founded in 1948 to raise money to back up Baptist causes and to pay a return for investors. 15-Year-Old Allegedly Raped, Then Forced to Confess to Church is the cornerstone of a multifaceted effort by the accounting profession to and New Church Ventures $173.6 million. The majority of New Church Ventures var slotid = "mps-getad-" + adunit.replace(/\W/g, ""); } that ALO had a negative net worth of $116 million and had been losing more Learning its principal note issuer was ALO, she checked public records and found its unaudited balance sheet listed liabilities of $109.7 million and assets at minus $6.9 million. typeof mps._gptfirst == "function" && mps._gptfirst(adunit, slotid); credible tips or complaints are received about management fraud, auditors All eyes are on Houston this week, as jury selection gets underway for the long-awaited criminal trials of former Enron leaders Kenneth Lay and Jeffrey Skilling on charges of corporate fraud. The foundations plan -- which is still subject to approval by investors -- includes one other way people might get back some of their money: litigation. At the time of BFAs bankruptcy, Please make sure your computer, VPN, or mps._queue.mpsloaded.push(function(){ July 22, 1999 BFAs board accepts the offers of President Bill Crotts, General Counsel Tom Grabinski and Controller Don Deardorff to relinquish their BFA responsibilities although remain as BFA employees. 'cag[related_primary]' : '' , In the case, it claims that Arthur Anderson gave investors a false sense of security after giving out Anderson issued a clean audit in order to attract new investors. The Cacaces were among 11,000 investors who lost a combined $580 million when the Baptist Foundation of Arizona, or BFA, a registered nonprofit, filed for Chapter 11 bankruptcy in 1999 in. Aug. 5, 1999 BFAs board returned all client checks received since July 22; suspended redemption of all investment products; retained Squire, Sanders, and Dempsey, LLP, an international law firm. SAS 99 In one year, there was an amazing increase in the Baptist Foundation of Arizona (Southern Baptist charity) BFA: Books for Africa (St. Paul, MN) BFA: Body Fat Analysis (biology) BFA: British Fantasy Award (British Fantasy Society; UK) BFA: Baseball for All (various locations) BFA: Botswana Football Association (Botswana) BFA: Blank Firing Attachment: BFA: Benefit Fraud Assessment: BFA Two former executives committed fraud to hide their financial mismanagement of the Baptist Foundation of Arizona, but they didn't line their own pockets, jurors said in convicting them Monday. Baptist Convention. 'is_content' : '1' , (function() { Baptist Charity Involved in Alleged Investment Scam Files for The Arizona Republic reported that Novak had said Andersens circumstances have changed significantly since it was indicted March 14 on federal charges involving its auditing of Houston-based energy trader Enron. own, and both organizations paid BFA substantial management fees to provide } Investors who choose to roll their money into securities may be risking even bigger losses. The news release said the attorney general also will: seek the sequestering of insurance proceeds and other Andersen assets to insure money is available for BFA victims., seek an expedited trial in the BFA lawsuit and a declaration by the BFA of Andersens actions as having been in bad faith., send a letter to victims outlining the legal steps the state will take., seek the revocation of the licenses of the Certified Public Accountants involved in the BFA at Andersen.. Andersen is accused of ignoring a series of warnings while the Baptist Foundation of Arizona (BFA), a nonprofit company that operated much like a bank and offered high interest rates on retirement . } The clause was depicted as a housekeeping measure, Arizona Attorney General Janet Napolitano said, according to the paper, which quoted her as declaring, Arthur Andersen lied., Napolitano, according to a news release from her office, will be seeking severe penalties against Andersen LLP (formerly Arthur Andersen) and others., This is an absolute outrage, Napolitano said. var postLoadFunctions = {}; The investors, many of whom are elderly, apparently were lured by promises of lucrative financial returns and assurances that some of their investment would benefit church ministries. The Baptist Foundation does have a plan to help investors recoup at least a portion of their money. BFAs financial statements from 1984 to 1997. Former Alcor Employee Makes Harsh Allegations Against Cryonics Foundation } BFAs counsel is informed that the state investigation could result in proceedings against individuals at BFA as well as the organization itself. Solely for the purpose of determining whether a transfer or ac- 2023 Southern Baptist Convention. In a Good bank-bad bank scheme, the two companies manipulate transactions to favor the public institution while using the "bad bank" to hide the deficiencies. Money & Investing. {"@context": "https://schema.org","@type": "WebPage","url": "https://www.cnbc.com/id/100000099","keywords": ["CNBC TV","Primetime Shows 2","American Greed","source:tagname:CNBC US Source"]} Since August, the foundation has fired its top three officials, severed ties with the law and accounting firms with which it had worked, laid off 72 of its 127 employees, and closed its two branch offices. Over a period of several years, the management of the Baptist Foundation } While the recently enacted Sarbanes-Oxley Act may only directly impact auditors
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