And if these donors (I would argue they're really investors, if they're sending money based on the promise of a return -- Isn't that what an investor is?) don't receive the promised "return", are they victims of investment fraud?
This is food for thought. The above statement. I think the WTBTS is guilty, and by it's flip-flopping, is trying to get out of not only emotional fraud, but maybe legal fraud.
http://www.bloggingstocks.com/2007/11/06/senator-plans-crackdown-on-televangelists-could-the-sec-follo/
Senator plans crackdown on televangelists -- Could the SEC follow?
Posted Nov 6th 2007 6:46PM by Zac Bissonnette
Filed under: Rumors, Law, Newspapers
Republican Senator Charles Grassley of Iowa is taking a hard look at some of the best-known televangelists in America, and wants to know whether it's right that they avoid paying any taxes while their ministries contribute immensely to their personal wealth.
According to The Wall Street Journal (subscription required), "Mr. Grassley said his investigation was prompted by complaints from watchdog groups and others that the ministers live in multimillion-dollar homes, travel on private jets and engage in profit-making ventures from their ministries. He said the complaints raised suspicions, "but I would not make a final judgment until I get the story from the ministries."
Among the ministries that Grassley is seeking investigation from are faith-healer Benny Hinn, Creflo Dollar, Joyce Meyer, and Kenneth Copeland.
Hinn may be the least defensible. According to an interview with Florida Magazine in 1991, Hinn replied to a question about his ostentatious display of wealth this way: "What's the big deal, for goodness sake? What am I supposed to do, drive a Honda? ...That's not in the Bible. ... I'm sick and tired about hearing about streets of gold in heaven. I don't need gold in heaven. I got to have it now!"
For an in-depth profile of Mr. Hinn, check out this article from D Magazine.
But having watched a few of these late night ministrimercials, I wonder if the SEC should be taking a look to. Many of these ministers who preach the prosperity doctrine urge viewers to send in money, and promise that they will be rewarded. According to the Associated Baptist Press, "The most manipulative TV evangelists present a simple formula as well, saying God will multiply and return to the giver whatever amount is given to a particular ministry."
Isn't that kind of like selling an unregistered security? Is there any material difference between that and a boiler room broker telling someone an obscure penny stock is going "to da moon"?
In 1982, the Supreme Court stated in Marine Bank v. Weaver, 455 U.S. 551, that a security could be a stock, bond, option, etc., "along with the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits."
Based on that, a strong a case could be made that some of these televangelists really are selling a security when they ask viewers to "plant a seed of faith".
And if these donors (I would argue they're really investors, if they're sending money based on the promise of a return -- Isn't that what an investor is?) don't receive the promised "return", are they victims of investment fraud?
I'd like to see the SEC take a look at some of these infomercials -- It might be a new way to crack down on these charlatans who prey on desperate people.
