Men accused of bilking 21 churches - including 3 in Ypsilanti - out of $660,000
Two Maryland men are accused of bilking 21 black churches across Michigan - including three in Ypsilanti - out of $660,000.
Attorney General Mike Cox announced charges today against Michael Morris and William Perkins. They face 10 felonies, including racketeering and conspiracy to commit false pretenses.
Cox said Morris and Perkins offered to provide electronic kiosks free of charge for use in religious education, community events and fundraising. The pastors were told a "national sponsor" would cover all costs in exchange for advertising that would run on the machines. They were then convinced to sign leases on each kiosk.Â
In reality, the churches unknowingly became responsible for the full purchase price of the kiosk, Cox said in a press release.
Leasing companies paid Morris and Perkins approximately $27,000 for each of the kiosks, but because there was no "national sponsor" to make the payments, the leasing companies later demanded payment directly from the churches, Cox said.
In some cases, Cox said, the contracts allowed leasing companies to take funds directly
from church bank accounts, leaving them in economic distress.
Churches in Detroit, Flint, Saginaw, Inkster, Ferndale, Highland Park, Port Huron and Ypsilanti were scammed.
In Ypsilanti, the affected churches were Grace Fellowship Church of God in Christ, 401 S. Adams St.; Mount Olive Church of God in Christ, 436 Hawkins St.; and Whitehead Memorial Church of God in Christ, 1450 Midway Blvd.
Representatives from those churches could not be reached by AnnArbor.com today.
According to the state Attorney General's Office, Morris and Perkins also are accused of targeting more than 160 churches in 13 other states and the District of Columbia.
Cox said Morris and Perkins have not been arrested.
Comments
Speak the Truth
Thu, Oct 8, 2009 : 4:05 p.m.
There are more then 21 churches involved. There are churches right now in California being sued by Balboa Capital and United Leasing due to the Kiosk. If I understand correctly, there are over 1000 churches across the country that are involved with this scam. If the writer of this article contact me, I will be able to provide you with more information.
halflight
Tue, Oct 6, 2009 : 9:33 a.m.
Ed: Thanks for the follow-up on this story. A question that comes to my mind:. How did TBO gain the trust of the local churches? The fact that all of the local victims of the scam are congregations within the Church of God in Christ (COGIC) suggests that the principals of TBO had some connection with COGIC, at least locally, that caused the congregations to trust them.. Here's another story from Port Huron's Times Herald: http://www.thetimesherald.com/article/20091006/NEWS01/910050314. In it, AG Cox says that, "It appears that they had connections in the black church community and they exploited that." That makes sense, but more detail may help others to understand how this happened and avoid scams like this in the future. The Port Huron congregation was also part of the Church of God in Christ, although one of your linked stories also mentioned a victimized Baptist congregation.