Showing posts with label Word of Faith Fellowship. Show all posts
Showing posts with label Word of Faith Fellowship. Show all posts

Aug 7, 2025

CultNEWS101 Articles: 8/7/2025

Book,  Osho,  Rajneesh, Obituary, John Huddle, Word of Faith Fellowship, Tibetan Buddhist, Book, Asaram Bapu

" In the by Sarito Carroll of Enlightenment is the gripping story of Carroll's childhood inside the Osho Rajneesh cult—one of the most controversial spiritual movements of the 20th century. While in the commune, Sarito was submerged in a world where devotion and freedom clashed with manipulation, sexual misconduct, and neglect. This was the life she knew until the movement collapsed amid scandal and criminal charges in 1985, when sixteen-year-old Sarito was thrust into a society she knew little about.

Now, decades later, after battling shame, fear, and self-doubt, Sarito breaks her silence to expose the abuse, exploitation, and disillusionment she endured in the Rajneesh community. She stands up against this formidable spiritual institution that promised liberation while concealing dark secrets behind its facade of love and joy. With raw honesty and heart-wrenching clarity, she recounts her fight to reclaim her identity, confront the community's betrayal, and heal on her own terms. It is a powerful story of survival, resilience, courage, and hard-won freedom."
John Huddle lived in Western North Carolina. In addition to writing his blog, religiouscultsinfo.com, He serves as a board member of the "Faith Freedom Fund," a non-profit group helping survivors from high demand religious groups. Since publishing "Locked in," John has become a prominent figure in leading the fight to expose the practices of Word of Faith Fellowship (WOFF) in Spindale, NC. Labeled an "activist" and "critic" of this group by media sources, he has continued to take on new challenges such as organizing and speaking at public meetings, questioning government officials and chronicling the legal troubles for this controversial church. The journey continues with State and Federal investigators now conducting investigations on several fronts involving the leaders of this church. Look for John's next book revealing the struggles and victories after leaving WOFF, expected to be published by December 2018.
" ... After nearly thirty years as a Tibetan Buddhist, Chandler snapped out, and realized she was part of a thousand-year-old Lamaist cult that uses mindfulness, and other contemplative practices, along with ancient and sophisticated techniques, to recruit, commit and entrap westerners into the Tibetan Lamaist medieval world.

Chandler had a front row seat to the Tibetan Lama hierarchy and how it operates, having taken care of the son of Chogyam Trungpa, the notorious 'crazy wisdom guru.' This gave Chandler exposure to not only Chogyam Trungpa's Vajradhatu Shambhala inner workings, but also to dozens of other, interconnected Tibetan lamas, whose ideas and amoral values have been infiltrating our western institutions, by stealth, for the last forty-plus years.

Deep inside the Lamaist Tantric net, Chandler found that all Tibetan lamas teach from the same Vajra-master, coercive plan; whether they call it Shambhala, Mahamudra, Vajrayana, Dzogchen or Mahayana Buddhism. It is all the same: a Tantric cult of mass manipulation and thought-control, designed to undermine the reasoning abilities of educated westerners, change their values, perceptions and behaviors, and turn them into obedient devotees and change agents for the lamas; no longer able to think and act for themselves.

If someone leaves Tibetan Buddhism and dares to be publicly critical, that person is labeled as 'crazy' or a 'liar'; their articles or books discredited; until their message is drowned out. Inside the Lamaist groups, they are vilified and called out as a "heretic." This seals any negative information from getting in or out.

Chandler takes the reader through her own experiences, from her first mindfulness meditation weekend at a Boston Shambhala meditation center through her next decades; studying with many celebrity Tibetan Lamas and their western inner circles; drawn deeper and deeper into their Tantric net. When she finally breaks free, she realizes educated westerners have been purposely targeted to give the lamas currency and cover, as they are slowly turned into irrational members of a regressive, medieval and dangerous cult, while simultaneously believing they are at the cutting edge of enlightened consciousness."

World Religion And Spirituality Project: Asaram Bapu
" ... Asumal Sirumalani Harpalani was born in Birani, Sindh Province (currently in Pakistan) on April 17, 1941. His father founded a coal and wood selling business. In 1947, following the partitioning of India and Pakistan, Asumal's parents moved to Ahmedabad. After Asumal's father died, he dropped out of school and took up odd jobs. In 1956, he married Laxmi Devi, and the couple had two children, a son Narayan and a daughter Bhartishree.

During the 1960s Asumal's life moved in a more spiritual direction. He began learning meditation and Yoga from Leelashah Baba, a respected sadhu in Adipur (Gujarat), although it is unclear whether he ever formally became a disciple. During this period he also assumed the name Asaram. He settled in Ahmedabad in 1971 and created an Ashram by 1973. He quickly attracted a large following and began building a network of ashrams, gurukuls and mahila kendras (camps to educate women on their rights). His following included poor villagers but also celebrities and political leaders. By 2013, he claimed a network of 400 ashrams, forty resident schools in eighteen nations, and 40,000,000 followers. His following developed most rapidly in northern India, in part because his discourses were delivered in Hindi. He adopted the title of Sant Shri Asharamji Bapu.

While Asaram's organizational network and his personal popularity were growing rapidly, so was his controversiality. There were allegations of sexual impropriety that stretched back to the late 1990s and ongoing controversy over land-grab schemes by his followers as they built his organizational network. There were controversial deaths of two students at one of his schools. He also made comments about a brutal rape case in 2012 that gained him national notoriety. However, it was in 2013 when he himself was arrested on rape charges that Asaram and his organization faced a transformative moment."

Jul 31, 2025

Remembering John Early Huddle

Remembering John Huddle: a parent, an ex-member, an activist, an author, and a truth-teller.

John Huddle lived in Western North Carolina. In addition to writing his blog, www.religiouscultsinfo.com, He serves as a board member of the “Faith Freedom Fund,” a non-profit group helping survivors from high demand religious groups. Since publishing “Locked in,” John has become a prominent figure in leading the fight to expose the practices of Word of Faith Fellowship (WOFF) in Spindale, NC. Labeled an “activist” and “critic” of this group by media sources, he has continued to take on new challenges such as organizing and speaking at public meetings, questioning government officials and chronicling the legal troubles for this controversial church. The journey continues with State and Federal investigators now conducting investigations on several fronts involving the leaders of this church.


Obituary

John Early Huddle, III, of Marion, North Carolina passed away peacefully on July 29, 2025, surrounded by family and friends. He was 64 years old.  

In addition to his grandparents, he was preceded in death by his parents, John Early Huddle, Jr. and Darlene Bays Eichler, and a nephew, Joshua Forbes. He is survived by his stepmother Joyce P. Huddle; his children Sarah VanCamp (Kyle) and Michael Huddle (Debora); grandchildren, Gregory, Elena, and Catherine; siblings, Rebecca A. Forbes (Ryan), Robin H. Sims (John, dec.), and Chris L. Huddle (Shawna); nephews and nieces, Jennifer Addison (Jason), Heather Jo Boyd (Alex), John Henry Planer (Holly), J. Tucker Bishop (Bri), Vanessa Brandenberger (Jon), and Ashley Huddle; many aunts, uncles, and cousins; special friends: Hoffmaster family-Jenny, Maurice, Renee, David, and families; companion, Martha Zimmerman and close friend, Megan Hoffman.  

John graduated from Pulaski County High School in 1979 and attended the College of William and Mary. He will be remembered as a kind and thoughtful man whose presence left a lasting impression on everyone he met. With his gentle spirit and warm smile, he had a gift for making others feel heard and valued. A loyal friend, compassionate listener, and tireless advocate for truth, John faced life’s challenges with quiet strength, a deep love for his family, and his enduring sense of humor. From school days to reunions, office friendships to longtime neighbors, his legacy of kindness and integrity will live on in the hearts of those who knew him. 

A funeral service will be held on August 2, 2025 at 2:00 PM at Belspring United Methodist Church, 7639 Stillwater Dr., Belspring, VA. 24058. A graveside service will follow at Brown Cemetery in Belspring. A Celebration of Life will be held on August 23, 2025 at Beam Funeral Service Chapel, 2170 Rutherford Rd., Marion, NC 28752. In lieu of flowers, donations may be made in John’s memory to the Parkinson’s Support Group, McDowell County Senior Center, 100 Spaulding Road, Marion, NC 28752 or the Michael J. Fox Foundation for Parkinson’s Research. 

The Huddle family is in care of Beam Funeral Service & Crematory of Marion, North Carolina.




Locked in pulls back the thick curtain holding many of the secrets inside Word of Faith Fellowship. This small mountain church in Spindale, NC first came to the national stage in 1995 when Inside Edition aired video which included their signature practice of blasting deliverance prayer. As the first published survivor memoir of this group, Locked in follows John’s journey of hope to live in “God’s ways” by moving his family to Spindale, only to discover the cult’s unique doctrines and practices destroy the family he loves and cherishes. Locked in examines these group practices including communal living, deliverance prayer, fund-raising, as well as revealing the essential beliefs and many unwritten rules governing each member.

May 6, 2020

CultNEWS101 Articles: 5/6/2020




Word of Faith, neo-Nazi, KKK, NXIVM, Valley of the Dawn 
"A former member of a highly controversial Rutherford County church was arrested Sunday afternoon and charged with breaking into the home of a church leader while carrying a gun.

The break-in follows weeks of heightened tensions over whether the highly secretive Word of Faith Fellowship is hiding an outbreak of COVID-19, which critics say endangers this Foothills county of 67,000 residents, 70 miles west of Charlotte.

On Monday, Word of Faith's attorney told the Observer that three church members who had the coronavirus illness have died and that the church does not know how many other members may be infected."

"The Elkhart County Indiana Prosecutor's Office said a pilot project that would install a surveillance system has been put on hold after it was revealed that the founder of the company — called "Banjo" — was formerly involved with neo-Nazi groups and the KKK.

The Banjo system reportedly has the ability to monitor traffic cameras, first responder locations, 911 calls and social media.

The prosecutor's office said the project was put on hold for further review — not canceled outright — because the company's founder, Damien Patton, has expressed regret and remorse about his past.

Patton's past has also become an issue in Utah, where the attorney general has also put a state contract on hold.

"Elkhart County Prosecuting Attorney Vicki Elaine Becker believes in the concept of rehabilitation and the ability of a person to overcome their past with many years of positive actions and changes in thought patterns and priorities," read a press release issued Wednesday. "Some people are successful, many are not. Recognizing this, the Office of the Prosecuting Attorney will be reevaluating the appropriateness of partnering with Banjo until further information is obtained."

Becker did not question the value of the Banjo system but said there could be issues of "trust" because Patton did not disclose his past.

According to a story by Matt Stroud of OneZero Media, Banjo CEO and co-founder Damien Patton, 47, pleaded guilty in 1992 for assisting a KKK leader in a drive-by shooting of a Jewish synagogue. It was a story initially reported by The Tennessean in 1992."

"The sentencing of NXIVM leader Keith Raniere is now firmly scheduled for June 23 — one way or another.

And one way may be a virtual court appearance due to the COVID-19 pandemic.

The 59-year-old Raniere, a former Halfmoon resident known within his cult-like NXIVM organization as "Vanguard," had been scheduled to be sentenced in U.S. District Court in Brooklyn on May 21."
" ... Several thousand members of the religion known as the Valley of the Dawn gather in silence at a temple outside the Brazilian capital of Brasília. They come from around the world to "synchronize their spiritual energies."

As the Sun's first rays appear over the horizon, the members, in fairy-tale-like garments, chant their personal "emissions" – a ritual invocation of cosmic forces that fills the air with a collective drone.

Valley of the Dawn adherents "manipulate" cosmic energies to heal themselves and others. They describe themselves as members of a spiritual tribe called the Jaguars, who are the reincarnated descendants of highly advanced extraterrestrials sent by God some 32,000 years ago to jump-start human evolution.

Normally, the May 1 Day of the Indoctrinator ceremony attracts Jaguars from across the globe, as well as spectators and journalists."

" ... The Valley of the Dawn has grown steadily since the founder's death in 1985, spreading from Brazil to Portugal, the United States and England.

Outsiders often dismiss the Valley as a cult. A BBC journalist who visited the community in 2012 called it a "refuge for lost souls."

But my research offers an alternative explanation of why some people might find the Valley of the Dawn appealing: It offers a more progressive, egalitarian version of modernity.

Brazil, with its corruption scandals and savage social inequalities, has not always lived up to the motto "order and progress" as inscribed on its national flag. It is not alone. Across much of the West, the promise that modernity would bring higher living standards, greater personal freedoms and a more just society remains largely unfulfilled.

Instead, the 21st century has created low-wage jobs with little security and government institutions that too frequently benefit the richest and most powerful. Individualism has supplanted community, leaving people increasingly isolated and lonely – and that was before coronavirus and social distancing.

The Valley of the Dawn, in contrast, offers a collective life that members find gratifying."



News, Education, Intervention, Recovery

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Feb 18, 2020

Broken Faith: Inside the Word of Faith Fellowship, One of America's Most Dangerous Cults

Broken Faith: Inside the Word of Faith Fellowship, One of America's Most Dangerous Cults
Available on Amazon

"In 1979, a fiery preacher named Jane Whaley attracted a small group of followers with a promise that she could turn their lives around.

In the years since, Whaley’s following has expanded to include thousands of congregants across three continents. In their eyes she’s a prophet. And to disobey her means eternal damnation.

The control Whaley exerts is absolute: she decides what her followers study, where they work, whom they can marry—even when they can have sex.

Based on hundreds of interviews, secretly recorded conversations, and thousands of pages of documents, Pulitzer Prize winner Mitch Weiss and Holbrook Mohr’s Broken Faith is a terrifying portrait of life inside the Word of Faith Fellowship, and the harrowing account of one family who escaped after two decades."

https://www.amazon.com/Broken-Faith-Fellowship-Americas-Dangerous-ebook/dp/B07RPB2XCR

Book reveals new details about NC’s infamous Word of Faith Fellowship ‘cult’

Broken Faith
News and Observers
February 5, 2020







"Two award-winning journalists have written a book revealing new details about an infamous North Carolina church — often characterized as a cult — that has been at the center of federal criminal investigations and the subject of numerous news reports and true crime documentaries.

“Broken Faith: Inside the Word of Faith Fellowship, One of America’s Most Dangerous Cults” by Associated Press investigative reporters Mitch Weiss and Holbrook Mohr takes a close look at the Spindale church and its head, Jane Whaley, and paints a chilling portrait of life inside the secretive organization. Weiss is also a former Charlotte Observer reporter.

Word of Faith Fellowship, near Rutherfordton, has been the center of attention for decades, after former members reported allegations of disturbing mental and physical abuse of children (and babies), intimidation and separation of children from parents and forced labor. In 2018, four congregants faced federal charges connected to an unemployment benefits scheme."

https://www.newsobserver.com/news/local/article239990763.html

Feb 5, 2020

Book reveals new details about NC’s infamous Word of Faith Fellowship ‘cult’


FEBRUARY 05, 2020  

Former members of the Word of Faith Fellowship claim to the Associated Press that they were victims of years of abuse from the church. 
Two award-winning journalists have written a book revealing new details about an infamous North Carolina church — often characterized as a cult — that has been at the center of federal criminal investigations and the subject of numerous news reports and true crime documentaries.
"Broken Faith: Inside the Word of Faith Fellowship, One of America's Most Dangerous Cults" by Associated Press investigative reporters Mitch Weiss and Holbrook Mohr takes a close look at the Spindale church and its head, Jane Whaley, and paints a chilling portrait of life inside the secretive organization.
Word of Faith Fellowship, near Rutherfordton, has been the center of attention for decades, after former members reported allegations of disturbing mental and physical abuse of children (and babies), intimidation and separation of children from parents and forced labor. In 2018, four congregants faced federal charges connected to an unemployment benefits scheme.
The church was the subject of a damning six-part A&E documentary series that was supposed to air in November 2018 — a series that never ran because it was blocked by Word of Faith attorneys.
Word of Faith Fellowship, which has thousands of congregants across three continents, has denied wrongdoing, but there are disturbing accounts by those who have "escaped" the cult that indicate otherwise.

CANCELED 'WORD OF FAITH' DOCUSERIES

In November 2018, on the day the much-anticipated "The Devil Next Door" documentary series was set to premiere, it was suddenly pulled from the A&E lineup.
At the time, A&E released a statement saying that the postponement was due to the need for additional reporting.
But Josh Farmer, an attorney and spokesman for Word of Faith, told The News & Observer via email at the time: "The postponement occurred after we discovered some serious ethical problems with paying participants." Farmer noted that the network canceled another documentary series, "Escaping the KKK," two years earlier over the same issues.
While A&E described the broadcast disruption as a "postponement," the series never aired.
But in July 2019, the Investigation Discovery program "People Magazine Investigates: Cults" devoted one episode to the church. The program described the episode in this way: "Lost souls flock to North Carolina where they're promised deliverance from demons by Pastor Jane Whaley at the Word of Faith Fellowship. However, deliverance comes at a price, including beatings, medical horrors and psychological abuse."
The book by Weiss and Mohr reveals that the Word of Faith Fellowship hired a law firm with ties to the Church of Scientology to block the A&E broadcast.

'BROKEN FAITH' REVEALS NEW INFORMATION

The Associated Press, led by the reporting of Weiss and Mohr, has covered the happenings at Word of Faith for many years.
But "Broken Faith," published by HarperCollins/Hanover Square Press, touts new revelations.
Among the new information in the book:
▪ a murder-for-hire plot meant to silence a public official.
▪ a senior member of the church told followers that he had access to sodium cyanide (the poison used in the Jonestown massacre).
▪ Jane Whaley paid off law enforcement to cover up abuse and rape by church members.
▪ a former church member was beaten by congregants in an effort to expel "homosexual demons."
▪ an international gem heist was orchestrated to fund a new sanctuary.
The book also discloses that a church member currently serves as a faith leadership outreach leader under President Trump.
The reporting by Weiss and Mohr is the result of interviews with more than 100 former members of the church, their relatives, advocates, law enforcement officials and others. The two reviewed more than 100 hours of video and audio recordings secretly taped by former members, legal documents and a sworn deposition from 2017 by Whaley.
They also worked from a 315-page report from the North Carolina State Bureau of Investigation chronicling allegations of abuse — a report never publicly released.
The release date for the book is Feb. 18.

Dec 3, 2018

Head of secretive North Carolina sect named in fraud scam

Word of Faith Fellowship church leader Jane Whaley talk to members of the media as husband Sam listens during a news conference in Spindale, N.C., Thursday, March 2, 1995. World of Faith Fellowship Inc., a church a judge recently described as trying to ``exercise complete control'' over its members has built a network of local businesses and started to become a player in politics. (AP Photo/Chuck Burton)
MITCH WEISS and HOLBROOK MOHRFOX Carolina
November 26, 2018

The leader of a secretive church in North Carolina has been named in federal court records as someone who “promoted” an unemployment fraud scheme involving businesses owned by members of her congregation.

Jane Whaley, leader of the Word of Faith Fellowship, was named in a document filed Thursday in U.S. District Court in Asheville that describes a fraud conspiracy charge faced by one of her trusted advisers, Kent Covington.

In a 2017 investigation into claims of physical and emotional abuse at the church in Spindale, The Associated Press reported that authorities were looking into the unemployment claims of congregants and their businesses.

Since then, four people have been charged in the case, including two who have pleaded guilty.

Whaley was named in a document that describes the fraud conspiracy charge faced by Covington, a church minister. His lawyer, Stephen Cash, said his client was expected to plead guilty in the case next week.

But, he added, Covington’s pleading is not an “admission that Jane Whaley instructed him to act or that Kent’s actions were designed to afford some benefit to Mrs. Whaley or Word of Faith Fellowship as an organization. This is not the case, and Kent would dispute any such assertion or characterization.”

Covington and Diane Mary McKinny, both of Rutherfordton, North Carolina, were indicted in June on one charge each of conspiracy to commit mail fraud.

Prosecutors say Covington and McKinny decided to lay off employees at one of Covington’s businesses so they could collect unemployment benefits in 2008 when the company was struggling financially. But the employees continued to work at the company, Diverse Corporate Technologies. They later put the scheme into place at Covington’s other business, Integrity Marble & Granite. Covington then implemented a variation of the scheme at Sky Catcher Communications Inc., a company he managed, prosecutors say.

After starting the scheme at Diverse Corporate Technologies, Covington, McKinny, Whaley and others “promoted variations of the scheme to other businesses,” the court filing said.

“These conspirators promoted the scheme as a way for (the church) community businesses to weather the financial downturn,” the document said.

Cash said his client made “false statements” to the North Carolina Employment Security Commission, which oversees unemployment benefits.

“He accepts responsibility for his actions and continues to cooperate fully with the government,” Cash said.

Whaley’s attorney, Noell Tin, said Whaley was not involved in the case.

“Ms. Whaley strongly denies any insinuation that she was somehow involved in Mr. Covington’s offense, as does Mr. Covington,” he said.

The scheme resulted in more than $250,000 in fraudulent claims between November 2008 and March 2013, according to court records. The conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine.

Most employees were members of the Word of Faith Fellowship. Prosecutors had previously said Covington used his leadership position in the church to force them to comply.

“This is a step in the right direction,” said Benjamin Cooper, an attorney and former Word of Faith Fellowship member who has been pushing federal authorities to investigate the church’s activities. “But there’s still more that needs to be done. We hope they continue. Too many people are being hurt.”

Covington spent eight months in a North Carolina prison in 1974 for breaking and entering, as well as larceny, and later joined the church.

His wife, Brooke Covington, is one of Whaley’s most trusted confidants.

Brooke Covington is facing unrelated state charges that she and other members of the church assaulted a congregant in an effort to expel his “homosexual demons.”

Two other ministers, Jerry Gross and his son, Jason Lee Gross, pleaded guilty on May 25 to wire fraud related to unemployment benefits at a podiatry clinic in Forest City, North Carolina.

Former members said Whaley promoted the scheme as “God’s plan” to help the businesses survive the economic downturn and keep money coming into the church.

The unemployment allegations were uncovered as part of the AP’s ongoing investigation into Word of Faith, which had about 750 congregants in rural North Carolina and a total of nearly 2,000 members in its branches in Brazil and Ghana and its affiliations in other countries.

In February 2017, the AP cited 43 former members who said congregants were regularly punched and choked in an effort to beat out devils. The AP also revealed how, over the course of two decades, followers were ordered by church leaders to lie to authorities investigating reports of abuse.

AP later outlined how the church created a pipeline of young laborers from its two Brazilian congregations who say they were brought to the U.S. and forced to work for little or no pay at businesses owned by church leaders.

Those stories led to investigations in the U.S. and Brazil. In March, Brazilian labor prosecutors filed suit to close one of the churches and its school in Sao Paulo, saying its leaders “reduced people to a condition analogous to slavery.”

https://www.foxcarolina.com/news/head-of-secretive-north-carolina-sect-named-in-fraud-scam/article_b8e17bb2-f192-11e8-a308-63f0db4ecc9f.html

Jun 13, 2018

Company Owner And Bookkeeper Indicted On Wire Fraud Conspiracy Charges In Connection With Unemployment Insurance Benefits Scheme

U.S. Attorneys » Western District of North Carolina


FOR IMMEDIATE RELEASE
Thursday, June 7, 2018


ASHEVILLE, N.C. – A grand jury sitting in Asheville returned a federal criminal indictment today, charging Marion Kent Covington, 63, and Diane Mary McKinny, 65, both of Rutherfordton, N.C., with a conspiracy to commit wire fraud in connection with an unemployment insurance benefits scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Rafiq Ahmad, Special Agent in Charge of the Department of Labor-Office of the Inspector General, join U.S. Attorney Murray in making today’s announcement.

According to allegations contained in the indictment, at all relevant times, Covington was the president, owner, and registered agent of Diverse Corporate Technologies, (“DCT”), a plastics manufacturing company located in Rutherford County, N.C. McKinny worked for Covington at DCT. The indictment alleges that, in late 2008, DCT was struggling financially, so the co-defendants developed and implemented a scheme to defraud the State of North Carolina by placing DCT employees on Unemployment Insurance Benefits (“UI Benefits”), while those employees continued to work at the business in excess of what was permitted by the program eligibility requirements. The indictment alleges that the scheme allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability.

The indictment alleges that in November or December 2008, in order to accomplish the scheme, the co-defendants “laid off” nearly all of the employees at DCT. The co-defendants provided some employees with separation notices and instructed them as to how to file their own claims for UI Benefits. Those employees received UI Benefits based on their asserted “totally unemployed” status. Next, the indictment alleges, Covington called a business meeting at DCT and informed the remaining DCT employees that the company could no longer afford to pay their wages, and that they therefore would be placed on UI Benefits, but that Covington expected the employees to continue to work at DCT, just as they had before they were laid off, in order to help the business survive. The indictment alleges that Covington used his position of authority within his church community, which included most, if not all, of the employees at DCT, to coerce the employees to comply. Around the same time, McKinny filed claims for UI Benefits on behalf of the employees whom Covington had required to continue working at DCT while they received UI Benefits. In filing the necessary information for UI Benefits, McKinny certified the claimants’ initial and continuing eligibility to receive those benefits.

The indictment alleges that, at Covington’s direction, at least five of the employees for whom McKinny made claims for UI Benefits then continued to work at DCT on a full-time or near-full-time basis while collecting UI Benefits every week. Through the operation of the scheme outlined above, the co-defendants obtained more than six months of free labor for DCT, paid for by the government, instead of by the business itself.

The indictment further alleges that by September 2009, several other businesses run by members of the same church community to which Covington and McKinny belonged, and employing many members of that same church community, were facing their own financial struggles related to the economic downturn. According to the indictment, the co-defendants then began to promote the fraud that they had devised at DCT to other members of the church community.

In addition to promoting the scheme to other business owners, Covington implemented the scheme a second time, with McKinny’s help, at Integrity Marble, Inc., d/b/a Integrity Marble & Granite, another for-profit company that Covington owned and managed, in or about March of 2010. Covington then implemented a variation of the scheme a third time at Sky Catcher Communications, Inc., a company he managed, in or about May of 2011.

In total, between November 2008 and March 2013, the scheme resulted in over $250,000 in fraudulent claims for UI Benefits by employees who continued to work full-time or near-full-time at businesses owned or managed by co-conspirators, and who were therefore ineligible to claim those UI Benefits.

Covington and McKinny are charged with conspiracy to commit wire fraud affecting a financial institution, which carries a maximum prison term of 30 years and a maximum fine of $1,000,000. They have been ordered to appear on a summons in federal court.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.

In making today’s announcement U.S. Attorney Murray commended HSI, SBI, and the Department of Labor for their investigation of the case. U.S. Attorney Murray also thanked District Attorney Ted Bell, of the Rutherford County District Attorney’s Office, for his assistance and support throughout the investigation.

Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.

May 30, 2018

Father, Son Plead Guilty to Fraud Involving Secretive Sect

Word of Faith Fellowship Church
The Associated Press
May 25, 2018

ASHEVILLE, N.C. — A father and son who belong to a secretive evangelical church in North Carolina pleaded guilty Friday to federal criminal charges in an unemployment benefits scheme that former congregants have said was part of a plan to keep money flowing into the church.

As part of an ongoing investigation into physical and emotional abuse at the Word of Faith Fellowship Church in Spindale, North Carolina, The Associated Press reported in September that authorities were looking into the unemployment dealings of congregants and their businesses.

Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, pleaded guilty to one count each of wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. They were charged earlier in May. Both men are pictured on the Word of Faith Fellowship's website under a section for pastors and ministers, though the church was not mentioned during the hearing.

Other than the men's spouses, no church members attended Friday's hearing in federal court in Asheville.

Jerry Gross owned the Foot & Ankle Center of the Carolinas in Forest City, North Carolina. His son worked there, managing business operations, including payroll and personnel decisions, according to court records.

As part of his plea deal, Jerry Gross agreed to cooperate with the government. The criminal investigation into Word of Faith is ongoing. Former church member John Huddle of Marion said Friday he was interviewed several months ago by state criminal investigators and U.S. Department of Homeland Security agents. He said he was asked not to discuss the topic of his interview.

The U.S attorney's office said the Grosses' scheme netted nearly $150,000 for which employees were not entitled from September 2009 to March 2013. The two made it appear that they had laid off employees, including themselves, making them eligible for unemployment benefits. But prosecutors said the workers remained on the job.

"The scheme enabled Foot & Ankle Center to survive the economic downturn during those years by creating a free labor force — one paid for by the government, not the business itself," court records said.

Both men were released on $200,000 unsecured bonds. Jerry Gross was ordered to forfeit about $43,000 that prosecutors said was obtained illegally, while his son agreed to forfeit about $38,000, according to court documents. They surrendered their passports and were ordered to give up any guns they have. They also were instructed not to discuss the case.

AP cited 11 former congregants in September who said dozens of church members filed bogus claims at various times at the direction of church leaders. Interviews with former followers, along with documents reviewed by the AP, indicated at least six companies owned by church leaders were involved with filing fraudulent unemployment claims between 2008 and 2013. Most of those businesses' employees are congregants, the AP found.

Former church member Randy Fields told the AP that his construction company faced potential ruin during the struggling economy, so he pleaded with church leaders to reduce the amount of money he was required to contribute every week.

Fields said church founder Jane Whaley proposed a plan that would allow him to continue contributing at least 10 percent of his income to the church while helping his company survive: He would file fraudulent unemployment claims on behalf of his employees.

"The justification was to keep God's businesses afloat. That was the reason. 100 percent, for the people who were doing it, they didn't feel like they were necessarily defrauding anybody," said Vicenta del Toro of Shelby, a church member until 2015 who said her daughter-in-law worked as a nurse for Jerry Gross. "That's how they justified it, and they were told to do that by the pastor. That it was OK."

The unemployment allegations were uncovered as part of the AP's ongoing investigation into Word of Faith, which had about 750 congregants in rural North Carolina and a total of nearly 2,000 members in its branches in Brazil and Ghana and its affiliations in Sweden, Scotland and other countries.

In February 2017, the AP cited more than three dozen former Word of Faith Fellowship members who said congregants were regularly punched and choked in an effort to beat out devils. The AP also revealed how, over the course of two decades, followers were ordered by church leaders to lie to authorities investigating reports of abuse.

AP later outlined how Word of Faith created a pipeline of young laborers from its two Brazilian congregations who say they were brought to the U.S. and forced to work for little or no pay at multiple businesses owned by church leaders.

Those stories led to investigations in the U.S. and Brazil. In March, Brazilian labor prosecutors filed suit to shut down one of the church branches and its school in Sao Paulo, saying the church and its leaders "reduced people to a condition analogous to slavery."

__

Mohr contributed from Jackson, Mississippi.

http://www.wspa.com/news/national/father-son-plead-guilty-to-fraud-involving-secretive-sect/1199893197

May 14, 2018

2 members of secretive Word of Faith sect charged in unemployment scheme

Word of Faith Fellowship Church
Mitch Weiss and Holbrook Mohr, Associated Press
Asheville Citizen-Times
May 11, 2018


ASHEVILLE - Two members of a secretive evangelical church in North Carolina were charged Friday in an unemployment benefits scheme that former congregants have said was part of plan to keep money flowing into the church despite the struggling economy.

As part of an ongoing investigation into physical and emotional abuse at the Word of Faith Fellowship Church in Spindale, the Associated Press reported in September that authorities were looking into the unemployment dealings of congregants and their businesses.

Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, were charged with wire fraud in U.S. District Court in Asheville. They were both charged in a criminal bill of information, which generally means defendants have agreed to waive indictment and plead guilty. They will appear in court May 25.

Jerry Gross owned the Foot & Ankle Center of the Carolinas in Forest City. His son worked there, according to court records.

The U.S attorney's office said the scheme, from September 2009 to March 2013, netted nearly $150,000. The two made it appear that they had laid off employees, making them eligible for unemployment benefits, but prosecutors said the workers remained on the job.

AP cited 11 former congregants in September who said dozens of church members filed bogus claims at various times at the direction of church leaders.

Telephone and emails messages left for Jerry Gross' attorney, Walter C. Holton Jr., and Jason Gross's attorney, David Freedman, were not immediately returned Friday.

"This is a huge first step," said former congregant Ben Cooper, an attorney. "We hope there's more to come. They've hurt a lot of people."

Former congregant Randy Fields had told the AP that his construction company faced potential ruin around 2008 because of the cratering economy, so he pleaded with church leaders to reduce the amount of money he was required to tithe every week.

To his shock, Fields said church founder Jane Whaley proposed a plan that would allow him to continue contributing at least 10 percent of his income to the Word of Faith Fellowship while helping his company survive: He would file fraudulent unemployment claims on behalf of his employees. She called it, he said, "God's plan."

The unemployment allegations were uncovered as part of the AP's ongoing investigation into Word of Faith, which has about 750 congregants in rural North Carolina and a total of nearly 2,000 members in its branches in Brazil and Ghana and its affiliations in Sweden, Scotland and other countries.

In February 2017, the AP cited more than three dozen former Word of Faith Fellowship members who said congregants were regularly punched and choked in an effort to beat out devils. The AP also revealed how, over the course of two decades, followers were ordered by church leaders to lie to authorities investigating reports of abuse.

AP later outlined how Word of Faith created a pipeline of young laborers from its two Brazilian congregations who say they were brought to the U.S. and forced to work at businesses owned by church leaders for little or no pay.

Over the years, church leaders have owned and operated more than two dozen businesses.

Those stories led to investigations in the U.S. and Brazil.

As for the alleged unemployment scheme, interviews with former followers, along with documents reviewed by the AP, indicated at least six companies owned by leaders were involved with filing fraudulent unemployment claims between 2008 and 2013. Most of those businesses' employees are congregants, the AP found.

The AP reviewed individual checking account records that showed unemployment benefits deposited by the state, along with income tax records summarizing how much money some of the former followers interviewed received annually in such payments.

In North Carolina, companies pay a quarterly unemployment tax based on the number of their workers, with the money going into a fund used to pay out claims, according to Larry Parker, spokesman for the Division of Employment Security, which oversees the program.

When a worker files for unemployment, the agency checks with the employer to learn the reason. If an employer says a worker was let go because of the poor economy, payments usually are approved quickly, Parker said.

During the recession, which started in 2007 and was driven by the housing meltdown, laid-off workers could receive state and federal extensions increasing unemployment to 99 weeks with a maximum weekly check of $535. But in 2013, North Carolina legislators tied benefits to the state's unemployment rate. Currently, laid-off workers can receive up to 26 weeks of unemployment, with a maximum payment of $350 a week, Parker said.

And, he emphasized, a worker must have been laid off to collect unemployment.
"If a company is trying to make workers work while they collect unemployment, that's a potential fraud situation," Parker said.

The former congregants said that not only were they coerced into continuing to work while collecting unemployment, the money fell short of what they needed to pay their bills.

Weiss reported from Greenville, South Carolina, and Mohr reported from Jackson, Mississippi.



https://www.citizen-times.com/story/news/local/2018/05/11/2-members-secretive-word-faith-sect-charged-benefits-scheme/603989002/

Apr 12, 2018

Prosecutor: minors at risk of forced labor at Brazil church

Church leader Juarez de Souza Oliveira, right, linked to the U.S. based Word of Faith Fellowship
Church leader Juarez de Souza Oliveira, right, linked
to the U.S. based Word of Faith Fellowship
SARAH DiLORENZO and PETER PRENGAMAN
ABC News

April 11, 2018


FRANCO DA ROCHA, Brazil (AP) — Minors remain at risk and are being forced to work against their will by a Brazilian church with ties to the U.S.-based Word of Faith Fellowship, a senior labor prosecutor said Wednesday after the initial hearing in a civil suit seeking the dissolution of the local church and the school it runs.

The Ministerio Evangelico Comunidade Rhema church in the city of Franco da Rocha has refused to cease practices that authorities have alleged amount to forced labor, said Catarina von Zuben, the national coordinator for prosecutors who work on combatting modern-day slavery in Brazil.

“This action aims to make these practices stop, to make this exploitation stop, particularly of minors, of children,” von Zuben told The Associated Press after the closed hearing.

Brazilian authorities opened multiple investigations after the AP reported in July that leaders of Word of Faith Fellowship — based in rural Spindale, North Carolina — created a pipeline of young Brazilian congregants who told of being taken to the U.S. and forced to work for little or no pay.

Wednesday was the first time that former church members who have said they were mistreated were able to face off in court with local pastors Solange da Silva Granieri Oliveira and Juarez de Souza Oliveira, who also are named in the labor prosecutors’ suit.

“It’s a pleasure for me to watch justice being done,” said Flavio Correa, a longtime member who left the church in 2016 complaining of abusive practices.

Both pastors and their lawyers declined to speak with the AP after the hearing, but investigators have said the church leaders have denied any wrongdoing.

During the closed session, the judge ordered that documents that had been under seal be made available to the defense, von Zuben said. The judge then scheduled another hearing for July.

Word of Faith Fellowship is a secretive evangelical sect founded in 1979 by Jane Whaley, a former math teacher, and her husband, Sam. Over the decades, it has grown to a congregation of nearly 750 people in rural North Carolina, with hundreds more followers extending to Brazil, Ghana and other countries.

Dozens of former congregants in both the U.S. and Brazil have told the AP that Whaley rules all the branches with an iron fist and that church members — including children — are regularly attacked verbally and physically in an effort to “purify” sinners.

In the suit filed March 1 in a labor court in Sao Paulo state, prosecutors cited testimony that contained harrowing details of a wide range of alleged abuses within the Rhema church, including how long the marks from a beating with a ruler were evident on a child’s body.

Children and adults alike said they were worked to the point of exhaustion and feared punishment, social isolation or separation from their families if they resisted.

In recent years, Brazil — which once was the world’s largest slave market — has increasingly cracked down on labor practices it deems to be tantamount to slavery.

In addition to asking a judge to shut down the church and school, the prosecutors want the church to pay a fine of at least $153,000 to a workers’ compensation fund and at least $15,000 to each identified victim.

Gustavo Reis de Souza, who says he was physically and emotionally abused while he attended the church-run school, waited for his mother outside Wednesday’s hearing.

“I suffered a lot and I don’t want other people to go through this,” the 15-year-old said, adding that he thought closing the school would help other children. “They’re in there and they don’t have the courage to leave.”

http://abcnews.go.com/International/wireStory/prosecutor-minors-risk-forced-labor-brazil-church-54403720

Mar 17, 2018

Brazilian Prosecutors Sue to Shut Church Over Forced Labor

Word of Faith Fellowship
Word of Faith Fellowship
Peter Prengaman, Sarah Dilorenzo and Mitch Weiss
THE ASSOCIATED PRESS
MARCH 9, 2018

SAO PAULO — Brazilian labor prosecutors have filed suit to shut down a church and school with ties to the U.S.-based Word of Faith Fellowship, saying the church and its leaders "reduced people to a condition analogous to slavery."

Brazilian authorities opened multiple investigations after The Associated Press reported in July that leaders of Word of Faith Fellowship in rural Spindale, North Carolina, created a pipeline of young Brazilian congregants who told the AP they were brought to the U.S. and forced to work for little or no pay.

The focus of the civil suit is Ministerio Evangelico Comunidade Rhema, Word of Faith's branch in the city of Franco da Rocha, along with that branch's church-run school and its two ministers, Solange da Silva Granieri Oliveira and Juarez de Souza Oliveira.

In the March 1 filing in a labor court in Sao Paulo state, prosecutors included extensive excerpts from depositions laying out harrowing details of a wide range of abuses within the Rhema church, including how long the marks from a beating with a ruler were evident on a child's body.

Children and adults alike said they were worked to the point of exhaustion. One member reported sleeping only four hours a night for weeks on end, while others said they worked 12 hours at a stretch, often into the dead of night. All spoke of their fear of punishment, social isolation or separation from their families if they didn't agree to work.

"In some cases, violence was used to ensure the 'voluntary' work," the filing said.

"Throughout the civil investigation, it was crystal clear the power of control and psychological pressure exerted by the pastors," it said.

In addition to asking a judge to dissolve the church and school and distribute its assets among congregants, the prosecutors seek to have the church pay a fine of at least $153,000 to a workers' compensation fund and at least $15,000 to each victim.

Word of Faith Fellowship is a secretive evangelical sect founded in 1979 by Jane Whaley, a former math teacher, and her husband, Sam. Over the decades, it has grown to a congregation of nearly 750 people in rural North Carolina, with hundreds more followers extending to Brazil, Ghana and other countries.

Dozens of former congregants in both the U.S. and Brazil have told the AP that Jane Whaley rules all the branches with an iron fist and that church members — including children — are regularly verbally and physically attacked in an effort to "purify" sinners.

An email to the Franco da Rocha church and a message left on Granieri Oliveira's cell phone were not immediately returned, but investigators said church leaders have denied any wrongdoing.

Jane Whaley's attorney, Noell Tin, issued a statement saying, "These allegations are vigorously disputed not only by Ms. Whaley but also numerous members of the Word of Faith Fellowship. The church looks forward to presenting a very different view in the Brazilian courts."

The lawsuit is the most significant legal action taken against the church in Brazil since the AP documented how Word of Faith steadily took over two local congregations and instituted its strict fundamentalist practices.

The prosecutors cited AP's stories in their court filing.

The lawsuit said forcing students to work severely interfered with their education at the Rhema school, with lessons canceled or students pulled out of class. The prosecutors also said that only three of the 25 teachers in the school were officially registered.

The depositions provide many details previously reported by the AP, such as allegations that Brazilians entering the U.S. on tourist and student visas were forced to work, a violation of the visas' stipulations, and that many had their passports seized.

The filing also echoed AP's reporting that congregants were forced to clean churches and the houses of sect leaders, renovate homes, teach in church-run schools and work for companies owned by church members in both countries.

"Our team of investigators felt there was no choice but to take action" because of the mountain of testimony collected, said Andrea da Rocha Carvalho Gondim, one of the prosecutors on the case.

Brazilian prosecutors also are looking into possible improprieties in a land deal involving the church, and education authorities in two Brazilian states have said they are investigating allegations that church schools physically and psychologically abused students and redacted textbooks in violation of state policy. The country's federal police are investigating the allegations of human trafficking of members to the U.S.

A judge will determine the actual amount of the fines and how victims are compensated, said Fabiola Marques, a professor of labor law at the Pontifical Catholic University in Sao Paulo, who is not involved with the case.

Prosecutors also have asked that cleaners who work at the church and teachers at the school be retroactively registered. Marques said that would entitle them to backpay and benefits.

Maria Reis, who has said her son was psychologically abused at the Rhema school, expressed relief at news of the court filing.

"We are very happy with this," said Reis, a longtime member who broke with the Rhema church because of what she called its abusive practices. "Everything that was wrong, everything that was covered up, has to be exposed."

While the case is being examined, prosecutors have asked that the judge take immediate preliminary measures, such as suspending the church and the school and ordering them to stop any forced labor.

In the U.S., state and federal authorities also are investigating Word of Faith Fellowship. An AP report in February 2017 cited 43 former members who said congregants were regularly punched and choked in an effort to "purify" sinners by beating out devils.

The North Carolina State Bureau of Investigation said it still has an active investigation, but could not provide an update. The U.S. Attorney's office in North Carolina also said its investigation was ongoing.

___

Prengaman reported from Boa Vista, Brazil, and Weiss reported from Charlotte, North Carolina. Associated Press writer Holbrook Mohr also contributed from Jackson, Mississippi.
https://rccatalyst.com/index.php/2018/03/09/brazilian-prosecutors-sue-to-shut-church-over-forced-labor/

Mar 10, 2018

Brazilian church with NC ties facing lawsuit to shut down over forced labor

Associated Press
March 10, 2018

SAO PAULO - Brazilian labor prosecutors have filed suit to shut down a church and school with ties to the U.S.-based Word of Faith Fellowship, saying the church and its leaders "reduced people to a condition analogous to slavery."

Brazilian authorities opened multiple investigations after The Associated Press reported in July that leaders of Word of Faith Fellowship in rural Spindale, North Carolina, created a pipeline of young Brazilian congregants who told the AP they were brought to the U.S. and forced to work for little or no pay.

The focus of the civil suit is Ministerio Evangelico Comunidade Rhema, Word of Faith's branch in the city of Franco da Rocha, along with that branch's church-run school and its two ministers, Solange da Silva Granieri Oliveira and Juarez de Souza Oliveira.

In the March 1 filing in a labor court in Sao Paulo state, prosecutors included extensive excerpts from depositions laying out harrowing details of a wide range of abuses within the Rhema church, including how long the marks from a beating with a ruler were evident on a child's body.

Children and adults alike said they were worked to the point of exhaustion. One member reported sleeping only four hours a night for weeks on end, while others said they worked 12 hours at a stretch, often into the dead of night. All spoke of their fear of punishment, social isolation or separation from their families if they didn't agree to work.

"In some cases, violence was used to ensure the 'voluntary' work," the filing said.

"Throughout the civil investigation, it was crystal clear the power of control and psychological pressure exerted by the pastors," it said.

In addition to asking a judge to dissolve the church and school and distribute its assets among congregants, the prosecutors seek to have the church pay a fine of at least $153,000 to a workers' compensation fund and at least $15,000 to each victim.

Word of Faith Fellowship is a secretive evangelical sect founded in 1979 by Jane Whaley, a former math teacher, and her husband, Sam. Over the decades, it has grown to a congregation of nearly 750 people in rural North Carolina, with hundreds more followers extending to Brazil, Ghana and other countries.

Dozens of former congregants in both the U.S. and Brazil have told the AP that Jane Whaley rules all the branches with an iron fist and that church members - including children - are regularly verbally and physically attacked in an effort to "purify" sinners.

An email to the Franco da Rocha church and a message left on Granieri Oliveira's cell phone were not immediately returned, but investigators said church leaders have denied any wrongdoing.

Jane Whaley's attorney, Noell Tin, issued a statement saying, "These allegations are vigorously disputed not only by Ms. Whaley but also numerous members of the Word of Faith Fellowship. The church looks forward to presenting a very different view in the Brazilian courts."

The lawsuit is the most significant legal action taken against the church in Brazil since the AP documented how Word of Faith steadily took over two local congregations and instituted its strict fundamentalist practices.

The prosecutors cited AP's stories in their court filing.

The lawsuit said forcing students to work severely interfered with their education at the Rhema school, with lessons canceled or students pulled out of class. The prosecutors also said that only three of the 25 teachers in the school were officially registered.

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The depositions provide many details previously reported by the AP, such as allegations that Brazilians entering the U.S. on tourist and student visas were forced to work, a violation of the visas' stipulations, and that many had their passports seized.

The filing also echoed AP's reporting that congregants were forced to clean churches and the houses of sect leaders, renovate homes, teach in church-run schools and work for companies owned by church members in both countries.

"Our team of investigators felt there was no choice but to take action" because of the mountain of testimony collected, said Andrea da Rocha Carvalho Gondim, one of the prosecutors on the case.

Brazilian prosecutors also are looking into possible improprieties in a land deal involving the church, and education authorities in two Brazilian states have said they are investigating allegations that church schools physically and psychologically abused students and redacted textbooks in violation of state policy. The country's federal police are investigating the allegations of human trafficking of members to the U.S.

A judge will determine the actual amount of the fines and how victims are compensated, said Fabiola Marques, a professor of labor law at the Pontifical Catholic University in Sao Paulo, who is not involved with the case.

Prosecutors also have asked that cleaners who work at the church and teachers at the school be retroactively registered. Marques said that would entitle them to backpay and benefits.

Maria Reis, who has said her son was psychologically abused at the Rhema school, expressed relief at news of the court filing.

"We are very happy with this," said Reis, a longtime member who broke with the Rhema church because of what she called its abusive practices. "Everything that was wrong, everything that was covered up, has to be exposed."

While the case is being examined, prosecutors have asked that the judge take immediate preliminary measures, such as suspending the church and the school and ordering them to stop any forced labor.

In the U.S., state and federal authorities also are investigating Word of Faith Fellowship. An AP report in February 2017 cited 43 former members who said congregants were regularly punched and choked in an effort to "purify" sinners by beating out devils.

The North Carolina State Bureau of Investigation said it still has an active investigation, but could not provide an update. The U.S. Attorney's office in North Carolina also said its investigation was ongoing.

http://www.wspa.com/news/brazilian-prosecutors-sue-to-shut-down-chruch-over-forced-labor/1027764788