| Author | Message | ||
     osakadan Advanced Member Username: osakadan Post Number: 755 Registered: 8-2005 Posted From: 58.188.241.55 |
Sure this has been talked about here somewhere but this is what I am adding to wikipedia about loans and grants etc from Greg Feste thru the Malachi Foundation. Interestingly enough, if I was a tax investor, the person you apply to for grants etc is also a receivor of pastoral support - SUSPECT! Funding Every Nation has, until recenty, received large amounts of funding from The Malachi Foundation. The foundation is managed by Greg Feste, who has links to Champions for Christ, an Every Nation ministry. Funding has been received by way of awards and grants to individual EN churches, EN organizations including Force Ministries, along with individual pastors. The 2002 financial year saw financial assistance given to a number of Every Nation leaders, including Rice Broocks, Phil Bonasso. Jim Laffoon, Steve Murrell, Ron Lewis, Ray McCollum, Greg Ball and Brett Fuller. Rice Broocks and Phil Bonasso have received housing loans via notes, both expiring on 12 /27/2019. The amounts are $182,000 and $150,000 respectively. The interest paid by Broocks in 2002 amounted to significantly less than the $22,226 pastoral support he received from the same foundation. The situation of Bonasso is similar with him having received pastoral support of $30,000. 990 forms submitted by the Malachi Foundation show this also occurred in 2003. The Malachi Foundation itself receives funding through Greg Feste personally, along with associated companies. Tony Boselli is also a personal contributor. Both Feste and Boselli are involved in Champions for Christ. They are both also involved with Inpop records and while not an EN organization, there are significant links. http://www.4shared.com/file/12466626/e4adc0ad/Malachi_Foundatio_2002-_Form_990.html | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 151 Registered: 5-2005 Posted From: 71.75.41.249 |
Nice one, O-Dan ... also, be sure to note that Feste claimed that Malachi was in no way affiliated with MSI (EN was still known as MSI when most of this activity went down). However, Feste has served as chairman of Morning Star's Founders Club (whatever that is): http://www.acteva.com/booking.cfm?bevaid=60768 Meaning that Feste lied to the IRS. Also add that there is strong circumstantial evidence that Feste is using Malachi to circumvent IRS regulations on how much one person can give to an entity, especially considering that over 80% of Malachi's donations went to MSI pastors and ministries. This situation comes pretty close to money laundering--a RICO'able offense. | ||
| osakadan Advanced Member Username: osakadan Post Number: 758 Registered: 8-2005 Posted From: 58.188.241.55 |
Will email you blueboy | ||
| 40days40years Senior Member Username: 40days40years Post Number: 2075 Registered: 1-2006 Posted From: 65.146.35.172 |
Odan Is Malachi Foundation even in existence anymore? I thought Feste was on the outs. If I remember right Pro athletes would be encouraged to send their funds to Feste to invest. It appears that some of these investments did not do that well notably the Austin Wrangler arena football investment. To get a better picture of the situation ODAN go to the LEADER section of this site and read the Greg Feste thread and the Greg Ball thread. Also somewhere on this site are some CFC threads aka Champions for Christ. Last I would use the factnet search engine and search for the name Leghorn or leg horn that guy exposed everything. I know loans were made from Malachi to the leaders. If all else fails ask Ginger or Uly. | ||
| osakadan Advanced Member Username: osakadan Post Number: 759 Registered: 8-2005 Posted From: 58.188.241.55 |
Have read a lot of stuff and it is likely that it isn't operating . There seems to be no 990's after 2004. The things you mention are interesting are more related to a seperate entry on the Malachi Foundation. That is on a long list of things to get to. There is an interesting youthtoday.org article in '93 http://www.youthtoday.org/youthtoday/aajulyaug2003/specialstory.html (Message edited by osakadan on March 18, 2007) | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 152 Registered: 5-2005 Posted From: 71.75.41.249 |
Whether he's on the outs or not, 40years, this could potentially be a big problem for EN. Like I mentioned earlier, we're looking at tax fraud and perjury at a minimum. And given the amounts EN pastors got, at the very least this rises to the level of "what did they know and when did they know it?" | ||
| ginger1 Senior Member Username: ginger1 Post Number: 1924 Registered: 9-2005 Posted From: 75.55.215.23 |
Not just tax fraud and perjury blueboy. malachi foundation IS MONEY LAUNDERING. Ask Ulyankee if malachi foudnation still exist. I think it is, last year or the other year, Greg Feste was raising money for it in Florida. Just before Phil Bonasso got transferred there. | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 153 Registered: 5-2005 Posted From: 71.75.41.249 |
Agreed, Ginger--that's what I meant when I said that this is a case of "what did the pastors know and when did they know it?" If there's proof that they knew that Feste was circumventing the rules and took the money anyway, that's definitely money laundering. Tax fraud and perjury are pretty serious business by themselves--if I'm not mistaken, even without the possibility of money laundering, those charges alone could earn Feste a long stay in Club Fed. | ||
| 40days40years Senior Member Username: 40days40years Post Number: 2081 Registered: 1-2006 Posted From: 172.194.67.128 |
I mean it sounds like it was legal to make loans from the Malachi foundation. Was'nt Festes main problem that he made poor investment decisions? That is when EN's biggest donors left. | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1428 Registered: 1-2006 Posted From: 74.234.94.175 |
Malachi Foundation (now renamed FesteCapital Foundation) is still in existence. Whether they are a truly active foundation may be another story entirely, but they still legally exist. And while I am not a tax expert, I would assume that as long as the foundation still holds the two mortgages it loaned to Rice Broocks and Phil Bonasso for "needed housing" (direct quote from 990) then I would wonder why they haven't yet filed a more current 990. I went into the Texas SOS website this AM and these are the various FesteCapital entities and their current corporate status as of 19 March: FESTECAPITAL Domestic Limited Liability Company (LLC) Forfeited existence Assumed Entity Inactive FESTECAPITAL Domestic Limited Liability Company (LLC) Forfeited existence Assumed Entity Inactive FesteCapital Real Estate, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Prior FesteCapital Realty, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Inactive FesteCapital Holdings, Ltd. Domestic Limited Partnership (LP) In existence Legal In use FesteCapital Advisors, Ltd. Domestic Limited Partnership (LP) Cancelled Legal Inactive FesteCapital Management, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Inactive FesteCapital Aviation, Ltd. Domestic Limited Partnership (LP) In existence Legal In use FesteCapital Consulting, Ltd. Domestic Limited Partnership (LP) Cancelled Legal Inactive FesteCapital Development, Ltd. Domestic Limited Partnership (LP) In existence Legal In use FesteCapital Finance, Ltd. Domestic Limited Partnership (LP) In existence Legal In use FesteCapital Mortgage, Ltd. Domestic Limited Partnership (LP) Cancelled Legal Inactive FesteCapital Management II, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Inactive FesteCapital Aviation GP, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Inactive FesteCapital Give to Live Domestic Nonprofit Corporation Forfeited existence Legal Inactive FesteCapital Franchise Management, Ltd. Domestic Limited Partnership (LP) Cancelled Legal Inactive The FesteCapital Foundation Domestic Nonprofit Corporation In existence Legal In use FesteCapital Sports Enterprises, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Prior FesteCapital Sports Enterprises, Ltd. Domestic Limited Partnership (LP) In existence Legal Prior FesteCapital Franchise Management GP, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Inactive FesteCapital Sports Enterprises GP, LLC Domestic Limited Liability Company (LLC) Forfeited existence Legal Inactive There are many, many more entities affiliated with Feste--these are just the ones specifically named "FesteCapital." BTW, a reporter recently told me that a fractional jet ownership company is suing Feste, I think over alleged non-payment. And Feste's affiliation with MSI/EN was not just due to the Morning Star Founder's Club (the best I can ascertain, that was an investment club, not an actual governing board or anything like that). He was also on the board of Executives for Christ, a subsidiary of Champions. Feste is now currently a board member of "Billy Gaines Ministries." and is also president of Ruggles Restaurant Group, a Texas chain of restaurants. | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1429 Registered: 1-2006 Posted From: 74.234.94.175 |
40/40, the issue here is that Malachi Foundation stated "no relationship" with MSI/EN. However, there was one. So yes, the loans and donations would have been perfectly legal otherwise BUT since there was an unreported relationship it instead smacks of self-dealing IMHO. Also note that the vast majority of Malachi Foundation grants and gifts over the years were given to MSI/EN ministries and ministers. Malachi also gave larger grants and gifts totalling tens of thousands of dollars over the years to several top MSI/EN leaders, most notably Broocks, Bonasso, Ball, and Fuller. | ||
| speakword2004 Senior Member Username: speakword2004 Post Number: 1191 Registered: 6-2005 Posted From: 198.54.202.250 |
Ulyankee If I remember correctly Feste was a member of a right wing Christian Republican support group of sorts? Could this be related to Bush giving Fuller a post on an advisory board as well as a King's Park teacher receiving a prize or something from the Bush administration? | ||
| speakword2004 Senior Member Username: speakword2004 Post Number: 1192 Registered: 6-2005 Posted From: 196.25.255.250 |
US administrations tend to hand rewards to political and financial supporter towards the end of tenure. Is this just the start of things? Does Bonnasso get a paintball contract from the US Army with the current change in tactics? Peace could break out! | ||
| 40days40years Senior Member Username: 40days40years Post Number: 2091 Registered: 1-2006 Posted From: 172.191.58.138 |
ulyankee wrote: Malachi also gave larger grants and gifts totalling tens of thousands of dollars over the years to several top MSI/EN leaders, most notably Broocks, Bonasso, Ball, and Fuller. Some questions, did Malachi ever give home loans to just normal church members? Were any of these grants and gifts used for personal enrichment or did the stuff go towards legit "ministry" stuff? ulyankee also said: the issue here is that Malachi Foundation stated "no relationship" with MSI/EN. However, there was one. What is the possible penalty for that? | ||
| osakadan Advanced Member Username: osakadan Post Number: 765 Registered: 8-2005 Posted From: 58.188.246.112 |
On the 3 990s i can access, there are only the 2 loans to Rice and Phil. | ||
| maranatha1984 Senior Member Username: maranatha1984 Post Number: 1059 Registered: 3-2006 Posted From: 12.96.65.83 |
http://archive.profootballweekly.com/content/archives/features_1998/daily_081498.asp | ||
| maranatha1984 Senior Member Username: maranatha1984 Post Number: 1060 Registered: 3-2006 Posted From: 12.96.65.83 |
http://archive.profootballweekly.com/content/archives/features_1998/daily_081498.asp | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1430 Registered: 1-2006 Posted From: 74.234.94.175 |
Is the Bryan Schwartz named in the article the same one who now pastors a church in Colorado... which BTW recently left Every Nation? 40/40-you can read about the rules and penalties for self-dealing and/or transactions with disqualified persons here. | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1431 Registered: 1-2006 Posted From: 74.234.94.175 |
o-dan, yes, those are the only mortgages I've seen as well. For "needed housing." Those were to help finance RB's home in Franklin and PB's home in Rolling Hills Estates. Though they are also just a small fraction of total mortgages that were taken out on those properties. Since PB has since sold his home and moved to Jacksonville, one wonders what happened with that mortgage. Was it paid back? Or was it a gift/grant? If a gift/grant, was it reported as an excess benefit transaction? Silly girl asks all kinds of silly questions I know... | ||
| osakadan Advanced Member Username: osakadan Post Number: 767 Registered: 8-2005 Posted From: 58.188.246.112 |
 Silly questions but the kind I like. guidestar doesn't have the most recent 990's wonder if we can purchase the newest from the IRS??? I would be willing to contribute to a fund for such things. | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1432 Registered: 1-2006 Posted From: 130.70.157.190 |
Here's an alternate source for more recent 990s as well as those going further back than Guidestar makes available for a fee. You don't purchase them from the IRS. This is one of those things that is supposed to be available for free btw. The 2004 form is the most recent 990 that is available. | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 157 Registered: 5-2005 Posted From: 71.75.41.249 |
Here's a laugher, guys ... on their '99 Form 990, if I'm reading it right, Malachi only donates to "inadequately funded pastors and ministries." http://204.203.220.33/EINS/760439471/760439471_1999_00027722.pdf Let's see--Broocks was "inadequately funded," but was able to build himself a mansion? And Bonasso was inadequately funded, but got himself a house with an ocean view? | ||
| coppertree Senior Member Username: coppertree Post Number: 1243 Registered: 2-2005 Posted From: 172.145.167.68 |
Hi All, Thank you all for all your good work, here. About the amount were given or lent to RB and PB.on their all ready established mortgages, this could be quite telling. Sometimes this is done to reduce, the money down or to get a more favorable interest rate. It would give the borrow simply better terms on their house notes. However these amounts may have been directed as a gift only, not to be repaid , if a Freddie Mac, or another federally involved loan. Interesting, he, he nerd pun.} | ||
| osakadan Advanced Member Username: osakadan Post Number: 768 Registered: 8-2005 Posted From: 58.188.246.112 |
They were nominally loans at 6.2%. There is also a reduction in the outstanding balance each year. I haven't done the math but a rough look suggests to me that the pastoral support they received roughly covered the interest and reduction in principal. | ||
| osakadan Advanced Member Username: osakadan Post Number: 769 Registered: 8-2005 Posted From: 58.188.246.112 |
ep...in 2002 Broocks received $22,226 pastoral support. Interest and capital paydown amounted to about $19,200. Loan payments made plus a nice little $3000 spending money. Nice if you can get it. Exactly how much did he draw from Bethel and Champions for Christ that year???? money for the boys | ||
| osakadan Advanced Member Username: osakadan Post Number: 770 Registered: 8-2005 Posted From: 58.188.246.112 |
Broocks only received $36,000 pending money from CFC that year, most have got serious cash from elsewhere. But don't fret, CFC kicked in $76,000 in 2004 | ||
| coppertree Senior Member Username: coppertree Post Number: 1245 Registered: 2-2005 Posted From: 172.134.243.61 |
Hi Dan, This would be done before first payment, when loan documents were signed.} | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1433 Registered: 1-2006 Posted From: 74.234.94.175 |
coppertree, thanks, I had wondered about the rationale on those loans, especially since the rate was actually somewhat higher than some of the other mortgages from traditional lenders. 6.5% at that time was not a nominal rate since that's when the real estate market was booming and was a buyer's market. | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1434 Registered: 1-2006 Posted From: 74.234.94.175 |
o-dan, remember that this was what was reported in public record documents, since in the United States churches are not required to report their finances to the IRS. CFC and Malachi are not considered churches but are a non-profit charity and a private foundation respectively. They represent only a fraction of this organization's funding. I invite people to go over to the Reformation Station where the communiques of last year are posted, where EN made certain promises with regards its finances and the reorganization. The April communique in particular. I re-read it yesterday and realized that the figures in the communique were just for ONE YEAR, 2005. Note also that an audit of 2005 was to be completed by August, 2006, in preparation for ECFA membership. One of the criteria for ECFA membership is making an audited financial statement available upon request. And not just to senior pastors or leaders... anyone can request it. To my knowledge, several people have been told by top EN leaders that an audit took place and that it was a clean audit. But I have not heard that anyone has actually seen an audited financial statement. Pastors! Ask for the audited financial statement! But also remember that if the communique is correct, it covered only one year. Based on what happened in 2005 alone, in which for example it was reported that Phil Bonasso was asked to repay $27K for personal expenses made on the corporate credit card, what happened with money sent to the ministry in tithes, offerings, MPD missions support, World Partners, etc. BEFORE 2005? | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1435 Registered: 1-2006 Posted From: 130.70.157.190 |
**History Lesson** Ad Hoc Committee Report to Maranatha Campus Ministries, January 5, 1984
[My note: EN has taken steps in this regard in retaining Capin Crouse, as reported in last year's communiques. However, to my knowledge an audited financial statement or other such disclosure has not yet been forthcoming.]
[My note: While EN stated in the April communique that with one exception, none of the members of its executive salary review board received a salary from EN, this is somewhat misleading since all the members were pastors at (then) EN churches and/or were EN leaders/board members and as such, due to this plus the bylaw could not be considered totally independent IMHO] From A Statement of Evaluation Regarding Maranatha Campus Ministries, May 8, 1984 (the last paragraph before its conclusion):
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| coppertree Senior Member Username: coppertree Post Number: 1254 Registered: 2-2005 Posted From: 172.145.27.47 |
Hi Ul, Thank you for the history lesson, quite telling, I think. I seems to repeat its' self. We did this, looking at some finanical records in our region after this came out in Maranatha 84-85, for a short time. It was shocking to say the least, one head pastor dropped a staff member dependent on the small, merger income, so he could get his shirts professionally done ! He actually shed tears in the elder's meeting about this! Wow, things went downhill fast after that. A small aside on the loans, the rate could be higher because of jumbo amount of loan, ( large expensive homes) and with combination of being pastors, the underwriters on the loan may have required more money down, or pre-paid interest, better known as 'points' to be paid at closing of loan before actual funding of loan. If the amount is a percentage of the total loan amount, it would be points then.} | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 159 Registered: 5-2005 Posted From: 69.132.39.72 |
For the benefit of the newbies and non-Americans here, here's the rub of this. Nonprofits in the States are not allowed to give any donations to people who could be in a position to exercise "substantial influence" over its affairs. In this case, since Feste gave nearly all of Malachi's donations to EN pastors--and members of the IAT/IMT to boot--he lied to the IRS. At an absolute minimum, Feste would not only have Malachi's nonprofit status yanked for 1998 through 2004, but could face charges of tax fraud and perjury. Not to mention that he could have his Texas licenses yanked. But there's pretty strong circumstantial evidence that Feste used Malachi as a way to circumvent IRS limits on how much one person can donate to a single entity. So then you have to wonder, "Did the pastors know Feste was circumventing the rules and took the money anyway?" If they did, then you've got a situation that comes pretty close to money laundering. You don't even have to prove that they were in on it--all you have to do is prove that they had reason to know Feste was doing an end run around the rules. | ||
| freedom43 Intermediate Member Username: freedom43 Post Number: 435 Registered: 7-2006 Posted From: 129.33.119.12 |
Sounds familiar...perhaps EN takes direction from the Tom Delay/Jack Abramoff play book. | ||
| jia New member Username: jia Post Number: 12 Registered: 11-2006 Posted From: 80.109.163.152 |
the "vision" of the Feste Foundation sounds soooo wonderfull, doesnt it?
They really provided food and shelter for the homeless, when they let the bucks roll for Ricey and Philey, didnt they? (Message edited by jia on March 23, 2007) | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 160 Registered: 5-2005 Posted From: 69.132.39.72 |
Is it any wonder these guys haven't bothered to join the ECFA? In order to join, you must have been audited by an independent CPA, among other things: http://www.ecfa.org/?Page=JoinIntro I'm not well versed in accounting practices (though I am thinking of becoming a paralegal eventually), but I would think that anyone who tried to audit this bunch wouldn't be able to get very far before having to end the audit. | ||
| jia New member Username: jia Post Number: 13 Registered: 11-2006 Posted From: 80.109.163.152 |
they promised through official representatives that they will publicate the audit on their website. they promised also that there will be a transparent, open book on their website. they said also they will become part of ECFA. i am an eyewittnes of these promises. now - moer than ONE year after the issues with Bonasso have hitten the surface, NOTHING of all these things have happened. and they probably will never happen. everything that is happening curently is damage controle, whitewashing, crisis-management. its NO reform. its NO integrity, and in my eyes it is a SHAME for a christian organisation to behave this way. | ||
| lc_20 Advanced Member Username: lc_20 Post Number: 773 Registered: 9-2005 Posted From: 205.188.116.76 |
"--all you have to do is prove that they had reason to know Feste was doing..." I will look to see if I still have Feste's tapes when he spoke at my church... I think he discussed this from the pulpit. | ||
| lc_20 Advanced Member Username: lc_20 Post Number: 774 Registered: 9-2005 Posted From: 205.188.116.76 |
jia, GF may still get his chance to witness to prison inmates. Maybe this vision from the Feste foundation was prophetic. | ||
| blueboy96 Intermediate Member Username: blueboy96 Post Number: 163 Registered: 5-2005 Posted From: 69.132.39.72 |
Good grief, I hope Feste wasn't THAT stupid. He may have put Ron Lewis in an orange jumpsuit as well. And probably a whole bunch of other pastors as well. | ||
| ulyankee Senior Member Username: ulyankee Post Number: 1440 Registered: 1-2006 Posted From: 130.70.157.190 |
As stated before, the promised audit was of 2005 ONLY. Which means that one has no idea what happened from MSI's beginnings in 1994 (or 1997 if you go by when they formally incorporated) through 2004. For example, EN reported that Phil Bonasso spent twenty seven thousand dollars on the corporate credit card for personal expenses in 2005. Lets say that this was about average for the years MSI was in existence, and we'll just go back to when MSI formally incorporated. $27,000 x 9 years = $243,000. But the audit was of one year only, and Phil was reportedly asked to pay back what he spent on the corporate credit card in this one year only. This isn't even getting into the 2/3 effective cut in pay from all sources that was reported in Palm Springs. I don't know if "all sources" includes Malachi/FesteCapital Foundation or not. And I would imagine that Phil B. isn't hurting any as he currently lives in an exclusive area in Jax. |
