ALABAMA SECURITIES
COMMISSION
770 WASHINGTON AVE, SUITE 570
MONTGOMERY, ALABAMA 36130-4700
TELEPHONE (334) 242-2984
1-800-222-1253
FAX (334) 242-0240
E-MAIL asc@asc.state.al.us
FOR IMMEDIATE RELEASE
MONTGOMERY, ALABAMA (March
12, 2001) - The U. S. Attorney's Office, Middle District of Florida announced
the conviction of five individuals affiliated with Greater Ministries
International, Inc. (GMI). The case was
prosecuted by Assistant U.S. Attorneys Jay L. Hoffer and Robert A. Mosakowski
of the Tampa Division.
Joseph P. Borg, Director,
Alabama Securities Commission (ASC) was glad to hear this news because in
August 1999 the ASC and the Ohio Division of Securities jointly filed a
complaint in the U. S. District Court, Middle District of Florida in August
1999 to shut down GMI from conducting any business.
Borg said, "Investors in
Alabama and the U.S. thought they were doing the right thing, as a part of
their faith, to invest savings to an Internet missionary church called Greater
Ministries, which promised great returns from heaven. Instead these people were bilked of their investment in a classic
multi-million dollar Ponzi scheme. In
Alabama alone the bogus church cheated over 300 people out of $3
million."
Following a six week trial
and three days of jury deliberations, five individuals affiliated with Greater
Ministries International, Inc. (GMI) were convicted in Tampa, Florida, on a
variety of federal charges stemming from a scheme to defraud thousands of
investors out of millions of dollars.
Gerald Payne, Betty Payne,
Patrick Talbert and David Whitfield were all convicted of one count of
conspiracy to commit mail fraud, wire fraud and to transport in interstate
commerce money taken by fraud, one count of conspiracy to commit money
laundering violations, four counts of mail fraud, five counts of money
laundering and five counts of conducting unlawful monetary transactions. Gerald Payne was also found guilty of three
counts of unlawful structuring of currency transactions. Haywood Eudon Hall was found guilty of both
conspiracies and of three mail fraud counts.
Each conspiracy, mail fraud
and structuring count carries a maximum penalty of five years imprisonment and
a $250,000 fine. The money laundering
conspiracy and each unlawful monetary transaction count carries a maximum term
of imprisonment of 10 years and a fine of $250,000. The maximum punishment for each money laundering count is 20
years imprisonment and a $500,000 fine.
- more -
Borg said, "In bringing our case against GMI, we discovered that GMI took in over $550 million dollars from over 27,000 believers and over one half has not been accounted for. We are continuing to seek assets to return something to those who were injured by GMI."
The Director of the Alabama Securities Commission cautions potential investors to thoroughly check out any investment opportunity. For inquiries regarding securities
dealers, to report suspected fraud, or obtain consumer
information call 1-800-222-1253. For
access to extensive consumer awareness and financial education information go
to the NASAA website, http://www.nasaa.org/,
and click on Related Links.
###
FOR
ADDITIONAL INFORMATION CONTACT:
Joseph P. Borg Daniel
G. Lord
Director Public
Affairs Officer
Alabama Securities Commission Alabama Securities
Commission
(334) 242-2984 (334)
242-2984