Ponzi Scheme? Young CEO Sued for Allegedly Defrauding Christian Congregants of Millions
- Posted on October 31, 2011 at 6:07pm by
Billy Hallowell
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Ephren Taylor
ATLANTA (The Blaze/AP) — With confidence and zeal, Ephren Taylor riveted audiences at mostly black churches with a list of his impressive accomplishments and an uncanny business sense. He had the blessing of top clergy as he gave financial seminars from the pulpit on Sundays, promising rock-solid investments – only many of the churchgoers said they haven’t seen a dime.
Two lawsuits filed this month claim the 29-year-old Taylor was a con artist who targeted worshippers throughout at least five states on the East Coast since 2004, swindling tens of millions of dollars in a Ponzi scheme.
“He knew if he went to a Christian African-American and said, `I can take your hard-earned investment money, and you’re going to earn more money, but more importantly you’re going to do good for your church and community,’ that they would fall for it hook line and sinker,” said Cathy Lerman, an attorney who sued Taylor in North Carolina.
The allegations have tarnished Taylor, who resigned last year after becoming the chief executive of the holding company City Capital, which had been based in North Carolina, when he was 23. Worshippers would often be asked to invest in real estate and businesses tied to the holding company.
The Secret Service and the secretary of state’s office in Georgia, where the other lawsuit has been filed, are investigating. He has not faced any criminal charges.
Lawyers suing him say they don’t know his whereabouts, but he sent The Associated Press a statement after a reporter contacted him through his website.
He said he planned to use his own money to help those who feel “negatively impacted.“ He criticized his detractors and compared himself to other financial heavyweights who were ”crucified” amid the economic downturn.
“Sometimes people will participate in a game they don’t have a stomach for, and when it goes south, they put the blame on those that led that game,” said Taylor, who did not respond to follow-up questions.
Bishop Eddie Long
In late 2009, Taylor came to an Atlanta megachurch with his surefire pitch, according to the lawsuit in Georgia. He held a financial seminar aimed at children on a Saturday, telling curious parents to hold their questions. Flanked by Bishop Eddie Long the following day, he told the 25,000 member congregation that his investors would buy can’t-miss real estate rather than take a risk on Wall Street.
“He pushed all the right buttons,” said Lillian Wells, who said she lost $122,000. “Everyone was tired of losing money in the stock market, and this was an opportunity for a guaranteed return on the money.”
Wells is among 10 New Birth Missionary Baptist Church members suing Taylor, the bishop and the church. It claims Long abused his spiritual authority and “coerced” his parishioners into investing at least $1 million in Taylor’s fund in late 2009.
The bishop has declined to comment on the lawsuit, but he urged Taylor in a video posted this year on YouTube to “do what’s right” and repay the money with interest. In May, Long settled a separate lawsuit filed by four young men who accused him of sexual misconduct. Watch the video, below:
New Birth is one of the best-known ministries preaching a form of the prosperity gospel, which teaches that God wants to bless the faithful with earthly riches. Ministers in this tradition often hold up their own wealth as evidence that the teaching works. Long has flaunted his own success with flashy suits, expensive cars and large home on 20 acres.
Attorneys said many of the worshippers duped were “socially conscious.” But instead of lucrative returns, Taylor and his company used incoming funds from new investors to pay back existing clients, the attorneys said.
Taylor’s inspiring success story helped build his mystique. At the age of 12, he sold video games he designed. By 18, he and a friend had helped create a job search engine called GoFerretGo that he claimed was valued at more than $3 million, though one of the lawsuits questioned that figure.
After he was tapped in 2006 as the chief executive of City Capital, now based in California, he was quick to boast in media interviews that the move made him the youngest black leader of a publicly traded company in the U.S.
He wrote books about his financial savvy, appeared on national news networks to offer financial advice and observations and landed a spot speaking to a youth leader’s summit at the 2008 Democratic National Convention. He’d convince ministers to let him deliver a Sunday sermon, the lawsuits say, and rev up the boasting of his TV appearances and client list stacked with celebrities and athletes.
It was that record that attracted Joann White, a 61-year-old retiree who invested her life savings of $200,000 in his firm. After years of fighting with Taylor and his associates, she said she lost all but $20,000 of the money.
“I know that’s so stupid now looking back at it, but I saw him so often on TV, talking about how great he was,” said White, who lives in Belleville, Mich. “And I kind of fell into it.”
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MUDFLAPS
Posted on November 2, 2011 at 10:48pmdont even have to look at the video. Just look at the opening frame and I know this guy is a shill.
Report Post »But some people dont have that ability…
last straw
Posted on November 2, 2011 at 10:32amNow it’s time for Bishop Joel Osteen and his sexy wife for president and first lady! …. the perfect encore to Obimbo and Moochelle!
I thought going to church was to worship God not Ephren Taylor or “Bishop” Eddie! Could have fooled me …. When does fast Eddie make Archbishop? Bring on the choir with screams and shouts and don’t forget to “feel” the spirit and jump up and down and scream somemore. Ever been to a BLACK service …… OMG!
Go in peace, my son and have a good laugh!
Report Post »panick
Posted on November 1, 2011 at 3:45pmIf you stand for nothing you’ll fall for anything. Most of the congregants voted for BO who doesn’t stand for anything except getting re-elected. At least 70% of the congregants will probably vote for
Report Post »BO again, which means they are doubly stupid which Brother Tyler fully recognizes. Still Bernie Madoff did more damage to West Side NY libs – mostly Jewish who seem to still want to vote for BO
even after his disastrous Mid East policies. So stupid is as stupid does. Is anyone surprised that more fleecing of the sheep hasn’t taken place. Oh I forgot, they send money to Dumbocrats.
This_Individual
Posted on November 1, 2011 at 12:10pmDont ask WHAAAAAAAY, the preacher man got a rolex! Dont ask WHAAAAAY, the preacher man drives a lexusah! Don’t ask WHAAAAAAY, the preacher man has a yaht! If this jack-legged preacher did this, send him to the golougs!
Report Post »TheVoice1
Posted on November 1, 2011 at 12:05pmPlease stay encouraged!!!! When you see this kind of thing happening all around us, please do not let it reflect on your relationship with God. At times it is difficult, however it is so important, especially in the times we are in, to strengthen your heart in God, to strengthen one another in God. Stand strong America
1 Samuel 30 encourage yourself
Report Post »loveliberty83
Posted on November 1, 2011 at 10:46amthere was another case in Atlanta started @ a church once the SEC gets involved they take all the money for lawyers fees -the guys family Kendall all got off they stole people’s life saving I always thought the SEC lawyers already got paid by the government
Report Post »Realitychic
Posted on November 1, 2011 at 10:17amThe churches in America have now become the land of the comfortable. Most listen to the “tickling” of thier ear. Will this benefit ME or how does this apply to ME. Unfortunately – I believe many churches are a joke/waste. They are not preaching all of the Bible. Just the Americanized version. The parts that help ME.
Report Post »BUT God is Still alive and there are many churches and many real christians (living to serve Jesus). We are to TEST EVERYTHING we hear against the word of God. It must be final authority- when its not.. we are easily fooled (by our own selfishness and/or by others “tickling” words)
AviatorV1
Posted on November 1, 2011 at 9:29amGARYM………Well said.
Report Post »Blight14
Posted on November 1, 2011 at 8:55amThis is actually somewhat amusing…..The gullible being duped by a charlatan…….hey wait, this isn’t any different than the supreme charlatan John Hagee and his minion of ultra gullible loons………………
Report Post »Zorro6821
Posted on November 1, 2011 at 10:11amSounds like Beck and his Fat Headed God Complex.
Report Post »iltws2
Posted on November 1, 2011 at 4:44amWe do have one Law to keep this from happening, It’s called common sense. While not a real Law, it needs to be. These criminals know that the masses can be led around like cattle,then slaughtered.
Report Post »When are people going to figure out your on your on in this world. When an outsider starts telling me he can make me rich, I already have one ear closed while both eyes wide open. Critical thinking in this country is gone, replaced with emotional thinking. Way to go America.
obfuscatenot
Posted on November 1, 2011 at 7:22amThank you public school. Agree with you 100%. I had an attorney tell me once, it’s not AGAINST the law to lie- look at all the lawyers in CONgress these days! They have no problem with it. You just can’t call Obama a liar.
“There’s a sucker born every minute.”
@maulemall- your avatar is SCARY! Lil-jimmy-o.
Report Post »hi
Posted on November 1, 2011 at 1:25amHas Obama hired him yet? He would be a great part of the Obama team.
Report Post »tmplarnite
Posted on November 1, 2011 at 4:01amThe sheep have been fleeced by the wolves…with this hooey…for centuries…they never learn!
Report Post »confederacyofdunces
Posted on November 1, 2011 at 12:29amCrucify him in the desert.
Report Post »Endstatism
Posted on October 31, 2011 at 10:23pmThe only way that we are going to put a end to scam artists like Taylor and Madoff is to pass laws that require those who scammed investors to not only serve time in prison, but as a condition of being released from jail, they have to repay everyone they stole from. If they cannot, they will remain in prison until that condition is met. Many scam artists hide their stolen assets in offshore banks. If they are in prison, they will not be able to access their ill gotten gains.
Report Post »PATRIOTGRUNT
Posted on October 31, 2011 at 9:20pm“ He Pushed All The Right Buttons ” Wow a ***** Bernie Madoff . This is news. Blaze is quickly becoming crap. Irelevant , usless piece of crap.
Report Post »LibertyGoddess
Posted on October 31, 2011 at 9:56pmI’m glad news outlets run these kind of stories. It helps people to see that affinity fraud exists and to be very careful! I just wish we had harsh laws for this because it is so common now the criminal only gets a slap on the wrist.
Report Post »Servant Of YHVH
Posted on November 1, 2011 at 8:44am@patriotgrunt
Report Post »If it’s such a “usless piece of crap” then why are you on here? You are more than welcome to be on here (not that I have anything to say about it but I agree) but just curious.
lukerw
Posted on October 31, 2011 at 9:06pmDid someone not read the Book of Daniel?
Report Post »Mikev5
Posted on October 31, 2011 at 8:59pmGood is great God is man God is inside us all NOT CHURCH and the people that run it all to many just go to church and never question what that church is all about how are they helping its followers or more to the fact Who is making the Money and who is living in the Golden palace with the 20 limos parked out front and a Gold spoon up there ASS these same people scream and below how the rich white man is stealing from them and keeping them in the dirt shame on the capitalist dogs burn them all how dare they live in there nice homes when you live in cardboard homes yet these same people live like Kings in their own Golden kingdoms
Report Post »Mikev5
Posted on October 31, 2011 at 7:52pmMost Churches have lost their way and are more concerned with getting more money than helping the people that they should be helping these churches want trips cars homes new shinny big churches all to help the people I don’t thing so who is benefiting here
Report Post »taxpro4u03
Posted on October 31, 2011 at 9:00pmThe template for such shenanigans is…… Vatican City. There is more wealth within those walls to eradicate ALL the needs of the poor worldwide they so advocate donating for. cavet emptor.
Report Post »Welcome Black Carter
Posted on October 31, 2011 at 9:14pmI have never been to a church where this could be a topic of discussion. I have never been to a church that discussed politics or made a suggestion who to vote for. But, I have never been to a black church… kinda seems like they need to spend more time in the book.
Report Post »saranda
Posted on November 1, 2011 at 11:49am@taxpro – do you understand that much of the wealth in Vatican City is not sitting in piles of cash or investments, but rather in art and antiquities that cannot be sold but generate income for the church by attracting tourists. It would be shortsighted and foolish to sell that upon which great income is generated.
Report Post »Mikev5
Posted on October 31, 2011 at 7:49pmWhat I see is Church is no longer Church its big business with perks it’s so close to politics they are almost the same thing it’s all about POWER and INFLUANCE not the people when they want a % of your earnings as a tide/donation something is wrong
Report Post »Edct
Posted on October 31, 2011 at 7:57pmProbably the some of the same ignorant racist blacks that voted the illegall imposter in our White House….do your research people and use your brains.
Report Post »tankyjo
Posted on October 31, 2011 at 7:28pmComments here run the full spectrum. LOL
Report Post »motonutt
Posted on October 31, 2011 at 8:00pmWhat was it Jesus said about the money changers…..??? In a church or place of worship…
Report Post »One of if not the only violent moment Jesus had,,,, spoken of in the bible had to do with mammon in the place of worship…..something about “You vipers” snakes, serpants. swindlers, evil.
last straw
Posted on October 31, 2011 at 7:27pmI thought going to church was to worship God not Ephren Taylor or “Bishop” Eddie! Could have fooled me …. When does fast Eddie make Archbishop?
Report Post »TRONINTHEMORNING
Posted on October 31, 2011 at 6:39pmGotta watch out for those wolves. The eat sheep.
Report Post »motonutt
Posted on October 31, 2011 at 7:23pmActs 5:1 Ananias and Sapphira….need I say more?
You steel from Gods people you have stolen from God, and God help you.
Report Post »garyM
Posted on October 31, 2011 at 6:34pmThis guy got this idea from Jessie Jackson!
Report Post »The_Almighty_Creestof
Posted on October 31, 2011 at 6:25pmWhat is sad, is that these same churchgoers complaining they have not seen a return on their investments procured in a church, probably skimp when the collection plate comes around.
Report Post »antiencenom
Posted on October 31, 2011 at 7:11pmHow the hell did you get to that ass umption?
Report Post »you make no sence
Bakko Bomma
Posted on October 31, 2011 at 6:19pmIf you‘re dumb enough to think you’re going to Heaven to live forever because you believe God had sex with some girl 2000 years ago in the desert you’ll believe anything. This has been proven over and over for centuries.
Report Post »The_Almighty_Creestof
Posted on October 31, 2011 at 6:31pmYeah, that whole 1 in a gazillion – trillion – billion chance that a chemical reaction produced millions of lifeforms perfectly adapted for the atmosphere on just one planet (that we know of) including one sentient creature… is so much more believeable.
Report Post »garyM
Posted on October 31, 2011 at 7:18pmBakko Bomma
Report Post »The Bible doesn’t say God had sex, it says the Holy Spirit overshadowed Mary, the same Holy Spirit can overshadow a full grown man and he can be born again spiritually. I‘m sure you don’t understand that but many do understand, that’s why no matter how many people dispute the existence of God and His Word, His church will remain until he returns for them, God’s wrath will also fall on those who have heard the gospel and rejected it thinking they are more intelligent than the one who made them and the world! The fool has said in his heart there is no God!
AviatorV1
Posted on November 1, 2011 at 9:30amGARYM……Well said.
Report Post »RightPolitically
Posted on October 31, 2011 at 6:13pmSounds like this guy is the black Bernie Madoff, just on a smaller scale. Madoff went to the Jewish temples to score his willing victims. This guy seems to have used a similar formula. Moral of the story: A FOOL AND HIS MONEY ARE SOON PARTED!
Report Post »MAULEMALL
Posted on October 31, 2011 at 6:17pmHe should just change his name to obama
Report Post »Chuck Stein
Posted on October 31, 2011 at 6:22pmIt is called “affinity fraud” — the stronger a particular “group” is bound together, the easier it is for a group “member” (real or perceived) to take advantage. Jews, Mormons, Scientologists, Evangelicals, . . . . probably no group (that considers itself a “group”) in America has escaped being victimized by affinity fraud.
Report Post »vennoye
Posted on October 31, 2011 at 7:10pmThe only people of these “groups” who would fall for these scams through their churches are the people who have not read what the Bible has to say about shepherds!!!!
Ezekiel 34:10 Thus saith the Lord Jehovah: Behold, I am against the shepherds; and I will require my sheep at their hand, and cause them to cease from feeding the sheep; neither shall the shepherds feed themselves any more; and I will deliver my sheep from their mouth, that they may not be food for them.
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