In filings yesterday regarding the Dickson v. Gospel for Asia RICO lawsuit, Gospel for Asia’s lawyers claim lawyers for Matthew and Jennifer Dickson improperly brought action against a group of GFA employees without specifying their part in the alleged fraud. GFA’s attorneys do not argue the merits of the allegations but rather ask the court to dismiss the suit because such cases must designate how each person participated in fraudulent activities.
Group pleading defenses generally serve the purpose of making it harder to bring suits when individual agency cannot be identified. Plaintiffs are in a bind, they need discovery to prove the extent of coordinated fraud or cover-up of fraud but a court must accept a group pleading doctrine in order to get to discovery. In any case, in my view, the plaintiffs’ lawyers have provided more than enough evidence to proceed to trial against all defendants. To me as a layman, GFA’s response looks like a lawyerly way to avoid facing the evidence.
GFA’s attorneys also defend the arbitration agreement signed by the Dicksons while GFA employees. GFA argues that the Dicksons should be compelled to arbitrate because their donations to GFA were a part of their employment. All employees are expected to donate to GFA which makes disputes arising from their donations a part of the binding arbitration agreement.
I hope this argument doesn’t persuade the court to compel the Dicksons into arbitration. GFA is essentially arguing that employees have no rights and must be compelled to arbitrate allegedly illegal actions on the part of GFA. GFA also argues that their staff must donate to GFA and have no independent existence as a donor. On a related note, those considering working for a Christian ministry should read these agreements carefully. Arbitration agreements should not serve to shield an organization from whistle blowing.
Background articles on the GFA RICO suit
May 10, 2016 Reply to Response to Motion – GFA seeks to compel arbitration
May 10, 2016 Reply to Response to Motion – GFA asks court to dismiss suit
GFA RICO suit filed (2/8/16)
Details about RICO suit (2/9/16)
Statement from GFA board blaming bloggers (2/12/16)
Response from GFA’s lawyers (4/21/16)
Response from plaintiffs to GFA’s Motions to Dismiss and Compel Arbitration (4/19/16)
Category: Believers Church
Plaintiffs File Response in Dicksons v. Gospel for Asia
Attorneys for Matthew and Jennifer Dickson filed responses (see below) to Gospel for Asia’s motions to dismiss and compel arbitration in the RICO lawsuit against leaders of GFA. According to the filing, the Dickson’s provided ample detail and a clear and compelling case against GFA. The response concluded:
Under a straightforward application of the pleading standards, the Court should find the Dicksons allege facts sufficient to support each of their claims. Their Complaint leaves no doubt as to the nature of their allegations, and it is nearly impossible to imagine that Defendants need even a shred of additional detail to prepare their defenses. Accepting the allegations as true, and drawing all reasonable inferences in the Dicksons’ favor, there is no question that all Defendants are liable for the misconduct the Dicksons allege under each of their four claims. The Court should therefore deny the motions to dismiss, and this case should proceed to discovery forthwith.
In response to GFA’s demand that the Dicksons enter arbitration, the plaintiffs said GFA’s demand was based on an invalid and unenforceable employment agreement. The plaintiffs concluded:
Defendants have entirely failed to carry their burden of proving the existence of a valid arbitration agreement. The arbitration language in the Statement lacks consideration and is helplessly vague. Moreover, the Statement is palpably irrelevant to the dispute the Dicksons have brought before the Court for redress: the deliberate misleading of tens of thousands of similiarly situated donors resulting in Defendants’ enrichment. Rather than allowing Defendants to evade responsibility for their conduct based on the happenstance of the Dicksons’ former and terminated status as “members” of GFA, the Court—following well-settled precedent—should deny Defendants’ motion in its entirety.
Documents:
Plaintiffs’ Opposition to Defendants’ Motions to Dismiss Plaintiffs’ Claims
Plaintiffs’ Opposition to Defendants’ Motion to Compel Arbitration
Gospel for Asia Denies RICO Allegations, Moves to Dismiss Suit, and Asks Court to Compel Arbitration
In court filings Monday, Gospel for Asia denied all allegations of wrong doing, asked the court to compel the plaintiffs Matthew and Jennifer Dickson to enter into arbitration to settle their dispute and/or to dismiss the suit.
In February, Matthew and Jennifer Dickson brought sued GFA alleging fraud and mismanagement on behalf of themselves and the class of GFA donors. On Monday, GFA’s lawyers responded with denials, a motion to dismiss the suit and a demand that the Dicksons enter arbitration. The GFA legal response included signed agreements by the Dicksons while they were GFA employees which included a clause stating they wouldn’t sue over disputes but rather enter arbitration.
GFA’s response concludes:
Defendants [GFA leaders] pray that arbitration be ordered, or, alternatively, that judgment be entered that Plaintiffs take nothing by this suit against any of the Defendants, that class certification be denied, that all relief prayed for by Plaintiffs in this action be denied, and that Defendants be granted such other and further relief, at law and in equity, to which they may be justly entitled. DATED: April 15, 2016.
GFA’s motion to compel arbitration
GFA’s motion to dismiss the suit
GFA’s brief supporting motion to dismiss
GFA’s response to the complaint
The original complaint Dicksons v. Gospel for Asia
Gospel for Asia Claims Allegations Are False But Then Claims Changes Are Coming; Still Keeping the Audit Secret
If Gospel for Asia wants to show change, then the board of directors should release the most recent audit…
In early March, Gospel for Asia’s board of directors (we still don’t know who they are) posted a statement to donors about how they are responding to GFA’s loss of ECFA accreditation and the resulting questions about their financial integrity.
In it, I find some good signs, if indeed the statements are accurate. GFA claims to have instituted new procedures to insure money is spent where it should be spent. However, on the down side, GFA claims that the allegations which led to the need for these changes are false. Shorter GFA: We never did anything wrong and we won’t do it again.
You can read the statement in full at the GFA website. Below, I intersperse my reactions throughout the statement.
Strengthening Our Commitment to You
Wills Point, Texas – March 10, 2016: A positive effect of a malicious internet attack—and a subsequent series of false accusations—against Gospel for Asia has been the overall review and fine tuning of our administrative and financial processes in order to insure we are above reproach.
My carefully documented posts since April 2015 have been vigorous but not malicious. I have all along the way asked for comment and information from Gospel for Asia. GFA stopped responding to me in May of last year. At one point, a rumor was spread that I was offered a chance by GFA leaders to go to Texas and see the operation. That was false but I indicated that I would be willing to do that. There has been no effort to set the record straight with me or any other Christian media source. Christianity Today, World, Christian Today, etc. have all tried but gotten no answers of substance.
GFA board of directors, I ask you, what allegations are false? You keep saying that publicly and privately but you don’t provide evidence. The ECFA report documents numerous problems, many of which came from this blog. If you are going to make an allegation like that, you should be prepared to back it up. I have provided documentation via publicly available documents, internal budgets, staff meeting disclosures, etc. On the other hand, you have answered with denials without evidence.
The fact that you continue to spin what is obvious to everyone is not a good sign that you are actually following through with all of the “fine tuning” you claim. If you can spin this, then there is no assurance that you are doing what you say you are doing. For years, GFA promised to be following ECFA guidelines. You were not doing that. For years, GFA promised to follow the guidelines of the Office of Personnel Management. You did not comply which resulted in the OPM evicting you from the Combined Federal Campaign. Did you forget about that? Donors are not going to forget. If you really want to fine tune, then stop blaming the messenger for false allegations when it is obvious that many of the allegations have already had consequences in the real world.
On February 12, the board of Gospel for Asia issued a statement regarding our relationship with ECFA. Over Gospel for Asia’s thirty-six-year history with ECFA, our ministry underwent a number of reviews, all of which we passed, but our most recent review (which ECFA initiated as a direct result of false accusations originating on the internet) cited several recommended areas of improvement. Gospel for Asia contested ECFA’s conclusions, but simultaneously values our relationship with ECFA, especially as a founding member of the organization.
Seems pretty clear in this statement that it is fine with you to accuse media of making false allegations but then to ingratiate yourself with ECFA. When I make a claim, you call it a “false allegation.” When ECFA includes the same information in their review and validates my work, you change your tune.
Have you forgotten about your former board member colleague, Gayle Erwin? Erwin was a part of the GFA board for 30 years. He pulled back the curtain and validated media reports. In fact, he provided even more detail about how the board was misled. Are his allegations false? If so, please explain.
Compliance with ECFA standards are a benefit—but not a requirement—for a charity to operate ethically and legally. Even so, Gospel for Asia is working to comply with recommendations made by ECFA.
Today, Gospel for Asia, is pleased to announce we as a ministry have implemented—or are well on our way to implementing—each of these recommendations for improvement.
Some of the changes being implemented include the following:
- While Gospel for Asia has always undergone an annual and independent financial audit from a reputable firm, the ministry has now contracted a new auditing firm that ECFA specifically recommended. This firm is well equipped to assist Gospel for Asia in navigating the increasingly complex demands presented by the varying international environments within which we operate.
- The aforementioned audit—which is underway—has identified additional safeguards that can be applied to GFA’s accounting and reporting processes. Till now, Gospel for Asia has fully implemented approximately forty percent of these recommendations, and is in the process of implementing all of the recommendations.
- In order to assess our overall operations and management, we have engaged a national non-profit expert to conduct an additional management review and in turn recommend changes to policies, procedures and practices throughout the entire organization.
- With the help of the auditors and experts referenced above, we have created—and are in the process of implementing—an improved agreement with our field partners. This will allow GFA to more efficiently deploy resources and better communicate regarding the use of all resources.
- We are in the process of adding more staff to key administrative and financial divisions in order to strengthen our overall operations.
We believe these changes will strengthen our work and insure that all of it is accomplished according to standards that are above reproach.
Gospel for Asia remains undaunted in its mission to bring the love of Christ to those who have yet to hear his name. We believe the best is yet to come and that now, more than ever before, is the time to share the love and message of Christ among the world’s least reached. These changes will allow us to be even more effective.Statement from Gospel for Asia’s Board of Directors on Recent Developments
If you really are doing these things, then show some good faith to the public by releasing the now completed audit. If you want to demonstrate that you have turned over a new leaf, then release the audit. I know you have been asked for it and have denied the request. It is business as usual at GFA. You have it but you won’t release it.
GFA board members, you need to realize that donors don’t have to support GFA. There are other organizations which are more transparent and more focused. You must earn the trust of donors again. This spin job isn’t a good start. Just saying you are going to do things doesn’t cut it anymore. You must do something to demonstrate you have learned something.
For starters, release the most recent audit.
Gospel for Asia Has Changed Some Promises To Admit They Can Spend Donations As They Want
In a mailing to donors asking for money for new church construction in India, Gospel for Asia has changed their promise about how funds are used.
On their website, GFA still promises that 100% of donations go to the “field” with nothing taken out for administrative costs.
However, in this new mailing, GFA tells donors:
I wonder how long the 100% promise will remain on the website. As of right now, the messages are contradictory. Website donors are still being misled. This new appeal appears to be how GFA has done business in the past. According to the ECFA, GFA has used donor money for purposes other than intended. This new mailing asks for money for churches (see the letter and enclosures), but the disclaimer tells the donor that the money may not go to build a church.
Given the documentation that GFA is using money in India to purchase land, schools, and medical centers for income production, donors should be aware that the money you hope goes to build a church may build a business instead.