H age Bö S eptember 6, 1995 • T he P ortland O bserver Commission Investigating NBCUSIA bv C.C. C a m p b e l l -R ock _____ A recently released Louisiana Department o f Insurance examina­ tion report has recommended that the Baton Rouge-based national Baptist Benefit Society, and affiliate o f the National Baptist Convention, USA, Inc., be liquidated The National Baptist Conven­ tion, USA, Inc., is one o f the largest black Baptist organizations in the country, representing 33,000 church­ es and eight m illion members nation­ wide. The report is yet another twist in the year-long battle between new president Rev. Henry J. Lyons and former president Rev. T.J. Jemison, for control o f the organization. The report’s findings have refueled ques­ tions concerning the whereabouts o f nearly $1 m illion o f Society money entrusted to Rev. T.J. Jemison’s ad­ ministration. The Society, a fraternal benefit organization which began operating on Sept. I, 1986 promised partici­ pants an annual annuity o f $500, a five-year, $3,500 level term convert- ible insurance policy; and charter membership in the organization. But a recent examination shows there is no money available to pay such ben­ efits, although $1.2 m illio n was placed in an escrow account to cover claims. The organization is still reeling from a judgment against former pres­ ident Rev. T.J. Jemison and others in the organization for fraud against the court and injury to the organization, in what was described by Superior Court Judge Zinora M itchell-Rankin as a “ dastardly scheme” by Jemison, to maintain control o f the organiza­ tion. However, Rev., Jemison’s trou­ bles don’ t stop there. The current insurance department report shows inconsistencies in financial reports and, i f records cited are correct, in addition to the more than $1.4 m il­ lion reserve fund deficit, over more than $500 in cash is unaccounted for. “ It’s the same thing that Jim Bakker did. He took the people’s money and spent it. The money has to be accounted for and replaced.” said Dr. Henry J. Lyons. The examination also found that the Society is in violation o f its own by-laws. The report indicates that although there were 10 officers o f record, there has been no cohesive functioning o f officers since 1988- 89. “ As o f September 30, 1994, the only officers w orking with the Soci­ ety were Rev. T.J. Jemison and Eddie G. Craw ford.” In addition, the report sheds I ight on the rise and fall o f two retirement plans launched under Dr. Jemison’s administration. In 1983, Rev. T.J. Jemison claims to have been divinely inspired in a dream to prepare and institute a “ Retirement Plan” for ministers. He expanded the plan to include all mem­ bers ofthe National Baptist Conven­ tion, USA.” sent Decree which demanded the immediate return o f money to all participants and for the NBCUSA, Inc., to cease all collection and solic­ itation activities. In July 1986,theNBCUSA,Inc., mailed a recission offer to the o rigi­ nal plan’s 3,294 participants. They could either get a refund on a one­ time $300 enrollment fee plus inter­ est or jo in a new plan-T he National Baptist Benefit Society. According to an affidavit, the NBCUSA, Inc., placed approximate­ ly $1,199,000 into an escrow ac­ count for the refunds as per the con­ sent Decree. By Sept. 30, 1986, the total amountofmoney accumulated in the escrow account was $1,241,000. A total o f $ 4 13,349.46 was refunded, leaving $827,650.54 in cash in the But shortly after 1983, the re­ tirement pian was investigated by the Securities Exchange Commission (SEC). The SEC ultim ately ruled the retirement plan was in violation o f the Securities Act and issued a Con­ escrow account to pay future bene­ fits to Society participants. Records indicate that no further payments were made after Sept. 30, 1986. Yet, by the Dec. 31, 1986 financial report the escrow account had dwindled to $324,484, leaving a total o f $503,166.54, unaccounted for. And by early 1987, the Society had no funds with which to pay its contractual benefits. By the time the Society filed its 1988 annual statement with the Lou­ isiana Department o f Insurance, its only asset was the $2,000,000 re­ ceivable note (guarantee note) alleg­ edly issued by the NBCUSA, Inc., to the Society in 1986. The examiner also found prob­ lems with the organization’ s account­ ing practices. “ The Society provided no bank statements and very few canceled checks for the period 1986 through 1994 and did not maintain an accounting system that conformed to genera I ly accepted insurance prin­ ciples.” Rev. Henry Lyons said his ad­ ministration has been trying to get complete financial information from his predecessors to no avail. 'We were given no records. What they gave us was flimsy and shabby. Two little sheets o f paper. We still do not know what was taken up at the New Orleans Convention, Richardson refuses to turn it over,” he said o f Rev. W. Franklyn Richardson, Jemison’ s hand-picked successor, whom Lyons defeated for president. Lyons spent the first few months o f his administration criss-crossing the country looking for N BC U SA bank holdings, but for the most part was unsuccessful. In addition to the three bank accounts he already knew of, Lyons’ sole find was an addition­ al bank account in Baton Rouge. The Louisana Insurance Com­ mission is continuing its investiga­ tion o fth e National Baptist Benefit Society. Insurance Commissioner Jim Brown said, “ Based on the ex­ amination report, we are continuing our investigation o f the operation o f the company and w ill take appropri­ ate regulatory action.” When asked i f crim inal charges w ill be pursued concerning the unac­ counted money, Dr. Lyons said, “ it’ s not clear what course we w ill actual­ ly take, but it is clear that we w ill not stop until we find every penny, in­ cluding the Benefit Society’s $ I m il­ lion.” The Vision: f t City O f Virtues fa th e r Hhan Violence The third annual Spirit Summit, a free one-day conference hosted by the Regional Drug Initiative Spirit Committee, w ill be held on Friday, Sept. 15 from noon to 9 p.m. at the Lutheran Inner-City Ministries Cen­ ter, 4219N.E. M artin Luther King Jr. Blvd. Focusing on the faith communi­ ty ’ s role in addressing the societal problems o f drug use, abuse and re­ lated violence, the keynote speaker w ill be the Rev. Fred Smith from The Carter Center in Atlanta, Ga. Rev. Smith is assistant director for violence and substance abuse in­ itiatives for the Interfaith Health Pro­ gram at The Carter Center and also chairman o f the board o f the National Interfaith Alliance Against Substance Abuse. The alliance is a national network o f religious practitioners in the field o f alcohol, tobacco and oth­ er drug prevention and treatment from various recovery' traditions. “ The mission o f the InterFaith Health Program Substance Abuse Initiatives is to enlist the faith com­ munity in fu lfillin g its unique role as a catalyst bringing positive change and awareness in response to issues arising from the use, misuse, and abuse o f alcohol, tobacco and other drugs,” states Rev. Smith. “ I am very excited to be part o f this important event in Portland, which is a prime example o f our mission,” he added. Afternoon workshops led by lo­ cal professionals and community leaders w ill address such topics as violence and the family; violence and virtues; violence and the media; violence and youth; violence and the faith community; and violence and character renewal. The afternoon session w ill end with a panel o f key community lead­ ers responding to the question, “ W’hat would Portland look like without v i­ olence?” Panel members w ill include Cox Funeral Home Inc. (503)281-4891 Judge Roosevelt Robinson, U.S. A t­ torney K ris Olson, Bishop A .A . Wells, Rev. Rozell Gilmore; Judge Henry Kantor; Rev. Rodney Page; State Rep. Eileen Qutub; Iman M ikal Shabazz, Mr. Vincent Wannassay, Ms. Chiquita Rollins and Mr. V ictor Leo. Moderator o f the discussion w ill be Rev. Bernard Ings, chair o f the R.DI Spirit committee. The Portland Adventist Health Van w ill be on the site from 10 a.m. to 4:30 p.m. offer free health infor­ mation and blood pressure checks and cholesterol screenings for $2. Refreshments and musical en­ tertainment w ill be available between 5 p.m. and 7 p.m. The evening ses­ sion beginning at 7 p.m. w ill feature music, testimonies and fellowship, along with a special message by Rev. Smith. This annual community event is provided as a free community ser­ vice by the Regional Drug Initiative. Co-sponsors include the Portland United Methodist Association for Metropolitan M inistries, the West­ ern Regional Center for Drug-Free Schools and Communities, N orth­ west Parish Nurse M inistries, Ecu­ menical M inistries o f Oregon, the Albina M inisterial Alliance and the M ultnom ah C ounty A lco ho l and Drug Program Office. For more information, call the Regional Drug Initiative office at 294-7074. GREATER ST. STEPHENS Piano/Organist Needed for area church Please call 287-3608/281-6575 Carrie or Helen A.A. COX, SR. A N N IV E R S A R Y ÜÏI}c