$350,000,000

[Gregory Matthews]

A 350 million dollar lawsuit:  In April a 350 million dollar lawsuit was filed against a multitude of SDA organizations and people.  Generally, such are tracked in Pacer, which requires an account, which I have.  For those who do not have such an account, ongoing, detailed information on this litigation may be found at the following website, free of charge.

https://dockets.justia.com/docket/florida/flsdce/1:2023cv21552/645994

 

[Rahab]

I looked at it but I don’t understand what the charge is?

[Gregory Matthews]

The charge is that the SDA Church acting through its pastors and others encouraged people to invest in a scheme that was fraudulent.  As I recall, the government has been able to recover some $248,000,000,  But, I have not checked that out.

The website that I sent you to provides a listing of the various legal filings in this case.  At this point in time, those filings are simply the normal beginnings aaat the beginning of the litigation, which include the following:

*   A notification of the lawyers who represent the various people.

*   A request that the Judge remove various defendants from the case.  IOW, this is a claim that a specific defendant did nothing wrong and therefore should not be a defendant.

*   A request that a specific person was wronged and therefore should be added to the case.

I have not looked at that listing in depth.  So, there are probably other normal filings.  One likely one may be as to where the case will be litigated.  This stuff is quite normal and routine for  such litigation.

At every point, costs are mounting as legal services do not come cheaply.  I would not be surprised if some of the lawyers are charging $500 per hour and some likely more than that.  All are expecting a judgment that would require the payment of the legal fees in addition to the individual damages, both real and punitive.  The fact that the basic lawsuit claims a 350 million dollar fraud tells me that huge legal fees are expected.  In this case the SDA Church is expected to have the  big pockets.  Note how the defendants include the General Conference, multiple Local Conferences and individual denominational employees.  You add all of those up and you have the potential for a huge liability. 

 

 

[Rahab]

What was the fraudulent scheme?

bitcoin?

[phkrause]

On 7/5/2023 at 7:06 PM, Rahab said:

I looked at it but I don’t understand what the charge is?

I'm just dizzy from reading that!! 🤣

[Gregory Matthews]

#1:  The citation that I listed is complex and simply demonstrates that early states of the litigation in which the groundwork is laid for setting in motion litigation that identifies the one charging a loss and in this case a multitude of SDA defendants.

#2:  In brief the charge, as I understand it, is that a multitude of SDA organizations (the defendants) persuaded SDA members to invest in what was a Ponzi scheme and not a real investment.  The central issue is that it is alleged to be a Ponzi scheme, which is illegal, and it is not important as to the nature of the alleged investment.

#3;  The central basis for a Ponzi charge is that:  1) People are falsely told that investment in X will result in profits that exceed the normal rate of return.  2)  Money invested is not actually invested in what people are told it will be invested in.  IOW, if they are told their money will be invested in a company that is selling a device that causes one to operate their automobile on less gasoline, that money does not go to that company.  3) People are told they can withdraw their investments at any time in the early stages of the fraud.  4) Very few are actually allowed to withdraw their funds.  Those few who are allowed to withdraw their money are paid a good profit that simply comes from money that other people have invested.  5) The money left over, simply is profit that the person committing the fraud keeps.

NOTE:  This case has not  gone to trial.  As far as I know, no one has been convicted of a Ponzi scheme.  I am not charging any person with actually committing any kind of fraud.  Such issues are properly litigated in a court and not in an Internet discussion.  My purpose is simply to inform people of litigation that has been filed against a multitude of SDA people and organizations.  It is not to accuse anyone of wrong doing.  Further, my description above of a Poni scheme is to inform people in general terms of what constitutes a Ponzi scheme.  As a generalization it is not intended to be specific to this actual case.  No assumption should be made that it is specific to this case.  In addition, I am not  competent to give legal advice and nothing that I have posted is intended to be legal advice.  Anyone who needs legal advice in this matter should seek competent advice from a licensed attorney.  My comments here apply to every post that I may make on this litigation, in any part of this forum.

 

Gregory Matthews

 

 

[Rahab]

Thank you 

[Gregory Matthews]

In my opening post, I listed a link to a website that had a complex listing o the legal actions that were going on.  As few people have probably read that in detail.  I will summarize what is listed as happening.  Everything happening is normal for litigation of this type.

1)   Each party to this case is entitled to be represented by an attorney.  So, every time a new attorney   is hired to represent a party, a formal notice is filed to give all parties notice that this new person is actively involved in the litigation.

2)  Everyone has to be notified as to who is the plaintiff in this litigation along with the attorneys who are representing a plaintiff.

3)  The alleged defendants and the attorneys representing them have to be identified to all.

4)  Each defendant has a right to ask to be dismissed as a defendant from the litigation, and the plaintiffs have the right to object to that dismissal.  It is normal to have some dismissed while others remain.