Showing posts with label Fraud. Show all posts
Showing posts with label Fraud. Show all posts

Thursday, March 07, 2024

9th Circuit Grants En Banc Rehearing in Huntsman's Suit Against LDS Church

In an Order (full text) issued March 1, the U.S. 9th Circuit Court of Appeals voted to grant en banc review in Huntsman v. Corporation of the President of the Church of Jesus Christ of Latter-Day Saints.  In doing so, the Order vacates the decision of the 3-judge panel in the case in which James Huntsman, a prominent former member of the LDS Church who had contributed over $2.6 million to it, charged the Church with fraudulently misrepresenting the manner in which funds from tithes would be used. (See prior posting.) Arguments in the rehearing are set for June 24.  ABC News 4 reports on the court's action.

Tuesday, January 30, 2024

Florida Official Rules That Changing Gender Marker On Driver's License Constitutes Fraud

In a January 26 Memorandum (full text), the Executive Director of the Florida Highway Safety and Motor Vehicles Department has rescinded the rule allowing transgender individuals to change the gender marker on their driver's licenses.  He ruled that gender reflected on one's driver's license must reflect one's sex as "determined by innate and immutable biological and genetic characteristics." The Memorandum went on to say:

[M]isrepresenting one's gender, understood as sex, on a driver license constitutes fraud ... and subjects the offender to criminal and civil penalties, including cancellation, suspension, or revocation of his or her driver license....

Newsweek reports on these developments. 

Thursday, November 30, 2023

British Appeals Court Upholds Preacher's Fraud Conviction For Selling COVID Preventative

In Wiseman v. Rex, (EWCA, Nov. 20, 2023), Britain's Court of Appeal upheld the fraud conviction of the head of the Kingdom Church for selling an oil mixture that he represented would protect against or cure COVID.  According to the court:

5.... Using the name Prophet Climate Wiseman, he described the oil mixture on his website ... as containing cedar wood, hyssop and prayer, and stated that it had “sat upon the altar for 7 days”.

6. The oil was generally referred to as “plague protection oil” or “divine cleansing oil”. Through its use, together with a scarlet yarn, it was said that the special ingredients “act like an invisible barrier” and that “coronavirus and any other deadly thing will pass over” the user....

8. The prosecution case was that promotion and sale of the oil mixture was little more than exploitative commercial opportunism disguised as an article of faith....

9. The defence case was that the appellant had promoted and sold the oil mixture in good faith. It was aimed at people who believed in God, and when the oil mixture was combined with prayer it would work to protect against and cure coronavirus.... He believed in the truth of claims made by him in respect of the oil mixture....

Appellant was given a suspended prison sentence, a 130 hour community service requirement and a costs order equivalent to more than $76,000 (US).  Appellant's unsuccessful appeal focused primarily on the judge's instructions to the jury and on statements by counsel during closing arguments.  PA Media reports on the decision.

Friday, November 10, 2023

Pastor's Breach of Contract Suit Dismissed on Ecclesiastical Abstention Grounds

In Craver v. Faith Lutheran Church, (TX App., Nov. 8, 2023), a Texas state appeals court held that the ecclesiastical abstention doctrine requires dismissal of a pastor's suit for breach of contract and fraudulent inducement brought against the church that was his former employer. After the church's executive board received complaints against the pastor, the church entered a severance agreement with the pastor. The pastor contends that the agreement included an assurance that the allegations against him would not be spread throughout the congregation. The court said in part:

Craver argues his case presents a “run-of-the mill” civil dispute, which can be resolved by application of neutral principles of law and without reference to religious matters. He contends: “While Faith Lutheran’s decision to terminate [him] is generally unreviewable, [his] claims have nothing to do with that and are instead about Faith Lutheran’s obligations under a secular, civil contract not to make certain statements.”

We disagree that church matters can be so cleanly and completely severed. Instead, the substance and nature of Craver’s fraudulent inducement and breach of contract claims are “inextricably intertwined” with matters of Faith Lutheran’s church governance.... [B]oth claims rely on circumstances surrounding contract formation and it is those circumstances which implicate the ecclesiastical abstention doctrine...

[W]e cannot untwine recommendations Church executives made in the course of church governance from the allegedly fraudulent representations that form the basis of Craver’s lawsuit.

Monday, November 06, 2023

LDS Church Sued Over Use of Tithed Funds

A class-action lawsuit was filed last week in a Utah federal district court against the Latter-Day Saints Church alleging fraud, unjust enrichment and breach of fiduciary duty in the handling of tithed funds and other contributions by the Church. The complaint (full text) in Chappell v. Corporation of the President of the Church of Jesis Christ of Latter-Day Saints, (D UT, filed 10/31/2023) alleges in part:

1. For decades, COP has used false pretenses to obtain donations. Rather than use these funds entrusted to it for charitable work, COP secreted donations away in Ensign in order to avoid public scrutiny and accountability to the donors, and instead used them for purposes never contemplated by donors and contrary to representations by COP....

3. For instance, COP maintains various philanthropies, including “Humanitarian Relief,” which provides “immediate emergency assistance to victims” of disasters. On its website, COP solicits donations to the Humanitarian Relief fund by stating that “One hundred percent of every dollar donated is used to help those in need without regard to race, religion, or ethnic origin.”

4. Despite these representations to donors, Plaintiffs understand based on public reports from third parties that COP deliberately hid that some, if not all, of these donations (including both tithes and donations made to a COP philanthropy) are permanently invested in accounts it never uses for any charitable work, so that every year, an enormous portion of the donations are never spent for these —or any— purposes.

Salt Lake Tribune reports on the lawsuit.

Sunday, October 01, 2023

Texas AG Sues Yelp for $1M for Mislabeling Pregnancy Resource Centers

Texas Attorney General Ken Paxton last week filed a civil lawsuit against Yelp contending that it violated the Texas Deceptive Trade Practices- Consumer Protection Act by posting a "consumer notice" on the Yelp listings of anti-abortion Crisis Pregnancy Centers. The complaint (full text) in State of Texas v. Yelp, Inc., (TX Dist. Ct., filed 9/28/2023), alleges in part:

Yelp has engaged in deceptive trade practices, including disparagement of the goods, services, or business of another by false or misleading representation of facts.... Specifically, Yelp posted a “consumer notice” on the Yelp business pages of every pregnancy resource center across the nation, misleadingly stating that these centers “typically provide limited medical services and may not have licensed medical professionals onsite.” That was false. Pregnancy resource centers provide significant care and counseling to pregnant women. And they commonly provide significant medical services, and have licensed medical professionals onsite....

In or around February 2023, after approximately six months of displaying false and misleading disclaimers on the business pages of pregnancy resource centers, Yelp finally removed the misleading disclaimer regarding the alleged lack of medical professionals and medical services onsite, replacing it with a new disclaimer that stated: “This is a Crisis Pregnancy Center. Crisis Pregnancy Centers do not offer abortions or referrals to abortion providers.”

In addition to injunctive relief, the suit asks for civil penalties, attorneys' fees, restitution and costs that total at least $1 million. Paxton's office issued a press release announcing the filing of the lawsuit. [Thanks to Scott Mange for the lead.]

Wednesday, August 30, 2023

Ecclesiastical Abstention Doctrine Does Not Apply to Church's Fraud Claims Against Former Pastor

 In New Bethel Baptist Church v. Taylor, (TX App., Aug. 29, 2023), a Texas state appellate court held that the ecclesiastical abstention doctrine does not prevent civil courts from adjudicating fraud, breach of fiduciary duty and conversion claims against its former pastor who also served as the general contractor on a church construction project.  Plaintiff claims that the pastor withdrew $300,000 from the church's bank account without authorization. The court concluded that the claims can be resolved using neutral principles of law. the court said in part:

... [T]he resolution of these causes of action does not depend on the interpretation of New Bethel’s bylaws and constitutions or other relevant provisions of governing documents. Indeed, this is an example of a civil law controversy in which a church official happens to be involved....

However, the court affirmed the dismissal of the suit because the attorney did not carry her burden of proof that she was authorized to represent the church. The court said in part:

... [R]egardless of how it is named or classified in the underlying suit, it is undisputed that there is only one church. Within this one church, there are two competing factions claiming control, i.e., the board of deacons and directors. With two competing factions claiming control of the church, attorney Robinson, as the challenged attorney, was either authorized to represent both entities, or she was not. In granting Taylor’s rule 12 motion to show authority, the trial court concluded that attorney Robinson failed to discharge her burden of proof to show her authority to act and nothing more.

Tuesday, August 22, 2023

Illinois Regulation of Limited Purpose Pregnancy Centers Violates 1st Amendment

In National Institute of Family and Life Advocates v. Raoul, (ND IL, Aug. 4, 2023), an Illinois federal district court issued a preliminary injunction against enforcement of Illinois SB 1909 which amends the state Consumer Fraud Act to prohibit limited purpose pregnancy centers from using misrepresentations or concealment to interfere with a person's access to abortion or emergency contraception. the court said in part:

SB 1909 is content based discrimination. The subject of the prohibited speech is not just abortion but speech that emphasizes the negative effects of abortion. What's more, there is ample evidence in the record before the Court at this time that SB 1909 was adopted because of Defendant Raoul's disagreement about the content of Plaintiffs' speech. The message of Plaintiffs' speech is subject to prohibition under SB 1909 but abortion providers' speech is specifically excluded from being sanctioned under the Consumer Fraud Act.

Tuesday, August 08, 2023

9th Circuit: Fraud Claim Against LDS Church By Prominent Donor May Move Ahead

In Huntsman v. Corporation of the President of the Church of Jesus Christ of Latter-Day Saints, (9th Cir., Aug. 7, 2023), the U.S. 9th Circuit Court of Appeals, in a 2-1 decision, reversed a California federal district court's dismissal of a fraud claim brought against the LDS Church by James Huntsman, a prominent former member who had contributed over $2.6 million in tithes to the Church. The court described Huntsman's claim:

Huntsman alleged that the Church represented that tithing money was not used to finance commercial projects, but that, in fact, the Church used tithing money to finance a shopping mall development and to bail out a troubled for-profit life insurance company owned by the Church.

The court rejected the Church's claim that the suit was barred by the ecclesiastical abstention doctrine, saying in part:

In the case before us, we are not required to rely on or interpret the Church’s religious teachings to determine if it misrepresented how it was using tithing funds. Nor are we required to examine Huntsman’s religious beliefs about the appropriate use of church money. 

Instead, as presented to us, the questions are secular. The questions are whether the Church’s statements about how it would use tithing funds were true, and whether Huntsman reasonably relied on those statements when he made tithing contributions. A court or jury can answer these questions based on secular evidence and analysis.....

The majority then concluded that the district court had erred in granting summary judgment to the Church, saying in part:
The question before the district court, and before us, is whether a reasonable juror could conclude that the five statements by church officials and in church publications amounted to fraudulent misrepresentation by the Church.... Huntsman contends that a reasonable juror could conclude from the five statements that the Church fraudulently misrepresented that neither tithing principal nor earnings on tithing principal were being or would be used to finance the City Creek Mall project. We agree.

Judge Korman dissented in part, agreeing with the district court that no reasonable juror could find that the Church had misrepresented the source of funding for the mall project.

Friday, March 31, 2023

Fraudulent Misrepresentation Claims Against LDS Church Are Dismissed

 In Gaddy v. Corporation of the President of the Church of Jesus Christ of Latter-Day Saints, (D UT, March 28, 2023), a Utah federal district court, in a 56-page opinion, dismissed a Second Amended Complaint in a class action lawsuit brought by former members of the LDS Church. The suit alleges that the Church has fraudulently misrepresented its founding to its members while its leaders did not have a sincere religious belief in the narrative. It also alleges that the Church made fraudulent misrepresentations about the use of money received from members' tithing. The court said in part:

The court has twice considered and rejected Plaintiffs’ arguments that fraud-based claims directed towards the Church’s alleged misrepresentations and omissions concerning the First Vision, Church History, translations of the Books of Mormon and Abraham, and locations of events in the Book of Mormon are not subject to the church autonomy doctrine. The court also previously rejected Plaintiffs’ theory that they can avoid the church autonomy doctrine by arguing the sincerity of the Church’s beliefs or basing their claims on a theory of fraudulent omissions....

By pleading even more facts concerning Joseph Smith, Plaintiffs seek to have the court adjudicate the truth or falsity of the Church’s beliefs and teachings concerning its founder by challenging the accuracy of facts surrounding those beliefs. But again, “[i]f religious events themselves sit beyond judicial purview, religious beliefs concerning the details of those events must enjoy the same protection.”...

The court agrees with the Church that Plaintiffs’ fraud in the inducement claim fails, not for running into a First Amendment bar on the falsity or reliance elements, but for a more fundamental failure to plead the claim with the specificity required under Rule 9(b)....

The court agrees with the Church that Plaintiffs fail to state a claim for fraudulent nondisclosure on the tithing theory because Plaintiffs cannot show that a legal duty exists between the Church and its members requiring disclosure of material financial information....

The court is unaware of any case law supporting the proposition that “constructive fraud based on a breach of promises of future performance” is an independent, recognized cause of action in Utah....

Because the UCSA [Utah Charitable Solicitation Act] does not appear create a private cause of action, and because effectively Plaintiffs concede this point in their Opposition, the court dismisses Plaintiffs’ claim for violation of the UCSA....

The court agrees with the Church that Plaintiffs have failed to plead a cognizable civil RICO claim....

Sunday, March 05, 2023

Fraud Claims Against Ministry May Not Proceed as Class Action

In Carrier v. Ravi Zacharias International Ministries, Inc., (ND GA, March 3, 2023), a Georgia federal district court held that claims for unjust enrichment and violation of the Georgia Fair Business Practices Act brought against a Christian apologetics ministry and the estate of its founder cannot proceed as a class action. Plaintiffs must instead proceed only in their individual capacities. The suit alleges that some of the contributions to the organization were used to facilitate or cover up the sexual misconduct by Ravi Zacharias.(See prior related posting.) The court found several reasons that a class action was not appropriate, saying in part:

[I]t is clear that the Court must require RZIM to disclose the identities of its donors in order to certify the class defined in the First Amended Complaint. The Proposed Class is defined as: “All persons in the United States who made contributions of monetary value to Ravi Zacharias and/or the Ravi Zacharias International Ministry from 2004 through February 9, 2021.”... It is impossible to certify such a class without compelling RZIM to disclose its donor lists. Compelled disclosure of RZIM’s donor lists and identification of the donors as financial supporters of a “sexual predator” would have an impermissible chilling effect upon their First Amendment rights to associate with RZIM and other likeminded religious believers....

In theory, a class could be certified that seeks an award of damages equal to all of the hundreds of millions of dollars contributed over the 16-year class period from 2004 through February 9, 2021. But the Plaintiffs admit that RZIM used the contributions of the Proposed Class to support a mission of spreading the Gospel, teaching new apologists, and trying to help people through humanitarian efforts. None of the donors were actually harmed by their contributions to RZIM, and it appears from the face of the First Amended Complaint that only a very small amount of the money contributed to RZIM was actually used to facilitate or cover up the sexual misconduct of Zacharias. Therefore, a class-wide damages award (even if possible) of all contributions would be inequitable and implausible....

While the Plaintiffs also ask the Court to enjoin the Defendants’ “unfair and/or deceptive acts or practices,” Zacharias died on May 19, 2020.... After that, RZIM commissioned an independent investigation of his misconduct and admitted wrongdoing; the results of that investigation have been well-publicized in the Christian community.... As pled, there is no further deceptive behavior by RZIM that would warrant injunctive relief. 

Sunday, October 30, 2022

Denial of Jury Instruction on Defendant's Religious Exercise Is Upheld

In United States v. Dickey, (7th Cir., Oct. 28, 2022), the U.S. 7th Circuit Court of Appeals upheld a trial court's refusal to give a jury instruction sought by a criminal defendant who was the leader of her own church, Deliverance Tabernacle Ministry, who was convicted of wire fraud and forced labor.  According to the court:

[T]hrough her proselytizing, Dickey groomed vulnerable victims and forced them to disavow their families, live in the church, and work multiple full‐time jobs. The victims would then give Dickey all their wages, which she would keep for herself.... If someone disobeyed, Dickey threatened them with violence and required them to be homeless until she considered them redeemed. All told, her scheme netted $1.5 million, most of which came from DTM members. She spent over $1 million on personal expenses, such as travel, rental and vacation properties, and luxury hotels....

Dickey wanted the jury instructed as follows:  

You should not consider the ways in which the Defendant exercised or practiced her religion in determining whether she is guilty of these charges. All individuals have a right to the free exercise of religion.  

Her proposed jury instruction failed at the outset because it is not an accurate statement of the law. Dickey’s proposed instruction would have excused her criminal conduct based on her religious assertions. That broad interpretation finds no support in the caselaw. To the contrary, neutral laws of general applicability are consistent with the First Amendment.

Wednesday, October 26, 2022

Brooklyn Yeshiva Will Pay Additional $5 Million In Penalties for Lunch Program Fraud

The U.S. Attorney's Office for the Eastern District of New York announced on Monday that Central United Talmudic Academy, a yeshiva in Brooklyn, has entered a three-year deferred prosecution agreement under which it has agreed to pay $5 million in penalties for conspiracy to commit wire fraud.  This is in addition to $3 million in restitution it has already paid. The Announcement describes "several overlapping frauds" to which CUTA has admitted, saying in part:

According to admissions in the statement of facts and other public documents, between 2014 and 2016, CUTA received more than $3.2 million in reimbursement for a meal program that purported to feed students of the yeshiva.  The program was almost entirely fictitious.  Rather than feed its children, the School diverted the funding, including to subsidize parties for adults. To commit the crime, the School fabricated records and made dozens of sworn misrepresentations to government agencies.

During the investigation into the fictitious meal program, the investigative team uncovered evidence of other fraudulent conduct by the School and its employees.  In addition to the program fraud noted above, this included various payroll practices that enabled the School’s employees to commit benefit and tax fraud....

By underrepresenting its employees’ income, CUTA enabled its employees to obtain various public benefits—including health care and childcare—that would not have been available if the employees honestly reported their income.

Officials of the school have previously pleaded guilty and been sentenced for fraud. The Announcement was also posted in Yiddish on the website of the U.S. Attorney's Office. Gothamist reports on the agreement.

Tuesday, September 13, 2022

Christian University Trustees Sued Over LGBTQ Hiring Policy

Suit was filed this week in a Washington state trial court against six members of the Board of Trustees of Seattle-Pacific University challenging the University's policy of refusing to hire LGBTQ faculty or staff if they are in a same-sex marriage or a same-sex relationship.  The complaint (full text) in Guillot v. Whitehead, (WA Super. Ct., filed 9/11/2022), brought by a group of students, faculty and staff, alleges breach of fiduciary duty, fraud, negligent misrepresentation and interference with contractual relationships. It contends that "rogue" members of the University Board of Trustees have misled other Board members about the vote necessary to eliminate the hiring policy. The University, which was founded by the Free Methodist Church of North America, defines itself as a Christian university. One-third of its board members and its president must be members of the Free Methodist Church. The complaint alleges in part:

1. This case is about six men who act as if they, and the educational institution they are charged to protect, are above the law.

2. They are powerful men who use their positions, as trustees of Seattle Pacific University (“SPU”), to advance the interests of a religious denomination at the expense of the students, alumni, staff, and faculty of the university....

102. SPU is a university in crisis, stemming from the abusive leadership of entrenched interests who usurped control of the BOT to place it in service of sectarian-motivated LGBTQ+ discrimination....

AP reports on the lawsuit.

Saturday, September 03, 2022

Church's Attempt To Separate From Parent To Avoid Receivership Was Fraudulent

In Pentecostal Church of God v. City of Refuge Ministries Toledo Ohio, (OH Com. Pl., Aug. 15, 2022), an Ohio state trial court held that the transfer of a Toledo, Ohio church building by a quitclaim deed to City of Refuge, a separate non-profit entity, was fraudulent.  The court concluded that Toledo congregation was a satellite church of Detroit Pentecostal Church of God, and the members signing the deed had no authority to transfer the property. The transfer was made in order to attempt to separate the Toledo congregation from the receivership imposed on the Detroit congregation. The court said in part:

Here, the dispute is over a quit-claim deed that transferred property held by PCG to City of Refuge in 2018. Deciding if that deed was fraudulently transferred from PCG to City of Refuge will not invade upon protected ecclesiastical matters.....

[T]his Court finds that the deed executed in 2018, conveying the contested property from PCG to City of Refuge Ministries Toledo, Ohio as void, ab initio. Further, the title to said property is vested to PCG alone and the defendant, City of Refuge does not have any estate, right, title, or interest in the property.

Tuesday, August 23, 2022

Last Defendant In Poway Synagogue Tax Fraud Scheme Sentenced

The U.S. Attorney's Office for the Southern District of California announced on Friday that attorney Elliot Adler, the eleventh and last individual being prosecuted for the tax fraud scheme connected with Chabad of Poway, was sentenced to one year and one day in prison, fined $20,000, and ordered to forfeit gold coins purchased with funds used in the fraud. According to the announcement:

Beginning at least as early as 2010 and continuing through October 2018, Adler participated in a so-called “90/10” tax scheme with Rabbi Goldstein. Specifically, Adler gave money to Rabbi Goldstein that purported to be a donation to Chabad of Poway. Goldstein then secretly funneled ninety percent of the funds back to Adler, keeping ten percent of the funds as his fee. None of the donated funds was actually given to the Chabad as a charitable donation. Adler then falsely claimed that the fraudulent donations were tax-deductible on his tax returns, allowing him to reduce his personal income tax liability by approximately $500,000 (cumulatively) for tax years 2011 through 2017.

(See prior related posting.)

Friday, July 15, 2022

Wire Fraud Indictment Did Not Violate RFRA

In United States v. Stevens, (SD FL, July 12, 2022), a Florida federal district court adopted the magistrate's lengthy opinion of (May 2, 2022) and refused to dismiss a money laundering and wire fraud indictment against a religious psychic. The fraud victim, Ilena Torruella, believed that she was cursed because she possessed millions of dollars of "dirty" family money. Defendant offered to break the curse by "cleansing" the money and showing God that the victim was not attached to it. According to the court:

The key point Defendant relies upon to seek dismissal of this indictment is that Stevens never expressly promised to return Torruella’s money and Torruella never directly asked whether it would be returned before turning over her funds to Stevens.... Without an express agreement or promise to return the money, Stevens concludes that Torruella received exactly what she bargained for. The money was cleansed when Torruella gave it away.

Defendant contends that the indictment infringes her free exercise rights under RFRA and the 1st Amendment. However the magistrate's opinion rejects that contention, saying in part:

[Stevens] does not allege that any religious belief or practice of hers requires her to convert other people’s money for her benefit on false pretenses.... She instead argues that in general terms her Roma beliefs are burdened by the prosecution of this case based on her inability to practice her spiritual healing practices without government intervention. But that is too attenuated under RFRA because there are plenty of alternatives for Stevens to practice her religion....

The court concluded:

The jury must, of course, determine that her conduct was carried out with fraudulent intent. Defendant may present a defense that she was simply pursuing her religious practices, which may be antithetical with criminal intent. If the jury finds her belief to be sincere, she may be acquitted. But that is a matter for trial, not for a motion to dismiss.

Volokh Conspiracy has additional excerpts from the decision.

Tuesday, July 12, 2022

Suit Over Content Of Subway Tuna Sandwiches Moves Forward

In a case that is important to those whose religious beliefs prohibit consumption of meat or pork products, a California federal district court in Amin v. Subway Restaurants, Inc., (ND CA, July 7, 2022), refused to dismiss a suit alleging that Subway's tuna sandwiches contain non-tuna products. As reported by Reuters, the suit, alleging fraud and violations of California's consumer protection statutes, contends that DNA analyses of tuna from Subway indicates it contains other fish species, chicken, pork and cattle. According to the court:

Subway argues that any non-tuna DNA discovered when testing its tuna products must come from the eggs in mayonnaise or from cross-contact with other Subway ingredients.... Although it is possible that Subway’s explanations are the correct ones, it is also possible that these allegations refer to ingredients that a reasonable consumer would not reasonably expect to find in a tuna product.

Wednesday, June 29, 2022

Kosher Certification Agency Sues Airline For Unauthorized Use Of Trademarked Symbol

Suit was filed last week in a New Jersey federal district court by Kof-K, a kosher certification agency, against JetBlue Airways claiming that the airline used the agency's certification symbol without authorization on a pre-packaged in-flight artichoke snack.  The complaint (full text) in Kosher Supervision Service, Inc. v. JetBlue Airways Corp., (D NJ, filed 6/23/2022), alleges trademark infringement and other trademark violations,  unfair competition and consumer fraud. As reported by The Observer, Kof-K does not contend that the snack was not kosher. It merely contends that it had not certified it as such.

Tuesday, May 17, 2022

Charity Fraud Claims May Proceed Against Christian Apologetics Ministry

In Carrier v. Ravi Zacharias International Ministries, Inc., (ND GA, May 13, 2022), a Georgia federal district court allowed plaintiffs to move ahead with some of their charity fraud claims against RZIM, a Christian apologetics ministry, and the estate of its founder Ravi Zacharias. Plaintiffs claims include ones of unjust enrichment and violation of the state's Fair Business Practice Act. The court describes plaintiffs' claims:

They allege that the Defendants “bilked hundreds of millions of dollars from well-meaning contributors who believed RZIM and Zacharias to be faith-filled Christian leaders,” when “[i]n fact, Zacharias was a prolific sexual predator who used his ministry and RZIM funds to perpetrate sexual and spiritual abuse against women.”... 

Responding to defendants' assertion of the ecclesiastical abstention doctrine as a defense, the court said in part:

The Court will exercise jurisdiction over the Plaintiffs’ claims to the extent they are predicated on misuse-of-funds allegations but not faith-based allegations. At bottom, the faith-based allegations ask the Court to examine the theology and customs of Christianity and Christian apologetics to determine whether Zacharias and RZIM fulfilled the religion’s (and the Plaintiffs’) moral standards. The Court would have to make inherently ecclesiastical determinations as part of this inquiry, such as what it means to be a “faith-filled, moral, and upstanding Christian leader” ..., and whether Zacharias’s alleged sexual misconduct is “diametrically opposed to the teachings of Christianity.”... It is not the role of federal courts to answer these kinds of questions “because that would require defining the very core of what the religious body as a whole believes.”... 

On the other hand, the Court believes that the Plaintiffs’ misuse-of funds allegations do not pose the same First Amendment concerns. Those allegations, and the claims associated with them, raise what amounts to a secular factual question: whether the Defendants solicited funds for one purpose (i.e., Christian evangelism) but instead used those funds for another purpose (i.e., to perpetrate and cover up sexual abuse). That dispute “concerns the [D]efendants’ actions, not their beliefs,” and can be decided according to state statutes and common law principles.