At the least three lawsuits have been filed in opposition to the African Methodist Episcopal (AME) Church, claiming that it mishandled its retirement fund, resulting in a $90 million loss.
The Put up and Courier (SC) reported {that a} class motion go well with was filed within the Southern Division of america District Court docket of Maryland on behalf of greater than 5,000 eligible retirees. In response to the go well with, the AME Church misplaced at the least $90 million, or about 70 %, of its retirement fund resulting from irresponsible investments.
The go well with provides that church officers gave sole authority of the pension fund to AME’s head of retirement providers with no oversight. Because of this, the fund invested within the buy of Florida land, a mortgage to a photo voltaic panel installer, and funding “in a now non-existent capital enterprise outlet.”
The category-action go well with additionally claims church officers admitted the pension, which was valued at $126 million final yr, has misplaced greater than $90 million. Moreover, “nobody linked with the Church” is aware of what occurred to the cash besides the previous head of retirement providers.
“On account of the African Methodist Episcopal Church’s gross monetary mishandling, almost 5,000 pastors, church elders, and different workers discover themselves considering a future with out the retirement funds they have been relying on,” William Alvarado Rivera, senior vp of litigation at AARP Basis mentioned in accordance with Faith Information Service.
Defendants embrace Jerome Harris, the previous government director of AME’s Division of Retirement Providers and South Carolina Bishop Samuel L. Inexperienced. AME’s common board and council of bishops have additionally been named.
Harris was sued in 2006 by Dorsey McCullough for mismanagement of annuity, however the case was dismissed resulting from a technicality.
AME Church officers acknowledged in an replace printed final month that it grew to become conscious of issues with its pension plan after a management change final yr revealed “monetary irregularities.”
“Out of an abundance of warning, we instantly engaged outdoors authorized counsel and forensics consultants to conduct an impartial and complete investigation,” AME Church leaders mentioned within the replace. “We proceed to actively work with federal authorities who’re investigating this matter and get better any misappropriated funds.”
AME leaders are additionally cooperating with federal officers who’re additionally investigating what occurred to the pension fund.
