Scott Johnson at “Powerline,” recommends a 1960’s era article by University of Dallas professor Frederick Wilhelmsen, entiled “Christmas in Christendom.” The spirit of the article provides a striking counterpoint to some of the more dour voices from Protestant ages past.
I encourage fellow Protestants to look beyond the polemical flavor of the essay. It’s really about celebrating the incarnation of our Savior.
Categories: Catholicism · Reflection
Would you invest your nest egg with the advice of a part time roofer and a licensed practical nurse? Or, would you entrust your nest egg to their investment company? Exactly that scenario has brought what appears to be a bogus investment company run by two men from the Metro-Phoenix area, under investigation.
“Religion and Social Policy,” carried these details in September:
PHOENIX — State and federal authorities are examining the owners of a nonprofit company that promises to fund Christian charities while paying investors 24 percent annual returns. No one has been charged (yet), and no investors have sued. Church members and pastors have defended the company’s leaders.
They go on to report that investigators with the Arizona Corporation Commission are looking into possible state securities violations. The FBI is examining whether Nakami Chi Group Ministries International functions as a pyramid scheme, in which funds from new investors are used to pay returns to existing ones without a real revenue source, The Arizona Republic reported Sunday.
“The investigation is moving forward with criminal action against various people,” said FBI supervisor Pete Norell in California. He said he expects Nakami to be shut down.
At least one pastor, church elders and congregation members in Avondale and Chandler are among those who have put money into Nakami.
Nakami’s owners have told potential investors they control gold mines, Australian developments, telecommunication firms, banks and a Phoenix technology company. Financial records raise questions about Nakami’s assets.
Records show Ed Purvis, a licensed practical nurse from Chandler who is one of the company’s owners, and Nakami principal Gregg Wolfe don’t have broker’s, lender’s or banking licenses and haven’t filed paperwork in Arizona related to mines in the state.
Last week the Arizona Republic carried this story:
A pair of 2-carat diamond earrings. A gold ring. A down payment on a house.
These are just some of the items purchased with funds from a non-profit company that told investors in Arizona and 12 other states that their money would be used to fund Christian charities.
Newly released court documents in a state fraud case show that a co-owner of Nakami Chi Group Ministries International used the non-profit firm’s checking account to buy over $300,000 in items, including high-end custom jewelry and a new car.
A state investigator says the purchases were made with investors’ money.
The co-owner, Ed Purvis, also invested money in a golf course and restaurants, documents show.
State investigators say Nakami co-owners Purvis and Gregg Wolfe, both of Chandler, have raised more than $7.5 million from elders, pastors, churchgoers and other investors, including members of at least two Phoenix-area churches. Citing admiralty law that governs navigable waters, Purvis and Wolfe argue that the state has no jurisdiction in the case (seems like a non-sequitor). Neither could be reached for comment this week.
In seeking to shut down Nakami, state investigators filed documents saying its owners were tapping investor money for shopping sprees and side investments.
State special investigator Ronald Baran wrote in a search-warrant affidavit: “Investor money has been used by Purvis for gambling, legal fees, the purchase of new vehicles, to pay off the loan of another vehicle, credit-card payments, jewelry store purchases, a home purchased as an investment property, the down payment for a golf course, and an investment in a residential subdivision that went bankrupt before completion.”
The financial documents go back three years and show, among other payments:
• $4,500 to the Arizona Back Institute for Purvis’ wife, Maureen.
• $40,000 for a down payment on a lot in a Camelot Homes subdivision.
• $6,000 to Aureflam, a California chain of fast-food Vietnamese restaurants.
• $19,265 to Power Nissan in Mesa.
• $18,000 in various withdrawals and transfers to Purvis’ personal account.
The memo lines of the checks, which bear the Christian fish symbol, in some cases detail where the money went and in other cases offer praise to clerks for their help shopping.”
Investors have defended Nakami. They said they were promised 24 percent annual returns and donations by Nakami to charities.
State and federal authorities launched investigations and accused the owners of running a complex fraud targeting religious members.
The story gets weirder and weirder and should stand as a lessen to the gullible who may mistake a conman’s get-rich-quick scheme for the blessing of God.
Takeaway Points:
1) God is worth believing but be skeptical about everyone else!
2) If an investment promises a statistically significant difference in return over a market index, ask “why?” and “how?”
3) Investment advisors should be able to produce legitimate credentialing before being entrusted with anyone’s money. Depending on the line of investments that they are in, they should be able to produce corresponding evidence of proper licensing and training.
4) Testimonials mean little: a Ponzi scheme always rewards early investors so there will always be enthusiastic testimonials from satisfied, maybe even prominent, customers.
5) Discuss a suspicious proposition with someone who is wise about money.
5) Pray!
