*Atlanta megachurch pastor Bishop Eddie Long is facing a lawsuit from former parishioners who say he encouraged them to invest in a company that was operating an alleged Ponzi scheme.
A dozen former members of New Birth Missionary Baptist Church in Lithonia, Ga., filed suit in DeKalb County court in late January. The suit says that Long’s assistant had been warned that businessman Ephren W. Taylor was running a $3 million capital deficit, The Atlanta Journal-Constitution reported.
After Long introduced the businessman as his “friend,” the former New Birth members lost more than $1 million investing with the self-described “social capitalist.”
“If Bishop Eddie Long hadn’t endorsed this they wouldn’t have invested,” Jason Doss, attorney for the former members, told the Journal-Constitution.
Long’s church has urged Taylor to repay investors with interest.
“We remain hopeful that Ephren Taylor and companies related to him restore the funds that were taken from congregants at New Birth and churches around the county,” New Birth said in a statement. “We continue to cooperate as the case proceeds.”
The Securities and Exchange Commission charged Taylor in 2012 with running a Ponzi scheme, and a civil case against him is pending. SEC officials said he promised to use investments for charity and to help economically challenged areas but instead diverted the funds he received after speaking to churches, including New Birth, to pay other investors and finance business and personal expenses.
“He preyed upon investors’ faith and their desire to help others, convincing them that they could earn healthy returns while also helping their communities,” said David Woodcock, director of the SEC’s Fort Worth Regional Office in Texas.
Long previously faced another suit from young men who accused him of using gifts and money to coerce them into sexual relationships. He settled those cases in May 2012.
Want to read more articles like this one? Subscribe to EURnewsletter.
Got A News Tip or Video You Want to Share? Contact us HERE.
- First Look: Cynthia Bailey's New Luxury Luggage Line 'CARGO by Cynthia Bailey'
- Whitney Houston Estate in Court Fighting $11 Million Tax Bill
- 107-Year-Old Trades Dance Partner Pres. Obama for Dusty Baker (Watch)
- Police Test Bullets in T.I. Club Shooting to Determine Number of Guns Used
- Neil Brown Jr. Joins Issa Rae’s HBO Comedy ‘Insecure’
- Mariah Carey Checks Lee Daniels AND Wendy Williams for Saying She’s ‘Too Fragile’ (Watch)
- Tamar Braxton Reacts to ‘The Real’ Firing on Next ‘Braxton Family Values’ (Teaser)
- Activist PFK Boom Demands Pastor Jamal Bryant 'Get the F*ck Out' of Baltimore (WATCH)
- Oprah Winfrey Ready for ‘Greenleaf’ Backlash; Warns T.D. Jakes of Possible Comparisons
- ‘Straight Outta Compton’ Lawyers in Jerry Heller Case Want Judge to Watch Entire Film for Context
- Discover More Stories on EURweb: Click Here