Your SlideShare is downloading. ×
0
BAPTIST FOUNDATION OF ARIZONA ARIZONA’S ENRON <ul><li>CALLED ONE OF LARGEST AFFINITY FRAUDS AND THE LARGEST NON-PROFIT BAN...
BAPTIST FOUNDATION OF ARIZONA ARIZONA’S ENRON <ul><li>ACC INVESTIGATION BEGAN LATE 1998 </li></ul><ul><li>ARIZONA CORPORAT...
BAPTIST FOUNDATION OF ARIZONA CRIMINAL CASE <ul><li>CRIMINAL CASE INVOLVING INDICTMENTS OF FIVE DEFENDANTS AND THREE PRE-I...
BAPTIST FOUNDATION OF ARIZONA <ul><li>BETWEEN ALL CASES--MILLIONS OF PAGES OF DOCUMENTS WERE INVOLVED AND DISCLOSED </li><...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries AR...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries AR...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries AR...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST CONVENTION
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROF...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROF...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROF...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROF...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DIST...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DIST...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DIST...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DIST...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DIST...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DIST...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC.,  ...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC.,  ...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC.,  ...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC.,  ...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC.,  ...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME E.V.I.G., INC.,  an Arizona Corporation--Incorporated...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME E.V.I.G., INC.,  an Arizona Corporation--Incorporated...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME E.V.I.G., INC.,  an Arizona Corporation--Incorporated...
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA NOT AUDITED
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA NOT AUDITED
BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG ALL ENTITIES UNDER PRACTICAL CONTROL...
BAPTIST FOUNDATION OF ARIZONA THE STORY <ul><li>BAPTIST CONVENTION WANTS ORGANIZATIONS UNDER ITS UMBRELLA TO BE SELF-SUSTA...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,...
BAPTIST FOUNDATION OF ARIZONA ALO LOSSES SINCE 1993 <ul><li>1988-1993 ACCUMULATED DEFICIT $46,242,000 </li></ul><ul><li>19...
BAPTIST FOUNDATION OF ARIZONA  INVESTOR FUNDS AT RISK-BFA/NCV--1992-1998 <ul><li>1992--Investment Agreements and Mortgage ...
BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES  AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV
BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES  AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000
BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES  AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000 $58,...
BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES  AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000 $58,...
BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES  AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000 $58,...
BAPTIST FOUNDATION OF ARIZONA THE STORY <ul><li>BAPTIST CONVENTION WANTS ORGANIZATIONS UNDER ITS UMBRELLA TO BE SELF-SUSTA...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
Baptist Foundation of Arizona  Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Sout...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA  (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVC...
BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION ALO (NMPC, NMEC, ATI, & AGI) PAPALOTE PARTNERS 1. San...
Upcoming SlideShare
Loading in...5
×

Part 1

365

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
365
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • READ KAREN PAETZ STATEMENT REGARDING CONTROL
  • Transcript of "Part 1"

    1. 1. BAPTIST FOUNDATION OF ARIZONA ARIZONA’S ENRON <ul><li>CALLED ONE OF LARGEST AFFINITY FRAUDS AND THE LARGEST NON-PROFIT BANKRUPTCY IN UNITED STATES HISTORY </li></ul><ul><li>NEARLY 100 SEPARATE LEGAL ENTITES FILED FOR BANKRUPTCY AS PART OF ITS COLLAPSE </li></ul><ul><li>AT TIME OF BANKRUPTCY THERE WERE IN EXCESS OF 11,000 INVESTORS LOCATED IN EVERY STATE THAT WERE OWED NEARLY $600,000,000 WITH LESS THAN $250,000,000 IN IDENTIFIED ASSETS </li></ul><ul><li>WHEN LAST DEFENDANTS WERE FINALLY SENTENCED IN FEBRUARY OF THIS YEAR IT BROUGHT TO A CONCLUSION ONE OF THE LONGEST CRIMINAL TRIALS IN ARIZONA’S HISTORY </li></ul>
    2. 2. BAPTIST FOUNDATION OF ARIZONA ARIZONA’S ENRON <ul><li>ACC INVESTIGATION BEGAN LATE 1998 </li></ul><ul><li>ARIZONA CORPORATION COMMISSION ISSUED CEASE AND DESIST ORDER IN AUGUST 1999 </li></ul><ul><li>BFA AND RELATED ENTITIES DECLARED BANKRUPTCY IN NOVEMBER 1999 </li></ul><ul><li>ARIZONA CORPORATION COMMISSION AND ATTORNEY GENERAL’S OFFICE SUED ARTHUR ANDERSEN (“AA”) FOR AIDING AND ABETTING FRAUD IN JANUARY 2001 </li></ul><ul><li>MARCH 1, 2002 SETTLEMENT REACHED WITH AA TO PAY $217,000,000 –65-70 ¢ ON THE DOLLAR RETURNED TO INVESTORS </li></ul><ul><li>MARCH 14, 2002 AA INDICTMENT RELATED TO ENRON WAS UNSEALED—LED TO DEMISE OF AA </li></ul>
    3. 3. BAPTIST FOUNDATION OF ARIZONA CRIMINAL CASE <ul><li>CRIMINAL CASE INVOLVING INDICTMENTS OF FIVE DEFENDANTS AND THREE PRE-INDICTMENT PLEAS IN APRIL 2001 </li></ul><ul><li>REMANDED TO GRAND JURY SEPTEMBER 2002 </li></ul><ul><li>NEW INDICTMENTS OCTOBER 2002 </li></ul><ul><li>SIX OF EIGHT DEFENDANTS PLED BEFORE TRIAL </li></ul><ul><li>TWO PRINCIPALS WILLIAM CROTTS AND THOMAS GRABINSKI WENT TO TRIAL </li></ul><ul><li>CRIMINAL TRIAL STARTED SEPTEMBER 2005 </li></ul><ul><li>CROTTS AND GRABINSKI CONVICTED JULY 2006 </li></ul><ul><li>CROTTS SENTENCED TO EIGHT YEARS, GRABINSKI SIX YEARS AND DEARDOFF FOUR YEARS </li></ul>
    4. 4. BAPTIST FOUNDATION OF ARIZONA <ul><li>BETWEEN ALL CASES--MILLIONS OF PAGES OF DOCUMENTS WERE INVOLVED AND DISCLOSED </li></ul><ul><li>MILLIONS OF DOLLARS WAS SPENT ON DEFENSE OF AA CASE AND BY CRIMINAL DEFENDANTS </li></ul>
    5. 5. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
    6. 6. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries
    7. 7. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC. and its Subsidiaries
    8. 8. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC. and its Subsidiaries A.L.O., INC. and its Subsidiaries
    9. 9. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA and its Subsidiaries ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC. and its Subsidiaries A.L.O., INC. and its Subsidiaries E.V.I.G., INC. and its Subsidiaries
    10. 10. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
    11. 11. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST CONVENTION
    12. 12. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROFIT CORPORATION INCORPORATED 1948 TO PROVIDE FINANCIAL SUPPORT FOR SOUTHERN BAPTIST CAUSES ARIZONA SOUTHERN BAPTIST CONVENTION
    13. 13. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROFIT CORPORATION INCORPORATED 1948 TO PROVIDE FINANCIAL SUPPORT FOR SOUTHERN BAPTIST CAUSES ARIZONA SOUTHERN BAPTIST CONVENTION WILLIAM P. CROTTS, PRESIDENT 1982
    14. 14. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROFIT CORPORATION INCORPORATED 1948 TO PROVIDE FINANCIAL SUPPORT FOR SOUTHERN BAPTIST CAUSES ARIZONA SOUTHERN BAPTIST CONVENTION WILLIAM P. CROTTS, PRESIDENT THOMAS GRABINSKI, GENERAL COUNSEL 1982
    15. 15. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BAPTIST FOUNDATION OF ARIZONA -- ARIZONA NOT FOR PROFIT CORPORATION INCORPORATED 1948 TO PROVIDE FINANCIAL SUPPORT FOR SOUTHERN BAPTIST CAUSES ARIZONA SOUTHERN BAPTIST CONVENTION WILLIAM P. CROTTS, PRESIDENT DONALD DEARDOFF, CHIEF FINANCIAL OFFICER THOMAS GRABINSKI, GENERAL COUNSEL 1982
    16. 16. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
    17. 17. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DISTRESSED REAL ESTATE, INC.--Incorporated December 1988
    18. 18. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DISTRESSED REAL ESTATE, INC.--Incorporated December 1988 ALO has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own
    19. 19. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DISTRESSED REAL ESTATE, INC.--Incorporated December 1988 JALMA HUNSINGER AND E.A. KUHN -- Listed as officers and directors of all ALO direct subsidiaries. ALO has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own
    20. 20. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DISTRESSED REAL ESTATE, INC.--Incorporated December 1988 JALMA HUNSINGER AND E.A. KUHN -- Listed as officers and directors of all ALO direct subsidiaries. SELECT TRADING GROUP, INC. (STG)-- Arizona corporation incorporated in September 1992--Subsidiary of ALO ALO has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own
    21. 21. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DISTRESSED REAL ESTATE, INC.--Incorporated December 1988 JALMA HUNSINGER AND E.A. KUHN -- Listed as officers and directors of all ALO direct subsidiaries. SELECT TRADING GROUP, INC. (STG)-- Arizona corporation incorporated in September 1992--Subsidiary of ALO ALO has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own STG has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own
    22. 22. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME A.L.O., INC., an Arizona Corporation fka ARIZONA DISTRESSED REAL ESTATE, INC.--Incorporated December 1988 JALMA HUNSINGER AND E.A. KUHN -- Listed as officers and directors of all ALO direct subsidiaries. SELECT TRADING GROUP, INC. (STG)-- Arizona corporation incorporated in September 1992--Subsidiary of ALO HAROLD FRIEND AND JALMA HUNSINGER --Listed as officers and directors of all STG subsidiaries. ALO has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own STG has multiple direct subsidiaries (at least 15) many of which have subsidiaries of their own
    23. 23. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
    24. 24. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC., An Arizona Corporation
    25. 25. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC., An Arizona Corporation NEW CHURCH VENTURES CREDIT CORPORATION (NCVCC)
    26. 26. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC., An Arizona Corporation NEW CHURCH VENTURES CREDIT CORPORATION (NCVCC) NEW CHURCH VENTURES FINANCE CORPORATION
    27. 27. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC., An Arizona Corporation NEW CHURCH VENTURES CREDIT CORPORATION (NCVCC) NEW CHURCH VENTURES FINANCE CORPORATION NEW CHURCH VENTURES MANAGEMENT CORPORATION
    28. 28. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME ARIZONA SOUTHERN BAPTIST NEW CHURCH VENTURES, INC., An Arizona Corporation NEW CHURCH VENTURES CREDIT CORPORATION (NCVCC) NEW CHURCH VENTURES FINANCE CORPORATION NEW CHURCH VENTURES MANAGEMENT CORPORATION JALMA HUNSINGER, E.A. KUHN have been officers and directors since 1992 or earlier
    29. 29. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
    30. 30. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME E.V.I.G., INC., an Arizona Corporation--Incorporated in May 1996
    31. 31. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME E.V.I.G., INC., an Arizona Corporation--Incorporated in May 1996 E.V.I.G . has at least three subsidiaries
    32. 32. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME E.V.I.G., INC., an Arizona Corporation--Incorporated in May 1996 E.A. KUHN listed as shareholder, officer and director. E.V.I.G . has at least three subsidiaries
    33. 33. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME
    34. 34. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG
    35. 35. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA
    36. 36. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA
    37. 37. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA NOT AUDITED
    38. 38. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG AUDITED BY AA NOT AUDITED
    39. 39. BAPTIST FOUNDATION OF ARIZONA OVERVIEW OF PLAYERS AND ALLEGED SCHEME BFA NCV ALO EVIG ALL ENTITIES UNDER PRACTICAL CONTROL OF CROTTS, GRABINSKI and DEARDOFF AUDITED BY AA NOT AUDITED
    40. 40. BAPTIST FOUNDATION OF ARIZONA THE STORY <ul><li>BAPTIST CONVENTION WANTS ORGANIZATIONS UNDER ITS UMBRELLA TO BE SELF-SUSTAINING--NOT TO HAVE LOSSES </li></ul><ul><li>MID 1980’s REAL ESTATE DOWNTURN </li></ul><ul><li>BFA HAD REAL PROPERTY THAT SHOULD BE WRITTEN DOWN </li></ul><ul><li>SOLUTION--MOVE ASSETS OFF BOOKS OF FOUNDATION ONTO OTHER ENTITIES’ BOOKS THAT ARE NOT SUBJECT TO AUDIT </li></ul><ul><li>NCV USED AS FIRST “BAD BANK” </li></ul><ul><li>1988 ALO CREATED AS NEW “BAD BANK” </li></ul><ul><li>1996 EVIG CREATED AS LAST “BAD BANK” </li></ul>
    41. 41. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000
    42. 42. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000 BFA SHOULD WRITE DOWN ASSET AND RECOGNIZE $500,000 LOSS
    43. 43. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000
    44. 44. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000 ASSET TRANSFERRED TO ALO AT BOOK VALUE--25% DOWN, 75% NOTE “ SELL ASSET”
    45. 45. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000 ASSET TRANSFERRED TO ALO AT BOOK VALUE--25% DOWN, 75% NOTE $250,000 CASH and $750,000 NOTE “ SELL ASSET”
    46. 46. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000 ASSET TRANSFERRED TO ALO AT BOOK VALUE--25% DOWN, 75% NOTE NCVCC HAS INVESTORS’ FUNDS FROM IRA INVESTMENTS $250,000 CASH and $750,000 NOTE “ SELL ASSET” $250,000 LOAN TO ALO
    47. 47. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000 ASSET TRANSFERRED TO ALO AT BOOK VALUE--25% DOWN, 75% NOTE NCVCC HAS INVESTORS’ FUNDS FROM IRA INVESTMENTS $250,000 CASH and $750,000 NOTE “ SELL ASSET” $250,000 LOAN TO ALO NOTE TO NCVCC
    48. 48. BAPTIST FOUNDATION OF ARIZONA EXAMPLE OF HOW SCHEME WOULD WORK BFA HAS ASSET VALUED AT $1,000,000 ON BOOKS NOW WORTH $500,000 ASSET TRANSFERRED TO ALO AT BOOK VALUE--25% DOWN, 75% NOTE NCVCC HAS INVESTORS’ FUNDS FROM IRA INVESTMENTS $250,000 CASH and $750,000 NOTE “ SELL ASSET” $250,000 LOAN TO ALO NOTE TO NCVCC ALO NOW HAS DEBT SERVICE ON $1,000,000 AND ASSET WORTH $500,000--THIS SHOULD LEAD TO EVER INCREASING LOSSES ON ALO’S BOOKS
    49. 49. BAPTIST FOUNDATION OF ARIZONA ALO LOSSES SINCE 1993 <ul><li>1988-1993 ACCUMULATED DEFICIT $46,242,000 </li></ul><ul><li>1993 LOSS 9,889,000 </li></ul><ul><li>1994 LOSS 14,040,000 </li></ul><ul><li>1995 LOSS 23,321,000 </li></ul><ul><li>1996 LOSS 21,533,000 </li></ul><ul><li>1997 LOSS 22,200,000 </li></ul><ul><li>ACCUMULATED DEFICIT 12/31/97 $137,225,000 </li></ul>
    50. 50. BAPTIST FOUNDATION OF ARIZONA INVESTOR FUNDS AT RISK-BFA/NCV--1992-1998 <ul><li>1992--Investment Agreements and Mortgage Notes $101,950,000 </li></ul><ul><li>1993--Investment Agreements and Mortgage Notes $169,011,000 </li></ul><ul><li>1994--Investment Agreements and Mortgage Notes $210,583,000 </li></ul><ul><li>1995--Investment Agreements and Mortgage Notes $273,042,000 </li></ul><ul><li>1996--Investment Agreements and Mortgage Notes $339,827,000 </li></ul><ul><li>1997--Investment Agreements and Mortgage Notes $382,727,000 </li></ul><ul><li>1998--Investment Agreements and Mortgage Notes $484,184,000 </li></ul>
    51. 51. BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV
    52. 52. BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000
    53. 53. BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000 $58,761,000
    54. 54. BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000 $58,761,000 BFA TOTAL NOTES RECEIVABLE $188,546,000 66% DUE FROM ALO/NCV
    55. 55. BAPTIST FOUNDATION OF ARIZONA AMOUNTS OWED BY RELATED PARTIES AT DECEMBER 31, 1998 BFA ALO HUNSINGER NCV $65,093,000 $58,761,000 $168,000,000 BFA TOTAL NOTE RECEIVABLE $188,546,000 66% DUE FROM ALO/NCV
    56. 56. BAPTIST FOUNDATION OF ARIZONA THE STORY <ul><li>BAPTIST CONVENTION WANTS ORGANIZATIONS UNDER ITS UMBRELLA TO BE SELF-SUSTAINING--NOT TO HAVE LOSSES </li></ul><ul><li>MID 1980’s REAL ESTATE DOWN TURN </li></ul><ul><li>BFA HAD REAL PROPERTY THAT SHOULD BE WRITTEN DOWN </li></ul><ul><li>SOLUTION--MOVE ASSETS OFF BOOKS OF FOUNDATION ONTO OTHER ENTITIES BOOKS THAT ARE NOT SUBJECT TO AUDIT </li></ul><ul><li>NCV FIRST “BAD BANK” </li></ul><ul><li>1988 ALO CREATED AS NEW “BAD BANK” </li></ul><ul><li>1996 EVIG CREATED AS CURRENT “BAD BANK” </li></ul>
    57. 57. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc.
    58. 58. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income
    59. 59. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 $3,500,000 Cash
    60. 60. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 $3,500,000 Note $3,500,000 Cash
    61. 61. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 $3,500,000 Note $3,500,000 Cash 3/24/92 $3,500,000 Cash
    62. 62. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 $3,500,000 Note $3,500,000 Cash 3/24/92 $3,500,000 Cash $3,500,000 Note
    63. 63. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 $3,500,000 Note $3,500,000 Cash 3/24/92 $3,500,000 Cash $3,500,000 Note 3/24/92 $3,500,000 Cash
    64. 64. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 $3,500,000 Note $3,500,000 Cash 3/24/92 $3,500,000 Cash $3,500,000 Note 3/24/92 $3,500,000 Cash $3,500,000 Gahan Note Receivable
    65. 65. Baptist Foundation of Arizona Gahan Trust Transaction Baptist Foundation of Arizona (“BFA”) William J. Gahan Arizona Southern Baptist New Church Ventures, Inc. (“NCV”) ALO, Inc. 12/31/91-- Gahan makes $3.5 Million Pledge to BFA--BFA recognizes $3.5 Million income 3/24/92 End Result--BFA recognized $3,500,000 income in December 1991 and ALO had receivable due from Gahan on books (never collected or written off) $3,500,000 Note $3,500,000 Cash 3/24/92 $3,500,000 Cash $3,500,000 Note 3/24/92 $3,500,000 Cash $3,500,000 Gahan Note Receivable
    66. 66. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY October 1992
    67. 67. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA October 1992
    68. 68. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash October 1992
    69. 69. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line October 1992
    70. 70. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line $6,120,000 cash October 1992
    71. 71. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line Draw on Credit Line $6,120,000 cash October 1992
    72. 72. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line Draw on Credit Line $6,120,000 cash 1. $6,120,000 cash 2. $1,910,000 note October 1992
    73. 73. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line Draw on Credit Line $6,120,000 cash 1. $6,120,000 cash 2. $1,910,000 note 1. Exchange Properties 2. Sandia Bldg. option October 1992
    74. 74. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line Draw on Credit Line $6,120,000 cash 1. Exchange Properties 2. $1 (Option) 1. $6,120,000 cash 2. $1,910,000 note 1. Exchange Properties 2. Sandia Bldg. option October 1992
    75. 75. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line Draw on Credit Line $6,120,000 cash 1. Exchange Properties 2. $1 (Option) 1. Sandia Garage 2. Sandia Building 1. $6,120,000 cash 2. $1,910,000 note 1. Exchange Properties 2. Sandia Bldg. option October 1992
    76. 76. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION BFA (FI, FDC) ALO (NMPC, NMEC, ATI, & AGI) NCV (NCVCC) BARCLAY Gift of Sandia Building Option ($1 exercise price) $1,910,000 Gift Income for BFA $6,144,000 cash Draw on Credit Line Draw on Credit Line $6,120,000 cash 1. Exchange Properties 2. $1 (Option) 1. Sandia Garage 2. Sandia Building 1. $6,120,000 cash 2. $1,910,000 note 1. Exchange Properties 2. Sandia Bldg. option END RESULT—BFA AVOIDED A $4,843,000 LOSS ON EXCHANGE PROPERTIES AND RECOGNIZED GIFT INCOME OF $1,910,000 October 1992
    77. 77. BAPTIST FOUNDATION OF ARIZONA SANDIA BUILDING AND GARAGE TRANSACTION ALO (NMPC, NMEC, ATI, & AGI) PAPALOTE PARTNERS 1. Sandia Garage 2. Sandia Building Paradise Heights Lots ALO recognized a $2,421,000 loss on exchange 5/23/95 End Result—ALO recognizes a further loss of $2,421,000 related to the Sandia Building and Garage
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×