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Perhaps no one is safe any longer. In a scheme that a US District judge called bizarre and incredible, Christians from Maine to California were promised returns of 15 to 25 percent per month on their investment money. And when a Reverend comes knocking on the door of his flock, who can say no to such a deal?
Such was the case involving the Rev. Sherwood Craig of Craig Ministries of Brewer, Maine. Craig, who operated the Door of Faith evangelical services at the Bangor Opera House, participated in the scam along with Bradley Gullett and William Hanke of Florida and Ellis Deyon of Texas.
In 1995, Deyon set up an account at Bancomer S.A. of Santillo, Mexico. Deyon and Gullett began telling potential investors that Bancomer S.A. was one of the top banks of the world and that investments would reap large returns. Deyon claims his bank connections could provide returns as high as 85 percent in a single month. Investors putting $25,000 into an account and leaving it for a year could expect a 25 percent return per month!
Craig was convinced. So convinced, in fact, that when Hanke sent Craig information, he (Craig) prepared an advertising circular on his church’s letterhead that told of $500 million being deposited into the Bancomer account and returns of up to 200 percent per month. He approached at least 12 potential investors in the Bangor area and his own sons put $124,000 into the plan.
Not all is woe for the Christians who were duped into investing in the Bancomer account. When the SEC was apprised of the scheme, the account was frozen in July 1995. Between April and July, over $700,000 had been put into the account by starry-eyed investors. When the account was seized, there was $407,071.89 still remaining.
When the matter hit the courts, the testimony revealed some surprising facts. Gullett said the scheme actually had roots in 1993 when he agreed to promote a “prime bank” joint venture agreement bankrolled by Tennessee millionaire and devout Christian, Atlas Langford. The venture’s spiritual head was Texas minister William McKnight, who claimed to know “secrets” including the existence of a “grand master.” Gullett’s deposition testimony spoke of Bill Clinton investing in the grand master’s secret market and of a trip that Gullett took to Hong Kong to personally meet the grand master. Gullett has stated that he is pursuing a lawsuit against Bancomer and that “to my knowledge, I’ve never been involved in anything bogus.”
A US District judge fined Craig $25,000. Gullett, Hanke and Deyon were each fined $75,000 for their part in the scheme. Gullett was ordered to return $41,646 he took from the account.
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