Ky. pastor spent cash on Porsche
06-09-2005, 04:53 PM
#1
Pro
Thread Starter
Join Date: Mar 2004
Location: Cincinnati
Posts: 628
Likes: 0
Received 0 Likes
on
0 Posts
Ky. pastor spent cash on Porsche
Prosecutor: Ky. pastor spent cash on Porsche Indictment says $700K stolen from local church
(From Cincinnati Enquirer)
Gregory Van Tatenhove (right), U.S. attorney for the Eastern District of Kentucky, holds a press conference at the Covington federal courthouse to announce the indictment against the Rev. Larry Davis. At left is Steven H. Gurley, FBI special agent in Louisville.
AT A GLANCE
A seven-count federal indictment on the Rev. Larry Davis, pastor of First Baptist Church of Cold Spring, was handed down Wednesday.
The allegations against Davis are that he:
Submitted a false loan application to Fifth Third Bank
Evaded federal taxes for four years
Transferred stolen money out of state to buy two vehicles (including a Porsche)
Maximum penalty: Up to 30 years in prison and/or a fine of $1 million.
WHAT'S NEXT
The Rev. Larry Davis told his congregation Tuesday night that he plans to continue preaching.
Davis will be arraigned on charges outlined in the seven-count indictment at 9:30 a.m. June 17 before a U.S. magistrate in U.S. District Court in Covington.
A TIMELINE
The criminal investigation at First Baptist Church of Cold Spring
Jan. 23, 2004: Former church treasurer Darryl Neltner writes Kentucky State Police to say church money has been spent on gambling. He identifies up to $600,000 in what he describes as questionable transfers.
Feb. 6, 2004: Kentucky State Police detectives serve search warrants at both the church and the home of the Rev. Larry Davis, the church's pastor. Court documents say police were looking for both paper and electronic financial records.
March 10, 2004: Fifth Third Bank calls the note on the church's $4 million construction loan.
March 17, 2004: The congregation fires anyone holding a position at the church that had attended an alternative worship service, calling their behavior "un-Christian."
March 24, 2004: The congregation votes to put up more collateral to avoid a foreclosing on its year-old sanctuary.
April 4, 2004: More than 100 members of First Baptist Church of Cold Spring vote to form a new church. Members meet in a vacant sanctuary about a half-mile from First Baptist, and the new church is called Christ Baptist.
April 21, 2004: Federal law enforcement officials take over the investigation from state prosecutors.
June 2004: Just weeks after lightning strikes the steeple of Christ Baptist Church's rented building on U.S. 27, church members buy the former Rolling Hills Christian Church.
October 24, 2004: Tennessee native Randy Coleman delivers his first sermon as pastor of Christ Baptist Church.
June 7, 2005: Larry Davis, pastor of First Baptist Church of Cold Spring, calls a meeting of his congregation. He says he will continue preaching if he is indicted.
June 8, 2005: Larry Davis is indicted on seven charges in connection with $700,000 that federal officials say he took from First Baptist Church of Cold Spring.
COVINGTON - The Rev. Larry Davis purchased a Porsche with some of the more than $700,000 he stole from the First Baptist Church of Cold Spring - sometimes brazenly withdrawing the money at horse racetrack ATMs, a federal prosecutor says.
"The thought of somebody in a leadership position misappropriating funds for personal use is very troubling," said U.S. Attorney Gregory Van Tatenhove.
"We, as a community, need to take a strong stand to hold those individuals accountable."
A seven-count federal indictment returned Wednesday says Davis submitted a false loan application to Fifth Third Bank, evaded federal income taxes for four years, and transferred stolen church money across state lines to buy the Porsche 911 and a minivan.
The indictment comes after an 18-month investigation into the finances of the church and of Davis - who helped draw the national spotlight to Cincinnati by joining a group that successfully brought the Billy Graham Crusade to Paul Brown Stadium in 2002.
The 57-year-old Davis, known for his folksy, Southern-style sermons, declined through his attorney, Patrick Hanley, to speak with reporters.
Hanley, however, said Davis looks forward to telling his side of the story at trial.
Davis has been summoned to appear before a U.S. magistrate for his arraignment June 17.
"I think it is important that people realize that an indictment is just an allegation and it isn't indicative of guilt in any way," said Hanley, who is a former assistant U.S. attorney in Ohio.
"The grand jury who returned this indictment only heard the government's version," Hanley said.
The indictment outlines how federal authorities believe Davis diverted hundreds of thousands of dollars from church accounts from 2000 to 2004. That's when the congregation's former treasurer wrote to Kentucky State Police, raising concerns about how Davis was handling church finances.
Much of the money was diverted from building funds for the once rapidly growing congregation, the indictment says. Fifth Third Bank loaned the congregation $3.5 million in April 2002 to construct a multimillion-dollar sanctuary with a wrap-around balcony, brass chandeliers and flat-screen TVs.
Davis then fired the general contractor and appointed himself to the post.
All the time, he was stealing church money, according to the indictment, by making checks out to himself, writing out checks for cash and withdrawing money from automatic teller machines. Some of those ATM withdrawals were at horse racetracks.
Van Tatenhove, who traveled from Lexington to hold a press conference on the steps of the U.S. Courthouse in Covington, said one of the most outrageous purchases was the Porsche.
Public records show that in 2002 Davis purchased a 1993 or '94 model special edition Porsche 911, called RS America.
By September 2003, the church was running short on money to pay contractors.
That's when Davis, Van Tatenhove says, submitted forged documents to get Fifth Third to loan the church an additional $4 million.
Those documents included a letter from the church authorizing Davis to ask for the extra money from the bank, the indictment says.
The IRS claims that Davis underpaid his taxes by $77,472 in 2000 and 2001, and didn't file his federal claims on time in 2002 and 2003.
Davis' joint taxable income with his wife grew from $86,111 in 2000 to $409,957 in 2003, according to the indictment.
"We should, as a community, expect a higher level of accountability and trust of leaders ... like Larry Davis," said Van Tatenhove.
Davis' attorney attended a meeting the pastor called at the church on the eve of the indictment and said members are standing behind Davis.
"Not surprisingly, this is a difficult time for the Davis family, but it is made bearable by the support of his congregation," Hanley said.
Church members gave Davis a standing ovation when he said he would continue to preach, even if he were indicted.
"We're members, and we don't intend to quit going there," said Genevieve McCullough of Cold Spring.
Harody Mendez of Fort Thomas, First Baptist Church of Cold Spring trustee and 10-year member, said he expects the church and its spiritual leader will continue to be "a vibrant part of the community."
The investigation "is always in the back of people's minds," but church members don't dwell on it, Mendez said.
"I think this weighs more on Brother Davis than the church as a whole," Mendez said. "He's told us that he's looking forward to defending himself. Now that he knows what the charges are, he can address them and put this all behind him."
Mendez predicted that Davis will continue to be effective.
"(Wednesday's) announcement from the prosecutor's office regarding Larry Davis should sadden all people, both Christians and non-Christians alike,'' said Dan Reynolds, spokesman for Christ Baptist Church. Members of the First Baptist Church of Cold Spring formed that church in April 2004. "We continue to pray for the congregation of First Baptist Church and the Davis family.''
