This is Part 1 of a Special Report on the Kerala-based Christian evangelical organisation, Gospel For Asia, and the Believers Eastern Church. Part 2 of the Report can be read here.
A series of actions taken by various Indian law enforcement agencies and Indian tax authorities against Kerala-based Gospel for Asia headed by self-styled Bishop Moran Mor Athanasius Yohan I Metropolitan, Believers Eastern Church, have brought to light large-scale diversion of donor funds for acquisition of assets and investment in “for profit” activities by one of India’s largest evangelical organisation. Further, the same organisation is facing a class action suit in Canada from aggrieved donors and has just settled another class action suit in USA from aggrieved donors whose noble intentions of helping the poor and needy in India were dashed to the ground by Gospel for Asia’s fund diversion.
On 5th March, 2021, Income Tax Department, Government of India had attached Cheruvally estates owned by Believer’s church, headed by self-styled Bishop K P Yohanan. Earlier, the I-T raids in Believers church establishments had unearthed ₹ 6,000 crore black-money scam. Now, the IT department has attached 2000 acres of land which Believers church took over from Harrisons Malayalam.
On 5th Nov, 2020, Income Tax authorities in India raided multiple premises of Gospel for Asia, Believers Church and its associates. The press release by Income tax department said that unexplained cash of approximately ₹6 crore has also been found during the search, including ₹ 3.85 crore in a place of worship in Delhi. The search has led to unearthing of a number of real estate transactions involving unaccounted cash payments. Related documents such as sale agreements, etc. have been seized. The group has also inflated the price in real estate transactions to show as if the money received in donations is being spent on the activities of the trusts. The evidence found so far indicate that the siphoning of funds in cash may be running into hundreds of crores of rupees.
FCRA Licenses of GFA-Believers Church Cancelled in 2017:
In October 2017, the Ministry of Home Affairs (MHA), Government of India, cancelled the FCRA Registration of the Believers Church and three of its affiliates — Ayana Charitable Trust (formerly Gospel for Asia India), Love India Ministries and Last Hour Ministry. During FY16, Ayana Charitable Trust (formerly Gospel for Asia) was the single largest recipient of foreign aid in the country as it received ₹ 826.27 crore. Believers Church had received ₹ 342.64 crore, Last Hour Ministry ₹ 103.51 crore and Love India Ministries ₹ 76.23 crore during FY16.
In the words of Warren Throckmorton, a blogger who has meticulously documented and pursued Gospel for Asia-Believer’s Church –
Furthermore, GFA still isn’t being transparent with donors about the charity registration situation in India. GFA and Believers Church in India lost their registration status in India and cannot directly take foreign contributions. No doubt GFA is sending funds to shell organizations in India but this violates the law there. I and others have repeatedly asked GFA how Bridge of Hope and flood relief funds are getting to Indian recipients, but they have given false answers. It seems to me that GFA is setting themselves up for more such accusations by not telling donors that the funds for Indian missionaries, Indian children sponsored through Bridge of Hope, and other India-specific donations have been restricted from India.
While Gospel for Asia (GFA) and its associate Believer’s Church are facing action by Indian authorities, GFA has been facing law suits in USA and Canada. Right from 2014, GFA has been under severe criticism from donors, auditors, ex-employees and others who are following the activities of GFA. There have been a steady stream of accusations against GFA about its utilisation of donor funds and huge gaps between funds collected from donors and funds utilised at the field for purposes specified by the donors. Huge sums of donor money had reported vanished or was diverted for acquiring assets or investments in “for profits” business ventures.
Gospel for Asia Settles RICO Lawsuit in USA; Agrees to $37-Million Settlement
Between 2007 and 2013 ― the complaint alleges ― the GFA solicited over $450 million in donations from United States donors, with over one million unique donations made each year.
The lawsuit (since settled) had alleged that ministry leaders were “covertly diverting the money to a multi-million dollar personal empire.” The lawsuit had asked a U.S. District Court to order money returned to unwitting donors whose well-intentioned contributions were, according to the lawsuit, misappropriated. The lawsuit accused GFA founder and leader K.P. Yohannan of funnelling millions of dollars into a variety of for-profit businesses and a lavish 350-acre compound that is home to GFA’s sprawling headquarters in Wills Point, Texas.
GFA promised donors their contributions would be used for specific purposes the donors themselves selected, the lawsuit noted, such as buying blankets or camels for poor families or motorbikes for missionaries, especially in regions of South Asia, where the ministry concentrates most of its work. GFA did not keep such promises, the lawsuit contended.
On 28th February, 2019, Gospel for Asia filed documents in court settling with plaintiffs Garland and Phyllis Murphy by agreeing to set aside $37-million in a Settlement Fund to provide relief for donors as well as cover court costs and attorneys’ fees. GFA continued to deny wrongdoing but nonetheless agreed to establish a stunning settlement fund of $37-million. GFA also agreed to have Dr. Murphy join the board of the organization. Murphy and GFA will also work together to designate a replacement for K.P. Yohannan’s wife who will go off of the GFA board. GFA also agreed not to appoint any other relative of Yohannan to the board. GFA also agreed to create a board subcommittee which shall not include Yohannan in order to provide oversight for the organization’s compliance with the settlement. The mission organization also agreed to comply with Evangelical Council for Financial Accountability guidelines and seek readmission to membership. [Click here to read the full settlement]
This is certainly a huge development in view of the fact that at one point of time, Gospel for Asia was the second largest Christian missionary organisation in the USA and the highest recipient of foreign currency donations amongst all NGOs in India. This should serve as a warning to all mega churches in USA and elsewhere in the world. Donors who had parted with their hard earned money thinking that their money is being used to serve the poor and needy across the world would surely welcome this settlement. Gospel for Asia continue to bluster and spin tales hanging onto to “settlement is not an admission of guilt”.
After settling the $37-million fraud lawsuit with new board member Garland Murphy, Gospel for Asia now wants donors to re-gift their settlement funds back to Gospel for Asia. According to an appeal letter received by a former donor, GFA is spending promotional money in an attempt to recapture their losses. Take a look:
Donors receiving refund cheques following the settlement of the fraud lawsuit started receiving mails from Gospel for Asia to re-donate the refund! During the week of October 28, former donors to Gospel for Asia received the first of two checks as a part of the massive $37 million fraud lawsuit settlement. Shortly after receiving their checks, those same donors promptly received a mailing asking for them to re-gift those funds to GFA. One such donor posted a partial photo of his letter.
Gospel for Asia faces class-action lawsuit in Canada for $100 million fraud:
Even as Gospel for Asia settled the USA class action suit for US $37 million, in February, 2020, Gospel for Asia became the focus of yet another class-action lawsuit filed in Canada. The Plaintiff alleged the charity “defrauded or made negligent misstatements” to him and other donors. The statement of claim also said the “defendants civilly conspired to misrepresent the nature of donations collected.” The plaintiff alleged that the money raised didn’t go where it was supposed to and sought damages for the “misuse of donor funds in excess of $100 million.” [For more details on the suit, click here]
More details on the alleged fund-diversions and other illegalities perpetrated by Gospel For Asia will be disclosed in the successive parts of the Special Report, which will be published in the coming days.
Acknowledgement: The author of this report acknowledges the efforts made by Warren Throckmorton, a blogger and professor at Grove City College (https://www.wthrockmorton.com/), who has meticulously documented, from 2015 onwards, all issues relating to GFA. Despite threats of legal action, he has exposed the misdeeds of Gospel For Asia and Believers Church.
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