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December 6, 2007
Church-Based Affinity Fraud
Why not to trust your pastor/mortgage officer.
The Wall Street Journal today has a fascinating, front-page story of what seems to be church-based fraud. "How the Subprime Mess Hit Poor Immigrant Groups" begins:
Naira Costa, a 27-year-old housekeeper, met her husband at Message of Peace, an evangelical church that is a spiritual and social haven for Brazilians in the Bay Area. When the couple considered buying a house a few years ago, the church's head deacon, Soario Santos, ministered to that need, too. Mr. Santos, a fellow Brazilian, served the Pentecostal church on nights and weekends. During the day, he worked as a loan officer at a mortgage brokerage owned by a Brazilian immigrant. Mr. Santos and other church officers also working at the same real-estate business routinely approached churchgoers to encourage them to buy homes.Weak credit and low wages weren't barriers, Ms. Costa recalls. "He told us that a house easily would appreciate $100,000 in a year," enabling the owner to refinance, says Ms. Costa. "We trusted him implicitly. Everyone at the church was buying houses from him."
Today, Ms. Costa and other former Message of Peace parishioners claim that Mr. Santos was a key part of a mostly Brazilian ring that allegedly conspired to defraud people by persuading them to buy homes they couldn't afford. Ms. Costa, the housekeeper, secured a $713,000 sub-prime mortgage. In another instance, a Brazilian baby sitter borrowed $495,000. Now, the home buyers are beset by foreclosures and additional stains on their already-tainted credit.
What follows is a complex tale of shady mortgage brokers, too-trusting immigrants, unethical pastors, and, most of all, lawsuits.
The Journal does a terrific job of untangling this knot of a story.It also shows that church-based affinity fraud is still a problem in the evangelical community.
Comments
it is really sad that a seriou newspaper like the wsj would do such a one sided story. if you read closely, you will see there that naira costa the 'poor victim' actually admitted under penalty of purgury and under oath that she falsified documents to take over $8,000,---in reality it was more like $13,000. in my book this is grand theft. she says she regrets making these 'bogus' documents yet, did she return the money to the lender?
naira and her domestic partner are not the victims of some fraud, no they methodically and carefully planned this entire event so she could defraud the lender of this money, which apparently she was expecting $20,000. is this the reason they never made any payments?
be careful who you judge as being wrong in this article. maybe the writer should have been more objective and not ignored all the facts. he claims no one wanted to comment, when in fact he chose what would be more interesting for an article that should have been published by some gossip paper.
call it what it is; an illegal immigrant who defrauds the government of paying taxes, falsifies documentation to work, obtain drivers licenses and even to steal money from a bank. give me a break, this is no victim.
Posted By: callitwhatitis | December 7, 2007 1:45 PM
As a Christian I feel sadden by all these articles that have the hopes of destroying the image of the Church of God! Moreover, what makes me even more disgusted is the fact that a serious paper would use such an easy way of showing half truths. By these articles we can easily see that the media has changed way too much over the years, there is no longer a passion for it, no more necessity of showing what it really is, no more going the extra mile to show that genuine side of news. It is all done for that sake of sales. So let us leave human justice to the hands of the court of Law and the rest will be history, because no matter who tries, NO ONE will ever prevail against the kingdom of the God Almighty! And the writers should be vary careful when touching His "little ones"!
Posted By: Maria Antonia | December 7, 2007 3:26 PM
I am legal counsel for Soario Santos. The WSJ got it wrong. In many cases borrowers use a cash-out-and-walk-away smash and grab. Costa admitted that she communicated false statements to the lender to get her $13,000 cash from closing. She admits she has no losses, and that she made no mortgage payments. The injured party here is the lender. This scheme is called a First Payment Default or "FPD" in the lending industry, and is always an indicia of fraud by ......borrowers.
Benjamin Graves
Posted By: Benjamin Graves | December 7, 2007 3:50 PM
I am a pastor at the church that is mentioned in this article. I am appalled that Christianity Today posted this blog without ever contacting us to hear what we had to say. The Wall Street Journal reporters wrote a totally biased story, that does contain both lies and half-truths. But they are not believers, we expect that from them.
But from Christianity Today we would expect better. If anyone wants to read a quick release stating the church's position, as well as a personal letter that I wrote to the Wall Street Journal, please, just go to the opening page of our website and use the link there.
http://www.messageofpeace.org/
Posted By: Beto Carvalho | December 7, 2007 6:24 PM
As a member of this church I feel very upset by what I read. It saddens me to see that a Christian based magazine would publish such blog without even bothering going to the source just to find out both sides of the real deal. What a shame!
Posted By: Raquel | December 10, 2007 1:16 AM
After reading these comments, I feel sad that a fellow believer could be slandered by Christianity Today so easily without ever being given a chance to tell his side of the story. When are Rob Moll and Christianity Today going to issue an apology? Why didn't Moll investigate the allegations himself instead of simply recycling a story told in the WSJ? This is shoddy journalism. I would have expected better from CT.
Posted By: Julie | December 10, 2007 12:47 PM
This is very damaging to the body of Christ if I am to believe that Christianity Today did not do a thorough investigation and so I will write from the stance that I would love to hear their side of the story if they did. If they did not then it is not only irresponsible journalism but it also hurts the Body as well. I am a pastor and I have heard certain accusations made and when the truth came out (by the way always does) the people apologized but the damage had been done. Before there is an accusation the bible states that there must be 2 or 3 witness and when it is against an elder especially. Let us be kingdom gatherers and not scatters. I currently subscribe to Christianity Today and I will wait to hear from them on this matter, should there be no formal response or apology then I will consider what I have read true and I will cancel my subscription because the reality is that it could be anyone's ministry or parent tomorrow that is featured in such a light. Let us ensure that we are doing that which is right before the Lord
Shalom
Posted By: Susan | December 10, 2007 4:07 PM
The church is a safe haven for criminals. Many turn to the church at a time of need to be intercepted by low life con artists.
Edward Murachanian (his office is convienantly located outside a retirement community) an attorney in Brick Township New Jersey Ocean County runs a scam out of Fellowship Chapel in Point Pleasant Beach New Jersey.
When I was going to reveal his scam I was assaulted by his partner in crime Richard Maranitz 170 Duchess Lane Brick, NJ. Maranitz is an internet ordained pastor. http://tcolw.tripod.com/id18.html
They have practiced the art of deception to deceive church members for years.
Report any information of church fraud to the FBI in Washington DC.
Posted By: Mike | October 8, 2009 3:11 PM
Regardless of the accuracy of this particular story, the truth is that fraud is happening regularly within churches, as they become targets for people within and without to steal resources and destroy reputations. While every church is quick to promote financial responsibility, too often there are leaders and/or members who ignore warning signs and security precautions and fall prey to scammers. Unfortunately, even after a church experiences fraud, the victims are hesitant to accuse or prosecute, due to misconceptions of forgiveness and trust. Both of these qualities can still be upheld while maintaining a watchful eye on finances and integrity.
Posted By: Fraud in the Church | February 25, 2011 9:53 PM