Gospel for Asia – Page 11 – Warren Throckmorton

In 2015, Gospel for Asia Privately Feared Investigation of How Donor Funds Were Spent

This post is the second in a series covering a February hearing in Murphy v. Gospel for Asia. Former donors, Garland and Phyllis Murphy are suing the leaders of Gospel for Asia in federal court claiming that GFA did not use donor funds as donors intended. Recently, the transcript of the hearing became available. If you are a GFA donor or are thinking about being one, you should read it. It is available via this link with commentary in my first post on the topic. This post discloses the concerns GFA leaders had about being investigated even as they were telling the public they were no problems.

One of the bombshell revelations in the February hearing is the disclosure of an email from David Carroll to K.P. Yohannan which suggests that both men may have misled GFA staff members in May 2015. The Murphys’ attorney Mark Stanley read the email into the record. According to Stanley, in May 2015 then GFA COO David Carroll wrote to GFA founder K.P. Yohannan about his concerns over financial reports and truthfulness. From page 64 to page 68 of the transcript, attorney Stanley cited the email with his comments interspersed throughout. David Carroll’s words are in quotes. I have reproduced Stanley’s testimony below.

Click this link to read David Carroll’s email to K.P. Yohannan without attorney comment

MR. STANLEY: What’s really interesting to me also, if I might just take one second and read pretty much one of the key documents in the case. This is an e-mail from Reverend Carroll, David Carroll, to K. P. Yohannan, and I think it’s really important because it really will put it back into perspective what’s going on: “Sir, I need to share with you where I am over this situation.” I’m right here. “I will try to summarize for brevity sake. We have a saying in our country: The numbers don’t lie. The published FC-6 reports” — which they rely on quite a bit in their answers, if you recall — “show westerners that we have either sent money to the field raised for National Ministries and Bridge of Hope to fund the hospital and the corpus fund, or our FC-6 filings are filed wrong. Either way, this is a huge problem. It appears to those reading these that we might have been dishonest to the donors (fraud), or been dishonest to the Indian government, (a PR nightmare at least). Sister Siny’s report below will, in my opinion, do little to satisfy those who are printing out and analyzing our FC-6 reports. I am sorry for not expressing more confidence than this. I think we may have used money raised for National Ministries and Bridge of Hope for the hospital,” [Stanley remarks] which they told us did not happen.

“I think that India feels that we raise money and send it” –[Stanley remarks] by the way, Mr. Mowrey said that in a prior hearing, that none of the money went to the hospital. “I think that India feels that we raised money and sent it to them and they can legally use it any way they deem fit. I hope that I am wrong, but I am doubtful.” [Stanley remarks] This doesn’t sound like someone who has already got accountability, knowing how they spent the money.

“I also don’t think that it is an intentional wrong, but if I am correct, it is a huge wrong. We’ve spoken at hundreds of churches with tears asking for the National Ministries and Bridge of Hope support, and the FC-6 that is public says that we sent much of that money for the hospital and the reserve corpus funds.” Next page.

MR. MOWREY: Could he read the rest of that letter, your Honor?
MR. STANLEY: I am.
MR. MOWREY: Okay. Good.
MR. STANLEY: “It doesn’t matter that we have now moved the money out of the corpus fund” — [Stanley remarks] this is now after the ECFA thing — “because of public FC-6 reports” — I’m sorry. It’s backwards. Sorry. That’s not right, either. That’s right.
“It doesn’t matter that we have now moved the money out of the corpus fund because according to the public FC-6 reports, we have been building them up for years. Moving the money only serves to confirm the feelings of guilt to outsiders.”

Again, they have not been spending the money. They have been building up the corpus funds for years. “I think the only way for us to handle the inquiries raised by Bruce and others is to refer them to our Indian office. Mr. Throckmorton” — that’s the blogger — “(unless a miracle happens) will get this information and may even begin an investigation of us. We can say all we want that we don’t have anything to do with the Believers Church or the field and that you are only the spiritual head of the church and that finances are handled by others but you, but as a practical matter, that will not hold up. Can the field find a way out of this situation? I too am very nervous.”

“I have always believed in total accountability of the field, yet the FC-6 reports provide numbers that, as a former auditor, I cannot just explain away with a simple explanation. I, and the world, will need numerical proof now, and I do not have the ability to get it from the USA end. Only the field can explain it, and I am in the hot seat in this crisis and I feel a lot of pressure.”
[Stanley remarks] I would point out, Judge, this was in 2015, May of 2015, almost three years ago. You pointed out that our discovery was served in August. ECFA asked them for this information in May of 2015. They’ve had three years to compile this information, and they just don’t have it because it doesn’t exist. Nobody ever tracked the designations because they were simply spent out on the — once they were sent to the field, they were done with it. There was no accountability. It goes on to say, “If I say, well, it is not my problem, it’s a field problem, it’s as good as saying we are guilty of misappropriation,” [Stanley remarks] which is true. If I say “The FC-6 reports are filed inaccurately on purpose, due to the hostile environments we work in, it gets the field in trouble and turns the attention to them. I get the feeling that, although we are not financially dishonest, we are financially reckless. The stockpiling of money in the RBC — [Stanley remarks] Royal Bank of India account — “and then the hurried transferring of it to the field, the Hong Kong account, et cetera. Sir, may I please have my name taken off of the RBC account as soon as possible?”

First, let me say that a miracle didn’t happen, if you know what I mean.

David Carroll expressed anxiety about accountability in this email. He acknowledged that either donor funds were diverted from Bridge of Hope and National Ministries to the Believers’ Church Medical Center or the reports were filed incorrectly with the Indian government. There seems to be little doubt that the funds were used for the hospital as I first reported in May 2015. Carroll was fearful that Bruce Morrison and/or I would launch an investigation into the obvious discrepancies. He was right about that. In response to us, he refused to answer any questions and denied any problems.

Furthermore, in a telling admission, Carroll said to Yohannan:

We can say all we want that we don’t have anything to do with the Believers Church or the field and that you are only the spiritual head of the church and that finances are handled by others but you, but as a practical matter, that will not hold up.

GFA leaders told ECFA that they had no control over Believers Church. See yesterday’s post for a run down of what GFA told ECFA about that. In addition, K.P. Yohannan told his Texas staff in May 2015 that he didn’t sit on any boards and had no authority in India. David Carroll was sitting right beside him. This email suggests that he knew it wasn’t accurate when Yohannan said it.

Publicly, GFA said they were operating in accord with the law, ECFA standards, and best practices. However, behind the scenes we now learn that there was worry, pressure, and a more candid assessment of the situation even as the confident and sunny messages were being disseminated to the staff and to the public. I wonder if they knew all along that it was illegal to send cash into India through student backpacks, thus exposing college students to criminal charges.

What should we believe now?

Every Gospel for Asia Donor Should Read This Federal Court Document

On February 16, 2018 a hearing was held in Fayetteville AR before federal Judge Timothy Brooks in the case of former GFA donors Garland and

Admirer kissing the hand of K.P. Yohannan. From his 2017 birthday video.

Phylliss Murphy v. Gospel for Asia, K.P. Yohannan, Gisela Punnose, David Carroll, and Pat Emerick. The Murphy’s complaint accuses GFA and named defendants of conspiring to defraud donors and misrepresent the way donated funds have been spent.

This hearing was convened to resolve an ongoing dispute regarding the discovery of evidence in the case. While the transcript is long (over 90 pages), if you donate to Gospel for Asia or are considering it, you should read it.

The context for the hearing is the claim by former GFA donors Garland and Phylliss Murphy that GFA diverted funds away their intended purpose. At this point in the case, the Murphys and their attorneys have requested documents which would demonstrate a link between donations and expenditures. Over several months, GFA attorneys have promised such evidence but have not provided it. The reason Judge Brooks called the hearing was to resolve the situation.

My goal now is to outline two high points of this hearing in the context of many months of reporting on the GFA scandal.

Groundhog Day

Judge Brooks actually asked the following question in the hearing:

I’ve next got a question for everyone. Will you please raise your hand if you’ve ever seen the movie “Groundhog Day.”

He explained:

I feel like I am Phil Connors who was portrayed by Bill Murray in the movie “Groundhog Day” in dealing with this discovery dispute; and I am of the view, having read the motion and the response, that the defendants, at least in their answers — their answer to these requests for admissions, and in their response to the motion for sanctions, are like all of the people that Phil Connors was dealing with in the movie “Groundhog Day.”
He woke up every day repeating February 2nd, over and over again, but the people that he was interacting with in the plot of this movie didn’t realize that; and I feel like when I read the defendants’ answers and when I read their response that it is as if this Court had not already addressed and ruled on some of these same issues at least twice, if not more and, yet, here we are again.

Judge Brooks had already ruled twice that GFA needed to produced documents in response to questions from the Murphys about where money was spent. They have failed to do so. By this hearing, Judge Brooks summarized the situation:

Plaintiffs now once again seek answers to the same questions that they’ve been asking for months: Was donated money diverted to other causes and do defendants have information or documents that would prove how the money was spent.

This is the crux of the case. If GFA defendants would like to clear their name, they could produce evidence which shows how donations were spent. They haven’t done so. As I pointed out in December of last year, GFA is dragging this out. Anyone who says differently simply isn’t dealing with the case documents.

Donors should ask GFA why a federal judge is exasperated over GFA’s inability to document how donations are spent.

GFA Staff Authorized Transfer of Money from Canada to India to the U.S.

A stunning revelation in this transcript is the disclosure that GFA’s former Chief Operating Officer David Carroll and CEO K.P. Yohannan allegedly had wire authority to move $20 million dollars from India to Texas, presumably for the completion of GFA’s headquarters. Staff were initially told that an anonymous donor gave those funds. Then in May 2015, Carroll told staff that one of GFA’s field partners in India took out a loan for nearly $20 million and sent it to Texas. Carroll and Yohannan told staff that the decision to give the funds was made by the Indian leadership without any influence from Yohannan. According to Yohannan, he had no authority over the decision.

In the February hearing transcript, plaintiffs’ attorney Mark Stanley presented evidence which contradicts this narrative. Here is the relevant portion of Stanley’s testimony.

MR. STANLEY: They [GFA’s attorneys] say that the defendants [GFA] don’t control these third-party entities. I have two documents, if I might — let me find them — showing just the opposite. Here’s one. This document is 2015, April 2015, produced by them from Reverend Dr. K. P. Yohannan, president, asking them to transfer Canadian dollars, or CAD — I don’t know. CAD, those are cash deposits — for Gospel For Asia (India), for further credit to Gospel For Asia (India). These are from — remitting it to the state bank of India in Canada, and I can show you that account number is Gospel For Asia (India). I have the accounts for that. That’s K. P. Yohannan doing that.
David Carroll says he has no control over it. I’ve got David Carroll requesting a document — sorry. There it is. This is David Carroll who says, “I have no control over the field partners,” right? “We have no control; we have nothing to do with them”; yet, David Carroll sends a letter to Sarah Billings from the Royal Bank of Canada asking them to transfer $20 million from Gospel For Asia (India) to GFA’s account in the United States, signed David Carroll, CEO, Gospel For Asia. How could he authorize money coming out of a Gospel For Asia (India) account? We know it’s a Gospel For Asia (India) account because it’s account number — 489 is the last four digits. Here it is. There’s a statement from the Royal Bank of Canada, Gospel For Asia (India), care of Teresa Chupp, in Carrollton — that’s their old address before they moved to Wills Point — for Gospel For Asia (India), and there’s the account number.
So clearly the spin that they have been told that these folks have no control over the field partners is simply not true. They have control over it. They have wire instructions, wire authority. K. P. Yohannan is the metropolitan of that. You read the constitution from prior hearings. It talks about all of his roles in the constitution.

All of these folks, Mr. Carroll, Reverend Carroll, Mr. Emerick, the Reverend Emerick, all the others have sworn total loyalty to K. P. Yohannan. His niece, Siny Punnose also have sworn loyalty to K. P. Yohannan. They have absolute control of that.

According to Stanley, he has documentation that K.P. Yohannan authorized the movement of funds from the Canadian GFA to GFA-India. He also claims documentation of David Carroll authorizing a transfer of $20 million from the India field partner back to the United States organization. If Stanley’s representations are as they seem, this information contradicts what the Evangelical Council for Financial Accountability said they were told by GFA’s leaders and it contradicts what GFA leaders told staff in 2015.

What Did GFA Tell ECFA?

Beginning in May 2015, the ECFA began talking to GFA leaders, some of whom are now defendants in this fraud case, about alleged violations of financial management policies. In contrast to the evidence presented in the February 16, 2018 hearing, GFA told ECFA representatives that GFA leaders in the U.S. had no control over the field partners in India.
From the ECFA letter to GFA:

During our review on June 3, ECFA staff raised questions regarding GFA’s oversight and control of funds sent to foreign field partners. GFA’s staff indicated that the foreign field partners are completely independent organizations and therefore GFA did not exercise any direct control over field partners. GFA staff also indicated that they did not have a foreign grant process in place to oversee the use of funds.

The ECFA letter specifically refers to the near $20-million transfer of cash. From the letter:

GFA’s financial statements do not appropriately report transactions with foreign partners. During our review on June 3, GFA staff indicated that funds transferred to GFA India were actually transferred to a number of related entities instead of the single entity reflected in the 2013 audited financial statements. Additionally, on August 24 we learned that GFA received a $19,778,613 donation from GFA India, which was classified as a related party elsewhere on the 2013 audited financial statements (also see #8 below). On August 27, GFA staff confirmed that this donation was neither disclosed in the footnotes of the 2013 financial statements as a related-party transaction nor to the GFA board of directors. This inconsistency within the financial statements and lack of disclosure to the GFA board of directors about a significant related-party transaction appears to violate ECFA Standards 2, 3, and 6. On July 20, ECFA was informed that GFA engaged a new audit firm and they are in the process of reviewing related-party transactions.

The ECFA report letter then pointed out the impropriety of moving funds from India which had been given originally as donations exclusively for mission work in Asia.

Use of funds restricted for the field for other purposes. On June 3, ECFA discussed GFA’s claim that 100 percent of field funds are sent and used in the field. GFA staff confirmed that this was accurate. On August 24, ECFA was informed that GFA India made a gift to GFA of $19,778,613 in 2013 to complete GFA’s new office. On August 27, GFA’s staff confirmed that the funds relating to this donation were originally received by GFA as gifts restricted for the field and GFA transferred to field partners to fulfill donor restrictions.

Two important issues are raised:

A. Reallocating gifts donated for field purposes and using them to pay for headquarters construction appears to be a violation of ECFA’s Standards 7.2. GFA staff stated in a recorded GFA staff meeting that you approached the field partner and explained that GFA could borrow the funds in the U.S., at less than desirable terms, for the headquarters construction. However, a gift from the field partner, in lieu of GFA borrowing the funds, would allow GFA to complete the new headquarters and thereby save interest. Therefore, GFA would be able to send more money to the field in future years. ECFA believes that the potential savings resulting from the GFA India gift is an inadequate basis to reallocate gifts donated for field purposes.

B. Reallocating gifts donated for field purposes contradicts GFA’s claim that 100 percent of funds are sent to the field. In fact, a significant amount of donations restricted for the field made a circuitous trip back to GFA and were used for the headquarters construction, as though they had never gone to the field. This appears to be a violation of Standard 7.1.
In a GFA staff meeting, GFA indicated the field partner took out a loan to cover the use of the $19,778,613 gift and GFA staff confirmed on August 27 that India-generated income was used to repay the loan. Our review of the board minutes did not indicate the GFA board had approved, or even been notified, of the $19,778,613 reallocation of donor-restricted gifts.

Now we learn from attorney Stanley that the funds may have simply been transferred by GFA leaders in the U.S. from GFA-India’s Royal Bank of Canada account. Was the office complex finished via a gift from GFA-India? Or did GFA defendants simply transfer $20-million of donor money from one account to another? In either case, plaintiffs attorney presented evidence to allege that GFA leaders had sufficient control to authorize the transfer of funds which were not subsequently spent as intended by donors.

Other Misrepresentations Revealed

There are other revelations in this transcript which I will detail in future posts. For now, I will conclude by repeating my advice to donors to read this document as well as the ECFA report. Some of the same issues which led to the removal of GFA from the ECFA membership are still current today and have come to the attention of the presiding federal judge in this case. Although the trial isn’t slated until next year, consumers and donors can use the evidence available to make their own judgments now.

SEE THIS 2019 UPDATE

K.P. Yohannan Blesses and Consecrates Holy Oils for Believers Eastern Church

In another sign that Believers’ Eastern Church continues to move away from evangelical roots, the church celebrated a “sacred ceremony” using specially prepared and blessed holy oils on the Thursday before Easter. While common in Catholic, Anglican and Lutheran services, use of anointed oils is less common among evangelicals who deny that the oil has any special properties.
From the church Facebook page:

This year’s #MaundyThursday was a historical day for the Believers Eastern Church. Following the Biblical and Eastern Church traditions, we had the sacred ceremony of the Blessing and Consecration of the Holy Oils, which were consecrated by Metropolitan Dr. KP Yohannan in the presence of our Bishops, selected priests, deacons and laity representing the entire church. The process of making these oils started several weeks ago and has been done in a complete atmosphere of prayer and fasting. These holy oils which are known as ‘Myron’ or ‘Chrism’ will be used for the sacraments such as baptism and also dedication of churches, church altars and utensils for the Eucharist and to anoint and pray for the sick.

K.P. Yohannan in his Metropolitan garb. From Believers Church Facebook page.

Believers Church Validates Claims Made by Former Staff

Gospel for Asia’s public problems began when a large group of former staff members, known as the GFA Diaspora, approached GFA leaders and board members in 2014 with five concerns about the organization. At the top of the list was this:

GFA leadership practices and teaches a false view of spiritual authority

As evidence that K.P. Yohannan had inappropriately elevated himself to that they considered to be an unbiblical level of authority, the former staff pointed to the practice of requiring followers in India to kiss Yohannan’s ring as well as church practices which appeared to reflect a Catholic hierarchy of authority.
To me, the issue here isn’t the correct view of hierarchy.* It is the credibility of GFA’s statements. In response to criticism of Yohannan’s ring kissing and other practices, GFA insisted that such practices didn’t exist and that GFA was thoroughly evangelical in practice. However, this does not appear to be the case, as indicated by photos of followers kissing Yohannan’s ring, and now this use of holy oil in a special manner by Yohannan.

*I mean no criticism of any religious tradition. I have my own views but what is at issue is the accuracy of statements by GFA’s leaders over the years. GFA’s leaders have at various times portrayed Believers’ Church as evangelical in practice. However, on the ground the church operates in a manner which places all power within the hands of the K.P. Yohannan, the Metropolitan Bishop. He is a papal figure with veto power over all church actions. The church celebrates his birthday as a holiday.

Gospel for Asia and K.P. Yohannan Defend Participation in Inner Zen Retreat

A comment on Gospel for Asia’s Facebook page about K.P. Yohannan’s participation at the Surajkund “Happiness is a Journey” spiritual retreat

with the masters brought a quick response from Gospel for Asia and K.P. Yohannan (see my prior post for background). The commenter wanted to know why Yohannan was participating in a retreat with Sufi and Hindu masters for the purpose of making self the most important person in one’s life. GFA replied:

Hi Daniel – thanks for sharing your thoughts. I’d like to provide some more information in answer to your question. K.P. Yohannan has been given the amazing opportunity to speak at an event where no person who has a worldview based in scripture has ever been invited to share before.
It is an intellectual event that is put on by the Times of India (one of the largest Indian English newspapers). K.P. has been contributing for a little while now as a writer to Speaking Tree, which is the online publication of Times of India. Through his writings, he has been calling attention to environmental issues, women’s empowerment, children’s education, healthcare challenges, etc. and his articles have been greatly appreciated.
And now he has been invited to be a panelist for a retreat program hosted by the Times of India. K.P. will be the only one to represent the scripture based worldview at this significant forum!
K.P. Yohannan shared this when asked about this event, “We are called to love our neighbors. It’s human nature to avoid or even be scared of those that subscribe to a different set of ideas or worldview. But we need to strive to see everyone as Gods creation and God loves all people, for God is love. Jesus went everywhere, met everyone, accepted everyone – never created an ‘us’ versus ‘them’ mentality. Let us follow His example.”
Would you join us in praying for this event and K.P.’s time to share with other with different worldviews?

An intellectual event? The conference is described on the event website as “a life-changing spiritual journey.”

When was the last time you felt elated and not just content? When was the last time you stopped to feel the fresh air brushing against you or took a moment to appreciate nature in all its glory? Chances are that while all this sounds like the perfect fodder to feed our souls, few of us rarely have the time (and the inclination) to build a relationship with the most important person of our life – our own self.
And herein lies the struggle. While we spend a major part of our life aimlessly looking for happiness, seldom do we realise that true happiness lies within us – we only need to look for it. And how do you do that? By giving your body (and your mind) the much-needed rest once in a while and helping it reach an inner zen, one that is full of belonging, happiness and fulfilment.
The Speaking Tree Retreat, Surajkund aims to do just this for you. Come join us as we take you on a life-changing spiritual journey with esteemed masters, who will help you find new meaning to life. Soak in the serenity of your own soul and discover (and feel) happiness like never before!

Visitations from Demon Spirits

Yohannan is taking a much different approach to yoga and his fellow masters than he used to. In his best selling book Revolution in World Missions,* Yohannan has harsh language for the religions practiced by his new colleagues.

While settling in, I flipped on the big TV set that dominated the room. What burst on the screen shocked me more than anything I had ever seen in America. There in beautiful color was an attractive woman seated in the lotus position teaching yoga. I watched in horror and amazement as she praised the health benefits of the breathing techniques and other exercises of this Eastern religious practice. What her viewers did not know is that yoga is designed for one purpose only-to open up the mind and body to receive visitations from demon spirits.
Because this American yogi was dressed in a chic Danskin body suit, claimed a Ph.D. degree and was on educational TV, I assume many of the viewers were deceived into believing this was just another harmless exercise show. But those of us born and raised in nations dominated by the power of darkness know that hundreds of Eastern religions are marketing themselves in the United States and Canada under innocuous-even scientific-sounding-brand names.
Few Westerners when they see the news reports of poverty, suffering, and violence in Asia, take time to stop and ask why the East is bound into an endless cycle of suffering while Western nations are so blessed.
Secular humanists are quick to reel out many historic and pseudoscientific reasons for the disparity, because they are unwilling to face the truth. But the real reason is simple: The Judeo-Christian heritage of Europe has brought the favor of God, while the false religions have brought the curse of Babylon on other nations.
Mature Christians realize the Bible teaches there are only two religions in this world. There is the worship of the one true God, and there is a false system of demonic alternative invented in ancient Persia. From there, Persian armies and priests spread their faith to India where it took root. Hindu missionaries in turn spread it throughout the rest of Asia. Animism, Buddhism and all other Asian religions have a common heritage in this one religious system. Because many Westerners are unaware of this fact, demonic influences now are able to spread Eastern mysticism in the West through pop culture, rock bands, singers and even university professors. The media have become the new vehicle for the spread of demon worship and idolatry by American gurus. (1998, pp 98-99).

So what is it exactly that is going to happen at Surajkund, Rev. Dr. Yohannan?

*See this post for more on that book.

Gospel for Asia's K.P. Yohannan Joins With Hindu and Sufi Masters to Help You Find Your Inner Zen

In what might come as a surprise to his loyal American followers, K.P. Yohannan is about to join Hindu and Sufi masters for a three-day retreat where participants can spend $700-1000 each to find their “inner zen.” According to the website advertising the religious confab, participants will learn to “build a relationship with the most important person of our life – our own self.” See the line up of “masters” (click link to see a larger image):

The participants won’t be trekking up to a remote retreat, but rather staying in a nice 5-star resort hotel — Vivana by Taj at Surajkund, just South of New Dehli.
Apparently, Yohannan won’t be one of the keynote speakers but will be a part of one of the panel discussions. Although the retreat appears to be an interfaith event, it doesn’t appear to be about religion. Rather it is about self-fulfillment and happiness. As such, his involvement is a long way from his theme in Revolution in World Missions. There is something unseemly about Yohannan being referred to in the company of “eminent masters” like Sister Shivani, Swami Sukhabodhananda, and Yog Guru Dr. Sarakshit Goswami. At least Goswami earned a doctorate in Yoga. Yohannan’s “Dr.” is honorary but he uses the title anyway.
I doubt one could find anything on a GFA website about donating so that the CEO and founder of GFA could moonlight conducting motivational workshops with gurus from other religions. I also wonder if his fellow masters know how he talks about them and their religions when he is in the U.S.

More on Gospel for Asia

For a good summary of the expulsion of Gospel for Asia from membership in the Evangelical Council for Financial Accountability, see this post highlighting documents released by former board member Gayle Erwin.
Gospel for Asia’s RICO lawsuit
Gospel for Asia Told Staff They Could Track Funds but Tells Federal Court They Can’t