L.A. County Concludes Workplace Investigation of Grace Community Church; COVID-19 Requirements Still Binding on Church

Recently, Grace Community Church posted this on their website

Outbreak Restrictions Lifted

We are glad to announce that we received a notice from the Los Angeles County Department of Public Health on Thursday, November 12, saying that we have been cleared of COVID-19 outbreak. After a thorough investigation, Public Health officials have decided to rescind all outbreak related requirements and restrictions on Grace Community Church.

The L.A. County Department of Public Health doesn’t quite see it that way. I asked them for a reaction to this statement and they sent the following response to me exclusively tonight.

Please see the department of Public Heath’s response:

Public Health’s investigation into the Grace Community Church worksite COVID-19 outbreak was recently concluded.  The Church is still required to follow all current Health Officer Order requirements for places of worship, which include outdoor services, as well as all applicable infection control protocols for all activities that occur on the Grace Community Church campus.  Public Health has found that Sun Valley has among the higher rates of COVID-19 transmission in the County of Los Angeles.  Compliance with the required infection control protocols by Grace Community Church will lessen the risk of COVID-19 transmission to its employees and visitors.

Grace Community Church starting at the top has been marked by non-compliance with mask wearing and social distancing. Pastor John MacArthur has communicated bogus COVID-19 prevalence statistics and denied there is a pandemic.

All restrictions on Grace church have not been rescinded. The leaders and people of Grace are simply ignoring them. There are or were 5 employees who contracted COVID-19 recently and there is an outbreak at The Master’s University as well. The Health Order has not been rescinded; Grace Church is simply refusing to follow it.

 

 

SEC Brings Charges Against Mark MacArthur

Mark MacArthur, son of John MacArthur and board member of MacArthur’s Grace to You ministry, has been charged by the Securities and Exchange Commission of engaging in a scheme to defraud clients over a three year period from 2014 to 2017. According to the complaint, MacArthur and his partner, Robert Gravette, failed to disclose a costly conflict of interest:

Defendants Criterion Wealth Management Insurance Services, Inc. (“Criterion”), Gravette, and MacArthur were investment advisers. They owed their clients – who entrusted them with the discretionary management of their money – a fiduciary duty to act with loyalty, fairness, and good faith. This civil enforcement action arises from defendants’ breach of their fiduciary duty when failing to disclose a glaring conflict of their financial interests with those of their clients. From the spring 2014 through the summer 2017, defendants recommended that their advisory clients invest more than $16 million in four private placement funds, without disclosing that the fund managers for these investments had paid them more than $1 million in side compensation – income on top of the fees that defendants were already charging their clients directly.

For two of the private placement funds, the undisclosed  compensation that defendants received reduced the investment returns that defendants’ advisory clients would have otherwise received. Defendants kept their clients in the dark as to all these material facts and, in doing so, they violated their fiduciary duty and defrauded their advisory clients.

Read the SEC Complaint

According to the complaint, MacArthur and Gravette (both The Master’s University graduates) worked with another TMU graduate at a separate company to construct a scheme which allowed Criterion to pocket fees which should have gone to Criterion’s clients. The SEC claims MacArthur and Gravette failed to disclose the terms of investing to clients which put those clients at a disadvantage and depressed their investment returns.

It is not stated in the complaint which clients received the lower returns or if any of the entities controlled by the MacArthurs were involved as investment clients.

Accreditation Commission: The Master’s University Still on Probation, President Transition Required by End of 2019

Today, the WASC Senior College and University Commission posted a letter dated March 4 which describes their decision to keep The Master’s University and Seminary on probation. The letter also informs the school that the search for a new president to replace John MacArthur should be completed by the end of 2019 (see also this post). According to the letter, TMUS’s board of directors had decided to extend that date until later. The WASC team determined that was not in keeping with the plan previously established.

The Commission saw the lack of movement of finding MacArthur’s replacement as a sign of concern regarding organizational integrity. The Commission stated:

In addition, the institution made a commitment to transition its chief executive officer from the position of president to Chancellor of the Seminary within 18 months of the date of the visit. Yet, at the panel interview, the president mentioned that the Board has extended that date and had still not taken steps to define the requirements and job description for the institution’s next president. The Commission is concerned that TMUS still struggles in the area of operational integrity and transparency.

For this and other reasons, the Commission decided TMUS was out of compliance with the accreditation standards.

The Commission found that The Master’s University and Seminary is not in compliance with WSCUC Standards 1 and 3 and acted to continue the sanction of Probation.

Being on probation can lead to dire consequences for an institution of higher learning.

Under U.S. Department of Education regulations, when the Commission finds that an institution fails to meet one or more of the Standards of Accreditation, it is required to notify the institution of these findings and give the institution no longer than two years from the date of this action to correct the deficiencies. If an institution has not remedied the deficiencies at the conclusion of this sanction period, the Commission is required, under U.S. Department of Education regulations, to take an “adverse action,” which in this case would take the form of withdrawal of accreditation.

TMUS is required to respond to the following concerns:

1. The Board should ensure the successful succession and transition of the Presidential role including conducting a national search by 12/31/2019. (CFRs 3.8, 3.9)
2. The Board and Administration should continue to communicate with their constituents in the TMUS community regarding personnel actions and leadership succession. (CFRs 1.7, 3.2, 3.6)
3. TMUS should establish systematic two-way communication practices to promote consistent and sustainable flow of information among administrators, faculty, staff and students. (CFRs 1.6, 3.7, 3.10)
4. TMUS should establish and implement a formal procedure that allows for a safe environment for staff and faculty to express grievances and ethical concerns. (CFRs 1.7, 3.2)

The Commission’s Standards 1 and 3 are as follows (read all of them here):

Standard 1: Defining Institutional Purposes and Ensuring Educational Objectives

The institution defines its purposes and establishes educational objectives aligned with those purposes. The institution has a clear and explicit sense of its essential values and character, its distinctive elements, its place in both the higher education community and society, and its contribution to the public good. It functions with integrity, transparency, and autonomy.

Standard 3: Developing and Applying Resources and Organizational Structures to Ensure Quality and Sustainability

The institution sustains its operations and supports the achievement of its educational objectives through investments in human, physical, fiscal, technological, and information resources and through an appropriate and effective set of organizational and decision-making structures. These key resources and organizational structures promote the achievement of institutional purposes and educational objectives and create a high-quality environment for learning.

Each of these standards has criteria for review (CFR) which are identified in the letter. When CFR is referred to above in the letter, those are the criteria which are of concern to the Commission.

John MacArthur Comments on Transition to Chancellor of The Master’s University

Out today:

Statement from John MacArthur
October 22, 2018

For 33 years, since 1985, I have had the rare and enriching privilege of serving The Master’s University and Seminary as president.

I originally signed up for 5 years, thinking I would be able — along with my pastoral ministry at Grace Community Church — to help strengthen the University and Seminary. I underestimated the hold that educating young Christians for gospel influence on the world would have on me.

Class after class, year after year, as new students arrived, I found it impossible to let go of the opportunity to educate their minds and hearts to take the Light of God’s truth into this dark world. So, I have stayed and loved every day of my service.

However, with the growth of the University and Seminary, demanding more leadership now and in the future, the time has come for me to transition to the position of Chancellor of the University and President of the Seminary.

The transition will provide for a new president for the university. This will occur over the next 18 months.

I rejoice in the 91-year impact of this institution, because of its faithfulness to the Bible, to the glorious Gospel of the Lord Jesus Christ and His beloved church.

I am confident of the continuing influence of these schools for the kingdom of our Lord and I look forward to continuing to serve The Master’s University and Seminary in the years ahead.

The Master’s University Board Responds to Accreditation Charges

On the school website, the board of The Master’s University responded to the probation imposed by the Western Association of Schools and Colleges. The letter was sent to faculty and staff this morning by John Stead, the provost of the college.

You can read the letter. Here is the closing:

In addition, since receiving the report, the full Board has met on three separate occasions to discuss the findings and requirements in the Final Commission Letter and to develop a definitive action plan. As a result of many hours of discussion and planning, including the tireless work of smaller groups and committees, we have made significant progress.

Working with the administration, faculty, and staff, we have created a comprehensive plan—a thorough set of specific action steps to address every concern WSCUC has raised. To ensure that these steps are implemented, we have assigned all of them to specific staff or members of the Board. We have also laid out a clear timeline in order to demonstrate to the Commission that we are making real progress toward meeting or exceeding their recommendations. The Board will thoroughly assess our institutional progress in implementing this plan at our October
meeting.

It is our hope that our resolute response will allay concerns among our University and Seminary family. We recognize the crucial importance of this issue to all our students, parents, faculty, staff, alumni, and ministry support partners.

My reaction is that keeping the plan private appears to cut the faculty out of the process. While it may be typical at small schools not to involve or inform faculty, that seems to be part of what the WASC report raised as a concern. I don’t know how hearing that a plan is in the works but not knowing any of the specifics could allay concerns.

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Image: The Master’s University, by Lukasinla [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)], from Wikimedia Commons