Hundreds of Southland Clergymen Had Invested : Securities Company Run by Minister Is Placed in Receivership by Court
Hundreds of active and retired Los Angeles-area clergymen are among the nearly 1,000 people who invested more than $12 million through a Downey securities firm run by a minister and taken over this week by a court-appointed receiver amid allegations of fraud.
Without admitting or denying accusations made by state authorities in a civil lawsuit, Vesper Corp. and its owner, the Rev. John M. Simon, who is an ordained Lutheran pastor, consented to the entry of a court judgment that they “disgorge any property or funds acquired in violation of law. . . .” The lawsuit accuses Simon and Vesper of illegally commingling funds and misstating risks about investments to clients.
Thomas Fehn, attorney for Simon and the firm, which did business as Clergy Tax & Financial Services, said Tuesday that his clients agreed to the receivership and the permanent injunction without admitting wrongdoing because “the investors need to be protected.” No estimate has been made of how much money can be recovered and returned to investors.
Simon, who was ordained by the Lutheran Church-Missouri Synod, did not return calls to his Downey office Tuesday. Fehn said that Simon is in his late 40s. A church source described Simon as a “worker-priest,” who earns his money outside the church and is affiliated part time with a church in Long Beach.
If you have a complaint about any type of consumer fraud, including any type of mass-marketing fraud, you can file a complaint through a toll-free Consumer Help Line, 1-877-FTC-HELP (1-877-382-4357) or online with the Federal Trade Commission
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101