Black Business

AME Church Embroiled In Federal Investigation Over Alleged Mishandling of $90M In Retirement Funds

Predominantly Black church African Methodist Episcopal Church (AME) is embroiled in two lawsuits that allege that the global denomination’s retirement fund was mishandled. The lawsuits claim the Nashville-based church squandered $90 million in retirement fund investments meant for thousands of pastors and other church retirees.

CHARLESTON, USA – JUNE 26: Reverend John Richard Bryant speaks during the memorial service for Reverend Clementa Pinckney in Charleston, USA on June 26, 2015. Reverend Clementa Pinckney was one of nine African Americans who were allegedly murdered by Dylann Roof, a self declared White Supremacist, at Emanuel African Methodist Episcopal Church, a historic black church, during a Bible study on June 17, 2015. (Photo by Samuel Corum/Anadolu Agency/Getty Images)

AME is the first independent Protestant denomination to be founded by Black people. It was founded by the Rt. Rev. Richard Allen in 1816. The AME Church has 20 districts — 13 are based in the United States and seven in Africa. There are more than 500 AME churches in Georgia alone, according to church officials. The global membership of the AME is an estimated 2.5 million members. 

A Maryland lawsuit against the AME Church, in which AARP Foundation attorneys have joined as co-counsels, was filed on March 22 in the U.S. District Court by the law firm Kantor & Kantor.

It is the second against the denomination.

The first was filed March 3 in Memphis, Tennessee, on behalf of Rev. Pearce Ewing, of Jacksonville, Florida. Both seek class-action status, and both claim millions of dollars were mismanaged.

The money involved the retirement income of AME clergy and other retirees. Among the several defendants is the former executive director of the AME’s Department of Retirement Services.

The Tennessee lawsuit claims Ewing, who retired last September, attempted to access his retirement funds and was “denied access to his money and has since learned that there may be nothing left.”

“This was his nest egg, and he had to go to work as a nighttime truck driver to support himself,” said Fred Tromberg, one of the attorneys representing Ewing. “He had over 30 years as a pulpit minister. He never, ever imagined that’s what he has to do to put food on the table and pay his bills.”

Read full story at Finurah here.

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