New Baptist Fund to Bail Out Investors

The parent organization of a Baptist group accused of bilking its investors of millions of dollars is now raising money to help those who were financially hurt by the scheme.

The Arizona Southern Baptist Convention, which 51 years ago created the Arizona Baptist Foundation as its fund-raising and endowment arm, last month created a new entity, the Jerusalem Fund, which will raise money to benefit people whose money is stuck in investment accounts at the foundation. The foundation, which has sold roughly $500-million in investment products to 13,000 investors, has frozen most of its assets pending an investigation by state officials (The Chronicle, September 9).

State officials say that the foundation and its affiliates covered up financial losses that could jeopardize investors’ money. A spokesman for the securities division of the Arizona Corporation Commission — which, together with the Arizona Attorney General’s office, is investigating the Baptist investments — said that the investigation is focused on the foundation officials who have allegedly committed fraud and is not expected to include an inquiry into the state’s Baptist convention.

According to written statements from the foundation, the organization, which fired its three top officials and laid off half of its 133 employees, has been fully cooperating with the state’s investigation.

The committee’s Jerusalem Fund has so far raised $45,000 in gifts and pledges.