Gateway Church has been hit with a class action lawsuit by parishioners who claim the megachurch engaged in misrepresentation of millions of dollars worth of donations.
The lawsuit, filed on Friday in federal court in Sherman, Texas, alleged that the evangelical megachurch misused parishioners monetary donations after failing to follow through with a promise of putting 15 percent of congregational tithes - payments made by congregants to their church - toward foreign missionary work.
Instead, church members, including Katherine Leach, a named plaintiff in the suit, claim that of the churchs approximate $100 million in annual revenue, $15 million from the tithes was set to go toward global missions and Jewish ministry partners, but never did, according to legal documents.
Leach told DailyMail.com she was inspired to fight back against the embattled church after Cindy Clemishire accused former Gateway Pastor Robert Morris of alleged sexual abuse when she was just 12-years-old.
Leach, whos been walking with the Lord for 27 years, said she expected the church to handle the scandal the right way, but once she realized it had carried on business as usual, her anger quickly grew.
Embattled Gateway Church has been hit with a class action lawsuit by furious parishioners who claim the megachurch engaged in misrepresentation of millions of dollars worth of donations. (pictured: Interior of the megachurch)
Katherine Leach, a named plaintiff in the suit, said that although shes furious about the misappropriation of the money, the lawsuit is about accountability and principle not monetary value for her. (pictured: Leach - who said she didnt want her face published ‘considering the retaliatory behavior from the church)
Although shes furious about the misappropriation of the money, Leach told DailyMail.com that for her, the lawsuit is about accountability and principle not monetary value.
This is about Biblical stewardship and transparency and integrity, and handling God’s money above reproach, like the Bible teaches is to be above reproach, she explained, referring to the tithes as blood money.
Morris, 63, has been accused of sexually abusing former family friend Cindy Clemishire (pictured) in the 1980s when she was a child
After meeting with Tra Willbanks, a Gateway elder, and Lorena Valle, the campus pastor, about Clemishires case along with former member Valentina Hansen, Leach made the decision to request her tithe money back after noting the churchs huge lack of integrity with regard to Clemishire.
Morris, 63, the founder and former senior pastor of Gateway Church, one of the largest megachurches in the country, has been accused of sexually abusing former family friend Cindy Clemishire in the 1980s when she was only a child.
After allegations of sexual behavior with a child were made against Morris, he confessed to a moral failure and resigned from his ministry, though he did not expressly confess to sexual behavior with Clemishire when she was a minor.
Hansen, a friend of Leach, previously said she was thrown out of the church by armed guards after speaking out about the claims Clemishire made.
To support Clemishire, Leach told DailyMail.com she displayed a poster with the hashtag She Was 12 in her car window on the last day she attended service at the church in protest of Morris.
Leach told DailyMail.com she was inspired to fight back against the church after Cindy Clemishire accused former Gateway Pastor Robert Morris (pictured) of alleged sexual abuse when she was just 12 years old in June
To support Clemishire, Leach told DailyMail.com she displayed a poster with the hashtag She Was 12 (pictured) in her car window on the last day she attended service at the church in protest of Morris
Morris, along with other leaders, have been seen in videos promising all members that if theyre not fully satisfied after a year of giving money to the church, they will give you your money back.
I already had my tithe letter written and ready, and I was actually contemplating whether or not to even send it to Gateway, asking for my tithe money to be given back so that I could relocate it, she told DailyMail.com.
Leach, who has not attended a service at Gateway since June 22, sent an official Tithe Return Notice letter to the church on September 9 and has not heard back since.
In an absolute last resort effort, Leach - who said she didnt want her face published ‘considering the retaliatory behavior Gateway Church has displayed towards many others in the past - decided to file a class action lawsuit against the megachurch.
I want the money that I gave in good faith as my tithe back so I can reallocate it to a church or ministry that is committed to financial transparency and integrity, she said.
Hansen, a friend of Leach, previously said she was thrown out of the church by armed guards after speaking out about the claims Clemishire made
Tra Willbanks (pictured) told worshippers that Gateway has independently audited financial statements since 2005
According to the lawsuit, the church hired a seasoned CPA who was also a partner at a well-known international accounting firm to oversee Gateways financial operations.
The whistleblower, identified as Allen Shoulders by The Roys Report, is a former Executive Pastor of Global Ministries for Gateway and has since retired from his role as a partner at Big 4 accounting firm.
The CPA, who supervised six associate pastors, was in charge of vetting and approving relationships with and gifts to ministry partners around the world, the lawsuit stated.
During his time there, the Certified Public Accountant would receive a statement from the Global Ministries fund, which included 15 percent of the tithe, along with salaries, approved gifts to ministries and administrative costs, according to the legal filing.
Despite the churchs annual revenue jumping from $100 million when the expert first started in July 2011, to $120 million by 2014, he never observed the Global Ministries fund give away more than $3 million in any year, the lawsuit said.
Leach, who has not attended service at Gateway since June 22, sent an official Tithe Return Notice letter to the church on September 9 and has not heard back since
Shoulders told the outlet that the megachurch did not conduct any audits from 2011-2014, and instead oversaw financial reviews, which do not detect errors or fraud.
For this reason, a review only provides negative assurance — a statement that the accountant is not aware of any errors based upon the responses to their inquiries, Shoulders said.
This is much less assurance than an audit opinion which would state that the financial statements are fairly stated in all material respects.
He clarified that during his 2011 review, Gateways Global Ministries were not involved and that he was not asked to meet with the manager overseeing it.
Shoulders told the outlet he had no contact with the accountants spearheading the churchs 2012 and 2013 reviews and that he left before the 2014 review took place.
After being hit with a lawsuit, Willbanks addressed the congregation on Sunday and denied any wrongdoing by the church regarding their finances.
Willbanks told worshippers that Gateway has independently audited financial statements since 2005.
These audits have demonstrated that our finances are managed consistent with best practices, and we have never had any wrongdoing revealed through these audits, he said, adding that the church has decided to hire a third party, independent accountant firm to complete a forensic analysis of our finances.
According to the lawsuit, the church hired a seasoned CPA and now whistleblower, Allen Shoulders (right), who found that the megachurch did not conduct any audits from 2011-2014
Shoulders has insisted that Gateway has not given a clear financial report to church members in years.
Despite the handling of well over $1 billion over 10 years, to my knowledge, and despite Gateway’s claims to the contrary, there has not to date been a clear financial report to Gateway members, attested to by independent accountants.
Common sense and the amounts and circumstances involved would seemingly prompt members to insist upon a financial and forensic audit to determine whether these activities point to a misuse of church funds, he added.
Although it is unclear exactly what the church spent parishioners tithes on, Leach said that she knows that she is a piece of the puzzle for bringing it to light.
Like Leach, Shoulders has stopped attending services and giving money to Gateway.
In reference to how the church has handled the sexual abuse and now financial scandal, Leach said its such an atrocious example of Jesus.
I’m appalled. I’m appalled for Gateway Church, the vast reach that they have across the world, she said.
In reference to how the church has handled the sexual abuse and now financial scandal, Leach said its such an atrocious example of Jesus. (Pictured: Protestors outside of Gateway Church on June 22, after Clemishire accused Morris of alleges sexual abuse)
In a statement to DailyMail.com, Lawrence Swicegood, a spokesman for the church, said: We do not comment on pending litigation. He added that funds donated to our church are sacred
Leach, along with Hansen and other former and current Gateway members are determined to hold the church accountable for stonewalling people and treating them like collateral damage.
You are going to stop treating people this way, and I will be a voice for those who have been silenced with NDAs, or who just cannot come forward.
For whatever reason, I will be their voice, I will be the voice for the voiceless. I will stand in the gap for them, she added.
Since sending her letter and filing the lawsuit, Leach has not heard back from the church.
In a statement to DailyMail.com, Lawrence Swicegood, a spokesman for the church, said: We do not comment on pending litigation.
These are serious allegations. Some of these concerns were brought to us recently, and we are actively investigating them. Funds donated to our church are sacred, and it is important that we hold ourselves to the highest biblical standards of ethics and integrity.
Gateway Elder Tra Willbanks assured Gateway Church congregants in the weekend services that the church has “independently audited financial statements since 2005. These audits have demonstrated that our finances are managed consistent with best practices, and we have never had any wrongdoing revealed through these audits”, Swicegood added.
The plaintiffs involved in the class action are demanding a jury trial and more than $1 million in monetary relief.