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Man faces prison for bilking investorsBy GRAHAM BRINK © St. Petersburg Times, published December 1, 2000 TAMPA -- Andrew J. Krishak admitted in court Wednesday that he was part of a "classic Ponzi scheme" that bilked victims out of millions of dollars. Krishak, one of the seven senior officials from Greater Ministries International arrested last year, pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and to transport property by fraud across state lines. As part of the plea agreement, federal authorities agreed to drop 16 other counts. Krishak, 49, faces a maximum of five years in prison and a $250,000 fine, although he will likely receive a lighter sentence. He could not be reached for comment. "The defendant and the other conspirators solicited funds primarily from the Christian community," according to the plea agreement. "They obtained investors from almost every state in the union." The double-your-money program was operated by the defendants from March 1993 through January 1999 at the church at 715 Bird St. near the Tampa Greyhound Track. It also was known as the "Double Your Blessing Gift Exchange" and the "Faith Promises Program," the authorities said. Christians from across the country were told their money would double in 17 months, thanks to gold mines and other profitable overseas investments the church claimed it possessed. Investors were told part of the profits would be used to help the homeless, drug addicts and foreign ministries, the indictments stated. Part of the pitch included a passage from Luke 6:38: "Give, and it shall be given unto you." But the funds returned to some investors actually came from money put up by later investors, the indictment stated. Meanwhile, church officials and "elders" were receiving 5 percent of the gifts from the faithful they recruited, commissions that were termed "gas money." "In 1998, the conspirators agreed to "cap' gas money payments to each individual at $40,000 a month," according to the plea agreement. After the arrests, the defendants denied breaking the law and said their activities were protected on religious grounds. The president of the church, Gerald Payne of Tampa, and his wife, Betty, are among the remaining defendants awaiting trial. - Graham Brink can be reached at (813) 226-3365 or brink@sptimes.com
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From the Times |
