Calls made to investigate alleged church scam
Urban Interfaith Network Inc. of Oxon Hill lied about leased computer devices, pastors say
This story was updated at 3:30 p.m., July 7.
A group of Maryland church and civil rights officials called on state officials today to investigate a Prince George's County company accused of scamming churches nationwide by charging exorbitant bills for computer kiosks it placed in parish halls.
At a news conference in Baltimore, officials for the NAACP and local churches caught in the alleged scheme said they intend to put pressure on the Urban Interfaith Network Inc. of Oxon Hill and the leasing companies that possess contracts for the devices, which have been placed in up to 580 churches across the U.S.
The group, Churches United for Justice, which formed in response to the alleged scheme, said it plans to meet with Maryland Attorney General Douglas F. Gansler next week to push for action.
"We want the community to know we are seeking justice for the churches," said Matthew Jones, president of the United Baptist Missionary Convention in Baltimore. "This is a statewide crime. [Gansler] needs to prosecute."
Raquel Guillory, spokeswoman for Gansler, confirmed that the attorney general is meeting with churches on the issue, but declined to comment on any potential action the office may take.
Gansler could not be reached immediately for comment today.
"We are willing to meet with Mr. Gansler and other representatives to discuss," said Wilmer Ticer, an attorney for Willie Perkins, one of the owners of Urban Interfaith. "But we will not have that conversation in print, and we will not be holding any news conferences."
The alleged scam centers on who pays for the kiosks, which Urban Interfaith allegedly spent years marketing to churches across the country. Urban Interfaith allegedly offered to install free computers in church lobbies that congregants could use to look up information on nearby businesses and restaurants, as well as read notices of church activities. The company allegedly promised possible profits for churches if the kiosks were successful and advertisers adopted the service.
A lawsuit was filed in April by the Washington, D.C. attorney general's office recently on behalf of 43 churches in the city. Several leasing companies are also being sued for billing the churches for allegedly fraudulent leases set up by Urban Interfaith, according to the lawsuit. At least 27 Prince George's churches and three in Silver Spring are listed in court papers as customers of the company, though not all may be victims. Most of the churches have primarily black congregations.
While some churches say they never lost money in their dealings with Urban Interfaith, others say the company forced them to sign expensive leases of $700 to $800 per month for the kiosks, which have a value of about $3,000 each. The leases also had onerous penalties for late payments, alleged victims said.
"Some of the print was so small it took a magnifying glass to read," said Nathaniel Thomas, pastor of the Forestville New Redeemer Baptist Church. "And it's clear, after talking with other churches, that they had a different scheme to sell to each church."
Thomas said his church is one of at least 20 in Prince George's that has lost money on the kiosks. The leasing company has threatened to charge his church up to $30,000 for the devices.
"We thought we was getting something that would enhance our ministry," Thomas said at the new conference. "Instead, we got a nightmare."
Treasurers for First Baptist Church of Highland Park in Landover said they lost $3,200 on their lease for the kiosk.
"Thank God we didn't get two like we originally planned," said Gary C. Clark, church treasurer.
Church leaders said they did not know that the owners of Urban Interfaith, Perkins of Washington, D.C., and Michael J. Morris of Waldorf, were allegedly making $30,000 commissions for every lease they had the churches sign. The leases were then allegedly turned over to national companies, who began garnishing church funds and sending collection agents.
Baltimore NAACP President Marvin Cheatham called on the leasing companies to cancel the leases, which he said were negotiated on lies.
"Certainly, we will fight together," Cheatham said. "I'm hoping the companies will realize the harm they're doing to these churches and cancel them."
Cheatham urged Gansler to join other jurisdictions, including Washington, D.C., in pursuing court action to nullify the leases.
E-mail Daniel Valentine at dvalentine@gazette.net.