Crystal Cathedral insiders received hefty compensation, housing allowances

Financial documents filed Wednesday in the Crystal Cathedral bankruptcy case show that the church gave generous compensation to insiders and family members in the year before the Garden Grove-based mega-church filed for Chapter 11 bankruptcy protection.

The documents show the church paid out more than $1.8 million to 23 insiders and members of founding pastor Robert H. Schuller's family in the last year. That sum included $832,490 in tax-exempt housing allowances given to eight people.

Churches and other religious organizations are permitted under federal tax law to give housing allowances to ordained, licensed or commissioned ministers who perform certain duties, though it is unclear if the eight housing allowance recipients meet that criteria. These allowances are exempt from federal income tax.

The U.S. Trustee overseeing the bankruptcy proceedings has already objected to the $132,000 housing allowance paid to one insider, saying there was "no justification whatsoever" for an allowance of that amount. The insider, Chief Financial Officer Fred Southard, said it was a benefit he is entitled to as a minister ordained by Crystal Cathedral.

The newly filed documents show that at least three additional people received housing allowances of more than $100,000: Schuller's son-in-law Paul Dunn, who writes and directs the annual Glory of Christmas pageant; Schuller's daughter Carol Milner and his son Robert A. Schuller.

Founder Robert H. Schuller, who still sits on the board with his wife Arvella, also received an allowance, as did Schuller's son-in-law James Coleman, who is president of Crystal Cathedral Ministries; James Penner, another son-in-law who produces the "Hour of Power" television program; and CFO Southard's son-in-law William Gaultiere, who is part-time pastor of Spiritual Formation Ministries.

Dunn, who lives in Hawaii, received more than $300,000 in housing allowance and vendor payments in the last year and was still owed $64,758, according to the financial statement filed Wednesday.

Meanwhile, revenue was flagging dramatically. From the beginning of 2010 to Oct. 18, when the church filed for bankruptcy, Crystal Cathedral reported $22.3 million in revenue, down from $41.2 million in 2009 and $54.6 million in 2008.

The church currently owes $48.5 million to its creditors, according to the document.

RELATED:

The Schullers: A tale of two churches

Bankruptcy official questions Crystal Cathedral compensation

Crystal Cathedral files for bankruptcy protection

Documents: Crystal Cathedral Bankruptcy

-- Abby Sewell

Photo: Crystal Cathedral in Garden Grove. Credit: Anne Cusack / Los Angeles Times

Comments

[gary]

and I am certain there are plenty of people ready to try and buy their way to heaven and keep these theives in there life syle. Render unto ceasars what is ceasars and render unto gods what is gods. And Gods isnt tax exampt status to live better than the people who give for gods work Not YOUR lifestyle. All mega churches should be audited.

[Carol]

Time to get rid of all religious exemptions from taxes. Are soldiers being shot at exempt? No, the families they leave behind are eligible for food stamps because pay is so low. Even the humblest religious leader is probably living a pretty safe, secure life.

[rob]

can you spell "scam" ?

[thecanimalshusband]

Ben Bernanke and Tim Geithner need to bail out the church with taxpayer funds by creating more money out of thin air...call it Quantitative Easing 3

[Pete]

Galling on the one hand, but the people who are fool enough to buy into this sort of Ponzi scheme deserve what they have coming. Pretty much a victimless crime.

[Mark]

Many christians live by the saying, "Christians aren't perfect, just forgiven". They are "Born Again Hypocrites". I've become wary of anyone who claims to be born again.

[phil]

How in God's name does anyone even attend and/or contribute a dime to this church after reading this story. Shame on you if you do. Don't you see you're being taken.

[chris]

throw your money in the aire, whatever God wants he will keep.

[WrathofGod]

This is not a victimless crime. It is a crime against the taxpayers. These crooks are allowed, tax free, nearly $10,000 a MONTH!! My entire mortgage, taxes and insurance are less than $10,000. They are crooks. They have been defrauding the government for income taxes. We are footing the bill for them. It is time to start taxing the churches.

[Mike]

For years, I've always felt that the ostentatious Crystal Cathedral might be a personal cash cow for those at the top leading it all these years, and the revelations of the past few weeks have finally confirmed that. So much for going about doing the Lord's work. What a shame and a scam.

[tyler]

Someone told me that they charge for the pews.Over 10,000 bucks.I don't get that at all.I used to do travel for a born again church.A pretty big one on crenshaw.The pastor and his wife would fly first class with limo transfers to "save africa's children".The rest of the parish had to scrape up the money to sit in coach.That is where you 10 percent of your check is going to.

[Christian Believer]

*gasp* NOOOO, these are people of God aka the chosen few lambs of Christ. They would never do such a thing especially considering they'll enter the kingdom of heaven!!!

[lwps]

Great. The taxpayers are screwed, and now the courts are being used to screw the vendors who did business with these scammers.

[sal]

OC weekly had this story some time back...

[cooler heads]

I t would have been a better article if those mentioned, the reporter would have given some detail on what exactly these folks do for the congregation. I was a Crisis Counselor (New Hope) for the church for many years. I can personally attest to the devotion and comapassion given to those who were counselors and the mumerous lives that were saved because someone cared enough to answer the phone. I took extra shifts, even in the middle of the night just so one person may rethink the thought of killing themselves. There are many suffering souls that owe their life to the gift of a caring person being a counselor at this church. During my years there was one man who worked harder, longer and was totally devoted to helping those in need. I saw him personally take time away from his family, friends and associates just to take time to talk and ease the tragic fears of someone who was in dire need. I know this man devoted more time and emotional spirit to this ministry and never once asked anything for himself. This was Bill Gaulitere. If working so many hours that you fall asleep, at your desk, or spend more time with the emotionally sick or injured than with your family is part-time I hate to see what full time would be! Before you take a whack at a man and his calling I suggest to find out what kind of man you are writing about! How much would you pay to have a loved one saved by a siritual man who came to their aid and saved their life? They didn't pay Bill enough!!

[GillenH2O]

Appartently Schuller's idea of being broke, and mine, differ quite a bit. What a hypocrite!

[gordon peterson]

another example of con artists living in luxury while their stupid followers give them money to do so. so many religeous people ( especially tv evangelists) are merely snake oil salesmen in disguise. why are people so dumb?

[Cher]

Sounds like Nepotism to me. Favortism should not being going in a church or business. Who was auditing the books while all of this was going on? Hopefully not a brother-in-law or son-in-law..........

[boris8]

I hope all you folks who are (rightly) protesting this are also vocal about obscene Wall Street salaries & bonuses.

[Ridunculous]

Pathetic! I feel like I should just start my own church so stupid people will willingly give me their hard-earned money to just tell them they will make it to heaven. Meanwhile, laughing all the way to the bank, TAX FREE!!!

All religions are scams. Stupid is as stupid does...

[Marlena]

Politicans and clergy - biggest theives on the planet.

[Phil Peterson]

That church is run by Satanists, and like Christ said, Satan comes as an angel of light to deceive the masses, and what better way to take souls to hell then to pose as an altruistic spiritual christian organization...Christ also said "by their fruits you will now them"...they are scam artists and true, true christians already know this. It's the stupid lemmings that continue to fund that crooked church...

[RAS, Anaheim]

"Religion is the opiate of the people." I couldn't be more pleased to see these phonies watch their empire crumble.

[A Scanner Darkly]

You can whine all you want about these salaries and perks but these entities are protected by secret regulations dictated by the U.S. Department of Non-Creativity and Anti-Critical Thinking.

[LOL]

Once again, greed cripples.