Church of God fund raising accused of fraud

ANDERSON, Ind. — The Securities and Exchange Commission  (SEC) has filed a complaint against the Church of God (Anderson, Ind.), accusing its fund-raising arm of defrauding investors out of $85 million.

The SEC filed documents in U.S. District Court in Indianapolis July 22 detailing a preliminary settlement with Church Extension of the Church of God. The fund-raising entity is accused of artificially inflating income in correspondence with investors and misleading them about investment risk, the Associated Press reported.

Church Extension, which was created in 1921 as a means to raise money for church construction and renovation within the denomination, entered the settlement without admitting or denying the allegations. The agreement will have to be approved by a judge.