Lawsuit Accuses Colo. Pastor of Fraud
Pastor Dale Morgan
Lawsuit Accuses Colo. Pastor of Fraud*
Wednesday March 14, 2007 5:01 AM
DENVER (AP) - An insurance company sued a prominent Denver minister and
four of his affiliated church groups Tuesday, accusing them of filing
fraudulent life-insurance claims on behalf of parishioners.
AIG Life Insurance Co. claims the Rev. Acen Phillips and other
defendants obtained a group life insurance policy on behalf of as many
as 316 people and falsified paperwork to ensure that the bulk of any
claims payments would go to them, not surviving family members of those
who were covered.
The company paid $638,131 under the scheme - more than half of which
went to Phillips and other defendants, the lawsuit said. AIG terminated
the group-life policy Nov. 30, 2006, after paying seven claims,
according to court documents.
The lawsuit said AIG issued the group-life policy based on Phillips'
statements that it would cover Baptist ministers employed full-time by
their churches. But the defendants signed up congregants for insurance
coverage and altered beneficiary forms so they, rather than surviving
family members, would receive more insurance proceeds, the lawsuit said.
Phillips' attorney, Gary Lozow, in a statement said that AIG ``hired an
ex-prosecutor to bully Bishop Phillips'' and that he will respond to the
allegations in court. Before the lawsuit was filed, Lozow said Phillips
denied wrongdoing.
It was unclear who represented the other defendants: American Church
United, Mount Gilead Baptist Church, Mount Gilead Baptist Church Youth
Job Mart, and New Birth Temple of Praise Community Baptist Church.
Phillips also is under investigation by the Colorado attorney general's
office, said spokesman Nate Strauch. He would not comment on the nature
of the investigation.