If it’s too good to be true it probably is.
‘Editor’s Note: 25 years ago, in May of 1995, The Wall Street Journal published a series of stories that led to the downfall of the Foundation for New Era Philanthropy. New Era was a financial scandal that involved scores of some of the largest evangelical ministries in the country and was – at the time – thought to be the largest financial fraud in history.
What follows is a chapter from Warren Smith’s upcoming book Faith-Based Fraud, which highlights some off the biggest financial frauds to hit the evangelical church.
It’s hard to imagine a person more different from Jim and Tammy Faye Bakker, Charles Ponzi, Todd Bentley, or many of the others we have mentioned in this book so far than John G. Bennett, Jr.
Men like Bakker and Bentley are flamboyant and seem to come alive in the spotlight. That, indeed, was also Charles Ponzi’s modus operandi, as well.
Bennett, on the other hand, was the quintessential behind-the-scenes player. He was friendly and outgoing, but serious, a successful businessman. He lived an affluent lifestyle, but not a flamboyant one. He was active in his local church and counted evangelical leaders such as Tony Campolo and Dr. Jack Templeton, son of legendary investor Sir John Templeton, among his friends.
But the Foundation for New Era Philanthropy, Bennett’s brainchild, was a Ponzi scheme that operated for six years, from 1989 until 1995. It victimized some of the most respected institutions in evangelical Christianity. And the New Era scandal survived for so long in part because it was the opposite of the PTL scandal. In fact, even its very name—New Era—seemed to signal that what it was doing was not going to be business as usual.
In essence, the New Era scheme worked like this: John G. Bennett, Jr., a prominent Christian businessman, told his friends, Christian donors, they should give money to the Foundation for New Era Philanthropy rather than to their favorite charities. Why should they do so? Because the money would be matched after three months and New Era would then make the contribution to the charity, only the contribution would be doubled.’ The full article may be read and should be read at https://ministrywatch.com/25-years-ago-john-bennett-and-the-foundation-for-new-era-philanthropy/
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