What Happened To $90 Million Missing From Black Church Retirement Fund

The Wall Street Journal and The Charleston Post and Courier are reporting that a class- action lawsuit is being filed against some of the present and pass leaders of the African Methodist Episcopal Church (AME). The lawsuit was filed after it was discovered that over $90 million from the church’s retirement fund was missing. Bishop Samuel L. Green, Sr. of South Carolina was named in the lawsuit with other church leaders. Bishop Green oversees the 7th AME District and 300 churches in South Carolina. This lawsuit claims 70% of the retirement funds were lost by nearly 5,000 people.

Now some of the pastors, elders, bishops, and other church leaders are concerned that their benefits won’t be available, according to the Charleston newspaper. The Post also reported that three other defendants in the lawsuit are Jerome V. Harris (former executive director of the church’s Department of Retirement Services), the AME Board, and the Council of Bishops.

Amid this ongoing investigation, the AME Church shared with members in October 2021 that the missing funds were being questioned at a General Conference. In March 2022, The Journal reported that there may be some challenges in retirement funding. The Journal also reported that the AME Church has suspended some church-related payments and has started a full investigation into the missing funds totaling over $90 million. That investigation now includes federal law enforcement organizations.

With as many as 5,000 people already affected by the freezing of their retirement benefits, some pastors are being affected by this action since they cannot submit a hardship request.

“On March 30, 2022, Rev. Jeffery Cooper, General Secretary, reported that present funds and new funds coming into the AME Church are safe, and the new contributions to the AME Church are now in escrow accounts. And in 2022, the AME Church started to resume distribution of some funds, including IRS payments and payments for hardship retirement cases and assigned payments,” stated Cooper.
Early information shows that the AME Church did follow the federal law that applies and was consistent with the 1974 law governing its actions, giving the AME Church the right to sue those who have violated their fiduciary responsibilities.

Also at the January 31, 2022 meeting, it was reported that Jerome V. Harris is the only one who knows the details, but according to the lawsuit, AME officials at the meeting stated that Harris had cleaned out his office and is nowhere to be found. He has disappeared.

The class-action lawsuit filed in March 2022 must be reviewed and approved by the courts in order for it to go forward.