Ep. 488: John MacArthur, the Johnson Amendment, and a Giant Ponzi Scheme in Georgia

On today’s program, St. Andrew’s Chapel is facing questions over its lack of financial transparency. Members say church leaders refuse to share budget details. Now, the local presbytery is involved. We’ll have details.

And, the I-R-S now says churches CAN endorse politicians—this, despite the so-called Johnson Amendment…a law that threatens to remove a ministry’s non-profit status if it makes political endorsements. The move comes as the I-R-S hopes to settle a lawsuit brought by the National Religious Broadcasters. We’ll take a look.

Plus, John MacArthur—megachurch pastor and voice of ‘Grace to You’—has died at the age of 86.

But first, a well-known Christian businessman has been charged in heading up a $140M ponzi scheme.

The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Kathryn Post, Tony Mator, Bob Smietana, and Jack Jenkins.

 

MANUSCRIPT: 

 

FIRST SEGMENT

Warren:

Hello everybody. I’m Warren Smith, coming to you this week from Covenant College on Lookout Mountain, Georgia.

Christina:

And I’m Christina Darnell, in for Natasha Cowden, coming to you from Mooresville, North Carolina, and we’d like to welcome you to the MinistryWatch podcast.

Warren:

On today’s program, St. Andrew’s Chapel is facing questions over its lack of financial transparency. Members say church leaders refuse to share budget details. Now, the local presbytery is involved. We’ll have details.

And, the I-R-S now says churches CAN endorse politicians—this, despite the so-called Johnson Amendment…a law that threatens to remove a ministry’s non-profit status if it makes political endorsements. The move comes as the I-R-S hopes to settle a lawsuit brought by the National Religious Broadcasters. We’ll take a look.

Plus, John MacArthur—megachurch pastor and voice of ‘Grace to You’—has died at the age of 86.

Christina:

But first, a well-known Christian businessman has been charged in heading up a $140M ponzi scheme.

Warren:

The Securities and Exchange Commission has filed charges against Edwin Brant Frost IV…the founder and owner of First Liberty Building and Loan in Georgia.

The S-E-C claims Frost headed up a Ponzi scheme that cheated about 300 investors out of at least $140 million.

Frost—a well-known conservative Christian businessman—once ran the presidential campaign for Pat Robertson in Georgia. He apparently used his church and conservative political connections to fund his scheme.

Christina:

The complaint alleges that between 2014 and 2025 Frost offered investors promissory notes and loan participation agreements with 18 percent returns. He used new investor funds to make payments to existing investors.

Warren:

The S-E-C also claims Frost used investor funds for his personal use—including making over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on vacations.

Christina:

Frost was also actively involved in politics, apparently making $570,000 in political donations.

Brad Raffensperger, Georgia Secretary of State, is urging candidates and political committees to return any campaign contributions they received from Frost.

Warren:

Conservative commentators praised the Frosts. Hugh Hewitt has even compared the elder Frost to the main character of “It’s a Wonderful Life,” calling him “Georgia’s George Bailey,” according to Christianity Today.

The S-E-C is also seeking emergency relief, including freezing assets.

In a statement released by his lawyer to the New York Times, Frost apologized: “I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down.”

Christina:

Warren, our next story takes us back to Sanford, Florida, for another look at Saint Andrew’s Chapel.

Warren:

The P-C-A church has been in the news recently because its Senior Pastor Burk Parsons was suspended by a church judicial commission.

Now, a local presbytery is telling the church to share its financial and budget information with its members.

Christina:

Why is the local presbytery involved?

Warren:

Multiple church members had asked for financial information, and those requests were either not met, or they were met with a consolidated financial statement without the requested details.

One of those members, Doug Risavy, filed a complaint with the Central Florida Presbytery in November, and they formed a commission to investigate.

In April 2025, they agreed with Risavy…and instructed the elders of St. Andrew’s to give him the detailed budget information he had requested, including pastors’ salaries.

Christina:

So has the church provided their financial records?

Warren:

Not yet. They appealed the PCA commission’s decision…but the commission stood their ground. They emphasized the PCA’s high view of transparency, calling it central to a church’s governance.

St. Andrew’s did not respond to our requests for a statement on if they plan to comply.

Christina:

Our next story takes us to a trial within a different denomination—the Anglican Church in North America.

Warren:

This week began the long-awaited church trial for Bishop Stewart Ruch, leader of the ACNA’s Upper Midwest Diocese.

Christina:

Six years ago, a 9-year-old came forward with sexual abuse allegations against a lay minister in an Illinois church. This trial will determine if Ruch, who is an influential and charismatic figure, responded appropriately.

Warren:

Ruch has admitted to making “regrettable errors” in the case. For example, after learning of the allegations in 2019, Ruch took two years to initiate an investigation or even share the news with members of his diocese.

Christina:

By that time, at least nine other abuse survivors said they had been abused or groomed by Mark Rivera, a lay leader at Christ Our Light Anglican Church in Big Rock, Illinois.

Warren:

Mark Rivera had previously been a volunteer leader at Church of the Resurrection in Wheaton, Illinois, which is the diocesan headquarters.

Christina:

Rivera has since been convicted of felony sexual assault and felony child sexual assault. Also, more than 10 clergy and other lay leaders in Ruch’s diocese have been accused of misconduct, a pattern that abuse advocates say results from his failure to take timely action and to properly supervise those under his purview.

Warren:

This week’s trial is only the second time a bishop has been tried in the Anglican Church in North America, which was formed in 2009.

The bishop’s presentment, or charges, lists more than 10 cases where lay or clergy leaders in Ruch’s diocese were “credibly accused of misconduct” and claims Ruch “habitually neglected” to appropriately handle abuse allegations.

Christina:

Warren, let’s look at one more story before the break. A pastor from Washington state indicted for wire fraud is behind bars once again.

Warren:

The former pastor of Tiempos de Poder Church, Francier Obanda Pinillo, who was accused of a crypto currency scam, is back in jail after violating the terms of his release.

Prosecutors argue he tampered with witnesses by contacting alleged victims and that he continued to fraudulently solicit money.

Christina:

In December 2024, the federal Commodity Futures Trading Commission filed suit against Pinillo for allegedly roping his Spanish-speaking congregation into a multilevel marketing scheme.

Warren:

The suit claimed Pinillo raked in $5.9 million by guaranteeing monthly profits of almost 35% on cryptocurrency investments he never actually made.

Christina:

Instead, the suit alleged, Pinillo kept the money for himself and co-conspirators, leaving many of his 1,516 customers with zero profits.

Warren:

After his arrest, Pinillo was relocated to his Miami home. He continued to post videos to his church’s Facebook page, though that page has since been removed.

Then in January this year, he was indicted for another scheme, which he allegedly carried out between November 2021 and October 2023.

During the investigation, the FBI found evidence that Pinillo had begun soliciting donations for the fictitious God’s Time Orphanage Home Foundation, promising donors God would reward them with “total restoration of breakthrough in the life and in the life of your family.”

Christina:

The judge ruled the evidence of criminal activity was enough to keep the defendant in jail.

Warren:

The judge also ruled that Pinillo violated his terms when he contacted an investor, whose name was on a no-contact list, and asked her to help his business raise $200,000 to hire a lawyer.

His trial is scheduled for March 2026.

Christina:

Warren, let’s take a quick break. When we return, the I-R-S now says churches CAN endorse politicians.

I’m Christina Darnell, along with my co-host Warren Smith, and we’ll have that story and much more, after this short break.

 

BREAK

 

SECOND SEGMENT

Christina:

Welcome back.  I’m Christina Darnell, along with my co-host Warren Smith, and you’re listening to the MinistryWatch podcast.

Next, the story we promised before the break.

Warren:

For years, conservative legal groups have argued that an IRS rule barring churches from endorsing candidates was unconstitutional.

Now the IRS agrees.

In a court filing, the IRS said the-so called Johnson Amendment, which bars nonprofits from being involved in campaigns, should not apply to political speech during religious services. Speaking about politics at a church or other house of worship is not the same as intervening or participating in an election, lawyers for the IRS as well as for conservative groups suing the agency wrote.

Christina:

The filing also notes that the IRS has rarely punished houses of worship for endorsements during religious services, though the agency has investigated churches over alleged Johnson Amendment violations.

Warren:

Only one church has ever lost its tax exemption over politics. In 1992, a church in New York took out ads opposing Bill Clinton, leading to the loss of its tax exemption.

The federal court filing is part of a proposed settlement of a lawsuit filed by the National Religious Broadcasters and a pair of Texas churches that sought to overturn the Johnson Amendment, named after famed Texas politician and former U.S. President Lyndon B. Johnson.

Christina:

The NRB declined to comment about the proposed settlement. A spokesperson said the group was waiting to see if the judge approves the settlement.

Warren:

A 2019 survey from Pew Research found that 76% of Americans and 70% of Christians say clergy should not endorse candidates from the pulpit, though evangelicals (62%) and Black Protestants (55%) are less likely to disapprove. Two-thirds of Americans (63%) wanted churches to stay out of politics.

Christina:

An Evangelical Christian group that led a pro-Kamala Harris campaign in the run-up to the 2024 presidential election has removed a series of ads that contrasted the words of renowned evangelist the Rev. Billy Graham with those of President Donald Trump.

Warren:

The group Evangelicals for America used old video clips of Billy Graham in their ads. The Rev. Jim Ball, who leads the group, said he believed use of the clips for the $1 million ad campaign was acceptable under the Fair Use doctrine of the Copyright Act, which allows limited use of copyrighted material without permission.

In October, following a series of letters warning that the group was using its copyrighted work without permission, the Billy Graham Evangelistic Association, threatened to sue Evangelicals for Harris (now Evangelicals for America) on the basis of copyright infringement.

Christina:

BGEA’s president and CEO, Franklin Graham, also turned to the social platform X to voice his displeasure at the pro-Harris campaign’s use of his father’s sermons.

Warren:

In its new statement, Evangelicals for America affirmed the Billy Graham Evangelical Association’s intellectual property rights, agreed not to use content “as to which BGEA claims copyright or other legal interests” in electoral advocacy without written permission, and said it has removed the ads in question.

Christina:

Seven-figure salaries. First-class flights. Illegal immigration.

For the Adventist Development and Relief Agency (ADRA), these accusations add to the strain of an already challenging year. Slammed by USAID funding losses that have forced staff and program cuts, the humanitarian arm of the Seventh-day Adventist Church hopes to stop these “rumors” from driving donors away.

Warren:

In February, a Washington Examiner article named ADRA among USAID recipients whose executives were “living good on the taxpayer dime.”

Christina:

In April, Adventist Today warned of “unfounded rumors” spreading on social media and in “unreliable” publications that ADRA’s president earned a salary in the millions and its board members’ salaries had doubled. The article also dismissed as misinformation a claim that the ministry has provided material support for illegal immigration.

Warren:

ADRA itself has dismissed the financial accusations as a mix of rumor and misunderstanding of the ministry’s Form 990 tax return.

ADRA’s 2023 filing lists seven board members as having received six-figure compensation — the highest being $178,136. Typically, nonprofit board members serve as unpaid volunteers. However, Jennifer Stymiest, ADRA’s director of digital marketing and development, told MinistryWatch the 990 numbers are not what they appear.

“ADRA does not pay its Board Members,” Stymiest said in a written communication. “Any compensation to Board Members listed on ADRA’s 990 Form reflects payment from a related organization, such as the General Conference of Seventh-day Adventists; not from ADRA itself.”

Christina:

Stymiest also pushed back against criticisms that ADRA pays executives too much.

Warren:

She said, “Very few members of ADRA’s staff receive compensation that reaches six figures, and in those select cases, these team members generally are highly trained medical or other professionals, all of whom would command much higher salaries in the private sector.”

According to the ministry’s 990, the highest compensated executive in 2023 was the director of health, nutrition and WASH, who received $252,511. The president received a more modest $180,148, which includes his base salary as well as benefits.

Christina:

Stymiest also said that paying for first class travel was against the ADRA policy.

Warren:

ADRA’s work with immigrants and refugees is more complicated. It does receive money from the government for such work, but it says all of its work is strictly legal and in compliance with government contracts. Also, the shutdown of USAID has significantly impacted ADRA’s revenue. In 2023, ADRA received $62.6 million in USAID grants — about 67% of total contributions of $94 million.

Christina:

The sudden loss of such a major donor has weakened the ministry’s international programs and forced deep staffing cuts.

Warren:

A March press release indicated an 18% reduction in its U.S. staff in addition to layoffs in other countries, with the expectation of more cuts to follow. The report noted that affected programs include disaster relief, water, health, nutrition and initiatives to increase the self-sufficiency of the poor.

The organization currently holds a MinistryWatch donor confidence score of 60 and a C transparency grade.

Christina:

Warren, we’re going to take another break. When we return, our lightning round of ministry news of the week.

I’m Christina Darnell, with my co-host Warren Smith. More in a moment.

 

BREAK

 

THIRD SEGMENT

Christina:

Welcome back.  I’m Christina Darnell, with my co-host Warren Smith and you’re listening to the MinistryWatch Podcast.

Warren, we like to use this last segment as a sort of lightning round of shorter news briefs.

What’s up first?

Warren:

John MacArthur, megachurch pastor, culture warrior, author and longtime voice of the “Grace to You” radio program, has died.

He was 86.

The son and grandson of preachers, MacArthur was born June 19, 1939, in Los Angeles, where his father, John “Jack” MacArthur, was pastor at Manchester Baptist Church. His father became a traveling evangelist, and the family lived in Chicago and Philadelphia before returning to Los Angeles, where his father led the “Voice of Calvary” radio ministry.

Christina:

In 1969, he was called to pastor Grace Community Church. MacArthur’s first sermon, entitled, “How to Play Church,” claimed that most churches in the country were dead spiritually.

Warren:

The idea that few Christians — especially those outside his corner of evangelicalism — were real Christians would become an ongoing theme in MacArthur’s ministry.

MacArthur’s arrival led to a long period of renewal and growth at Grace Community, which became known for active church members. In 1972, Moody Monthly, then a prominent evangelical magazine, described it as “The Church with 900 ministers.”

He would become known as one of the nation’s foremost expository preachers, committed to preaching verse by verse through the Bible, rather than the more topic-driven approach taken by most megachurch pastors. MacArthur’s sermons were also broadcast by “Grace to You,” the radio ministry he founded the same year he arrived at Grace Community Church.

Christina:

Up next, a new pastor for one of the Southern Baptist Convention’s most influential churches.

Warren:

Bellevue Baptist Church has called Lifeway Christian Resources President and CEO Ben Mandrell as its new senior pastor. Mandrell has led Lifeway since 2019.

Mandrell’s first Sunday at Bellevue, in the Memphis area, will be on August 10, church staff told the Baptist Press.

Mandrell, 48, is married to Lynley, and they have four children. Before leading Lifeway, Mandrell served as a pastor in Jackson, Tennessee, and Denver, Colorado.

He holds degrees from Anderson University, The Southern Baptist Theological Seminary, and Union University.

Bellevue is one of the largest congregations in the Southern Baptist Convention. Between in-person and online worship services, it has reported a weekly attendance of 7,382 people.

Christina:

And we have a new list up on the MinistryWatch website.

Warren:

For the first time, MinistryWatch has created a list of the 50 largest rescue missions and homeless shelters by total revenue in the MinistryWatch 1000 database.

There are 143 ministries in this category with revenue totaling over $1.6 billion.

Christina:

The largest is Hope of the Valley Rescue Mission in Mission Hills, California. It has revenue exceeding $119 million, more than twice as much as the next largest group, Denver Rescue Mission, which has about $51 million in revenue.

Warren:

Recently, MinistryWatch added a feature showing how much each group received in government grants based on its Form 990 for the most recent fiscal year. Hope of the Valley Rescue Mission received $102 million in government grants, almost 86% of its total revenue.

Christina:

A few of the ministries in the top 50 stand out with the highest achievable score in each of the three categories.

Warren:

Rescue Mission Alliance in Southern California, Bethesda Mission in Harrisburg, Pennsylvania, and Springs Rescue Mission in Colorado Springs each earn an “A” transparency grade, a five-star financial efficiency rating, and a donor confidence score of 100. Though we should add that the Springs Rescue Mission is running a significant financial deficit and recently announced a significant layoff of staff.

Rescue Mission Alliance has been a persistent MinistryWatch “shining light” award winner since 2021.

Christina:

In this week’s Ministries Making a Difference, we’re taking a look at ministries equipping older generations…and cherishing their hard-won wisdom and contributions.

Warren:

Well, since you do this column, let me ask you who you featured this week.

Christina:

Legacy Coalition believes in equipping grandparents to invest in their grandchildren. Through its many resources, such as podcasts, books, and webinars, it hopes to cast the vision for how grandparents can make a lasting impact in the practical and spiritual lives of their grandchildren.

And the Choctaw Church of Christ in Choctaw, Oklahoma, fosters multigenerational relationships by pairing older members with students as part of its “Adopted Grandparents” ministry. An older member is partnered with a younger member, and they write notes, call each other, and come to the church’s occasional movie night. On Sundays, “grandparents” are encouraged to sit with their “grandkids.”

Warren:

Thanks, Christina. I love the “themes” you’ve started inserting into the Ministries Making A Difference column. And now that I’m a new grandfather, this week’s theme is close to my heart. You can read about other ministries she featured this week, including Lifesong for Orphans and a ministry of the Assemblies of God, by going to MinistryWatch.com

Christina:

Warren, any final thoughts before we go?

Warren:

Warren ad-lib ECFA

Warren Ad-Lib JULY Stewards Not Owners.

Like, share on podcast app and social media.

Christina:

The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Kathryn Post, Tony Mator, Bob Smietana, and Jack Jenkins.

I’m Christina Darnell, in for Natasha Cowden this week, coming to you from Mooresville, North Carolina.

Warren:

And I’m Warren Smith, in Charlotte, North Carolina.

Christina:

You’ve been listening to the MinistryWatch podcast.  Until next time, may God bless you.