NCJ Number
5883
Date Published
1972
Length
361 pages
Annotation
HEARINGS EXPLORED USE OF THE COMPLETELY WORTHLESS COMMERCIAL PAPER OF THE BAPTIST FOUNDATION BY CRIMINAL ELEMENTS ALL OVER THE COUNTRY TO OBTAIN HARD CASH.
Abstract
B.F.A. SCHEMES INCLUDED A BROCHURE WHICH DESCRIBED THAT ORGANIZATION AND ITS OPERATIONS, GIVING THE ORGANIZATION A RESPECTABLE FACADE, IMPLYING THAT IT ENJOYED U.S. GOVERNMENT AND CALIFORNIA TAX-EXEMPT STATUS, LISTING A DISTINGUISHED GROUP OF BOARD MEMBERS, AND CLAIMING THAT THE ORGANIZATION'S FINANCIAL STRENGTH WAS SOLID WITH ASSETS EXCEEDING $20 MILLION. ANOTHER B.F.A. DEVICE WAS A PHONY FINANCIAL STATEMENT PREPARED BY A CORRUPT ACCOUNTANT, AND YET ANOTHER WAS MARKET MANIPULATION IN OVER-THE-COUNTER SALES OF SECURITIES. THE TESTIMONY DEMONSTRATES THAT TWO IMPORTANT FIGURES IN ORGANIZED CRIME TOOK OVER A NEW JERSEY DATA PROCESSING COMPANY AND USED IT AS A VEHICLE TO TAKE CONTROL OF A SECOND CORPORATION, DUMONT. THEY THEN ENGINEERED A STOCK MANIPULATION. ANOTHER FRAUD INVOLVED AN INSURANCE SCHEME IN WHICH B.F.A. NOTES, DUMONT STOCK, AND OTHER WORTHLESS SECURITIES WERE USED TO PAY FOR PAIDUP LIFE INSURANCE POLICIES. THE POLICIES WERE USED AS COLLATERAL FOR PERSONAL LOANS. WITNESSES INCLUDE INDIVIDUALS INVOLVED IN CRIMES AND REPRESENTATIVES OF COMPANIES AFFECTED BY THEM. COPIES OF NUMEROUS DOCUMENTS CONCERNING THE ORGANIZATIONS MENTIONED THROUGHOUT TESTIMONY, THE B.F.A. FINANCIAL STATEMENT, AND DOCUMENTS VERIFYING BANK LOANS AND COLLATERAL PLEDGED ARE PROVIDED.