Embattled pastor Acen Phillips was sued in federal court Tuesday by an insurance company that claims he defrauded the company of hundreds of thousands of dollars through life insurance policies offered by his fledgling church association.
In a lawsuit filed in U.S. District Court in Denver, AIG Life Insurance Co. claims the 71-year- old Phillips and three associated church organizations falsified paperwork, filed false claims and altered beneficiary forms so Phillips and the groups would get larger payouts at the expense of relatives of the deceased.
Phillips did not respond to interview requests. His lawyer’s office released a statement credited to American Church United, the Phillips-founded organization that offered the insurance to individual members.
“AIG is a multibillion-dollar insurance company with its own history with law enforcement,” the statement said. “They have hired an ex-prosecutor to bully Bishop Phillips.”
No elaboration was given. A response to the civil claims will be made in court, not through the media, the statement said.
The Colorado attorney general’s office is also investigating Phillips’ insurance program. A spokesman said there is no time frame for completion.
Polarizing figure
A fixture on the Denver church and civil-rights scene for decades, Phillips is a polarizing figure – hailed as a voice for the downtrodden and criticized for high-profile business failures that have led to lawsuits, liens and foreclosures.
The AIG lawsuit focuses on a term life insurance benefit offered to people enrolled in American Church United, which Phillips formed in 2004.
The lawsuit alleges:
That Phillips told AIG he wanted to obtain life insurance for full-time Baptist ministers at ACU member churches, an employment status that would not require medical information or physical exams. But Phillips offered ACU membership to anyone who paid $50 or $70 monthly dues.
That ACU members were told that 80 percent of the payouts would go to the deceased’s beneficiaries, with 10 percent going to a designated church and the remaining 10 percent to ACU.
But Phillips, AIG alleges, fraudulently altered some claim forms and falsely created others after an alleged member’s death. More than half of the insurance proceeds from seven claims – $355,463 out of $639,130 – went to the defendants and Phillips’ family members.
That Phillips used two criminally convicted and disbarred attorneys – one of whom is Phillips’ son – to send a bogus letter to the insurance company in an effort to keep the alleged fraud going. The minister’s son was not named in the suit.
Policies terminated
AIG terminated the policies in November. Christopher Winans, vice president of media relations for AIG, said the company does not comment on active litigation or on individual policy matters.
“We think the complaint does speak for itself,” he said.
Last summer, an AIG investigator questioned why Phillips’ organizations were beneficiaries of a life insurance policy on Shelley Lowe, described by Aurora police as a “person of interest” in the case of a missing child in Aurora.
While the AIG lawsuit does not name Lowe, it uses initials and details that match her situation.
AIG in the suit claims it does not believe “SL” ever paid to join ACU and thus wouldn’t be eligible for a payout.
Phillips’ organizations were designated to receive 90 percent of the insurance proceeds after the death of “SL” in 2006.
