DENVER—A prominent pastor is charged in a scheme where his church would profit from the deaths of his congregation and others through allegedly fraudulent life insurance claims.
Prosecutors allege Acen Phillips of Aurora falsified documents to funnel money to church groups he controlled, sometimes showing up at funerals to make contact with family members about filing a claim. In at least one instance, Phillips allegedly asked a mother to sign her deceased son’s name on a beneficiary form a few days after the funeral.
Phillips was charged Monday with seven counts of theft and five counts of forgery, for allegedly defrauding AIG Life Insurance Co. of $575,000, state Attorney General John Suthers said Tuesday. Phillips, who served as a spokesman for the family of a 7-year-old Aurora girl who disappeared, could face up to 81 years in prison and up to $5 million in fines if convicted on all counts.
In a written statement issued through attorney Gary Lozow, Phillips said he must remain silent on the charges for now and criticized Suthers for making the announcement and releasing case documents.
“I would also ask that the community of faith keep me and my family lifted in prayer as I look forward to my fair day in court,” Phillips said.
At issue are claims filed under a group life insurance policy taken out for American Church United, which prosecutors say was headed by Phillips, the founder of New Birth Temple of Praise Community Baptist Church.
Suthers said at least some of the money went to church groups Phillips controlled, but he declined to discuss whether or how much of the funds may have gone to Phillips.
AIG is pursuing a separate civil lawsuit against Phillips, accusing him and associated church groups of filing false claims through a policy taken out for ACU, which it described as a group of Baptist churches. AIG claims Phillips took out the policy to cover its full-time ministers but later allowed anyone, not just employees, to be covered if they paid a monthly $50 fee.
Company spokesman Joseph Norton declined to comment on the criminal case.
The criminal complaint against Phillips echoes the allegations in the lawsuit and involved five claims filed against AIG under the ACU policy. In all five cases, Phillips is accused of creating fraudulent beneficiary documents to funnel money to ACU and other church groups.
Prosecutors allege that beneficiary documents were altered to the “substantial monetary benefit” to ACU, to New Birth church or to Mount Gilead Baptist Youth Job Mart. Prosecutors claim Phillips had access to the organizations’ accounts and is the CEO of ACU.
According to an affidavit from an attorney general investigator, Phillips gave a eulogy at the funeral of the Rev. Kenneth Davis, who died in an auto accident in Oklahoma, and mentioned ACU and its benefits during the speech. The next day, Davis’ widow said she had signed a document that said she would receive 80 percent of the payout but the form submitted to AIG said she would only get 40 percent with 40 percent going to New Birth church and 20 percent to ACU.
The affidavit also said Phillips showed up uninvited to a funeral for a man who had been killed in a car crash, Ryuichi Brumley, and gave a speech. Days afterward, he allegedly approached the man’s mother and told her her son was covered by the church’s insurance policy because she was a member of the church.
One of the cases involved Shely Lowe, who died in May 2006 and who had been a person of interest in the disappearance of 7-year-old Aarone Thompson. Phillips had served as a spokesman for the family.
Aaron Thompson, Aarone’s father and Lowe’s live-in boyfriend, has been indicted on charges of fatal child abuse and other counts in the case. Aarone was reported missing on Nov. 14, 2005 and prosecutors say paperwork shows Lowe became a member of ACU on Nov. 27, 2005.
In the Lowe policy, prosecutors said New Birth was named as the primary beneficiary with smaller percentages going to Aaron Thompson and ACU.
Prosecutors allege that in all five cases, relatives said they dealt only with Phillips in filing claims. Prosecutors also claim that handwriting analysis indicates the beneficiary documents were likely all changed by the same person.
Suthers said Phillips has been asked to appear at a court hearing on Sept. 19 and there were no plans to arrest him.
