Gateway Church Faces RICO Lawsuit Alleging Misuse of Donations

Gateway Church in Texas faces a RICO lawsuit, accused of fraud in misusing donations. Founder Morris pleads guilty to abuse.
Gateway Church accused of violating RICO

Legal Battle Unfolds at Gateway Church in Texas

The congregation of Gateway Church in Southlake, Texas, is embroiled in a legal dispute, accusing church leaders of significant financial misconduct. Central figures, including founder Robert Morris and founding elder Steve Dulin, face allegations under the Racketeer Influenced and Corrupt Organizations Act (RICO).

The amended class-action lawsuit, submitted on Monday, accuses the church leadership of misappropriating millions in donations over more than a decade. The members behind the lawsuit, such as Katherine Leach, Garry K. Leach, Mark Browder, and Terri Browder, claim that the church engaged in fraudulent activities, including mail and wire fraud, to deceive its patrons.

RICO is a federal law designed to combat organized crime, allowing leaders to be held accountable for an organization’s illegal actions. The lawsuit claims, “Defendants, through their actions, have engaged in a pattern of racketeering activity as defined by 18 U.S.C. § 1961(5), which includes at least two acts of racketeering activity within a ten-year period.”

The plaintiffs assert that church leaders falsely promised that 15% of donations would be allocated to global missions and Jewish ministry partners. Furthermore, they were allegedly assured that they could reclaim their tithes if dissatisfied with the fund’s usage. However, the transparency of these transactions remains unverified, fueling the ongoing lawsuit.

An earlier attempt by Gateway Church to dismiss the lawsuit was denied by U.S. District Judge Amos L. Mazzant, leaving the accusation intact. The church has countered these claims, with support from First Liberty Institute, arguing for dismissal, though without success.

Gateway Church members emphasize that the lawsuit is not about personal financial gain but about accountability. A church member expressed, “This lawsuit is about transparency, brought by members whose concern is not money in their pockets but rather biblical stewardship.”

Robert Morris Faces Separate Allegations

Robert Morris, who established Gateway Church in 2000, resigned in June 2024 amid allegations of historical sexual abuse. He was indicted on five counts of indecent acts with a child, stemming from accusations by Cindy Clemishire, who claimed abuse beginning in the 1980s.

Earlier this month, Morris pleaded guilty to these charges and received a sentence that includes six months in jail and ten years probation. Bill Mateja, Morris’ lawyer, stated, “He simply accepted responsibility for his crime from the mid-1980s and pled guilty… He also pled guilty for the sake of finality.”

The legal proceedings against Morris reflect complex challenges within the church community, adding another layer to the financial controversy currently unfolding.

This article was originally written by www.christianpost.com

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