London Daily

Focus on the big picture.

Paradises of Money and Faith: The Religious Leaders Using Churches to Launder Illicit Cash Across the Americas

When Erik Súñiga died in U.S. custody in April, he left a rich religious and political legacy in the Guatemalan town where he founded an evangelical church, and served as mayor for over a decade.

He also left behind a property empire that was most likely built with drug money. Some of that cash appears to have been laundered through his religious and political network.

That is one of the findings of a cross border investigation by 12 media organizations from nine countries, coordinated by Columbia Journalism Investigations and the Latin American Center for Investigative Journalism (CLIP) , OCCRP’s regional partner in Latin America, into church-related money laundering across the Americas.

The phenomenon is widespread, as religious organizations often escape scrutiny due to their respected role within communities and the lack of regulation governing their affairs, experts say. In a number of countries, this includes tax exemptions.

“Over the years, religious institutions have been repeatedly used … to launder money,” said Mark Califano, a former assistant U.S. attorney and chief legal officer at Nardello & Co, a global investigative firm. “And their special and protected place in most countries and societies has allowed that to happen.”

Súñiga turned himself in to U.S. Drug Enforcement agents in Guatemala in December 2019 and was extradited to Texas. The Department of the Treasury’s Office of Foreign Assets Control identified him and his organization as “significant foreign narcotics traffickers” and froze his assets in the U.S.

He was reportedly suffering from pancreatic cancer and died before facing trial on drug trafficking charges.

American officials also probed Súñiga’s finances, but did not charge him with money laundering,as they didn’t find strong evidence of illicit transactions occurring within the U.S., said a source with knowledge of the investigation.

“Money laundering charges require more direct proof of financial transactions that touched the United States,” the person said in an email.

In Guatemala, reporters scoured court and land records to uncover evidence indicating that Súñiga probably laundered at least US$1.4 million through a scheme in which a fellow pastor bought properties and then resold them to the municipality Súñiga headed.

A municipal accord passed shortly after Súñiga came into office allowed him to grant at least three pieces of public land to people linked to convicted drug trafficker Juan Alberto Ortiz López, also known as Chamale. Ortiz was reported to have ties to Mexico’s powerful Sinaloa cartel.

A 2013 document from the Guatemalan authorities identified a mayor in San Marcos, the department that includes Ayutla, as someone “believed to be involved in drug trafficking.” A 2015 court document revealed that authorities wanted to strip the immunity Súñiga held as mayor, because he was suspected of money laundering. The court recommended he be prosecuted for money laundering, but charges were never brought against him. Súñiga remained in office another five years, 12 in total, until he surrendered to U.S. authorities in December 2019.

While other churches have also been accused of laundering the proceeds of drug sales, the cross-border investigation found that cash came from other sources too.


Biofuel Fraud

Jacob Kingston, a member of a Mormon sect primarily based in Utah, was involved in a $1 billion renewable fuel tax credit fraud scheme. Kingston headed of a company called Washakie Renewable Energy, which falsely claimed to be selling the cleaner fuel in order to access tax credits.

Kingston and his wife, mother, and brother all pleaded guilty to crimes relating to the biofuel scam, including money laundering and mail fraud. They cooperated with U.S. prosecutors, who brought charges against their accomplice Lev Dermen, a California businessman. Dermen was convicted in March, and he and the Kingstons are awaiting sentencing for the scheme that ran from 2010 to 2016.

The money trail began with Washakie, which would sell biodiesel to a company controlled by a co-conspirator. The same fuel would then be moved through another company the conspirator either had an interest in or controlled, giving the impression that it was being bought and sold on the open market. That company would resell the fuel as a biodiesel mixture to Washakie, which then claimed it qualified for tax credits.

“To further create the appearance they were buying and selling qualifying fuel, the co-conspirators cycled more than $3 billion through multiple bank accounts,” the U.S. Justice Department said in a March 16 statement.

The fuel was shipped around the U.S. and internationally. Kingston and Dermen “doctored production and transportation records” in order to claim renewable fuel tax credits, according to the Justice Department.

Washakie filed fraudulent Internal Revenue Service forms, and received checks in the mail from the U.S. Treasury Department. Dermen and the Kingstons would use various methods to hide the money, including depositing some in Turkish bank accounts, buying luxury vehicles, and purchasing real estate. Some money was laundered through the Kingstons’ Latter Day Church of Christ.

Prosecutors found that the church ended up with $194,040 out of over $71.6 million in payments from the Treasury Department, which passed through the church on its way through various companies and finally back to Washakie.

According to a separate complaint filed last year in a district court in Utah, the church’s doctrine includes a tenet called “Bleeding the Beast,” which justifies fraudulent conduct against outsiders to benefit the congregation.

A church spokesperson denied the practice, saying: “These allegations by a small number of ex-members are absolutely false.”

The biofuel scandal has not affected the church’s eligibility to receive tax-deductible charitable contributions.

“It’s this untouchability aspect that we have unintentionally crafted in the U.S. through several different mechanisms,” said Marci A. Hamilton, a professor at the University of Pennsylvania who studies religion.

The reason “religious groups are so convenient for money laundering, parking proceeds, is that for federal tax files you don’t have to specify where your money came from and what you do with it,” said Hamilton. “There’s this black box quality to their public space.”


Further Investigation

The scope of the investigation shows how widespread across the Americas allegations of church involvement in money laundering are. Here are some of the cases reporters examined:

In Mexico, reporters looked into the case of Naasón Joaquín García, who heads a church called La Luz del Mundo. Authorities in California arrested Joaquín on charges of raping a minor and human trafficking, He is also under investigation in Mexico for laundering money. Members of his congregation allegedly hid cash on their bodies or smuggled it inside luggage into Mexico, where the church is connected to 51 properties. Naasón, his family, the church and a charity incorporated by one of his sisters are also linked to 31 properties in the U.S. estimated to be worth nearly $20 million. The country’s Financial Intelligence Unit is probing suspicious transfers of cash to accounts in Hong Kong, Bolivia, Poland, and the United States.

Mexico earlier this year froze about $19.4 million held in accounts connected to the church, according to local media reports.
A pastor from the Dominican Republic, Jorge Mercedes Cedeño, pleaded guilty before a Colombian court to belonging to a criminal organization called the Urabeños (now known as the Gulf Clan), which is one of Colombia’s most powerful drug cartels. According to his 2015 conviction, he managed a “good part” of their finances and bought property for them. The ruling also established that he wired money from the organization to his home country disguised as donations from parishioners. Cedeño had been caught in Colombia a year earlier carrying a large amount of cash.


Reporters discovered that an Argentinian prosecutor is investigating the country’s branch of the Universal Church of the Kingdom of God, a global behemoth that began in Brazil. Authorities detected suspiciously large cash deposits into church accounts between 2010 and 2014.


The case in Argentina illustrates how churches can be vulnerable to being co-opted for money laundering, according to Emilio Guerberoff, a prosecutor with the country’s Economic Crimes Jurisdiction.

“By receiving anonymous donations through tithes – whose origin may not be explained – churches become the perfect money laundering machine,” said Guerberoff, who is taking part in a probe.

“There may be a clash of interests between freedom of religious worship and the prevention of money laundering.”



* Stories thanks to incredible efforts of Columbia Journalism Investigations (U.S.), Latin American Center for Investigative Journalism, OCCRP, Mexicanos Contra la Corrupción y la Impunidad (México), Nómada (Guatemala), Canal 13 Noticias (Costa Rica), IDL-Reporteros (Perú), Infobae (Argentina), Agência Pública (Brazil), Folha de São Paulo (Brazil), La Diaria (Uruguay), El Tiempo (Colombia)

Comments

Eric 4 year ago
Give them your money this life, so you will not burned trotted and bitten next life by God that “love” you. Money back guarantee, as soon as you back in this world to claim it.

What a fair deal...

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
You Are So Beautiful
Rob Schneider explains California reparations legislation.
Postmodern Jukebox European Tour Version
Who knew badminton could get so intense?
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Farmers break through police barriers in Brussels.
Sattahip Motor Show 20
London's Iconic British Telecom Tower Sold To Become Hotel
SONATE AU CLAIR DE LUNE - Moonlight sonata
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
A kiss to build a dream on
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Russia Claims UK Cultural Agency Spied for Ukraine
Mean Blues
Apple warns against drying iPhones with rice
La Chansonnette
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
Pattaya Addicts
German economy is in 'troubled waters' - ministry
Franz Liszt - Liebestraum - Love Dream
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Dream a little dream of me
New video
Unchained Melody sung like you've NEVER heard!
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Dave Brubeck - Take Five
Russia is rebuilding capacity to destabilize European countries, new UK report warns
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
EU Commission wants anti-drone defenses at Brussels HQ
Rondo Alla Turca
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
Kiss of fire
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Prince William Urges End to Gaza Conflict
Israel Cachao López - Guajira Clásica
UK court to hear Assange's final appeal against extradition to the US, where he faces charges related to his journalistic work—the publication of a classified video in 2010 that exposed US war crimes against humanity.
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
About 50-60% kids either chose to be YouTuber or influencer
Strauss - Radetzky March - Karajan
A viral video of Nationals MP Barnaby Joyce lying on a Canberra footpath is celebrated by his media mates.
La vie en rose
European Countries React to Navalny's Death by Summoning Russian Diplomats
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
Orlando Cachaito Lopez Redencion
English farmers to be offered ‘largest ever’ grant scheme amid food security concerns
Edith Piaf - NON, JE NE REGRETTE RIEN
Cameron government knew Post Office ditched Horizon IT investigation
RADETZKY MARCH-2008-Wien, New Year Concert
EU Calls for Immediate Ceasefire in Gaza Conflict
Only you (And you alone)
EU Vows To Hold Putin "Accountable" After Meeting Alexei Navalny's Wife
Strangers In The Night
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
Charles Aznavour - La Boheme
The EU Initiates Naval Mission to Defend Red Sea Trade Routes
Summer time
EU and UK Announce Joint Effort on Migration
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Brazil's Lula Likens Gaza Operation to Holocaust, Israel Says "Red Line" Crossed
Aux Champs Elysees
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Microsoft-backed OpenAI valued at $80bn after company completes deal
La Mer (Beyond the Sea) – Avalon Jazz Band
‘Alexei would want to tell Russia not to give up fighting’
She
Rwandan Footballer's Dismissal Sparks Concerns Over UK Asylum Plan
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Whisky Challenges China's Baijiu Market During New Year Celebrations
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
Radiohead - Creep
Putin Critic Alexei Navalny's "Killers" Refusing To Hand Over Body, Say Allies
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
"Historic Step": Zelensky Signs Security Pact With Germany
Perhaps, Perhaps, Perhaps - Multi-Couples
"Historic Step": Zelensky Signs Security Pact With Germany
Pentatonix Havana
20 Tech Giants Sign Effort To Fight AI Election Interference Across Globe
Paula Cole - Autumn Leaves
Joe Biden Accuses Putin of Causing Navalny's Death
Oscar Benton Bensonhurst Blues
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
OH NANANA vs ABUSADAMENTE
Tucker Carlson grocery shopping in Russia. This is so interesting.
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Julian Assange's Wife Warns of His Death if Extradited to US
NIGHTWISH - The Phantom Of The Opera
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Motorshow 2016 Tanjay Negros Oriental
Greece Legalizes Same-Sex Marriage and Adoption Rights
Monica Bellucci - Ti Amo
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Michael Jackson - Billie Jean Milena The Voice France 2018
In Britain Homeowners are receiving CPO’s (Compulsory Purchase Orders) so their homes can be redistributed to migrants
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×