Pastors Used Faith in God to Allegedly Steal $8.6 Million in Investment Scheme

Two Toronto pastors have been arrested for allegedly stealing $8.6 million from investors in a Ponzi scheme.

The husband and wife team, Marlon Gary Hibbert and Verna Hibbert, apparently told members of the Masonic Church of God, while they were pastors there, that Marlon was a foreign currency trader and persuaded them to part with their money to invest, according to police. The scheme took place between 2005 and 2010 and could land them both several years in prison.

At a news conference at Police Headquarters, Detective Gail Regan said that Hibbert was producing statements that showed financial growth in the investments, when in fact, he was actually losing money. The nature of a ponzi scheme is that you borrow money from current investors to send large returns to early investors so that people would believe that money was being made. In fact, those who are the last to invest usually lose everything since there are no material investments actually being made.

Regan went on to say that many of the investors had lost their homes and retirement funds because of the fraud. Regan continued to say that the investors were “distraught, and that they still can’t believe someone like him could have done this to them…some of them, it’s their life savings that they’ve taken out of the bank through their RRSP for retirement.”

The Hibberts used the money to finance a lavish lifestyle which included luxury cars and big homes, according to Regan.

Another member of the alleged fraud was Lorraine Bahlmann, who apparently controlled the investment scheme, and she now faces similar charges to the Hibberts who face 38 separate counts of fraud.

According to police reports, members of the Masonic Church of God congregation gave a minimum of $10,000 to invest in the fraud and some gave more than $60,000.

According to Regan, more than $4 million of the original $8.6 million is still unaccounted for and it was “very troubling” because the pastors had used the victims faith in God and them as pastors to achieve this fraud.

The Ontario Securities Commission received complaints from the investors and ordered Hibbert to pay back $5.6 million to them. They also imposed a penalty of $950,000.

However, the Hibbert’s company, Ashanti Corporate Services Inc., filed for bankruptcy in January 2011.

The Hibberts now run a new church called the Life Center Word of Faith Ministries in Toronto, Canada. As far as Regan can tell, there have not been any complaints of fraudulent practices.

Ecclesiasticus  20:9  There is a sinner that hath good success in evil things and there is a gain that turneth to loss

Pro 1:19         So [are] the ways of every one that is greedy of gain; [which] taketh away the life of the owners thereof.

Isa 56:11         Yea, [they are] greedy dogs [which] can never have enough, and they [are] shepherds [that] cannot understand: they all look to their own way, every one for his gain, from his quarter.

Rom 16:18         For they that are such serve not our Lord Jesus Christ, but their own belly; and by good words and fair speeches deceive the hearts of the simple.