LOSSES CAUSED BY INVESTMENTS IN CHURCH BONDS
Rabin Kammerer Johnson is investigating losses caused by investments in church bonds pitched by various brokerage firms to religious-minded investors. The church bonds were purportedly used to provide various Christian mega-churches with financing for construction projects and other large expenses. Financial advisors preyed on the churches’ own congregations and other religious supporters in selling these inherently risky and illiquid products. Investors were not always told that church bonds are very risky because there is no reliable source of repayment and the likelihood of default is high. In addition, there is virtually no secondary market in which to sell the bonds.