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[Gailon Arthur Joy]

Settle or die would seem to be the options for 3ABN as the days tick toward an inevitable collision with the Lawfirms of John Manly and Jeff Anderson, battle hardened predatory pedophile litigators.

There is virtual silence on the 3ABN side regarding any ongoing consideration of the demand for settlement, and no leaks in the wall either, a rather unusual institutional feat. It would clearly indicate that a very narrow number of officers and directors are even aware of any ongoing negotiations.

Sources at the GC and Adventist Risk Management unanimously assert that ARM does not see any liability regarding these claims despite several church employees having served as Directors over the years. Since there is not any current litigation and ARM would be invoked upon the need to defend officers and directors that were direct employees, and then subrogate those claims against 3ABN if they failed to re-imburse legal fees and judgment awards, it is not surprising that ARM would be denying any claims liability at this point. Also, given the size of the claim and that liability has yet to be apportioned, it is clearly not a “priority” for risk management.

The fact that ARM is not at the table and participating in any mediation process would suggest that any negotiations at this time are doomed to failure as 3ABN is unlikely to be:

1) Willing to meet the Manly and Anderson demand;

2) Financially able to even seriously consider such a demand without the help of the officers and directors , including ARM;

3) Counsel for 3ABN is not known to have the experience in structuring these kinds of settlements;

4) Counsel for 3ABN has every incentive to let Manly and Anderson serve all the parties, advance the litigation agenda and re-open the hourly billings deluge upon 3ABN for this sure to be massive addition to the firms billable hours in 2011, obviously hoping that individual directors elect to have his firm represent all of them in the action, an unlikely and controversial (not to mention ethically challenged) effort on the part of Simpson and Company due to several potential conflicts.

However, based upon expert review,  it is their assessment that 3ABN alone is unable to even remotely meet any demand in the eight figure range. And their attorney does not have sufficient experience to prepare a "structured settlement" proposal to fit their situation. And it is clear that the board, with several millionaires that have served over the years, have yet to seriously enter the fray. 

Since there is no evidence that 3ABN has Officers and Directors Legal Liability insurance to cover Officers and Directors from claims that Attorneys Manly and Anderson are most certain to assert, we must fall back to an agreement to indemnify Directors for their defense costs and any judgments of the courts.  That agreement would be contingent upon 3ABN having either sufficient cash-flow, or sufficient assets that they can either sell or leverage (borrow money against) to meet the costs of this litigation or any pre-litigation settlement.
While there are some who believe that the IRS 990 Annual Report is an indication of the Ministrie’s real value, an  auditor and an investment banker were recently asked to assess the ability of the ministry to resolve this claim on its own. They were both quick to point out that the stated assets are significantly inflated in the current economy. These are assets that were largely acquired prior to 2007 and real property values alone have dropped in Southern Illinois by nearly 40%. The furnishings and equipment, including electronics, production equipment and communications equipment is probably worth about 20 cents on the dollar, even less at auction. And when one considers the liability to various Trust Department trust instruments, it is unlikely they have more than a mid to high seven figure real net worth at the present time for hard assets as collateral.

However, the board could conceivably leverage the entire business, a process the Adventist Health Systems did with impunity via industrial development bonds, a concept that Director Larry Romrell, Director  Ellsworth Mc Kee and former directors Garwin McNeilus and Stan Smith would be familiar with. However, leverage was the bain of AHS and would create a serious dilemma to most of the board who would be far less likely to accept leverage as a financial solution, particularly when they are the ministry created to “counteract the counterfeit” and Counsels to the SDA church abhor borrowing.

Any Leverage option would require a look at another valuation approach that would relate to the value of the business and good will as an operating entity and what it's sale or merger value would be. The first issue of sales value is complicated and delimited because getting any privatization of a non-profit in Illinois past Atty General Lisa Madigan's office is extremely unlikely without a huge tax penalty. As a non-profit, 3ABN assets would have to be sold and the proceeds (if any were available after liens and judgments) then distributed to another non-profit, limiting the saleable value or merger value of the company.

The other problem is that the combinations of litigation, and a significant downturn in the economy, has eaten into 3ABN’s income from gifts and sales of products. The current affect on Wills and Trusts is not clearly known but is unlikely to have been positive. With a deteriorating balance sheet and income and expense ratios, an investment banker is not likely to be able to place a sufficient sum to meet even the present value of a demand under a structured settlement.

Most non-profits end up “merging” or are liquidated to another non-profit. Given that ARM may well be the largest potential creditor and is a part of the 501-c-3 qualified  General Conference of Seventh-day Adventists, they and the NAD may well have a very large incentive to work out a “liquidation merger” into the North American Division, sponsoring parent of the HOPE Channel.  And is a good reason for them to have been at the table for any negotiated settlement from the beginning.

For all the above reasons, it is highly unlikely that a leverage solution is viable. Leveraging would also, in fact, bring into controversy the assets that purportedly back the various trust instruments and other financial commitments based upon the 3ABN assets, the disclosure of which would leave state oversight entities (it varies by state) clearly having to deal with a consumer fraud concern in the event 3ABN defaulted on these trust instruments to the investing parties. They could require a bond or even order them to cease and desist from providing trust instruments to that states’ consumers as has happened in Washington State and elsewhere.

While we have not yet seen the subject complaint from Manly and Anderson, we have observed prototypes in other jurisdictions done by Jeff Anderson  and would presume the complaint will be similar with specific complaints for Racketeering, Personal Injuries, Negligence and Fraud. A typical case seems to go into great detail regarding background to build a foundation to support the various tort offenses such as RICO Violations under 18 USC , sec 1962(c ),  sec 1962(d), Sexual Abuse, Battery, Breach of Fiduciary Duty, Vicarious Liability(Respondeat Superior), Negligent Retention and Supervision, Fraud, Conspiracy to Commit Fraud, and the inevitable Intentional Infliction of Emotional Distress.

Once the complaint is served, given the track record of the Flamboyant Manly and the doggedly persistent Jeff Anderson, you can safely assume this case will cost MILLIONS to defend, and is unlikely to settle for less than a mid eight figure sum as new plaintiff’s emerge from the woodwork and transactional details lay bare the years of cover-up for Tommy Ray Shelton.

It is likely financial issues will be exacerbated by the publication of this massive litigation and gifts will begin to dry up, wills and trusts will think twice or cancel and constituency support in the Seventh-day Adventist Church becomes uncertain at best.

Assuming they have good Counsel it is very likely they will have to consider very seriously Bankruptcy Court Protection making it highly probable the broadcasting board may be forced to elect to re-organize under Chapter 11 of the US Bankruptcy Code. Given the devastating affect this would have on credibility with the stockholders in the pews, it is very likely this would turn into an orderly liquidation as I do not see that they would be able to develop a successful reorganization plan.

The result is likely to mirror the massive cross-fire of claims we saw in Re: Boston Regional Medical Center where at last count there were 76 claims and cross claims and many a director paid dearly for the ignorance and failure to oversee and supervise the management of this century old original SDA Medical Institution whose very site was chosen by Ellen G. White and where Dr. John Harvey Kellogg mentored his surgical and medical skills.

The saddest part of this arduous journey is that we approached the directors to deal with the issue in late 2006 and were virtually and distinctly ignored. Without 3ABN to protect them, it is likely the directors themselves will find themselves defending against the claims from their own pockets for charges that that could have been so easily handled in a Christlike way and been largely resolved those five years ago. But, the officers and directors dug in their heels with pride filled hearts and had to ask, “who are these people to question us?”

Stay tuned as this reporter will be there to follow every detail!!!

NOW they must deal with a far more powerful gentile force…Cest la Vie and may the Lord have Mercy on their Souls.

Gailon Arthur Joy
AUReporter

[Gailon Arthur Joy]

Enclosed in the e-mail to 3ABN directors over four years ago, and still haunts the illusive but arrogant 3ABN Board to this day:

December 7, 2006

"Emergency Board Action Required"

Should Danny & Tommy Go?

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-------- Original Message --------
From:    Gailon Arthur Joy
To:    Directors, Three Angels Broadcasting Network, Inc.: Walter Thompson, Carmelita Troy, Elder Ken Denslow, Elsworth McKee, Mollie Steenson
Subject:    Emergency Board Action Required
Date:    Thu, 07 Dec 2006 15:05:43 +0000

Some of you may have been following closely the saga of revelations relating to issues perceived and defined regarding the administration of Danny Shelton at 3ABN.

Probably none is as descriptive of the malfeasance and mismanagement and failure of oversight as the issue of Tommy Shelton.

During the early 1980's Tommy was serving as pastor at the Ezra Church of God, West Frankfort, Illinois. Several young men made specific allegations regarding sexual molestation of a minor from the Church School at Ezra by the Administrative Pastor, Tommy Shelton. There was substantial debate amongst the parishioners regarding the support of Tommy versus submitting to the discipline of the Illinois General Assembly of Church of God.

Tommy Shelton and the Ezra Church of God refused to submit to church discipline after Tommy admitted to the molestation of minors and conducting a homosexual lifestyle.

In 1985 Tommy was relieved of his license and credentials. The Ezra Church of God subsequently separated from the General Assembly and became a congregational church. Tommy left for approximately a year to assist in the development of a church school in Marion, Ky. Tommy returned to serve as pastor for an additional two years and during this period there were additional allegations of child molestation against Tommy Shelton by young men of the church school of Ezra Church of God. Tommy became ill and left the pastorate of Ezra COG.

Tommy Shelton was given carpentry work. At some point Tommy was made the production manager at 3ABN. In late 1991 Melody Shelton Mundall and Derrell Mundall gave several pages of written statements to Illinois Conference President BJ Christiansen.

[That] statement resulted in a board meeting and the board decided that Tommy Shelton could not work at 3ABN. Tommy was severed from the payroll and was given contract work promoting 3ABN with cable companies until he took a media consulting position and assistant pastor for media ministries with Dunn Loring Church of God, Dunn Loring, Va. in 1993. In 1995 the Senior Pastor left for mission service and Tommy became the senior pastor. During his pastorate 3ABN reportedly contributed a bus to the Dunn Loring COG [that] was not approved by the board of directors.

In 1999 3ABN issued a $10,000 check to Tommy Shelton in Dunn Loring, Va. This was done without the approval of the board. However, in late 2000 Tommy's own family confronted Tommy regarding concerns related to his adopted son and at least one other minor male child. Danny Shelton declared he had forewarned of this and stated, "I told you so, he's done it again." Tommy suffered a nervous breakdown and went on leave and finally resigned his pastorate in the spring of 2001. He moved his family to Marion, Ky.

Danny Shelton hired Tommy to manage and organize the Tapes and Masters Archives mid 2001 without asking the board of directors and over the objection of Linda Shelton.

In May of 2003 the Chairman received a letter by Certified Mail from a Pastor Dryden of the Ezra Church of God warning them that there were new allegations regarding sexual misconduct, commonly referred to as the Dryden Letter. The Chairman brought the letter to the attention of the entire board in June 2003. Danny is reported to have misled the board and clearly stated the conduct was thirty years old and was over when he knew there were fresh allegations in West Frankfort, Il. as well as in Dunn Loring, Va. Bill Hulsey declared that this was all in the past and they could move on and a letter was sent back to Pastor Dryden telling him simply that the matter was taken up by the board and dealt with when in fact the board simply brushed it aside without investigation or exploration.

Tommy continued in this position until mid 2004. After Linda Shelton was terminated by the Chairman, Tommy was given Linda Shelton's Office and her job, again without the approval of the board. Tommy also began playing the piano for Kids Time and other children's programming.

In 2006 a young man came forward and admitted to the senior pastor and the Chairman of the board of trustees of the Dunn Loring COG that he had been molested by Pastor Tommy Shelton and needed counseling and other assistance. The church made contact with their insurance carrier. Two other males have come forward and stated they were solicited by Pastor Tommy Shelton. Another young man that was admittedly very familiar to Pastor Tommy Shelton is leading an openly gay lifestyle.

I have attached a copy of a communique that identifies specific contradictions between the Chairman and the CEO, Danny Shelton, with hyperlinks to supporting documentation.

It is imperative that the board needs to meet immediately and determine if Tommy Shelton should be terminated from 3ABN, [and] determine if Danny Shelton has been sufficiently insubordinate and has deliberately misinformed the board such as to require the resignation of Danny Shelton as president and CEO of 3ABN.

The board should be able to resolve these issues within a period of 72 hours, thereafter we shall assume that the matter shall be reserved to the "stock-holders in the pews" for their individual interpretation and determination.

Below is a far more succinct description of the seriousness of the matter at hand and the need to resolve the same.

Gailon Arthur Joy
AUReporter

Greetings Deb, Ron, and Harold.

I believe I have a responsibility to pass on to you my recent correspondence with Danny, which he, not I, initiated on Thanksgiving Day, so you can assess the situation for yourselves. It is possible that you are already aware of the situation, but just in case you are not, I will forward separately the five communications we have had since last Wednesday to you.

You can read all the correspondence online, as well as supporting documents, in three threads:

Correspondence leading up to Dr. Thompson's admission of apparently being misled.

The Glenn Dryden and related Documents.

At Walt Thompson's suggestion, letters to Danny Shelton seeking verification of Walt's statements.

I will be less equivocal than how I have stated things online and in my correspondence with Danny: What we basically have here is Walt in essence admitting that Danny intentionally lied to him in 2003 regarding the serious nature, wide extent, and recent timing of the Tommy Shelton child molestation allegations. We aren't talking about a small discrepancy. We are talking about obvious, extensive fabrications about a very serious problem that has potentially compromised the financial security of the Illinois Conference.

And the fact that Danny ceased to immediately respond, like he usually does, to my courteous, kind, but thorough emails, except with one lame exception, indicates that he knows he is in real trouble, with no way out. And Danny's online apologists who counter the "rumors" on the forums have totally disappeared.

We obtained permission from one of Tommy's alleged victims, Roger Clem, to post his 2004 letter to Tommy, a letter sent a year or so after he went public in his church and community there in West Frankfort, a letter in which he, as well as venting his anger on Tommy for abuse that occurred or began in 1988, implicates Danny and a 3ABN attorney in pressuring people into silence. A letter from that 3ABN attorney doing that very thing is also posted.

We also have a statement from the pastor of the Church of God congregation in Virginia where Tommy used to pastor from 1995 to about 2000, saying that there are three incidents of sexual misconduct there, one involving a male who was a minor at the time.

Contrast this with Walt's statements that Danny told him in 2003 that the allegations were 30 years old, and that Walt was led to believe that Pastor Glenn Dryden is the only one who has accounts of these allegations. There is absolutely no way that Danny in that little community would not know that Roger Clem had come forward publicly in 2003 at a time prior to when [Walt] was told by Danny that the allegations were 30 years old. And I am mentioning only a few of the discrepancies.

So we have an alleged pedophile who has been accused of molesting boys and propositioning adults for maybe 22-30 years, depending on whether Walt's 30-year figure was an exaggeration on the high side or not. That individual was hired by 3ABN with at least the president and probably others knowing full well about these allegations, and when it was brought to Walt's attention in May 2003 by Pastor Dryden, Walt relied on Danny's word and, according to his written statement to me, never contacted, as he was invited to do by Pastor Dryden, any of the six alleged victims, their families, and the two associations that had ordained Tommy and then later revoked his credentials.

I am not an attorney, but my hunch is that all that constitutes gross negligence, and the fact that Tommy apparently has ready access to kids at 3ABN, that the IL Conf. has or is moving part of their academy operations to Thompsonville, and that Tommy has already been employed at 3ABN for more than five years makes for a potentially disastrous situation.

Over the last four months, an informal and unofficial network of active and retired pastors and administrators, as well as some laymen, has formed, and the whole situation has been pondered. The consensus has been, as I understand it, that these recent developments since Thanksgiving cannot be covered up and must be gotten out. Mind you, these are folks that are of a conservative bent, from what I understand, folks that appreciate supporting ministries. I certainly do, having worked at three, and I appreciate ASI. This is not an effort by liberals to discredit a supporting ministry.

We all need the wisdom of God to know what to do. Is there anything we can do to save the ministry of 3ABN? I surely hope so. Do you have any ideas?

I sent a pastoral note to Danny tonight of a very different flavor. If he would only be willing to step aside after implementing some basic changes that would institute some checks and balances, that would be ideal. But whatever is done, it is of the utmost importance that it be done quickly and immediately, for my understanding is that there are other issues in the wings that could have an equally detrimental impact on the ministry of 3ABN as well as the reputation of Seventh-day Adventism.

Please keep me abreast of developments on your end, if that is appropriate, so that I can better make wise decisions of what to do or not do.

God bless you all at this extremely difficult and troubling time.

Bob

[Adam]

One point should be added here: Who cares if they can survive it or not? They did the crime they should have to be held accountable. Just my two cents (Cindy's saying).

[Snoopy]

One point should be added here: Who cares if they can survive it or not? They did the crime they should have to be held accountable. Just my two cents (Cindy's saying).

I care.  I want to see reform there - not collapse.  3ABN has been a mighty tool for the Lord, in spite of humans - not because of them.

[Gailon Arthur Joy]

If reformation were possible, it would have been done already, and your point is correct, it will suffer serious loss BECAUSE OF THESE HUMANS!!!

Gailon Arthur Joy
AUReporter

[Johann]

How sad but true!

[Daryl Fawcett]

Amen Snoopy!!!

One point should be added here: Who cares if they can survive it or not? They did the crime they should have to be held accountable. Just my two cents (Cindy's saying).

I care.  I want to see reform there - not collapse.  3ABN has been a mighty tool for the Lord, in spite of humans - not because of them.

[Johann]

How? With the Lord nothing is impossible.

Amen Snoopy!!!

One point should be added here: Who cares if they can survive it or not? They did the crime they should have to be held accountable. Just my two cents (Cindy's saying).

I care.  I want to see reform there - not collapse.  3ABN has been a mighty tool for the Lord, in spite of humans - not because of them.

[Gailon Arthur Joy]

But what if the Lord is missing??? Has that ever occurred to you?

After all, He can only be present where he is wanted!!!

3ABN does not really want Him or Revival and Reformation would be alive and well, and they would be welcoming Linda with open arms...and not Yvonne Lewis.

Gailon Arthur Joy
AUReporter

[princessdi]

GJ, don't put God in a box. He is present everywhere already.  Omnipresent, remember?  His work has never depended on the conduct, obedience, and ddefinitely not the invitation of man,   As with all things "man", God is working through 3ABN "in spite of" the faults of the sinful men He choses to work through, and for whom He gave His son, while they were yet in their sins. 

But what if the Lord is missing??? Has that ever occurred to you?

After all, He can only be present where he is wanted!!!

3ABN does not really want Him or Revival and Reformation would be alive and well, and they would be welcoming Linda with open arms...and not Yvonne Lewis.

Gailon Arthur Joy
AUReporter

[Gailon Arthur Joy]

Open and Notorious sin is not without its penalties and "Behold, I Stand at the door and knock and wish that THOU WERT EITHER HOT OR COLD...I WILL SPEW THEE OUT OF MY MOUTH"...and another has been chosen to take the call that 3ABN once enjoyed. So, God is not in a box, Princess Di, but he is loosing patience as the door remains unanswered!!!

You cannot avoid the consequences forever...and it will be the Gentiles that will be used to clean up this MESS!!! And time is fast approaching  when the Racketeering will be exposed and the Judgments will be Demanded...unconditional surrender is needed and soon!!!

Gailon Arthur Joy
AUReporter

[Nosir Myzing]

Can 3ABN Survive THIS litigation???
....

What litigation?

Reality check: Despite the hot air, posturings, and dire predictions here?  Deadlines have come and gone, promised announcements have not come to pass, -- "Lawsuit is imminent" posts # 92-93 -- No settlement has been made. NO complaint has been filed. There is still NO formal court action. There is still NO lawsuit.

Litigation definition:
    A dispute is in 'litigation' (or being 'litigated') when it has become the subject of a formal court action or law suit.

That's all I feel called to add to this topic.

[Johann]

There is still NO formal court action.

What is the definition of "formal"?

[Nosir Myzing]

There is still NO formal court action.

What is the definition of "formal"?

Formal -- adjective
 - following the correct or suitable official methods



Definition of Backpedal.

"Backpedal: verb

To retreat or withdraw from a position or attitude

to show that you are no longer certain about a previous opinion, intention, or promise


backpedal
verb -To move in a reverse direction: back, backtrack, fall back, retreat, retrocede, retrograde, retrogress."

Examples of backpedaling:

#1 Me, saying :"That's all I feel called to add to this topic." and then deciding to reply...

#2

Johann
Group: Admin Team
Veteran Member
Posts: 2518
Wrote: in Brenda's tales « on: March 11, 2011, 09:44:53 AM »
  
I have posted this on the other site:

... Dr. Abrahamsen and Linda are now getting a top notch go-getter of a lawyer to aid them in suing Brenda for all the miseries Brenda has caused them during these seven years by her fraudulent tales....

If Brenda wants to make up before she gets a notification from a lawyer she had better hurry up. That may save her a lot of difficulties that she had never envisioned. But Brenda does not need to make any contact unless she is willing to confess and also try to convince Cindy and others that their accusations have been based on false premises as far as she is concerned.

Justice may take time, but a day of reckoning comes to all of us. Brenda better take care of this before her final destiny is decided! If nothing else helps, Linda Shelton and Dr. Arild Abrahamsen are prepared to let the best lawyer available help her make that decision in front of a judge and/or jury, if that is the only way she will make things right.

Johann
Group: Admin Team
Veteran Member
Posts: 2518
Wrote in Re: Brenda's tales « Reply #8 on: March 12, 2011, 07:14:04 AM »
  
I posted this on the other site:

As far as I recall Linda readily forgave Brenda 7 years ago when she came to her and confessed she'd told Danny some tales about Linda from the trip to Norway. I think Linda believes in the 7x70 principle and that might be one reason Linda herself has left Brenda alone for those seven years. I don't think she wants to be the main person in this court case.

In the future this website may be helpful to you:http://www.onelook.com

Have a good day.


edited to add example

[HaroldT]

There is still NO formal court action.

What is the definition of "formal"?

Johann  read
Proverbs 26:4.