On September 28, 2010, at the outset of the sex scandal that ripped through New Birth Missionary Baptist Church, we posted a blog post entitled, Bishop Eddie Long's New Birth Church Members Are Sitting Ducks For An Affinity Fraud Investment Scam. In that posting, we warned that church members were at risk of becoming victims of financial fraud.
After reading the Atlanta Journal Constitution reports over the last couple days about Bishop Eddie Long going "viral" in an attempt to recover lost money on behalf of trusting church members, it is clear that our warning came too late.
If you fear that you have been a victim of Ephren Taylor and Capital City Corp, you need to take immediate steps to help regain control of the untenable situation you face. Hopefully, the tips below will also assist you in recovering your losses.
Tip 1: Do not accept any settlement offer without first consulting with an attorney.
Based on some quick research, it appears that Capital City Corporation is a business development company authorized under the Investment Advisors Act of 1940 to make loans and equity investments in developing business enterprises. According to today's AJC article, Capital City Corp. stated, "the legal team has been working with individuals to legally and privately resolve, refund, and restructure any potential losses."
As an attorney who represents defrauded investors, I interpret "refund and restructure" to mean small refund now, long wait to get back the rest of your money. Because Capital City makes loans and equity investments in developing business enterprises, my guess is that it was hit pretty hard during the recession. As a result, Capital City may be cash poor right now and does not want to refund all of the investment losses right now. In their settlement sales pitch, the legal team hired by Capital City will likely paint a rosy picture of Capital City's future business opportunities. This will make the settlement offer look like a low risk proposition. Do not trust them. They are not looking out for your best interests. They are only interested in limiting Capital City's exposure to liability.
Tip 2: Do not sign any documents provided to you by Capital City Corp. and/or Ephron Taylor.
When parties settle disputes, the defendant always wants the plaintiff to sign a release. A release typically is a paragraph contained in the settlement agreement that looks like boiler-plate words. Its function is to absolve the defendant of any and all sins it committed in the past. The release has the effect of prohibiting a plaintiff from filing a subsequent lawsuit. Importantly, the language of the release will not be limited solely to Capital City Corp. It will also include New Birth Missionary Baptist Church, Bishop Eddie Long and any other person or entity and anyone else Capital City's attorneys can think of.
Tip 3: Get copies of any recorded church services where Capital City Corporation and/or Ephron Taylor was discussed.
I have never attended New Birth but like many churches, it is likely that the church records its services. These recording will provide crucial evidence about the representations that were made about Capital City Corp. and/or Ephren Taylor.
I once represented a woman from Atlanta that was defrauded (along with a group of others) in an affinity fraud scheme at her church. The pastor of her church was very vocal in his support of the fraudster and made many statements during church service that were recorded. These recordings provided crucial evidence in her case because they contained many misrepresentations about the nature of the investment opportunity.
To recap - (1) Get a lawyer; (2) Do not sign anything; and (3) Get the tapes!
Tip 4: Create a written chronology of events.
Our memories are flawed and they become even more flawed as time passes. As a result, it is in your best interest to write down as much as you can remember now. You can add to it over time. Next week, you may see an television advertisement that triggers another helpful memory. Write it down. Focus on writing down things that you remember being told about the investment opportunity. Was it described as a safe investment? When were you told it was a safe investment opportunity? How many times were you told that it was a sure thing? How did Capital City Corp. and/or Ephren Taylor gain your trust?
All of these facts are very important should it become necessary to take legal action at some point in the future.
Tip 5: Did I mention that you should hire an attorney?
All victims of investment scams have suffered from the breach of a trust relationship. The trust relationship is a very powerful force. It frequently causes victims to blame themselves and it can also skew your memories. As a result, individuals who are in this position need to acknowledge and accept that they need the help of a disinterested representative. Attorneys serve this function well.
