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In November, David Cerullo told the Associated Press this: "Political or not, every one of our lives ought to be an open book because secrets can't be kept." He was referring to Ted Haggard, the high-profile Colorado minister who resigned following allegations that he'd visited a male prostitute and used crystal meth. But his words would be useful advice for some of the ministries, including his father's, that Inspiration broadcasts.
Rodney Pitzer, managing director for research for Wall Watchers, says the watchdog group hasn't investigated Inspiration Networks yet but plans to when it gets the money. Pitzer says he would classify them as a Word of Faith organization, and such organizations raise red flags. Word of Faith theology is based on the idea that health and prosperity are promised to Christians who have enough faith. "We do occasionally get some e-mails from individuals asking us look into and investigate different things," says Pitzer, who is based in Tampa, Fla. Pitzer contacted those individuals; none wanted to talk to Creative Loafing.
Morris Cerullo has drawn attention for faith healing worldwide, building a following through large crusades, but he has also been accused of financial improprieties. In July 2005, the elder Cerullo was indicted for federal tax fraud in California, where his ministry is based. The indictment alleges Cerullo filed a fraudulent federal tax return in 1998, omitting at least $290,000 of personal income; he also allegedly omitted $110,000 in 1999 and at least $150,000 in his 2000 tax filing. Most of this income came from speaking fees, according to U.S. Attorney's court filings. Each count could result in a three-year prison sentence and a $100,000 fine.
Morris Cerullo World Evangelism has been marked by "a pattern of complaints" that he uses "his ministry to benefit himself personally," says Rick Ross, executive director and founder of the nonprofit Ross Institute, based in New Jersey. "Some people seem to feel that (Morris) Cerullo runs the ministry like a family business and takes money and uses money as he deems fit," Ross says. "And because there's no meaningful financial transparency or accountability through an elected board, he can do that with impunity."
Ayla Hightower, a disenchanted former devotee of Morris Cerullo, sold her cosmetics line at Morris Cerullo events, giving the ministry a hefty portion of the proceeds. As time passed, she realized that other vendors weren't pressured as much for money, even when she told Morris Cerullo ministry officials how tight her finances were. She tells of extravagant shopping habits, fancy cars and luxurious homes. "It's a big money-making business," says Hightower, of Alamogordo, N.M. "It's unbelievable."
Can Inspiration Networks, with David Cerullo in charge, be associated closely with Morris Cerullo Worldwide Evangelism, and should federal charges against his father taint Inspiration? According to Roos, Morris Cerullo, whom 2004 tax forms indicate was then a board member, is no longer on the board of directors and "has no formal ties to The Inspiration Networks."
The younger Cerullo and his wife, Barbara, own an 8,200-square-foot home in south Charlotte that's valued at $1.7 million, according to tax records. That's not too impressive for many secular network presidents, but none-too-shabby for the leader of a nonprofit organization that's mostly tax exempt.
For all her disenchantment with the elder Cerullo, Hightower has nothing but good things to say about his son. "He's a very compassionate man," she says. "You can feel that from him."
After Hurricanes Rita and Katrina, Inspiration Networks worked with the nonprofit Convoy of Hope to donate about 460,000 pounds of food, water, toiletries and other items that went to about 920,000 people. Inspiration also preempted network programming to air a live relief concert that raised more than $130,000 for these efforts, Roos wrote in an e-mail.
Spokeswomen for secretaries of state in North Carolina and South Carolina say Inspiration Networks has had no complaints filed against them. David Cerullo is listed as a 2007 member of the National Religious Broadcasters' board of directors, which requires its membership to subscribe to a code of ethics. Members that receive more than $500,000 in donations are required to be members of the Evangelical Council for Financial Accountability, according to the NRB Web site.
Inspiration Networks is not a current ECFA member. The ECFA, which grew out of calls in the late 1970s for more scrutiny of both secular and religious nonprofits, has more than 2,000 member organizations representing more than $15 billion in donations. The accreditation agency's members, including large and prominent groups such as Focus on the Family and the National Association of Evangelicals, must agree to high standards of financial disclosure and accountability, says Ken Behr, ECFA president. Most members are nonprofit religious charities, though some members are churches, such as Forest Hill Church on Park Road, which joined recently.