Is Benton Harbor’s famous House of David worth north of $215-million dollars? According to an in depth, front page report in today’s Detroit News, one former member of the religious group contends that more than $50-million in assets have been looted by “interlopers” there.
The striking story from Detroit News writer Mike Martindale points to a lawsuit filed in Oakland Circuit Court by 59-year old Charles Ferrel of Hawaii who was apparently excommunicated from the House of David. Martindale says that Ferrel contends “a few members” of the Benton Harbor-based group “have diverted funds from the organization’s purpose,” and exposed it to potential tax liabilities.
The remarkable story tells of wrongful excommunication…allegations of the diversion of House of David money to multiple limited liability companies…and endangerment of their favored federal tax status.
Ferrel has hired veteran Attorney David M. Black who told the Detroit News writer it’s “the most bizarre lawsuit I have seen in my entire career.” That career dates back at least 43 years.
A Bridgewater man and a St. Joseph resident are named by the accuser as part of an alleged conspiracy. The St. Joe man is identified in the story as 55-year old Brian Ziebart who self-identifies as an employee of the House of David.
Martindale quotes Ziebart’s attorney as accusing Ferrel of making “exaggerated, fabricated, inaccurate accusations,” and promising to vigorously defend his client.
The writer goes into substantive detail to explain the House of David’s colorful history and some of the key characters involved in it over the years.
Martindale also talked to local Realtor and House of David Historian Chris Siriano who founded the House of David Museum in St. Joseph. It is Siriano who speculates in the article that the House of David’s assets exceed $217-million dollars.
Siriano tells the author that House of David members “were a fascinating, creative, very intelligent group.” He goes on to say that he has talked with several members of the religious group over the past five years and local banks in determining his speculation regarding the group’s wealth.
Attorney Black reports that a copy of the lawsuit has also been dispatched to Attorney General Bill Schuette for review, but Schuette’s office has not responded to queries on that report or the suit itself.
The lawsuit, according to Martindale, “Seeks an injunction against any diversion of funds,” and “requests that Ferrel be returned to control of Israelite House of David assets and property, or that a receiver be appointed to liquidate the church’s assets and turn over proceeds to the state for disposal.”
The full story is available online at the Detroit News website, http://DetroitNews.com and is being shared liberally on Facebook and Twitter by people fascinated to see the battle lines being drawn. Stay tuned.
The photo accompanying this story on Moody on the Market is of the House of David’s famous Shiloh home on Britain Avenue in Benton Harbor captured this afternoon. It has undergone substantial renovation over the past several years.
