Lansing, MI - Attorney General Mike Cox has announced multiple felony charges against Michael J. Morris and William T. Perkins, two men accused of using a Ponzi scheme to defraud twenty-one African-American churches in Detroit, Flint, Saginaw, Inkster, Ferndale, Highland Park, Port Huron and Ypsilanti of approximately $660,000.

* One count of Conducting a Criminal Enterprise (Racketeering) under MCL 750.159i. Maximum 20 years and/or a fine of $100,000
* One Count of Conspiracy to Commit False Pretenses Over $20,000 under MCL 750.157a and 750.218. Maximum 10 years and/or a fine of $10,000
* Four counts of False Pretenses Over $20,000 under MCL 750.218. Maximum penalty of 10 years and/or a fine of $15,000 or 3 times the value of property obtained, whichever is greater.
* Four counts of Fraudulently Obtaining a Signature under MCL 750.273. Maximum penalty of 10 years and/or a fine of $5,000.

"In this difficult economy, families depend more and more on good works provided by local churches," Cox said. "By essentially pilfering the bank accounts of these ministries the defendants didn't just violate the sanctity of the church, they stole from the entire community." Morris and Perkins, representatives of Television Broadcasting Online and Urban Interfaith Network, schemed to obtain money from leasing companies, leaving the churches responsible for repayment of the funds. The defendants approached Michigan churches and offered to provide electronic kiosks free of charge for use in religious education, community events and fundraising. The pastors were told that a "national sponsor" would cover all costs in exchange for advertising that would run on the machines. They were then convinced to sign leases, described as a formality, on each kiosk. In reality, the churches unknowingly became responsible for the full purchase price of the kiosk.

The defendants took the agreements, along with greatly inflated invoices for the cost of the kiosks, to leasing companies to obtain funding. The leasing companies then paid Morris and Perkins approximately $27,000 for each of the kiosks, generating substantial profits for the defendants.

However, since there was no "national sponsor" to make the payments, Morris and Perkins used some of the funds from the leasing company to make the initial payments and pocketed the rest. When the defendants later stopped making payments, the leasing companies, following the terms of the leasing contracts, demanded payment directly from the churches. In some cases, the contracts allowed leasing companies to take funds directly from church bank accounts, leaving churches in economic distress.

Any sentences imposed for any of the charges would run concurrently. The defendants remain at large. Though the charges announced today relate only to the alleged fraud committed in Michigan, Morris and Perkins are accused of targeting over 160 churches in 13 other states and the District of Columbia.

A criminal charge is merely an accusation and the Defendants are presumed innocent unless proven guilty.