A Second Open Letter to Calvary Bible Church in Neenah, Wisconsin

Good morning Keith,

I wanted to share some readily available information with you. Would you be the designated point of contact for lawyers and law enforcement in regards to your knowing and willful acceptance of funds gained through David W. Zerrien’s abuse of me?

“When a church accepts donations that are known to be derived from illegal activities like Medicaid fraud and child abuse, several legal and ethical issues come into play:

1. Legal Consequences for the Church:

  - Civil and Criminal Liability: Under various federal laws including the False Claims Act (FCA), Anti-Kickback Statute (AKS), and potentially the Racketeer Influenced and Corrupt Organizations Act (RICO), a church could be held liable for receiving funds from fraudulent or criminal activities. If the church knowingly accepts such funds, it might be considered complicit in the fraud or abuse, which could lead to civil penalties, fines, or even criminal charges against church officials involved.

  - Tax-Exempt Status: The Internal Revenue Service (IRS) could scrutinize the church's tax-exempt status if there's evidence of using funds for purposes that do not align with their charitable, educational, or religious objectives. This could lead to penalties or revocation of tax-exempt status under IRS regulations, as the funds must be used for public rather than private interests.

  - Investigations: If there's suspicion or evidence of wrongdoing, state or federal agencies might investigate. This could involve the Office of Inspector General (OIG) for health care fraud or other law enforcement agencies looking into child abuse allegations.

2. Ethical and Moral Implications:

  - Moral Responsibility: From an ethical standpoint, a church has a moral obligation to distance itself from funds linked to illegal or morally reprehensible activities. Knowing acceptance of such funds could tarnish the church's reputation and undermine its mission.

  - Internal Policies: Churches might have or should develop policies for due diligence on donations to prevent accepting money from dubious sources. This includes background checks or understanding the source of large donations.

3. What Happens to the Funds:

  - Seizure and Restitution: If law enforcement or regulatory bodies determine that the funds were from illegal activities, they could be seized. The money might be returned to Medicaid for fraud cases, or used for victim compensation, or other legal remedies like restitution or fines.

  - Church's Response: Ideally, upon discovering the source of the funds, the church would return or redirect the money to appropriate legal or charitable outlets to avoid further legal entanglement.

  - Documentation and Transparency: If the church has not yet been implicated but learns of the funds' origin, they should document the transaction, possibly consult with legal counsel, and decide on the next steps like returning the donation or reporting to authorities.

  - Reputational Damage: Even if legal repercussions are minimal, the publicity of such an association can lead to significant reputational damage, potentially affecting future donations and community trust.

Based on the available information, particularly from sources discussing the legal frameworks around fraud and abuse in federal health programs, the church's handling of such funds would require navigating complex legal landscapes with potential for severe consequences if not managed with caution and transparency.”

Warmly,

Evan Carlson