Ep. 488: John MacArthur, the Johnson Amendment, and a Giant Ponzi Scheme in Georgia

On today’s program, St. Andrew’s Chapel is facing questions over its lack of financial transparency. Members say church leaders refuse to share budget details. Now, the local presbytery is involved. We’ll have details. And, the I-R-S now says churches CAN endorse politicians—this, despite the so-called Johnson Amendment…a law that threatens to remove a ministry’s non-profit status if it makes political endorsements. The move comes as the I-R-S hopes to settle a lawsuit brought by the National Religious Broadcasters. We’ll take a look. Plus, John MacArthur—megachurch pastor and voice of ‘Grace to You’—has died at the age of 86. But first, a well-known Christian businessman has been charged in heading up a $140M ponzi scheme. The producer for today’s program is Jeff McIntosh. We get database and other technical support from Stephen DuBarry, Rod Pitzer, and Casey Sudduth. Writers who contributed to today’s program include Kim Roberts, Kathryn Post, Tony Mator, Bob Smietana, and Jack Jenkins.   MANUSCRIPT:    FIRST SEGMENT Warren: Hello everybody. I’m Warren Smith, coming to you this week from Covenant College on Lookout Mountain, Georgia. Christina: And I’m Christina Darnell, in for Natasha Cowden, coming to you from Mooresville, North Carolina, and we’d like to welcome you to the MinistryWatch podcast. Warren: On today’s program, St. Andrew’s Chapel is facing questions over its lack of financial transparency. Members say church leaders refuse to share budget details. Now, the local presbytery is involved. We’ll have details. And, the I-R-S now says churches CAN endorse politicians—this, despite the so-called Johnson Amendment…a law that threatens to remove a ministry’s non-profit status if it makes political endorsements. The move comes as the I-R-S hopes to settle a lawsuit brought by the National Religious Broadcasters. We’ll take a look. Plus, John MacArthur—megachurch pastor and voice of ‘Grace to You’—has died at the age of 86. Christina: But first, a well-known Christian businessman has been charged in heading up a $140M ponzi scheme. Warren: The Securities and Exchange Commission has filed charges against Edwin Brant Frost IV…the founder and owner of First Liberty Building and Loan in Georgia. The S-E-C claims Frost headed up a Ponzi scheme that cheated about 300 investors out of at least $140 million. Frost—a well-known conservative Christian businessman—once ran the presidential campaign for Pat Robertson in Georgia. He apparently used his church and conservative political connections to fund his scheme. Christina: The complaint alleges that between 2014 and 2025 Frost offered investors promissory notes and loan participation agreements with 18 percent returns. He used new investor funds to make payments to existing investors. Warren: The S-E-C also claims Frost used investor funds for his personal use—including making over $2.4 million in credit card payments, paying more than $335,000 to a rare coin dealer, and spending $230,000 on vacations. Christina: Frost was also actively involved in politics, apparently making $570,000 in political donations. Brad Raffensperger, Georgia Secretary of State, is urging candidates and political committees to return any campaign contributions they received from Frost. Warren: Conservative commentators praised the Frosts. Hugh Hewitt has even compared the elder Frost to the main character of “It’s a Wonderful Life,” calling him “Georgia’s George Bailey,” according to Christianity Today. The S-E-C is also seeking emergency relief, including freezing assets. In a statement released by his lawyer to the New York Times, Frost apologized: “I take full responsibility for my actions and am resolved to spend the rest of my life trying to repay as much as I can to the many people I misled and let down.” Christina: Warren, our next story takes us back to Sanford, Florida, for another look at Saint Andrew’s Chapel. Warren: The P-C-A church has been in the news recently because its Senior Pastor Burk Parsons was suspended by a church judicial commission. Now, a local presbytery is telling the church to share its financial and budget information with its members. Christina: Why is the local presbytery involved? Warren: Multiple church members had asked for financial information, and those requests were either not met, or they were met with a consolidated financial statement without the requested details. One of those members, Doug Risavy, filed a complaint with the Central Florida Presbytery in November, and they formed a commission to investigate. In April 2025, they agreed with Risavy…and instructed the elders of St. Andrew’s to give him the detailed budget information he had requested, including pastors’ salaries. Christina: So has the church provided their financial records? Warren: Not yet. They appealed the PCA commission’s decision…but the commission stood their ground. They emphasized the PCA’s high view of transparency, calling it central to a church’s governance. St. Andrew’s did not respond to our requests for a statement on if they plan to comply. Christina: Our next story takes us to a trial within a different denomination—the Anglican Church in North America. Warren: This week began the long-awaited church trial for Bishop Stewart Ruch, leader of the ACNA’s Upper Midwest Diocese. Christina: Six years ago, a 9-year-old came forward with sexual abuse allegations against a lay minister in an Illinois church. This trial will determine if Ruch, who is an influential and charismatic figure, responded appropriately. Warren: Ruch has admitted to making “regrettable errors” in the case. For example, after learning of the allegations in 2019, Ruch took two years to initiate an investigation or even share the news with members of his diocese. Christina: By that time, at least nine other abuse survivors said they had been abused or groomed by Mark Rivera, a lay leader at Christ Our Light Anglican Church in Big Rock, Illinois. Warren: Mark Rivera had previously been a volunteer leader at Church of the Resurrection in Wheaton, Illinois, which is the diocesan headquarters. Christina: Rivera has since been convicted of felony sexual assault and felony child sexual assault. Also, more than 10 clergy and other lay leaders in Ruch’s diocese have been accused of misconduct, a pattern that abuse advocates say results from his failure to take timely action and to properly supervise those under his purview. Warren: This week’s trial is only the second time a bishop has been tried in the Anglican Church in North America, which was formed in 2009. The bishop’s presentment, or charges, lists more than 10 cases where lay or clergy leaders in Ruch’s diocese were “credibly accused of misconduct” and claims Ruch “habitually neglected” to appropriately handle abuse allegations. Christina: Warren, let’s look at one more story before the break. A pastor from Washington state indicted for wire fraud is behind bars once again. Warren: The former pastor of Tiempos de Poder Church, Francier Obanda Pinillo, who was accused of a crypto currency scam, is back in jail after violating the terms of his release. Prosecutors argue he tampered with witnesses by contacting alleged victims and that he continued to fraudulently solicit money. Christina: In December 2024, the federal Commodity Futures Trading Commission filed suit against Pinillo for allegedly roping his Spanish-speaking congregation into a multilevel marketing scheme. Warren: The suit claimed Pinillo raked in $5.9 million by guaranteeing monthly profits of almost 35% on cryptocurrency investments he never actually made. Christina: Instead, the suit alleged, Pinillo kept the money for himself and co-conspirators, leaving many of his 1,516 customers with zero profits. Warren: After his arrest, Pinillo was relocated to his Miami home. He continued to post videos to his church’s Facebook page, though that page has since been removed. Then in January this year, he was indicted for another scheme, which he allegedly carried out between November 2021 and October 2023. During the investigation, the FBI found evidence that Pinillo had begun soliciting donations for the fictitious God’s Time Orphanage Home Foundation, promising donors God would reward them with “total restoration of breakthrough in the life and in the life of your family.” Christina: The judge ruled the evidence of criminal activity was enough to keep the defendant in jail. Warren: The judge also ruled that Pinillo violated his terms when he contacted an investor, whose name was on a no-contact list, and asked her to help his business raise $200,000 to hire a lawyer. His trial is scheduled for March 2026. Christina: Warren, let’s take a quick break. When we return, the I-R-S now says churches CAN endorse politicians. I’m Christina Darnell, along with my co-host Warren Smith, and we’ll have that story and much more, after this short break.   BREAK   SECOND SEGMENT Christina: Welcome back.  I’m Christina Darnell, along with my co-host Warren Smith, and you’re listening to the MinistryWatch podcast. Next, the story we promised before the break. Warren: For years, conservative legal groups have argued that an IRS rule barring churches from endorsing candidates was unconstitutional. Now the IRS agrees. In a court filing, the IRS said the-so called Johnson Amendment, which bars nonprofits from being involved in campaigns, should not apply to political speech during religious services. Speaking about politics at a church or other house of worship is not the same as intervening or participating in an election, lawyers for the IRS as well as for conservative groups suing the agency wrote. Christina: ...