Atlanta mega church pastor Bishop Eddie Long is facing a suit from former parishioners who say he encouraged them to invest in a company that was operating an alleged Ponzi scheme.
A dozen former members of New Birth Missionary Baptist Church in Lithonia, Ga., filed suit in DeKalb County court in late January. The suit says that Long’s assistant had been warned that businessman Ephren W. Taylor was running a $3 million capital deficit, The Atlanta Journal-Constitution reported.
After Long introduced the businessman as his “friend,” the former New Birth members lost more than $1 million investing with the self-described “social capitalist.”
Long’s church has urged Taylor to repay investors with interest.
The Securities and Exchange Commission charged Taylor in 2012 with running a Ponzi scheme, and a civil case against him is pending.
SEC officials said he promised to use investments for charity and to help economically-challenged areas, but instead diverted the funds he received after speaking to churches, including New Birth, to pay other investors and finance business and personal expenses.
