Marketing Scam Targeting Churches Outrages Sen. Chap Petersen

(Thursday) January 21, 2010

Petersen Proposes Bill to Protect Churches from Fraud

On Wednesday, Senator Chap Petersen proposed a substantial expansion to Virginia’s Consumer Protection Act, Senate Bill No. 116, to give the Attorney General the ability to sue individuals and organizations for defrauding churches.

The expansion to the law would close the Consumer Protection Act’s loophole that historically protects only individuals to include protection to churches, an aggregate of individual consumers, and make Virginia’s law consistent with that of Maryland and the District of Columbia.

This issue was first raised earlier last year when over twenty African American churches throughout the Washington metropolitan area were targeted by a fraudulent marketing scheme that purportedly promised computer kiosks, electronic bulletin boards used for making announcements, that would in the very least, pay for itself through paid advertisements.  According to the churches involved, the sub-par equipment was often defective and commercial sponsorship opportunities for advertisements never promoted by TVBO, the marketing agency in question.

Leasing agreements signed by the mislead churches for the use of the illusory equipment obligated them to pay tens of thousands of dollars to various companies such as United Leasing of Associates of America of Brookfield, Wis., Balboa Capital of Irvine, Calif., Chesapeake Industrial Leasing of Baltimore, Television Broadcasting Online of D.C., and the Urban Interfaith Network of Oxon Hill, who were all named in the District’s lawsuit against them last year.  Following the installation of the kiosks, unauthorized withdrawals and illicit collection transactions further drained the bank accounts of area congregations.

“I will not stand for this and those who prey on our houses of worship must be punished,” said Petersen who has asked the Attorney General to back his bill.

“Senate Bill 116 is important to guard churches and other religious bodies against misrepresentation and protect resources used to carry out their sacred missions,” testified LaTonya Reed, Policy Analyst for the Virginia Interfaith Center for Public Policy, to the Senate Committee.

The Virginia Interfaith Center is the Commonwealth’s oldest faith-based coalition that advocates on behalf of the Virginia’s communities.

Unanimously passed by the Senate General Laws and Technology Committee, Senate Bill No. 116 is now awaiting approval by the full Senate.

Senator Chap Petersen represents Virginia’s 34th State Senate district, which includes Fairfax City and much of Fairfax County.  He is member of the Senate General Laws and Technology Committee.