[aron]

Dear Brother Doug,

… You mentioned IRS investigation because of Sal Benoit's tape. What was the outcome of it? I heard that there was some illegal activity related to Daystar, but it seems there was no penalty from IRS.

God bless you,

KSA

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Dear KSA -

The IRS involvement and investigation took place at the end of the 1970s. It was commenced as a result of that tape and that tape was involved. The copy of the tape was not given to the IRS by Sal Benoit but by a brother I know who had the tape but who now regrets he did this; although, at times that regret turns to a measure of satisfaction that he did the right thing--it was not I who turned in the tape.

Insofar as the result of the investigation, I am not aware of those results. There were so many who had cause to complain about the financial practices of the Daystar and its incorporation into the financial affairs of the Local Churches. The efforts of the "little bankers" (normally, sundry elders in various churches who were called upon to intervene on Lee's behalf to forestall individuals in asking for the return of the original investments) was another sad day for the churches. Unlike American denominations, most of whom understand SEC (Security and
Exchange Commission) rules and regulations - I do not believe (and this my own subjective evaluation) that the administrators of the L.C.'s understood nor desired to know what the implications of generating funding for a for-profit corporation by the use of membership funds, and, in some instances funds generated via these "little bankers" who solicited such funding and then sought to "forgive the debts."