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In February, plaintiff Greg Zentner of Woodburn, N.S., launched a class action lawsuit against Gospel for Asia, accusing the charity of misusing over $100 million in donor funds.
Gospel for Asia asked for a stay of the class action lawsuit Canada and permission to be able to send its donations into the field. The court has yet to certify the class action lawsuit in Canada.
Court filings reveal that the charity complained that donations have become a challenge since the class action lawsuit in Canada was filed. Gospel for Asia lamented the $2.5 million collected in the first six months of this year, while the charity reportedly cited it received about $7.7 million in donations in Canada in 2019, about half of what it amassed in 2015.
Last month, the controversial charity filed for creditor protection, arguing that COVID-19 and the negative publicity from the class action lawsuit in Canada filed have led to a decline in donations.
Gospel for Asia Donations Must Stay in Canada
On June 26, a justice of the Ontario Superior Court heard Gospel for Asia Canada’s application under the Companies Creditor Arrangement Act. The justice appointed PricewaterhouseCoopers (PwC Canada) to monitor the organization’s finances and operations.
The Court ordered that while Gospel for Asia can still collect donations, it cannot “use or disburse any donations” or send them into the field through an agent. In other words, the charity cannot use or send money collected from Canadian donors to Asia without approval from the court.
The Court also ordered a “Stay Period” during which no proceedings, such a class action lawsuit, can be continued or commenced against Gospel for Asia.
Halifax lawyer John McKiggan, who represents the plaintiffs in the Gospel for Asia class action lawsuit in Canada, considers the request for creditor protection as a way to avoid the class action lawsuit. In response to the charity’s creditor protection request, McKiggan filed a motion to oppose the proceedings that is scheduled to be heard this coming September.
“In their filings, Gospel for Asia Canada admits that they have no creditors. That they don’t owe anybody any money. The only creditors are the class members from this lawsuit,” he told CBC.
Gospel for Asia reportedly only lists $8,900 in creditors, including Canada Post and an Ontario utility company.
“So this proceeding, the CCAA proceeding, is asking the court to approve a process where Gospel for Asia can continue to collect donations and continue to send 
those donations out of the country, with no means to ensure that that money is being spent as directed,” the lawyer argued.
Gospel for Asia: A Controversial Charity
Gospel for Asia has been operating in Canada since 1980 and reportedly raises some $9 million in donations per year.
The charity, which also operates in the U.S., promises that the money will help people living in poverty in India and surrounding countries. In 2015, Gospel for Asia reportedly had the equivalent of more than $43,370 a day from Canadian donors.
According to the Gospel for Asia class action lawsuit in Canada, the charity “defrauded or made negligent misstatements” to Canadian donors. The class action lawsuit proposal further accused the charity of civilly conspiring “to misrepresent the nature of donations collected.”
Greg and his wife donated thousands to Gospel for Asia between 2006 and 2014. Greg learned about alleged financial discrepancies through his pastor, Bruce Morrison, who meticulously researched the charity’s money trail after finding out about their deceitful practices from former staff members in the U.S.
CBC News conducted a year-long investigation into Gospel for Asia and spoke with Bruce and 28 former staff members and board members in Canada, India and the United States.
Between 2007 and 2014, Gospel for Asia allegedly reported to the Canada Revenue Agency that it sent about $94 million to India. However, financial records submitted to the Indian government indicated that Gospel for Asia apparently received no money from Canada during this time.
The Gospel for Asia class action lawsuit in Canada claims the charity “defrauded or made negligent misstatements” to donors.
Greg and his lawyers are seeking the $20 million in Canadian donations that were misdirected to construction costs in Texas, rather than the stated charity purpose.
The Canadian Gospel for Asia class action lawsuit in Canada is the second class action lawsuit filed against the charity. A class action lawsuit worth $37,000,000 was filed in Arkansas against Gospel for Asia. A class action lawsuit settlement was reached in 2019.
Do you think Gospel for Asia’s creditor protection request was a ruse to delay the class action lawsuit against it? Do you think the charity should still be allowed to collect donations? Tell us what you think in the comment section below!
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