One of the four employees who as of June 1 is “no longer with the Presbyterian Mission Agency,” has released a statement asking the PMAB to release the report of its independent investigation, because he feels that it “fully exonerates the four employees from any ‘ethical’ wrongdoing, and raises serious questions about the Agency’s actions throughout this matter.”
The Rev. Philip Lotspeich, who was the Coordinator for Church Growth for the PMA until Monday (June 1), issued his public statement on Facebook after learning via PMA’s press release that he no longer had a job.
“I have yet to be provided any reason for this separation. While the separation was news to me, it affords me the opportunity to at long last speak publicly about the events of the past year,” he said. “As a loyal employee working for the betterment of the PMA and the church, I have remained silent while my actions have been grossly misrepresented by an audit committee investigation that was woefully incomplete.”
In a telephone interview Lotspeich’s attorney, Schuyler Olt, confirmed that his formal requests for both the original audit report and the subsequent “Altston & Bird report” have gone unanswered or flatly denied.
Lotspeich’s statement reveals that he believes “that the Alston and Bird report fully exonerates the four employees from any ‘ethical’ wrongdoing, and raises serious questions about the Agency’s actions throughout this matter. I can’t state anything for certain, because they are not sharing the information they possess, but I know the truth that was there for a neutral, unbiased party to discover.”
Olt said, “We have asked that they be transparent and put the report out there. It is being withheld on the basis of attorney-client privilege. I couldn’t tell you if its 10 pages or 50 pages. I have no idea. But I ’ve got to believe that if that report said that my guys did something illegal or unethical my adversary would have put it under my nose. That’s what we – that’s legal standard operating procedure. In my opinion, if it vindicated the ethics charges they wouldn’t have taken down their articles and scrubbed their minutes.”
Philip Lotspeich
In his public statement, Lotspeich said that the PMA “flatly refused to share the results of the independent investigation with me, and now they are refusing to share them with you,” despite a statement by the PMAB’s executive committee which said it “continues to be committed to fairness and due process for all employees…and will seek ways to ensure healthy relationships and a positive, nurturing work environment for all employees.”
Lotspeich said those words filled him with hope, because until that statement was made — when the executive committee requested the independent investigation — “I had experienced a patently unfair process completely lacking in due process and transparency.”
Olt described his own experience with reference to Matthew 18 and the goal of resolving a disagreement through dialogue not litigious dispute. “If I’m trying to walk with my brother before things get to the judge then I would have thought we would have information sharing. There has been none.”
In fact, Olt said that he and his client learned about most of the developments related to the case through posts on Facebook, Twitter and via church-related media outlets.
As the PMA Board made decisions related to his client, Olt said, “we would learn about it on Facebook. No one ever called us. When the board hired John Sheller I read about it online and called him the morning after the meeting.”
That’s when Olt says, “we started down the so-called route of negotiations.”
Lotspeich revealed in his statement that he turned down all of the PMAB’s severance and settlement offers, “because they came with the stipulation that our voices would be silenced and the report would likely remain unseen. I believe that the church at large deserves to see the report that they themselves financed, and this was ultimately more important than my own financial gain.”
Olt commented of the Lotspeich’s that “these people are living it; they’re the real deal.” More than his attorney, Olt is Lotspeich’s longtime friend and colleague in ministry. Olt and his wife, also a PCUSA minister, attended Louisville Presbyterian Seminary at the same time that Philip Lotspeich’s wife was earning her M.Div. Subsequently, Olt’s wife worked with Philip at the PMA in the New Beginnings ministry. She witnessed first-hand what Olt describes as “the public shaming” of the four men at the center of the investigation during in November 2014.
Linda Valentine, executive director of the PMA said that the grant money was returned. Nothing was lost and much was learned. She also stated that there was no indication that any of the four employees were trying to benefit personally from the plan. So, according to Olt, “Linda Valentine makes a resolution of this in November 2014. She called an all hands on deck meeting of the PMA staff and had the four repent in front of them to all their co-workers. Then she essentially said, ‘we’re done. Go back to work.’”
The executive director, who has full authority over the staff, acting with full knowledge of the audit committee report, the subsequent measures taken to restore the funds, and the allegations of ethics violations, considered the issue resolved.
“But then,” Olt says, “the PMA Board gets involved. Allegations arose of ‘ethical violations.’ They decide to hire outside counsel to investigate. They put the guys on paid leave – no discussion, no negotiation.”
Then, Olt continued, “the PMA Board decided to hire a lawyer .” But they did so without considering the inherent conflict of interest in hiring someone who was serving in another capacity with one of the PMA board members. Olt recalls that “when that came to light it derailed the process. It took the board months before Alston & Bird got started.”
Apparently the PMA Board gave the firm a blank check and set no cap on spending. The legal costs, which are still rising, now exceed $850,000.
Olt said that the Alston & Bird process include individual meetings with the four men. “They met with the four employees individually. They brought with them notebooks of emails. Big thick notebooks. There are hundreds of emails where this corporation is referenced. Some of the emails include Linda Valentine and Legal and Finance and others.”
The report was received by the PMA Board in April but neither Olt nor his client have seen it. It has not been released. Lotspeich wants to see it and he wants the church to see what nearly a million dollars in mission funds were spent discovering.
Olt, for his part, continues to wonder why Linda Valentine’s resolution in November 2014 wasn’t good enough. “That question has still never been answered,” he notes.
Meanwhile, his client and three others have lost their jobs.
The four, now former, employees are:
- Roger Dermody, deputy executive director for mission
- Eric Hoey, director of Evangelism and Church Growth;
- Philip Lotspeich, coordinator for church growth, and
- Craig S. Williams, staff person for the western regional office of the Presbyterian Centers for New Church Development
They were put on paid leave on Nov. 15, 2014, following an internal investigation which revealed the formation of an independent 501c3 California corporation called Presbyterian Centers for New Church Development Inc., which received (and returned) a $100,000 grant from the 1001 New Worshiping Communities project of the PCUSA.
In response to the charge of defamation, the PMA has removed all meeting minutes and related stories from the denomination’s website.
Related articles:
Craig Williams responds to 1001 announcement
Dermody files lawsuit: PCUSA’s statements were false and defamatory
Read the complaint: Roger Dermody v. Presbyterian Church (USA), A Corporation
4 employees ‘no longer with’ PMA following 1001 investigation; Defamation lawsuit filed
Presbyterian Mission Agency Board directory of members (revised 1/5/15)
14 Comments. Leave new
It’s privileged information isn’t it? Releasing a massive document would just open up more questions, accusations, possible nit picky lawsuits, countersuits, it never ends……. PCUSA is a private entity and doesn’t have to release private info unless a specific formal request is granted through the courts. Like I said, I’m no fan of the way PCUSA has run things the past 20 or 30 years, but now everyone has lawyered up.
Now that Dermody has filed suit this will all have to come during discovery, I have no clue what Valentine is thinking, but this whole thing looks more like a cover up all the time. Now we are getting this drip, drip of information, you can bet there well may be more lawsuits to follow.
Wow what a mess for the pcusa, and as usual it’s self-inflicted!
Just for clarity — this decision and investigation were not at the direction of Valentine. The investigation was at the direction of the Presbyterian Mission Agency Board. We need to help people understand that when we say “the folks in Louisville” we SHOULD be talking about employees of the church, but what we actually mean is those on the PMAB who make decisions that directly impact how the staff operates and also how the larger church is allowed or not allowed to be involved.
Robert, perhaps I can clarify the attorney-client privilege for you and others, and this is a very general explanation. The privilege belongs to the client, and the client (in this case the PMA Board) could agree to waive the privilege at any time. The waiver can even be conditional–for example, to opposing counsel for purposes of settlement discussions. If the document is indeed privileged, no court can compel it to be disclosed. However, my guess would be that Dermody’s lawyers will formally request it, the lawyer for the board will object, and then a lengthy motion practice will ensue to test whether the document should be disclosed. That will entail lengthy briefs based upon extensive research, hearings, and potentially even appeals. Obviously, that will incur significant fees, in all likelihood. Hope this helps to clarify the privilege and its disclosure.
understood, but Valentine is knee deep in this, and has been from day one. The moore that louisville hides behind “privileged” information, the more it looks like a cover-up, 4 people lost their jobs and the way louisville did it makes it look even worse. They were just going to throw these 4 away and hoped this went away, BAD calculation.
We don’t know who the victims are yet, but louisville is not one of them. And all the lawyers are getting to benefit.
What I saw at GA was a take over of the agenda for the church
by questionable means and bad advice. Their actions to change the definition of marriage against the best advice of the committee and our mission partners was troubling, yet the votes in Presbyteries followed their leaders.
The Courts, likewise are in the hands of the progressives as the Parnell vs SF shows. You cannot count on the court system to apply Justice.
The last battle is what happens with the “mission” agenda in the 2001
Movement for new church growth and Evangelism. This move to fire four top administrators in that area is more evidence of a take over by the progressive wing.
And they do not care who is hurt in the process …….
I think this is about controll issues of what the 2001 Worship groups are all about and how and what they worship. It is not just about leadership gone awry but it is about who will decide the peramators of the program.
My guess is that they were waiting for an excuse to stifle the evangelism and growth that might have been more evangelical?
What do you think?
There is an old Italian saying, “the fish stinks for the head down”. Or in a more corporate context, program responsibility can be delegated, ultimate “accountability” cannot. Gradye, may have many things on his desk, the old Truman, “bucks stops here” is not one of the them I assume.
But at the end of the day, in most cases, the CEO/COO is left to hold the bag when things go south. I think in spite of all the heat and fire of the moment, the organization shuts down, circle the wagons, and Gradye and Linda, sort of ride this out. Not only that, the PCUSA is so dysfunctional they will be elected again to great acclaim and applause at Portland.
The true measure of insanity is to expect different result with the same principles in place.
Valentine said that there was no bad intent with these 4, you may be on to something with this, it’s all money power and control, however the sooner that louisville comes clean, the better.
As far the 1001 NWC, it’s becoming clear it’s time for change, but louisville will do its will as we can all tell.
Nothing surprising here. Church bureaucrats are all about protecting the brand.
Based on past and recent events, this could be the scenario. The progressives are amping up their militancy in many seemingly coordinated areas.
Philip Lotspeich, coordinator for church growth, is doing his job.
In a God-fearing denomination, he would facilitate denominational growth.
In this case, he is facilitating its just demise.
Never, never under-estimate the devious ‘velvet glove’ tactics of progressives. They’re obsessed masters at the craft of ‘worldly’ politics and ‘worldly’ wisdom. While innocent, more orthodox Christians play checkers, they play chess.
I am deeply heartsick over this, for numerous reasons, primary of which is the damage done to the ministry of Jesus Christ in the world.
A couple of years ago I and some friends sat in a room with one of these four gentlemen and talked with him about why our churches were seeking dismissal from the PCUSA. He was gracious and listened attentively, but at the end of the day, he was unapologetically enthusiastic about the work of PMA and their 1001 initiatives. He had their back and went to the mat for them. And they have responded by treating him this way. Unconscionable.
However: the only benefit of the doubt I can give PMA at this point is to wonder if somewhere in the audit there is information that would hurtful if published to one of the four individuals. We know that at least two of them want the audit details released. If all four were to ask for their release, then slam dunk.
Thanks Ellen, for keeping us aware that we do not know enough to make guesses. Real lives are involved here. I too am heart sick, but must remember to keep these men and the PMA in prayer.