A prominent Nashville attorney has been hired by the Presbyterian Mission Agency Board’s (PMAB) Executive Committee to investigate the circumstances surrounding the unauthorized establishment of an independent corporation in southern California. The corporation was designed to benefit the 1001 New Worshiping Communities movement of the Presbyterian Church (U.S.A.).

George Crawford III—a PC(USA) ruling elder—and relevant partners of the Butler Snow LLP law firm of Nashville will be conducting the investigation. Until their inquiry is complete, the four Presbyterian Mission Agency employees implicated in what the PMAB’s Audit Committee concluded “violated the [PMA] ethics policy” have been placed on paid administrative leave. The four are Roger Dermody, deputy executive director for mission; Eric Hoey, director of Evangelism and Church Growth; Philip Lotspeich, then coordinator for church growth and the staff person directly responsible for the 1001 New Worshiping Communities initiative; and Craig Williams, western regional deployed staff member for the 1001 program, based in San Clemente, California.

Of Crawford, PMAB chair Marilyn Gamm said: “We wanted someone who is familiar with Presbyterianism and whose firm understands complicated corporate matters.” The minutes of the November 14 Executive Committee meeting, where the actions were taken, say the investigation should be completed “by early 2015.” The committee recommended the four suspended staff members cooperate with Crawford’s inquiry.

“We are seeking ways to begin to restore trust in [PMA executive director] Linda Valentine and the Presbyterian Mission Agency Board,” Gamm said. “Since the Audit Committee report went public responses have been mixed, but trust has been broken with a significant part of the church.”

Crawford’s investigation “is not a witch hunt,” Gamm insisted, adding that she doesn’t know if the independent investigator will find anything that the PMAB Executive Committee doesn’t already know.“Mostly, it’s about taking seriously the (PMA) board’s call to seek justice, to build and rebuild trust,to bring clarity to concerns about possible financial misappropriation or loss,” Gamm said,  “and to remind the church that no person or program" is more important than abiding by our ethical principles or our financial and moral responsibility.”

"The controversy began when senior Mission Agency leadership discovered that the independent corporation—Presbyterian Centers for New Church Innovations Inc. (PCNCI)—had been established in December 2013. Dermody and Valentine said they first learned of the corporation’s existence in March 2014. “We shut down all activity with PCNCI right away and began a further analysis,” Valentine said.

One $100,000 grant from Mission Agency funds was sent to the unauthorized entity, and another grant was in the pipeline when the activity was uncovered. The original $100,000 was returned, and the second grant was stopped before it could be sent to PCNCI. The Audit Committee and the PMAB were informed of the establishment of the unauthorized corporation in April, and the Audit Committee conducted its investigation over the summer, reporting in August.

The matter was subsequently considered by the PMAB in closed session in September and again in October. Valentine issued a statement on the matter on October 8.

Gamm reaffirms the work done by Mission Agency staff. “We believe what happened was serious but not a widespread problem,” she said. “We firmly believe in the importance of the work of the [Mission Agency] in the life of the broader church and in the hard work and excellence of our staff. We commend the staff and volunteers who make our common ministry vibrant, responsible, and life-giving in the church and in the world.”

Gamm also expresses support for the 1001 New Worshiping Communities initiative. “The board does not see this as an indictment of innovative ministries, and remains committed to pursuing flourishing, faithful, and relevant expressions of the church in the 21st century, while remaining faithful and responsible with the gifts given to us.”

Gamm acknowledges that “this episode has opened a breach of trust, and we mourn it, own it, and will work hard to earn it back.”

Valentine agrees. “I recognize that this situation has caused much pain and distrust. I welcome and fully support the action taken by the Executive Committee.”

The investigation, Gamm said, “is about restoring and rebuilding trust so all of our ministries can continue to thrive and flourish again.”