§ IN THE DISTRICT
V. § HARRIS COUNTY, TEXAS
JOE DELGATTO, et
DEFENDANTS § 280th DISTRICT COURT
PLAINTIFF’S BRIEF IN SUPPORT OF A SHOW CAUSE HEARING
TO THE HONORABLE JUDGE OF THIS COURT
COMES NOW, Plaintiff and files this PLAINTIFF’S BRIEF IN SUPPORT OF A SHOW CAUSE HEARING and would show the court the following.
Plaintiff would show the court that this lawsuit is sixteen months old and that for the last six months the Administrative Commission of the Defendant Presbytery of New Covenant and its attorney Reagan Brown have used dilatory tactics as well as out right lies to stall this lawsuit.
This suit was filed in April 2002, to stop the minister and his co-conspirators attempted obligation of Heights Presbyterian Church (HPC) to the Independence Heights Project (IHP), a corrupt HUD retirement home project. Defendants employed several tactics to stop Plaintiff from getting to the truth about the IHP.
In February 2003, two days before a February 10, 2003, hearing in this court, the Defendants set up an Administrative Commission to block further progress on this lawsuit. The court wrongly believed Reagan Brown, the Defendants lead attorney, and allowed the Administrative Commission to go forward with the IHP without authority from the congregation per the Book of Order of the Presbyterian Church, USA.
In June 2003, Reagan Brown, filed a Status Memorandum which was in fact a disguised Motion for Abatement. WorldPeace was not aware that it had been filed until the day before court ruled upon the Motion without notice to Plaintiff. The court then refused to set a show cause hearing to allow Plaintiff to expose the blatant lies foisted on the court by Reagan Brown in the Status Report.
WorldPeace then filed additional causes of actions and added additional Plaintiffs as he continued to discover more bad acts.
On Sunday, September 7, 2003, Defendants gave to the HPC congregation a Second Interim Report from the Administrative Commission and WorldPeace is certain that said report was filed with this court last week and sent to WorldPeace by certified mail to make sure that he did not receive it in a timely manner; the same way Reagan Brown did with Defendant Presbytery’s disguised Motion to Abate in June.
The First and Second Interim Reports are full of lies and hearsay. Nothing is sworn to. They amount to an unverified answers to Plaintiff’s petition. The two core issues of the lawsuit, the IHP and an audit of the finances of HPC have now been investigated and responded to by the Administrative Commission via their two interim reports. This court should set a show cause hearing to allow Plaintiff to expose the incredible number of lies and falsifications and skewing of the truth by Reagan Brown for the purpose of preserving the status quo and getting this lawsuit back on track.
It is imperative that the IHP be stopped before HPC is bankrupt. It is imperative that Temporary Orders be put in place to stop the continued wasting of the assets of HPC by the Administrative Commission and to open up the church business to the congregation in order to prevent more abuse both economic and personal by the Administrative Commission.
The Administrative Commission has breeched if fiduciary duty to the congregation, committed fraud, attempted to threaten and harass the Plaintiff out of HPC after sixty two years of attendance, all for the sole purpose of covering up six years of embezzlement of the assets of HPC by the Defendants.
Plaintiff prays the court to immediately set a show cause hearing in this matter.
In May 2001, the minister of HPC and Charlie Windham, a member of HPC, and Tom Lord a corrupt promoter, attempted to obligate HPC to a corrupt HUD retirement project called the Independence Heights Project. Delgatto in open court in February 2003, admitted that he did not have the authority to make said commitment from the congregation of HPC, its session of elders of HPC, or the Presbytery of New Covenant, the immediate hierarchal body over HPC, per the Book of Order of the Presbyterian Church USA.
In March 2002, Delgatto, and other members of HPC along with Tom Lord, the corrupt promoter of the IHP, incorporated IH, Inc. (Independence Heights, Inc.) to handle the finances of the corrupt IHP without the knowledge of the session, congregation or the Presbytery of New Covenant.
Later in March 2002, Delgatto, informed the session that HPC was obligated to the IHP; a blatant lie.
On April 19, 2002, WorldPeace had a meeting with Delgatto, Windham and Lord and Lord’s attorney Bob Casey regarding the IHP. WorldPeace was told that nothing was going to transpire with regards to the IHP until the end of May 2002, and that the records of the IHP would be available to WorldPeace the following week.
Two days later, on April 21, 2002, Delgatto held an illegal special session meeting regarding the IHP. And on the following day, due to the lies that Delgatto, Windham and Lord told WorldPeace, suit was filed in this matter.
Delgatto continued to sign documents in secret and without authority regarding the IHP even after the lawsuit was filed and he was thereby put on notice to stop his corrupt actions.
In October 2002, Diane Springer, a member of HPC, gave $5,000 directly to the IH, Inc. to obligate HPC to the IHP. This was done in secret in order to keep the congregation and session ignorant of what was happening.
In October 2002, WorldPeace attended a session meeting in which Delgatto attempted to have WorldPeace removed by calling the police. The session meeting was closed. The session meeting was then held in one of the member’s home in order to keep WorldPeace out.
At that meeting, it was decided to hire Diane Feiler McGehee, attorney at law, and a friend of Patty Ellis, one of the main coconspirators, to represent HPC when HPC had not been sued. Ms. Feiler lied to the court stating that she was hired to represent HPC. Ms. Feiler has refused to date to produce the contract between HPC and Ms. Feiler because she was not hired to represent HPC but was hired to represent Delgatto, his wife and Patty Ellis. Ms. Feiler withdrew from the lawsuit fourteen days after she appeared in open court as she realized she had put her license to practice law in jeopardy by her bad acts and lies to the court.
On December 6, 2002, the court ordered that WorldPeace must be present at any congregational meeting regarding the IHP. The congregational meeting was canceled in order to prevent WorldPeace from asking any questions about the IHP.
Delgatto continued to sign documents all the way into January 2003, in order to try to obligate HPC to the IHP.
In order to further cover up the corruption of the IHP, the Presbytery of New Covenant, in conspiracy with Delgatto and others appointed an Administrative Commission allegedly to take over the governance of HPC and to plead to the court that the court should allow the Administrative Commission time to do its work. The sole purpose was to block WorldPeace’s discovery of the IHP matter and demands to see the church finances for the five years of Delgatto’s tenure.
At the February hearing, the court denied Plaintiff’s motions in order to allow the Administrative Commission time to work and set a review for June 2003.
The Administrative Commission, none of whom are members of HPC, completed the IHP transaction without authority from the congregation or the session as required by the Book of Order. There is no doubt but that the IHP is corrupt and the Presbytery was desperate to conclude the project due to kick backs already received by the Defendants. There was no other reason for the Administrative Commission to complete the project in secret.
The Administrative Commission determined that the court’s order of December 6, 2003, stating that no discussion of the IHP would take place without the presence of WorldPeace, should be ignored. Reagan Brown and Defendant Roy Keezel, both attorneys, told the members of the session when they were presenting the First Interim Report that the court’s order of December 6, 2002, was meaningless and they did not have to abide by it. The truth is that Reagan Brown, Roy Keezel and the Administrative Commission were in contempt of court. The IHP transactions was completed in complete secrecy without a single meeting with the session or the congregation of HPC.
On March 24, 2003, the Administrative Commission produced its First Interim Report (Ex A) which spoke exclusively to the IHP issue. Reagan Brown, put numerous lies in the report. Most of these will be exposed at a show cause hearing but the major ones are as follows. 1) No such non-profit corporation exists named the Greater Houston Housing Corporation owned by the corrupt promoter Tom Lord. 2) Brown tries to assert that the IH, Inc, (Independence Heights Inc.) which is owned by HPC and Heights Christian Church, is not in fact a proxy for HPC and that no monies will be due from HPC if the IHP runs a monthly operating deficit. It is nonsense to believe that one can set up a corporation which has no assets to step into the shoes of HPC in order to limit the liability of HPC over a forty year HUD project. 3) The interim report refused to mention that HPC is obligated for the monthly operating deficits for the next forty years in order to deceive the congregation. Brown alleged that HPC would not be obligated for any building deficits. This is still questionable.
WorldPeace would show the court that there is not a single affidavit attached to the interim report and it is therefore hearsay and nothing more than an unverified general denial by Defendants in this lawsuit. The report was designed to confuse and lie the congregation in order to undermine this lawsuit. The individuals of the Administrative Commission have been very careful not to attach their names to any documents or communications because of the actionable lies it continues to spin to the congregation.
The Friday before the June 8, 2003, date which the court intended to review this lawsuit, Reagan Brown filed a Status Memorandum which was full of lies and which was in fact a disguised Motion to Abate. WorldPeace did not receive the report until the day before the court abated this lawsuit without a hearing.
Further, in the Status Memorandum, Brown alleged that WorldPeace was disbarred. Even though there was a Judgment for Disbarment issued on April 23, 2003, it was interlocutory as well as void because the court had no jurisdiction from the Supreme Court to hear the disciplinary petition. As a result, the disciplinary court set aside the disbarment on June 23, 2003.
This is why WorldPeace did not abide by the disbarment order and inform this court of the disbarment. However, this court never gave WorldPeace an opportunity to explain this.
On August 27, 2003, the disciplinary court issued another Judgment for Disbarment which is also void and also interlocutory because it does not deal with all the parties and all the causes of action. In addition, WorldPeace, discovered last week that the disciplinary judge is an elder in Covenant Presbyterian Church. For this reason and others, WorldPeace is filing a motion to recuse the disciplinary judge with the Supreme Court. WorldPeace expects the second Judgment for Disbarment to also be vacated.
There are many problems with the Judgment for Disbarment but the main one is that the disciplinary court severed WorldPeace’s mandatory constitutional counter claims which is an abuse of discretion. Further, the disciplinary court in its last Judgment for Disbarment literally lied and stated that it had ruled these counter claims were part of a separate trial when in fact the record clearly shows they were severed in pretrial on the State Bar’s motion.
This court should disregard all of the disciplinary matter because WorldPeace will have a co-counsel sign onto this case in the event it looks like he will actually lose his license; the chances of which are slim and none. WorldPeace intends to shut down the State Bar grievance process and that is why he went to trial. WorldPeace has been working toward this goal for ten years.
WorldPeace will file a copy of his Motion to Recuse the disciplinary judge in the disciplinary case in this court as a Notice of Filing just so Brown cannot again use the disciplinary lawsuit to further delay this lawsuit.
Yesterday, the Administrative Commission issued its Second Interim Report (Ex B) which had to do with Plaintiff’s request for an audit. The timing was intended to stop WorldPeace from responding before 8:00 am on September 8, 2003, when the court is to consider this lawsuit.
WorldPeace would show the court that the Second Interim Report is full of more lies by Mr. Brown than the first. 1) The CPA firm that was hired to give credibility to the report prefaces the financial data with a statement that it did not audit the books of HPC and that it only compiled a report based on what it was given by the Administrative Commission. In a word, the CPA involvement is meaningless. 2) Plaintiff alleges that money has been embezzled all the way back to 1997 when Defendant Delgatto became minister of HPC. The Second Interim Report does not speak to the years 1997, 1998 and 1999 but only 2000, 2001 and 2002. The last real audit was in 1996. 3) The Interim Report states what has been denied until the report, that over $920,000 was received from the John Fakes estate and there is only about $300,000 left. Prior to Delgatto, the church essentially had a budget of $76,000 per year and covered that amount with contributions. The church has about the same number of members now as it did in 1996 and yet there has been over $600,000 spent over and above the $76,000 contributions. That is about $110,000 per year and does not account for another $150,000 in interest on the bequest. 4) It is probable, as has been alleged by Plaintiff, the 1997, 1998 and 1999 financial records have been destroyed by Delgatto and others to cover up the embezzlement. 5) Further the Second Interim Report allegedly accounts for the money. It does not speak to the issue of whether all the expenses were legitimate. There is no statement that all the monies paid out were for items authorized by the session and the congregation. Delgatto has an admitted history of acting without authority from the congregation or the session.
Like the First Interim Report, the Second is not verified. No one has attested to the report. The Second Interim Report is no more than an unverified general denial to the second core issue in this lawsuit which is Plaintiff’s allegation of embezzlement.
Without a complete audit, Brown cannot, as he has in the Second Interim Report, state that no money has been stolen. The two reports are proof positive that Mr. Brown is willing to foist any number of lies on this court and the congregation of HPC in order to cover up the tortious and probable criminal acts of the Defendants.
WorldPeace would also show the court that the Administrative Commission has only had three meetings with the session of the church and two of those were to present the two interim reports, without allowing comment from the session, and the third was a general discussion lasting only thirty minutes.
WorldPeace would also show the court that no open meetings have been held with the congregation in the six months of the Administrative Commissions existence.
WorldPeace would show the court that all the efforts of Brown have been to delay this lawsuit for as long as possible so that the IHP could move forward and the embezzlement covered up. However, Mr. Brown simply does not understand that WorldPeace has a strong accounting background and the embezzlement and manipulation of the records is blatant and will not be allowed to go unchallenged.
WorldPeace would show the court that the two main issues in this lawsuit have been investigated by the Administrative Commission and long reports issued: The IHP and the embezzlement of church assets.
It is time for the court to restart this case by setting a show cause hearing for the purpose of setting Temporary Orders which will enjoin the IHP until discovery can be completed by Plaintiff as well as consider sanctions against Brown for his lies on behalf of the Defendants.
WorldPeace would emphasize to the court that the Administrative Commission went forward with the IHP when the HPC was not obligated to do so. The Administrative Commission could have stopped the whole project especially since it claims in its First Interim Report that HPC was not and is not obligated to the project. This being the case, there is no reason not to enjoin further development of the project.
Wherefore, premises considered, Plaintiff prays this court to set a show cause hearing so that all the parties can be heard and the court can issue Temporary Orders and for such other and further relief in law or in equity as this court deems proper.
Attorney for Plaintiff
CERTIFICATE OF SERVICE
I certify that on September 8, 2003 a true and correct copy of this pleading was served to the opposing counsel.
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