SEC Wins Jury Verdict Against Former Presidents of Church Extension of the Church of God, Inc. and United Management Services, Inc.

Defendants Grubbs and Jackson, through Church Extension and UMS, repeatedly made material misrepresentations and omitted to state material facts in Church Extension’s solicitation and offering circulars, concerning, among other things, the primary use of investment note proceeds and the financial conditions of Church Extension and UMS. In addition, instead of using investment note proceeds primarily to fund church loans as stated in offering circulars, investor proceeds were used to fund speculative real estate transactions and to make interest and principal payments to prior investors.