RETURN DATE: April 8, 2008
RICHARD BLUMENTHAL,
ATTORNEY GENERAL OF THE
STATE OF CONNECTICUT
Plaintiff
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v.
LOVE TEMPLE CHURCH
OF CHRIST IN PRAYER, INC.,
WILLIE E. McKAY, and
FOUNDATION CAPITAL RESOURCES, INC. :
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: Defendants
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:
COMPLAINT
SUPERIOR COURT
JUDICIAL DISTRICT OF
NEW HAVEN at NEW HAVEN
March 5, 2008
Richard Blumenthal, Attorney General of the State of Connecticut, hereby petitions the Court to prevent misappropriation of Macedonia Pentecostal Church, Inc.’s land and church structure and to seek fairness and justice by such declaratory judgments, orders and decrees necessary in equity and at law to declare null and void the title by which Macedonia
Pentecostal Church’s land and church structure was wrongfully transferred to the Love
Temple Church of Christ in Prayer, Inc., and restore title to the land and church structure to
Macedonia Pentecostal Church, Inc.
In support of this request, the Attorney General states:
Count One:
1. The Plaintiff, Richard Blumenthal, Attorney General of the State of
Connecticut (“Attorney General”), is the Chief Legal Officer of the State and brings this petition pursuant to his duty to protect charitable gifts under Conn. Gen. Stat. §§ 3-125 and 47-2, and in accordance with the legislature’s directive under Conn. Gen. Stat. § 33-
264f to petition the Court to prevent misappropriation of the property of a religious corporation. Conn. Gen. Stat. § 33-264f provides in relevant part that:
No property of a religious society or a religious corporation shall be distributed among its members, or appropriated by any person for private use, and any person appropriating or endeavoring to appropriate, for private use, the assets of any such organization shall be deemed guilty of and subject to the penalties provided for larceny. If the Attorney General receives information of any attempt to appropriate the property of any religious society or religious corporation located within the state to private use, he shall forthwith petition the superior court for the judicial district in which such society or corporation is located to prevent such appropriation, and such court may proceed in the manner hereinbefore provided, or in such manner as it finds to be advisable, and may make such orders and render such judgment as it may find necessary to prevent such appropriation and to effectuate the purposes for which such religious society or religious corporation was organized or such property was contributed or given.
2. Macedonia Pentecostal Church, Inc. (“Macedonia”), located at 184 Butler
Street in Hamden, Connecticut, was established as a religious society in Connecticut in
1959 and was incorporated as a Connecticut non-stock religious corporation on October
29, 1963.
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3. The Defendant Love Temple Church of Christ in Prayer, Inc. (“Love
Temple”) is located at 75 Fresh Meadow Road, West Haven, Connecticut 06516 and purportedly was formed as a religious corporation on March 21, 2005.
4. The Defendant Willie E. McKay, a.k.a Rev. Dr. W.E. McKay, is an individual who, upon information and belief resides, or formerly resided at 15 Michael
Terrace, Wolcott, Connecticut 06916 and may also reside, or formerly resided at 71
Elizabeth Street, New Haven, Connecticut 06511. Defendant Willie E. McKay is one of the three incorporators of Love Temple and represents or has represented himself as the
Pastor and President of Defendant Love Temple.
5. The Defendant Foundation Capital Resources, Inc. is a Georgia corporation located at 1430 Lelia Drive, Suite 100, Jackson, Mississippi 39216 that loaned money to Love Temple in exchange for Love Temple’s assignment of its purported ownership in Macedonia’s land and church structure located in Hamden,
Connecticut.
6. Macedonia acquired title to the land and church structure located at 184
Butler Street in Hamden, Connecticut as a gift from Macedonia’s founder, Henry McKay,
Jr., by quit-claim deed dated November 19, 1965, recorded on the Land Records of the
Town of Hamden, Connecticut at Volume 507, Page 492 (hereinafter the “Butler Street
Property”). See Certified Copy of the November 19, 1965 Deed attached as Exhibit 1.
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7. Macedonia has been in possession of the Butler Street Property from the date it was acquired in 1965 continuously and exclusively to the current date, and has conducted services and activities in the church structure on the Butler Street Property regularly and exclusively since 1965.
8. On or about December 9, 2005, Defendant Willie E. McKay executed a quitclaim deed, purportedly on behalf of Macedonia, that transferred title to the Butler Street
Property to Love Temple (hereinafter referred to as the “2005 Deed”). Said 2005 Deed was recorded on the Land Records for the Town of Hamden on December 13, 2005 at Volume
3070, Page 183. Willie McKay’s signature appears on the 2005 Deed on the signature line for Macedonia as “Rev. Dr. Willie E. McKay, it’s [sic] Pastor Duly Authorized”.
See
Certified Copy of the 2005 Deed at Exhibit 2.
9. Defendant Willie E. McKay was neither Pastor nor a member of Macedonia when he executed the 2005 Deed, nor at any other time prior or subsequent to December,
2005 when the 2005 Deed was executed and recorded.
10. Defendant Willie E. McKay executed and caused to be recorded the 2005
Deed described in paragraph 8 above without the knowledge or authorization of the Pastor, the membership, or any other governing authority of Macedonia.
11. On or about December 9, 2005, on the same day that Willie E. McKay executed the 2005 Deed, Defendant Foundation Capital Resources, Inc. granted a mortgage loan (the “Mortgage Loan”) to Love Temple against Macedonia’s Butler Street Property in
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apparent reliance on Willie E. McKay’s misrepresentations as set forth on the 2005 Deed.
Said Mortgage Loan is recorded on the Land Records of the Town of Hamden at Volume
3070, Page 186, on the same date, December 13, 2005, and immediately subsequent to the
2005 Deed. Willie E. McKay executed the Mortgage Loan document purportedly on behalf of Love Temple. See Certified Copy of Mortgage Loan at Exhibit 3.
12. The Mortgage Loan described in paragraph 11 above granted to Love Temple on December 9, 2005, One Million One Hundred and Fifty Thousand Dollars ($1,150,000) in exchange for Love Temple’s right, title and interest in the Butler Street Property and also for
Love Temple’s right, title and interest in its present 75 Fresh Meadow Road, West Haven,
Connecticut church property and an adjacent residential property at 73 Fresh Meadow Road.
Willie E. McKay purchased both of the Fresh Meadow Road, West Haven properties on behalf of Love Temple on the same date the Mortgage Loan was executed.
13.
The Tax Assessor’s records for the Town of Hamden show an appraised value for Macedonia’s Butler Street Property of $138,900 and assessed value of $97,230 as of
October 1, 2005, and the Tax Assessor’s records for the Town of West Haven show the appraised value for Love Temple’s 73-75 Fresh Meadow Road properties in West Haven of
$1,096,000 and assessed value of $768,000 as of October 1, 2007.
14. On September 7, 2007, Defendant Foundation Capital Resources, Inc. filed a foreclosure action on the Mortgage Loan described in paragraphs 11 and 12 above with regard to both the Butler Street Property and 73-75 Fresh Meadow Road in West Haven.
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With regard to the Butler Street Property, Foundation Capital Resources, Inc. placed notice of lis pendens on the Land Records for the Town of Hamden, Connecticut, at Volume 3393,
Page 188 as notice of foreclosure on its purported right, title and interest to the Butler Street
Property, and with regard to purported security interests in assets, fixtures, and personal property at the same location. See Certified Copy of Notice of Lis Pendens, CV-07-
5013381S, Superior Court for the Judicial District of New Haven at New Haven, at Exhibit 4.
15.
On January 29, 2008, a “Notice to Quit Possession” as of or before February
3, 2008 was dropped through the mail slot of Macedonia’s church located on the Butler
Street Property, without envelope or postage. The form notice wrongly represents that the name of the landlord of the Butler Street Property is “Dr. Willie McKay, Lizzie G. McKay,
& Love Temple Church” and is signed by Dr. Willie McKay and Lizzie G. McKay.
16. In addition to representing himself as pastor and president of Love Temple, which is the record title holder of 75 Fresh Meadow Road in West Haven, Connecticut,
Defendant Willie E. McKay, has represented that he directs religious services at the same 75
Fresh Meadow Road location in West Haven for a separate religious corporation called Love
Tabernacle Church, Inc. that he incorporated in Connecticut in1996. Willie E. McKay is also principal of a for-profit business that is operated at the same 75 Fresh Meadow Road church property in West Haven, Connecticut, called LTC Productions, Inc.
17.
Love Temple obtained apparent title to Macedonia’s Butler Street Property by the wrongful representations of Defendant Willie E. McKay, who acted without authority
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from Macedonia. Therefore, the 2005 Deed executed by Defendant Willie E. McKay and recorded on the Land Records for the Town of Hamden on December 13, 2005 at Volume
3070, Page 183 is null and void.
18. Because the 2005 Deed executed by Defendant Willie E. McKay is null and void, the Mortgage Loan recorded on the Land Records of the Town of Hamden at Volume
3070, Page 186 purportedly granting to Defendant Foundation Capital Resources, Inc. all of
Defendant Love Temple’s right, title and interest to the Butler Street Property is without effect with regard to the Butler Street Property because Love Temple had no interest in that
Butler Street Property to grant.
19. Because the 2005 Deed executed by Defendant Willie E. McKay is null and void, the security interests claimed by Defendant Foundation Capital Resources, Inc. against
Defendant Love Temple for assets and fixtures and personal property located at the Butler
Street Property are without effect because Defendant Love Temple holds no interest whatsoever in such assets, fixtures, and personal property.
20. Because the 2005 Deed by which Defendant Love Temple purportedly holds title to Macedonia’s Butler Street Property is null and void, all right, title and interest in the
Butler Street Property remains exclusively with Macedonia.
21. The actions of Willie E. McKay on behalf of Love Temple as set forth in this
Count One constitute misappropriation of Macedonia’s religious property in violation of
Conn. Gen. Stat. §§ 33-264f and 47-2.
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Count Two:
1 – 16. Paragraphs 1 through 16 of Count One are hereby incorporated as paragraphs
1 through 16 of Count Two.
17.
Defendant Willie McKay’s execution of the 2005 Deed, purportedly on behalf of Macedonia, constitutes a knowing and deliberate false representation made as a statement of fact with the intent of inducing reliance thereon and did induce reliance thereon.
18. Defendant Willie E. McKay fraudulently obtained title for Love Temple to
Macedonia’s Butler Street Property for the private use of Love Temple and his private use.
19. By executing the 2005 Deed without the permission of Macedonia, and improperly and fraudulently causing it to be recorded on the Land Records of the Town of
Hamden, Willie E. McKay deliberately induced reliance by all the world on the false representation that he had authority to release title on behalf of Macedonia to Love Temple and that such title was validly transferred.
20.
Love Temple obtained apparent title to Macedonia’s Butler Street Property by the fraudulent representations of Defendant Willie E. McKay, who acted without authority from Macedonia. Therefore, the 2005 Deed executed by Defendant Willie E. McKay and recorded on the Land Records for the Town of Hamden on December 13, 2005 at Volume
3070, Page 183 is null and void.
21. Because the 2005 Deed executed by Defendant Willie E. McKay is null and void, the Mortgage Loan recorded on the Land Records of the Town of Hamden at Volume
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3070, Page 186 purportedly granting to Defendant Foundation Capital Resources, Inc. all of
Defendant Love Temple’s right, title and interest to the Butler Street Property is without effect with regard to the Butler Street Property because Love Temple had no interest in that
Butler Street Property to grant.
22. Because the 2005 Deed executed by Defendant Willie E. McKay is null and void, the security interests claimed by Defendant Foundation Capital Resources, Inc. against
Defendant Love Temple for assets and fixtures and personal Butler Street Property located at the Butler Street Property are without effect because Defendant Love Temple holds no interest whatsoever in such assets, fixtures, and personal Butler Street Property.
23. Because the 2005 Deed by which Defendant Love Temple purportedly holds title to Macedonia’s Butler Street Property is null and void as a fraudulent document, all right, title and interest in the Butler Street Property remains exclusively with Macedonia.
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DEMAND FOR RELIEF
WHEREFORE, the Attorney General respectfully requests that the Court grant such judgments, orders and decrees necessary to effect the relief requested below as permitted by
Connecticut statutory and common law relative to determination of valid title to real property, including but not limited to Conn. Gen. Stat. §§ 33-264f, 47-2, 47-31, and 52-22:
1. A judgment, declaratory judgment, order or decree that the 2005 Deed recorded on the Land Records for the Town of Hamden on December 13, 2005 at
Volume 3070, Page 183 is null and void.
2. A judgment, declaratory judgment, order or decree that Foundation
Capital Resources, Inc. has no right, title or interest whatsoever to Macedonia’s Butler
Street Property at 184 Butler Street in Hamden, Connecticut, nor any security interest in assets, fixtures, or personal Butler Street Property located at 184 Butler Street in Hamden,
Connecticut.
3. A judgment, declaratory judgment, order or decree by which all right, title and interest in the Butler Street Property located at 184 Butler Street in Hamden,
Connecticut is determined to be validly and exclusively held by Macedonia.
4. A decree restoring title to the land and church structure located at 184
Butler Street in Hamden, Connecticut, to Macedonia.
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5. Such other equitable or legal relief as the Court deems just and proper, including but not limited to court costs for this action and recording costs due to the clerk of the Town of Hamden.
PLAINTIFF,
RICHARD BLUMENTHAL
ATTORNEY GENERAL
BY:_________________________________
Karen Gano
Juris No. 421633
Assistant Attorney General
55 Elm Street
Hartford, CT 06106
Tel: (860) 808-5020
Fax: (860) 808-5347
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