Paul W. Wiedenmann, Vice Chairman, Board of Trustees, LC-MS Foundation promised this
writer a free plane ticket and an invitation to the next Fall Conference of the LC-MS
Foundation scheduled for November 17 - 19, 2000 in Houston, Texas.
Wiedenmann extended this invitation on December 28, 1999 in response to our release of
December 21, 1999 titled, "Leadership and the Joy of Spending
Other People's Money." He wrote, "I would be delighted to have you attend
the next conference at my personal expense."
The following comments had prompted Wiedenmann's invitation:
The December 1999 LC-MS 'Reporter' is one of the most remarkable examples of self
congratulations for spending and loosing other people's money in the name of God.
On page two we find the article titled, 'Leadership talks stress Making a Difference.'
The Lutheran Church-Missouri Synod Foundation and the Church Extension Fund spent
approximately three quarters of a million dollars flying in 900 LC-MS 'leaders' to San
Diego, California on Nov. 19-21, 1999 for this year's Fall Leadership Conference. That
included air fair, lodging, meals, conference rooms and a banquet hall for the COP, LCEF
and Foundation Board members and representatives, staff workers, financial planners,
Synodical officials, etc, and their wives.
What did they hear? On page 4 it states they heard a report titled "'Trusted
employee' blamed for foundation loss." The Foundation and LCEF lost $40,000.000.00
and they say it was one man's fault. Of course, The former employee's name was not
disclosed.
What did he do? The '20-year employee had violated investment policies.'
As a result, the $40 million was lost from funds managed by the employee.
How did he lose the money? He invested in 'exotic unhedged derivative investments.'
What was the policy he was supposed to follow? 'Had policy been observed the manager
could have had up to $20 million in such investments. But at June 30, 1998, $98.9 million-
more than twice the limitation- had been placed by the manager in derivatives.'
Pardon me gentlemen, but my math tells me that the manager in question exceeded policy
by nearly five times, not two times.
In other words, this man put one seventh of the entire LCMS Foundation in 'exotic
unhedged derivatives' and no one knew about it?! That's quite a chunk. Loosing $40 million
of $100 million in a few months means these highly 'exotic' investments also have
tremendous potential to make $40 million dollars profit at the same time. Would the Synod
have been informed of such a windfall?
In his most gracious reply and invitation of December 28, 1999, Wiedenmann wrote in
part: "We have nothing to hide and are eager to improve our communication with
everyone in the church. I would be delighted to have you attend the next conference at my
personal expense. After observing all that goes on you would certainly have a stronger
basis from which to assess its value. The next Fall Conference is scheduled for November
17 - 19, 2000 in Houston, Texas. I hope that you can make it."
After further correspondence with Wiedenmann, Reclaim News refrained from
further comment about the Foundation's loss because we were not inclined to accept the
invitation.
However, on July 12, 2000 we published an article titled "Attorney
to File Class Action Suit Against LC-MS Foundation."
The particulars of the article explained that Attorney Bob Doggett, a former member of
the Synod's Board of Appeals is preparing to file a class action suit against the LC-MS
Foundation.
On July 17, 2000, Paul W. Wiedenmann again responded with the following statement in a
letter explaining why Doggett's suit was unjustified: "For all these reasons, you
continue to be in my prayers, I am deeply concerned for you. My invitation to attend the
Fall Conference at my expense still stands."
Wiedenmann continues to insist that the Foundation does not support PLI but has no way
of explaining why PLI on www.PLI-Leader.org,
continues to list the Foundation as a donor.
We replied on July 24, 2000:
Doggett claims he has a list of plaintiffs who are now getting less interest on their
"Trusts" because of the $40,000,000 plus loss, though published statements from
the Foundation say that this is not happening.
A thing is either truth or false. At this time I'm willing to attend the meeting. Thank
you for your invitation.
After we accepted Wiedenmann's invitation there has been no further comment, or a word
from Wiedenmann about this writer attending the Fall Conference.
Attorney Doggett advised us that we should accept the invitation and that when we did
so it would quickly disappear.
At the same time, Doggett continues to gather more plaintiffs who claim they have lost
money by investing in the Foundation even though the Foundation claims none of the laity
lost any money.