Charges Against Schulz and First Set of Stipulations

By: Rev. Jack Cascione

(As you read the stipulations given to Wallace Schulz if he wanted to return
to the LLL, the premise of nearly every stipulation is that the LCMS
Constitution is in violation of the LLL Code of Ethics.  The stipulations
read as if Phinehas T. Scrooge has returned to manage the preaching of the
Gospel for the LLL.  At its beginning the LLL was an excellent organization.
Somewhere along the line its officers put the word "self" in place of the
preaching of the Gospel.  The LLL wanted Schulz to cease all fund raising
for "Good News" magazine, for which Schulz takes no salary.  For the LLL,
that must be the Gospel interfering with their Gospel.  It is difficult to
imagine working with these people as Schulz did for 25 years.)




Hebermehl's Charges Against Schulz and First Set of Stipulations

August 8, 2002

Rev. Dr. Wallace Schulz
660 Mason Ridge Center Drive
St. Louis, MO 63141

Dear Dr. Schulz:

This year's theme for the International Lutheran Laymen's League is "Call to
Me-- Jeremiah 33:3. Throughout our recent convention, and throughout the
past several months, we have called on the Lord for His guidance and
direction. The Lord makes this promise to us through Jeremiah: "I will
answer you and tell you great and unsearchable things you do not know."  We
can trust that the Lord is truly with us during these trying times, guiding
our thoughts, discussions and decisions.

Background

The Board of Governors unanimously adopted the following resolution on July
20, 2002:

"Whereas the Board of Governors has determined that the Code of Ethics and
Conflict of Interest Policy of the Int'i LLL have been violated by Dr.
Wallace Schulz, and

"Whereas the Board desires to bring Dr. Wallace Schulz back into the team
ministry of the Int'l LLL,

"Now therefore be it resolved that the Board affirms the authority of the
Executive Director to prepare a list of stipulations by August 8, 2002. Upon
agreement by Dr. Wallace Schulz to the stipulations, the Executive Director
may reinstate Dr. Wallace Schulz, Lutheran Hour Radio Speaker, to duties
deemed appropriate by the Executive Director."

This letter addresses your violation of the League's Conflict of Interest
and Code of Ethics policies. This violation gives the impression to League
employees and volunteer leadership of a lack of commitment on your part to
the overall mission and team effort of this organization. The letter also
identifies and discusses the stipulations necessary for your reinstatement
to regular duties as an employee in the team ministry of the Intl LLL.

The Int'l LLL does not extend calls for positions within the organization.
All personnel are considered employees, and all employees are to follow the
"Code of Ethics and "Conflict of Interest Policy" as revised on May 15,
1999, and approved by the Board of Governors. These documents are in the
Employee Handbook (pages 3.40 and 3.50) and in the League's Policy Manual
(pages 11.1 and 11.2). Employees and elected volunteers are asked to review
and sign these documents annually. You last signed them on January 21, 2002,
thereby agreeing that you "reviewed them to make sure you know what they
mean.

The resolution from the Board of Governors states that you violated the Code
of Ethics and the Conflict of Interest Policy. This determination was made
in light of the letter dated February 19, 2002, and sent to you by the
League's Executive Committee. This letter asked that you "prayerfully
consider if recusing yourself from this role would be in the best interest
of the ministries of both LCMS and LHM" in adjudicating the case involving
Dr. David Benke. At that time, the Int'l LLL was already receiving
indications that its ministry could be harmed if you involved yourself in
the case because you are such a highly-visible employee.

The Board's specific determination on the Code of Ethics is that you
violated paragraph five, which reads: "There will be times when the choice
of conduct is not clear. When faced by an unclear choice, ask yourself this
question: 'If my actions were to be published, would league supporters agree
that the best interests of al! were served?' If the choice is still not
clear, ask for guidance from your supervisor, other league officers or
pastoral advisors." During all attempts to address potential effects on the
League if you became involved in the case regarding Dr. Benke, you would not
discuss these concerns.

The Board's specific determination on the Conflict of Interest Policy, is
that you violated paragraph three, which reads: "Activities shall not be
entered into which may be knowingly detrimental to the interests of the Intl
LLL and its subsidiaries." This concern was brought to your attention in the
February 19 letter from the League's Executive Committee, which noted that
the situation could become a conflict of interest. The Executive Committee's
letter to the Praesidium, dated April 3, 2002, included examples of conflict
of interest.

In its discussion on July 20, 2002, the Board was aware that you signed the
Code of Ethics and the Conflict of Interest Policy. Board members also knew
about the Executive Committee's letter asking you to recuse yourself from
the case regarding Dr. Benke. The Board's understanding was that you could
have acted to recuse yourself. The Board, however, also desires to bring you
back into the team ministry of the Int'l LLL if you will agree to the
stipulations named below.  These stipulations are not designed to be
punitive but rather to ensure that your ministry and that of the Int'l LLL
can move forward in a productive, God-pleasing manner.

Stipulations

1. As an employee of the Int'l LLL, you are to abide by the policies of this
organization, including the Code of Ethics and the Conflict of Interest
Policy.

2. As an employee of the Int'l LLL, you must affirm that your supervisor is
the Executive Director of the organization as specified on your position
description.

3. You must issue a public statement through the Int'I LLL that your
decision in the case regarding Dr. Benke was made independently from the
Int'I LLL and its mission, objectives and policies. The statement must
explain that you acted in your role as Second Vice President of The Lutheran
Church--Missouri Synod.

4. The Code of Ethics and the Conflict of Interest Policy have been
violated, and the organization and its ministry have been polarized. You
must provide written apologies for these violations to the League's Board of
Governors and-to League employees. You must also convey an apology to
donors, sponsors, congregations and League supporters through an article in
the next available issue of The Lutheran Layman." These apologies
must affirm that you fully support the League's mission of "Bringing Christ
to the Nations - and the Nations to the Church." They must also convey that
you regret that your actions may have impeded the Gospel outreach of the
organization. The League will have final approval of the wording of these
apologies.

5. If you continue to serve in your position as Second Vice President of The
Lutheran Church-Missouri Synod, you must agree to recuse yourself from
adjudicating any future issues or disputes that come before the Praesidium.
As we have seen, these cases have the potential to polarize and disrupt the
ability of the League to accomplish its mission. (Information only: In its
October 2002 meeting, the League's Policy Study Committee will be studying
policy that could prohibit any Pastor in the employment of the Intl Lutheran
Laymen's League to allow their name to stand as an elected or appointed
member of circuits, districts or Synod of The Lutheran Church - Missouri
Synod. It is possible that if this policy is adopted, you may not be
permitted to run for reelection while being an employee of the League.)

6. You must continue to uphold the vision, mission, values and goals of the
Intl LLL and Lutheran Hour Ministries, and you must enthusiastically support
the League's effort of "Bringing Christ to the Nations-and the Nations to
the Church."

7. The Board has directed that the Int'l LLL will implement a team ministry,
and this requirement has been incorporated into your position description.
You must agree to work enthusiastically and diligently as a team player,
offering ideas and vision for the ministries and lending support and
physical service to help ensure that ministry objectives are met. This
requires participation in planning and strategy meetings for "The Lutheran
Hour radio program as arranged by the Assistant Director of North American
Ministries. The speaker schedule for "The Lutheran Hour" is to be arranged
by the Assistant Director of North American Ministries as decided by the
Lutheran Hour team.

8. If you disagree with positions or strategies the League uses to implement
is ministry either domestically or internationally, speak with the
appropriate director or remain quiet on the subject. Under no circumstances
are you to voice positions in any public forum that differ from those agreed
upon and approved by the Board or by a department charged with
responsibility and authority for implementing a specified ministry.

9. Your position description identifies fundraising as one of your
responses. This does not include fundraising for the "Good News" magazine,
which is not a League project. You will not be permitted to devote time to
raise funds for this magazine. However, permission was previously granted
for you to be the editor of "Good News," and that agreement will be honored.

10. Being a team player requires regular office hours and attendance at
various staff events. Depending on your travel and meeting schedule, I
expect that you will be in the office an average of at least four hours a
day. Your schedule for travel, speaking engagements and other
business-related time demands is to be coordinated with the Executive
Director. Your attendance is expected at the weekly directors meeting,
monthly all-staff meetings, monthly executive services departmental meetings
(for master calendar coordination) and other scheduled events. I understand
that there is public interest in the process of restoring you to service and
in the nature of the stipulations specified in this letter. Out of respect
for your privacy, details on these stipulations will not be released. We
regard these as employer-employee issues that are not of public concern and
would appreciate you treating this matter as confidential. The League
reserves the right to make the stipulations public if circumstances would so
warrant at a later date.

I do not take a passive view of this situation. The process of reinstatement
will start only after you agree to these stipulations and only after
stipulations 2, 3 and 4 are completed. This stipulation agreement must be
signed by August 30, 2002, or it will be understood that you have vacated
your position with the Intl LLL. My prayer remains that we can work together
to resolve these issues and reach a decision as soon as possible.

Joy in HIS service,
Rodger W. Hebermehl
Executive Director


October 1, 2002