AME Church Faces Lawsuit Over Alleged $100M Retirement Fund Loss Due to Unmonitored Investments

Rev. Cedric V. Alexander, a retired pastor with the African Methodist Episcopal Church, has filed a proposed class-action lawsuit alleging that the denomination lost nearly $100 million from its retirement plan through risky investments. The complaint claims these investments, including undeveloped land in Florida and a non-existent capital venture, have financially harmed about 5,000 participants.

The 49-page federal complaint, filed in Maryland, accuses Jerome V. Harris, the former executive director of the denomination’s Department of Retirement Services, of being given sole authority to manage the retirement funds. The document states that Harris controlled all Plan assets and investments, leading to breaches of fiduciary responsibilities.

Alexander, who retired in September 2020, reported his retirement account balance as $86,631.75 on Jan. 1, 2021. He requested a rollover to an individual retirement account in September 2021 but was informed that the church’s retirement funds were frozen due to a pending audit. The newly elected executive director, Rev. James Miller, informed participants in November that the audit was taking longer than expected.

On Dec. 14, 2021, The Atlanta Journal-Constitution reported that the denomination was investigating “possible financial irregularities” with its retirement fund investments. The situation came to a head during a meeting of the denomination’s general board on Jan. 31, though the details of the meeting were not disclosed in the source material.

The AME Church has not yet responded to the Christian Post’s request for comment. The lawsuit highlights concerns about accountability and oversight in managing retirement funds, raising questions about the denomination’s financial practices and governance.

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