Health Ministry in Receiership: Attorney Seeks Settlement with IRS Over Alleged Fraud

The receiver, attorney R. Scott Haley, took swift action to secure all CBN bank accounts within 24 hours of his appointment. This included removing founder Bruce Hawthorn, Hawthorn’s wife, and Ron Beers, who had been Hawthorn’s handpicked operational vice president. Haley brought back Gary Sprigg, formerly acting CEO, and replaced staff members installed by Hawthorn at the Barberton Rescue Mission with previous staffers. The receiver has the authority to negotiate a settlement with the IRS, which has been investigating the CBN for several years.

Knoxville pastor Bruce Russell, a reforming member of the CBN who was ousted by Hawthorn last December, told Christianity Today he is “very encouraged.” A challenge to his ouster from the CBN board has been mounted in an Ohio appeals court; that action is still pending. The judge’s April 25 order was agreed to by the attorney for Hawthorn; as a result, it cannot be appealed.

One of the few limits on receiver Haley’s power was the specification that the receiver “shall not have any authority to control or direct the religious services” at the mission, or at CBN. This restriction underscores the delicate balance between financial oversight and the organization’s religious mission.

The CBN has faced multiple allegations of financial misconduct, including claims of fraud and failure to meet obligations to subscribers. These issues have led to legal actions and investigations, with the IRS scrutinizing the organization’s practices. The appointment of a receiver signals a significant escalation in the scrutiny of the group’s financial integrity.

The Barberton Rescue Mission, a key component of the CBN’s operations, has been at the center of these controversies. Reports suggest that the mission’s financial practices have been under review, with calls for greater transparency and accountability. The receiver’s role is to ensure that the organization’s financial affairs are managed in the public interest while respecting its religious functions.

The situation highlights the challenges of maintaining trust in organizations that blend religious and financial services. The CBN’s history of alleged misconduct has raised concerns about the sustainability of its operations and the well-being of those who rely on its services. The legal and institutional responses reflect a broader effort to address these concerns through structured oversight.

The case also illustrates the complexities of governance in religious organizations, where financial and spiritual responsibilities often intersect. The appointment of a receiver represents a legal mechanism to address these challenges, ensuring that the organization’s activities align with legal and ethical standards. The outcome of these proceedings will have significant implications for the organization’s future and its relationship with the community it serves.

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