Recently, I commented on WTC's Kingdom Hall leveraged asset/rental scheme. This is what happens when a congregation fails to pay WTC the monthly amount needed to pay back what has been leveraged:
1. Members continue to pay monthly payments for the use of the KHs they already paid for previously. These monthly payments go toward the equity draws that have been taken. Essentially they are paying off the equity loan that WTC took on the property that they previously owned.
2. The equity draws taken from properties are "invested for profit" by investment bankers of the new Irish Corporation who now own and control ALL the assets of WTC.
3. Any congregations that fail to meet their monthly obligation risk having their Kingdom Hall sold out from under them. The congregations are displaced but who cares? They were not meeting the financial obligation they agreed to.
4. As part of the process, one of the 3 corporations to handles all payments (transfers) of funds IN and OUT. This is a complicated transactional business, calling for meticulous management to avoid money laundering prohibited by the countries that WTC operates in.
5. Meanwhile, the Irish Corporations have ownership of all WTC assets. They will give WTC what is needed, when it is needed. Such payments are tax-deductible of course. The current corporations used by WTC have/will have no accumulated assets because such were transferred into the Ireland Corporations. They will essentially be corporations on paper only for the most part. When a CSA lawsuit arises, there are no funds to be taken. The accuser has no standing to sue the Irish corporations that have the assets that USED to be in the PA Corporation, the NY Corporation, or the Christian Congregation of JWs. The accuser could go after the local congregation elders but that is almost always a dead end. Individual elders can declare bankruptcy, as the example above illustrates.
As the above case describes, a congregation may eventually exhaust all of its funds. WTC will provide a warning, but the eventuality is inevitable. A few publishers may try to donate what is needed, but the congregation WILL BE SOLD. After all, it is worth more liquidated than the monthly amounts that strain the budgets of the congregation.
Even though it is likely that WTC is not breaking laws - it is NOT what members expect them to do with dedicated funds. After all, when the congregation willingly signed over the property title to WTC, they never dreamed that WTC would begin charging them rent, and later sell the property, leaving them high and dry.
Congratulations WTC! You are eating the goose that laid the golden egg, one bite at a time.
