Allegations of Mismanagement Force L.A’s First AME Church Into Bankruptcy

PublishedMay 27, 2024

Los Angeles, CA--Pastor Robert Shaw of the First African Methodist Episcopal (AME) Church, shared distressing news regarding the financial issues plaguing the famed Los Angeles church, following Pastor Cecil “Chip” Murray’s passing.

Pastor Shaw expressed deep concern over the necessity for three affiliated corporations, known collectively as the FAME entities, to seek bankruptcy protection. These entities, integral to the church’s operations, found themselves in dire financial straits due to assets being encumbered or transferred under questionable circumstances.

“The last thing I wanted these entities to do was file for Bankruptcy protection, but the three involved FAME corporations had assets that were encumbered or otherwise transferred to other parties under questionable circumstances, creating an untenable financial situation for the church,” Pastor Robert Shaw said in the statement.

The saga of financial turmoil, according to Pastor Shaw, stemmed from perceived mismanagement and unfair business practices within the administration following the tenure of Reverend Murray. This mismanagement triggered a chain of events, ultimately leading the FAME entities to the brink of bankruptcy.

Recognizing the gravity of the situation, the church administration swiftly mobilized to mitigate further damage.

“The perceived mismanagement and unfair business practices in the administration that came after Rev. Murray sparked a chain of events that led the three involved FAME entities to where they are now. That status forced us to move quickly to avoid additional damage,” Pastor Shaw emphasized.

The First AME Church, a cornerstone of the community, now finds itself grappling with the fallout of financial instability. As the allegations of mismanagement rise, the church is navigating turbulent waters in an effort to safeguard its future and uphold its commitment to its congregation. This development underscores the critical importance of transparent and ethical financial stewardship within religious institutions.