Group wants IRS investigation of Brooklyn Park church

A complaint alleges that the Living Word Christian Center arranged sweetheart deals for its senior pastor, helping him buy a plane and home in Florida.

8 Feb 2007 // WASHINGTON - A Washington watchdog group is calling for a federal investigation into the finances of Living Word Christian Center (LWCC) of Brooklyn Park, alleging the church arranged lucrative deals for its senior pastor that allowed him to buy a plane and house in Florida.

In a complaint filed with the Internal Revenue Service on Thursday, a nonprofit group called Citizens for Responsibility and Ethics (CREW) in Washington alleged that the church engaged in illegal financial transactions with the church's senior pastor and founder, James "Mac" Hammond.

The complaint alleges that Hammond bought a plane from the church, partially on credit, and then leased it back. The church then paid Hammond twice the amount per month to rent the plane that Hammond paid the church to buy it, according to the complaint.

In addition, the complaint alleges that between 1999 and 2004, the church made Hammond eight loans totaling $1.9 million at favorable rates and terms. Two of the loans were related to the purchase of the plane Hammond then leased to the church, and one helped him buy a home in Florida.

"Pastor Hammond and the LWCC have shown a disturbing pattern of violating federal tax law and the IRS has done nothing," said Melanie Sloan, CREW's executive director.

Hammond could not be reached for comment. A telephone call to his church was not returned.

The complaint alleges that the church violated federal tax law by allowing insiders to benefit from a 501(c)(3) organization. Hammond and his wife are two of the seven members of the church's board of trustees, making them "insiders" under federal tax law, according to the complaint.

It's the second complaint that CREW has filed with the IRS involving the church.

In October, CREW accused Hammond of violating the prohibition on churches engaging in electioneering activity. The complaint was filed after Rep. Michele Bachmann, R-Minn., who was then running for Congress, made a speech at a service. During an introduction, Hammond told church parishioners he would be voting for Bachmann.

A Minnesota spokeswoman for the IRS said the agency had no comment on either complaint.

"We can't confirm or deny a complaint," said Carrie Resch, who works in the St. Paul office of the IRS.