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• Did the stock market debacle of October 19, 1987, adversely affect your church's investments? If so, you may be interested in a recent decision of a federal district court in Washington, D.C. In 1984, church property that had been used by a Christian Methodist Episcopal (CME) Church in Alaska was sold for $1,400,000. The funds were invested with a major securities brokerage firm while the church located a new church facility. The funds were invested with the brokerage firm allegedly on the basis of its oral representations that the funds would earn a return of "not less than 15%" without any loss of principal. The brokerage firm initially invested the funds in stocks, bonds, and treasury bills. After the church official who invested the funds expressed dissatisfaction with the account's performance, an options account was established. The account was closed several ...

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Posted:
  • May 2, 1988