Gospel for Asia Founder K.P. Yohannan Talks Racketeering, Fraud Lawsuit After Reaching Settlement

Gospel for Asia founder K.P. Yohannan (L) speaks with Pastor Francis Chan. | Screenshot: GFA

Gospel for Asia founder K.P. Yohannan is speaking out this week after reaching a $37 million settlement over allegations that his nonprofit mishandled millions in donations.

“I thank God the lawsuit against GFA is over, and after three long years I finally feel free to talk about it,” Yohannan said in a released statement. “Honestly speaking, I never thought our ministry and family would face accusations such as those that were made in the lawsuit.”

He defended the integrity of the organization — which focuses on helping impoverished children and communities in South Asia, including India — and said they “did not look for personal gain” in GFA’s 40 years of existence.

Calling the past few years “one of the most difficult and loneliest times in my own personal life,” Yohannan said he questioned God and was “confused” as to why this was happening.

Recounting the events leading up to the lawsuit, he said GFA undergoes an independent audit every year. But in 2015, a “financial standards association we were part of” informed the organization in a letter that it needed to “better conform to the requirements set by that association.”

As the nonprofit set out to comply, the letter was leaked. Yohannan believes it was “put on social media to damage us.” Staff and supporters began to leave and a lawsuit was filed by former donors.

They accused GFA, Yohannan and his associates of racketeering, fraud and financial mismanagement. More specifically, the plaintiffs alleged that millions in donations earmarked for charitable purposes within its missions fields were used to run for-profit businesses and for building personal residences and a headquarters in Texas.

“For example, in 2013 (the most recent year for which audited financial data is available), GFA worldwide collected around $115,000,000 in donations (more than $90 million from the U.S.), but spent only $14,644,642 on services and relief under GFA’s mission to support the poor and needy of India—directly contrary to donor designations and GFA’s promises,” the lawsuit stated. More of that money was spent on administrative needs, salaries and headquarters construction, the plaintiffs alleged.

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SOURCE: Christian Post, Sheryl Lynn