Pirates of Privilege by Walter Rea Chapter 2

Pirates of Privilege by Walter Rea

CHAPTER II

DAVENPORT AND THE DIVINES

It was very clear to me by the time of Emmerson's letter in 1979 to my President, Elder Harold Calkins, that neither he nor Wilson nor the General Conference committees would do anything effective to stop events in the Davenport matter. The reason was that I had discovered direct evidence of corruption in the church. It was on such a large scale that it was hard for me to comprehend it.

At the first of the year of 1976 I had been appointed pastor of the Long Beach church, although it would be more accurate to say I had been exiled by Elder Calkins to that position. My name had been put in nomination in the constituency of 1975 for three positions, President, Treasurer and Secretary of the Conference. The nominating [publicly to accept it. ¹ After talking with the Union President, Cree Sandefur, and his treasurer, Robert Cone, I came to the conclusion that they did not want me to accept the position and were not willing to give me their support. It wasn't until the following year and after the move to Long Beach that I learned the reason why.

After the nomination, and public refusal by me, of the position of treasurer of the Conference, Harold Calkins decided that I needed a move. As was his custom he tried to shift me from the center of political activity in the metropolitan area, but I kept refusing the calls he offered. Calkins, a very insecure leader, had managed to rid himself of most of the strong men in the conference he felt threatened by. He was trying to make sure I was the last to go. My name had appeared along with his in almost every election, and this he felt should be changed. Long Beach was open, a church that had once been a strong center but was on the decline and had been for many years. So I was exiled to the border of the conference where he felt I would have less influence in Conference affairs. What he did not anticipate was that Long Beach, the former home of Dr. Davenport and Elder Cree Sandefur, was to be the beginning of the end for me and also the opening of Pandora's Box of fraud, deceit cover-up, corruption and crime for the church.

I had only been pastor a few months when there came to my attention a copy of the divorce proceedings of one of Long Beach's most illustrious members, Donald Davenport. It was the property settlement between Donald Davenport and his former wife, a lady I had met, admired and worked with in youth work in the Conference. The agreement, dated May, 1972, was a petition for dissolution of their marriage in the Superior Court of the County of Los Angeles, case number D795614.²

What became clear to me after reading the evidence contained in the settlement was the way Dr. Davenport had understated his assets and liabilities, especially his liabilities. As a member of the Conference committee, I knew that Dr. Davenport had a great many dealings with the Conference, but the evidence of some of his many participations with the church was lacking in the divorce settlement. Yet in the agreement it was stated:

Each of us warrants to the other that neither of us owns any property of any kind, other than the property referred to in the preceding paragraph, and that listed in the schedules attached hereto and made a part of this agreement. If it later appears that either warrantor now owns any other property and that the warrantee has an interest in this other property, the warrantor agrees to transfer or pay to the warrantee, at the warrantee's election (i) an amount of the other property equal to the warrantee's interest therein, if it is reasonably susceptible of division; (ii) the full market value of the warrantee’s interest on the effective day of this agreement; or (iii) the full market value of the warrantee's interest at the time the warrantee discovers the warrantor's ownership of the property. ³

After seeking expert legal counsel I informed Betty Davenport that I felt she and her children had additional benefits coming their way and that, if she wanted, legal counsel could be obtained that would help her redress the inequity. She felt she could not do this because her name was contained on some of Dr. Davenport's properties and he might create problems for her in the future in that direction if she re-filed for redress. However, the divorce record and settlement of the Davenports was not the important item that shocked me. It was the long list of names of people and conferences of the church that were involved with the Doctor that blew my mind. It showed a web of conspirators from one end of the country to the other who were consistently and systematically emptying the coffers of the church into their own pockets through the Davenport program. It showed men in groups of small committees in select places and positions who were not only voting the church's money out, but were sometimes in those same committees voting themselves in financially by their connection with that church. This, any school boy or girl would know, was a conflict of interest, and thus a crime.

The list also made it clear why Cree Sandefur, the Union President, did not want me as a reformer in the business of the church. He was really in business with Dr. Davenport. In fact, the list was a virtual list of who's who in Adventism. But revealing enough, it did not include any blacks, Hispanics or downtrodden whites. It catered to the upper financial group of the church, the elite, the group that already enjoyed more of the privileges of the church than most. Here is the list.

Allborg, Don L.	11,110.83	Dittberner, Jess L.	6,798.25
Adams, Clinton E.	5,415.88	Dombrosky, Stanley	10,800.83
Adams, W. Melvin	23,515.55	Duffield, C. L.	113,631.39
Ash, Connie M.	634.18	Dunham, Phillip W.	10.981.67
Ashlock, Thomas M.	16,357.96	Eden, Nettie	15,527.59
Ayers, Leoard	7,028.56	Ellstrom, Gordon L.	13,892.99
Baker, Frank	6,189.88	Erickson, Melvin E.	16,833.16
Baldwin, Dalton D.	5,643.68	Fagal, Anna	26,828.67
Baldwin, Lela	13,418.25	Fagal, William A.	32,622.46
Baldwin, O. C.	33,569.98	Hackett, Arlind E.	4,255.54
Baldwin, Ruth	40,581.86	Hackett, Willis J.	11,775.40
Becker, V.W.	16,892.29	Hagele, Emil M.	31,990.94
Bennett, John G.	5,919.76	Hardy, Gerald R.	28,248.97
Berry, Vernon E.	32,655.63	Hardy, H. G.	18,480.00
Bethel Sanitarium	67,716.03	Harlin, Martha E.	7,617.87
Bigger, Forest W.	54,025.69	Hartzell, John M.	3,761.12
Berry, Vernon E.	32,655.63	Hardy, H. G.	18,480.00
Bethel Sanitarium	67,716.03	Harlin, Martha E.	7,617.87
Bigger, Forest W.	54,025.69	Hartzell, John M.	3,761.12
Brockett, Miller	34,532.09	Hartzell, Judith V.	2,965.02
Burke, W. J.	3,641.65	Heppenstall, Edward	104,951.90
Burkett, Elden E.	186,943.52	Hoffman, J. Reynolds	17,988.27
Carey, Wells C.	16,756.31	Huey, D. P.	4,993.90
Carle, Gordon H.	12,186.53	Iversen, J. O. and Mrs. P. M.	23,082.67
Caslow, Daniel	51,975.00	Jesske, W. S.	15,381.24
Caslow, Irene	4,375.71	XXXXXXXXXXXXXXXXXXX	XXXXXXXX
Caslow, Louise	3,094.94	Johnson, Norman	47,106.51
Clements, William V.	7,114.80	Johnson, Lila V.	8,919.67
Comrie, Lillian M.	12,525.32	Jones, William E.	3,257.04
Cronk, Ramon R.	64,822.88	Karmy, Robert J.	17,325.00
Crooker, Luther W.	7,686.76	Karmy, S. D.	969,562.41
Cumbo, Everett E.	16,813.50	Krause, Marvin J.	22,189.84
Cummings, Desmond	75,664.04	Kuiken, Louise et al	178,696.00
Daniels, Gertrude	11,550.00	Ladd, W. M.	8,085.00
DeBooy, Paul M.	6,906.21	Lampson, C. P.	33,429.13
Lanham, Helen E.	2,223.89	Sandefur, Charles C.	$24,255.00
Lauda, C. H.	30,554.57	Sauder, Harvey	5,884.41
Lew, John M.	23,830.00	Schleenbaker, S. E.	21.506.94
Libby, John E.	40,268.68	Schoepflin, W. L.	30,030.00
Lindgren, Clarence R.	112,529.15	Schwartz, Rhonda G.	11,550.00
Liscombe, George W.	8,958.75	Simonsen, J. A.	26,399.88
Lowe, Darlene	31,433.74	Smith, Grover C	56,796.21
Martin, Gudrum	9,284.81	Spangler, J. R.	18,817.49
Martin, Myrtle or So. May Jr. Acad.	2,310.00	Steck, Margaret E.	95,114.22
XXXXXXXXXXXXXXXXXX	XXXXXXXXX	Stewart, Alvin J	3,637.13
Massengill, Otis	19,831.35	Streifling, Walter	29,371.75
Massengill, Robert	35,228.77	Suhrie, Frank	27,788.76
Massengil, Thomas	3,133.10	Thurmon, James E.	21,670.55
Miller, Amy Ann	12,272.72	Thurson, Rachael D.	11,550.00
Mogis, Ruby	10,930.00	Tribby, Albert et al	114,843.85
Mote, Frederick	14,897.19	Trimble, Vada	14,729.36
Murrill, W. L.	8,694.05	Turpel, W. P.	28,875.00
Nelson, John	33,273.31	Unruh, T. E.	17,733.11
Nettleburg, L. H.	12.317.41	Wagner, William J.	61,258.12
Neufeld, David A.	11,944.02	Walde, E. R.	11,072.08
Oakes, Lois B.	13,452.61	Walters, T. W.	26,205.86
Olsen, Dolores E.	14,584.19	Watts, Emmett	21,384.73
Olsen, V. Norskov	14,854.10	Webb, Ed H.	15,284.09
Parks, R. E.	7,737.35	Wheeler, R. A.	6,930.00
Pearson, Ralph W.	45,783.08	Whitaker, Anne	26,959.00
Pease, Norval E.	3,164.57	Whitaker, Susan & Deborah	21.506.94
Pierson, Robert H.	7,539.48	XXXXXXXXXXXXXXXXXXX	XXXXXXXX
Porter, J. T.	20,181.04	Whitaker and Smith	10,753.47
Porter, Thomas	4,083.83	Wottlin, Beatrice L	10,061.75
Preston, B. M.	7,785.17	Young, H. A.	16,032.56
Price, Jack L.	54,435.57	Rasmussen, Lowell	56,994.81
Purdey, Lorie	3,267.27	Frank, Albert J.	20,594.17
Purdey, Esther	2,980.03	Callicott, O. H.	90.000.00
Radke, Elford D	86,076.55	Cowles, S. D.	80,256.99
Reed, A. C.	3,121.42	Hansen, Eula	147,836.15
Reed, H. V.	23,100.00	Jankovsky, Mrs. F. O.	40,000.00
Reile, Ellsworth	10,456.19	Little Creek Sanitarium	25,000.00
Retzer, Darold J.	3,085.13	Lutz, Mary J	10,000.00
Retzer, Helmuth C.	6,103.57	Ross, Rosalie	10,000.00
Robertson, Mrs. James	15,474.69	Thompson, Gary	17,000.00
Robertson, John J	20,683.25	Tufte, Chester	25,000.00
Rue, George H.	23,100.00	Wood, Verna	35,000.00

Name of Joint Venture Assets Encumbrances

Davenport \ Donaldson	1,311,634.37	940,021.91
Davenport \ Eyer	555,054.85	421,395.97
Davenport \ Gibson	91.130.34	69.598.91
Davenport \ Harris	122.836.00	74,589.84
Davenport \ Harris \ Boucher	187.473.84	137,897.52
Dav./ Harris/Morehead (Mary Lou)	426,410.83	327,765.18
Davenport \ Ludders	35,896.16	NONE
Davenport/Ludders/Garver/Potts/Eyer	9,014.40	NONE
Davenport \ Moorhead (Jay)	122,200.00	88,897.55
Davenport \endash Potts	153,501.33	33,454.41
Davenport \endash Potts \ Eyer	956,999.96	690,809.45
Davenport/Potts/Potts/Eyer	44,460.25	NONE
Davenport \ Ramer	2,351,614.64	2,192,672.38
Davenport \ Sandefur	176.64	NONE
Dav./Sheppard (1 Hr. Martinizing)	16,492.14	3,309.51
Davenport \ Taylor	506,378.50	372,730.87
Davenport / Taylor	210,641,97	135,978.78

-----------------------------------------------------------------------------------------------------------------------------------------------

Bryant, Albert C and Anne S.	120,327.35
Bukhdud, Joseph & Jean Yvonne	42.520.71
Buss, William C. (MD)	500.00
Buss, William C. (MD)	6,914.33
Courdy Lighting Fixtures	59,225.37
Cummings, Desmond and Lois	11,214.31
Donaldson, Earl D.	37,507.29
Eyer, R. Wayne and Arlene	25,517.89
Freeman, Rhoda	2,618.03
Gershman, Harold & Julia	37,850.00
Gershman, Harold & Julia	137,500.00
Gershman, Harold & Julia	250,000.00
Goldsmith, Dr. Stephen R.	30,000.00
Gregory, Allison	1,018.37
Harris, Dr. John & Nina	32,836.00
Ikerd, Lloyd R. and Darlene G.	3,360.62
Johnson, David R. & Odette	101,690.01
Mehler, Mrs. Ruth	128,238.11
Meier, Rudy H.	11,915.57
Murchison, Donald	217,971.00
Nikas	353.27
Ryan, R. I. and Dorothy	6,098.46
Sheppard, Thomas and Gloria	23,853.81
Sheppard, Thomas and Gloria	22,641.76
Sparks, Clarence and Jane	473.75

⁴

Of course the list changed. Some got in at the first and then were able to exit. Others were encouraged to come along with greater accounts of money and interestingly enough received greater rewards, always, it seemed at the expense of the church. When the list is compared with a later list of people and institutions it makes a better picture, but not necessarily a healthier one.

Coral Aalborg or Don L. Aalborg	Able Plumbing
P. O. Box 804	325 Cherry Ave
Calhoun, GA 30701	Long Beach, CA 90805

W. Melvin and/or Olive Adams	Adventist Retirement Community
7810 Carroll Ave	6015 Kratzville Road
Takoma Park, MD 20012	Evansville, Indiana 47710

American City Bank	American United Life Ins
9601 Wilshire Blvd.	One W. 26th St.
Beverly Hills, CA 90210	Indianapolis, IND. 46206

Andrew Drain Service	Bender L and Frances V. Archbold
2983 Bautista	6540 S.W. 28^th Street
Riverside, CA 92506	Miami, FL. 33155

Arrowhead	Thomas M. and Betty C. Ashlock
1000 West Temple	2400 Mistletoe Place
Los Angeles, CA 90074	Philadelphia, MD 20783

Associated Surgeons Medical Group,	Orvin Atkins, Trust Account A
8337 Telegraph Road, #315	8530 Wilshire Blvd., #500
Pico Rivera, CA 90660	Beverly Hills, CA 90211

Robert H. or Ota S. Babcock	Robert H. or Ota S. Babcock
719 Claret South	719 Claret South
Calistoga, CA 94515	Calistoga, CA 94515

Boena Mar, SA c/o Mr. Phillip November	Johnie Bailey
10520 Magnolia Blvd.	516 Bellehaven Ave., N.E.
N. Hollywood, CA 91601	Albuquerque, NM 87112

Franklin or Wylodine Baker	Dalton D. and Barbara Baldwin
3014 N.E. 160th	11581 Richardson
Portland, OR 97230	Loma Linda, CA 92354

Bank of America	Bank of Beverly Hills
PO O. Box 490	250 North Canon Drive
W. Covina, CA 91793	Beverly Hills, CA 90210

Bank of Palm Springs	Bankers Life Company
789 E. Tahquitz-Mccallum Way	711 High Street
Palm Springs, CA 92263	Des Moines, Iowa 50307

Leon Beck	Vernon W. and Evelyn P. Becker
P. O. Box 2225	4139 Indian Lakes Circle
Palm Springs, CA 92263	Stone Mountain, GA 30083

Bell Associates (Hanaco)	Alan L. Belinkoff,
433 N. Camden Dr., #1099	Trustee to Burdman
Beverly Hills, CA 90210	4672 Ariba Dr.
	Tarzana, CA 91356

Vernon E. and Lois Berry	Bethel Sanitarium
567 Linda Falls Terrace	6015 Kratzville Road
Angwin, CA 94508	Evansville, IN 47710

Leo Bialis	Sol Bilgrei c/o Rabbi E. F. Fisher
2902 Alta Loma Drive	12758 Lakeland Road
Palm Springs, CA 92262	Santa Fe Springs, CA 90670

Helen H. Black	Tobi Blaustien
or the North Pacific Union Conf. Assn. of SDA	415 Buena Vista Avenue
8711 N. Hill'n Dale	Mill Valley, CA 94941
Spokane, WA 99218

C. E and/or Arline J. Bracebridge	Miller and Lauretta Mae Brockett
160 Normandy Road	35043 Persimmon Ave
Columbia, SC 29210	Yuciapa, CA 92399

Mrs. Mabel A. Brody	Kenneth or Marion Brown
Rte. 1, Box 38B	10225 E. Burnside
Milton-Freewater, Or 97862	Portland, OR 97216

Budget Financial Corp.	Cheryl E. Burkett
Mr. Ickes	Elder E. Burkett, Trustee
6420 Wilsire Blvd., S1500	U/Cheryl E. Burkett Trust
Los Angeles, CA 90048	1815 Petaluma Ave
	Long Beach, CA 90815

Widen E and Irene A. Burkett	Benjamin G. and Elsie B. Butherus
1815 Petaluma Ave	1510 Moccasia Trail
Long Beach, CA 90815	Berrien Springs, MI 49103

Dan E. Butherus	Oakley H. Callicott
4712 E. CreSent Ave	P. O. Box 613
Mesa, AZ 85206	Keene, TX 76059

Max Candiotty	Louis Canosa
10100 Santa Monica Blvd.	1040 Brasburn Blvd.
Los Angeles, CA 90067	Charlotte, NC 28211

Carolina Conf. Assoc. of SDA, Inc.	Daniel and Olive Caslow
Box 25848	14343 N.E. Siskiyou Ct.
Charlotte, NC 28212	Portland, Oregon 97230

Central Union Conf. Assoc. of SDA	Century Bank
P. O. Box 6127	6420 Wilshire Blvd.
Lincoln, Nebraska 68506	Los Angels, CA 90048

Chevron USA, Inc.	Chicago Title Insurance COO
P.O. Box 2001	17671 Irvine, Blvd.
Concord, CA 94529	Tustin, CA 92680

Christian Record Braille Foundation	City National Bank
4444 S. 52nd St.	400 N. Roxbury Drive
Lincoln, Nebraska 68506	Beverly Hills, CA 90210

Eliza E. Lewis or Pearl Z. Cleveland	Clyde C. and Pearl Z. Cleveland
or Clyde C. Cleveland	15910 SW Century Oak Circle
15910 SW Century Oak Circle	Tigard, OR 97223
Tigard, OR 97223

Coachella Valley Savings and Loan Assn.	Coast Federal S&L Assoc.
P. O. Box 807	Box 44522
Rancho Mirage, CA 92270	San Francisco, CA 94144
Millie Miller, Asst. Mgr.

Coldwell Banker	The Collegedale Credit Union
950 W. 190th St. #100	P. O. Box 296
Torrance, CA 90502	Collegedale, TN 37315

Columbia Union Conf. Assoc. of SDA	Commonwealth Bank
771Q Carroll Ave	3900 W. El Segundo Blvd.
Takoma Park, MD 20012	Hawthorne, CA 90250

Continental Service Corp.	Continental Assurance Co
P.O. Box 500	Mort. Loan Dept
Phoenix, AZ 85001	310 SO Michigan Ave
	Chicago, Ill 80804

Jack Cooper	Daniel Cole, M.D., Bennett E. Roth, M.D.,
L30 Vista del Campo	and Michael J. Albertson, M.D.
Los Gatos, CA 95030	2625 w. Alameda Avenue
	Burbank, CA 91505

Everett F. Coleman, M.D.	Cheryl Crane c/o Violet Crane
208 S. 35th Avenue	212 N. Maple Grove
Yakima, WA 98902	Hudson, MI 49247

Violet Crane	Creative Art Images, Inc. c/o Herbert A. Reznikoff
212 N. Maple Grove	3620 Sepulveda Blvd.
Hudson, MI 49247	Sherman Oaks, CA 91403

Crocker National Bank	Ramon R. or Lela Cronk
190 Broadway	1007 N.W. Scenic Drive
San Diego, CA 92101	Albany, OR 97321

Luther or Rose Crooker	Desmond D. and Lois I Cummings
PO O. Box 505	Rte. 2
South Lancaster, MA 01561	Calhoun, GA 30701

Gertrude A. Daniels	Gertrude A. Daniels
P. O. Box 16677	Rte 2, Box 458
Portland, OR 97216	Yamhill, OR 97148

Esther Naomi Darst or Lori Purday	Clarence C. Davis
10225 E. Burnside	10261 Sterling Avenue
Portland, OR 93221	Villa Park, CA 92665

James M. or Marjorie I Davis	L. G. Diamond or Helen M Diamond
South 815 Montavilla Dr.	3908 N.E. Couch
Spokane, WA 99204	Portland, OR 97232

Zelma Dickerson	Dictaphone
837 Murphy Rd.	P. O. Box 9100
Medford, OR 97501	Bridgeport, Conn. 06602

Blanche Dixon	Stanley Dombrosky
18008 N. 20th Place	112 Wilkinson Stree.
Phoenix, AZ 85022	Orlando, FLA 32803

John F. and Mildred E. Duge	Roy Eckerman
1325 Ink Grade Road	Box 381
Pope Valley, CA 94567	Bryn Mawr, CA 92318

George Elkins Co.	William A and Virginia M Fagal
499 N. Canon Dr.	199 W. Didlee
Beverly Hills, CA 90210	Thousand Oaks, CA 91360

Farmers New World Life Insurance	Clarita M. Fazzari
Box 76896 Sanford Station	750 Powell St.
Los Angeles, CA 90010	San Francisco, CA 94108

Federal Express	Mae Ferraro or Mary Ferraro
P. O. Box 727, Dept. A	Rte. 5, Box 64-F
Memphis, Tenn 38194	Hendersonville, NC 28739

Dave Finkle	First Evangelical Church
125 Montana St.	2067 S. Hobart Blvd.
Santa Monica, CA 90403	Los Angeles, CA 90018

First Los Angeles Bank	First Women's Bank of California
2029 Century Park East "B" Level	12301 Wilshire Blvd.
Los Angeles, CA 90067	Los Angeles, CA 90025

Florida Conf. Assoc. of SDA	F.M.E. Leasing
Box 1313	P.O. Box 7777-R0910
Orlando, FLA. 32803	Philadelphia, PA 19175

B. D. Fortner	Albert J. (Evelyn) Frank
Route 2, Box 75	Box 118, Rte 1
Happy, Texas 79042	Floodgate Road
	Swedesboro, N.J. 08085

Albert J. (Evelyn) Frank	James P. Garity
Box 118, Rte 1	9601 Wilshire Blvd., #340
Floodgate Road	Beverly Hills, CA 90210
Swedesboro, N.J. 08085

General Conf. of Seventh Day	Georgia Conf. Assoc of SDA
Adventist, Inter-American Division	Box 12000
P. O. Box 340760	Calhoun, GA. 3Q701
Coral Gables, FLA 33134

Harold Gershman	Steven Glazer
215 S. LaCzenga Blvd 4202	1253 W. Mendoza
Beverly Hills, CA 90211	Mesa, AZ 85202

Golden State Sanwa Bank	Grant G or Erma Graham
626 Wilshire Blvd.	35218 Fir Ave. #153
Los Angeles, CA 90017	Yucaipa, CA 92399

Dewain Grattan	Alice B. Gregory
2220 Lynn Road	245 Coast Blvd., C-1
Thousand Oaks, CA 91360	La Jolla, CA 92037

NT. Trust #2	Emil M. Hagele
Maurice Gross, Trustee	3 Baldwin Drive
4481 S. Durango Ave	Staunton, VA 24401
Los Angeles, CA 90035

C.H. Hamel	Gary A and Karla J. Hann
Box 62	3212 Orlando Rd.
Grand Ronda, OR 97347	Los Alamitos, CA 90720

W. Wayne or Ethel M. Hanson	Eula Hanson
11233 5. E. 325th Ct.	7540 Hollywood Blvd.,
Auburn, WA 98002	Hollywood, CA 90046

G. Hardy, M.D.P.A., Pension Trust	Sybil Hardy
3304 Sellman Road	1815 Orchard Ave
Adelphi, MD 20783	Glendale, CA 91206

Donald E. Gray, MD	Walter J. & Doris L. Hard, c/o "Jasper"
And Paul Goldgerg, MD, Inc.	5 Elm Close
1330 West Covina Blvd. - Suite 205	Wells, Somerset, England BA5ILZ
San Dimas, CA 91773

Great American Bank	Greater New York Corporation SDA
1801 Century Park East	85 Long Island Expressway North Hills
Century City, CA 90067	New Hyde Park, N. !.,N.Y.

John A. Harris	Nina C. Harris
633 Pine Ave	320 WO Bixby
Long Beach, CA 90812	Long Beach, CA 90007

Milton K & Kathleen L. Hartzell	R.E. &/or Minnie L. Hendershot &/or
Valley River Center, Suite 2	Ralph M. Hendershot (son)
Eugene, OR 97401	P.O. Box 466
	Collegedale, TN 37315

Edward and/or Margit Heppenstall	Hertz System, Inc
Box 142, San Remo Road	P. O. Box 25485
Carmel, CA 93921	Oklahoma City, Oklahoma 73125

Robert J. Holmes, MAI	Harold Hopple or Dorothy Hopple
41311 East Florida Ave	4909 O/nthega Road
Hemet, CA 92343	Evansville, IN 47712

James K. Hopps, Attorney	Joseph N. or Bonnie L. Hunt
10225 E. Burnside	3916 Pitcairn Place
Portland, OR 97216	Laurel, MD 20810

Idaho First Nat'1 Bank Trust Dept	Imperial Bank
Box 7928	9920 La Cieneqa Blvd
Boise, ID 83707	Inglewood, CA 90301

Indianapolis Life Ins. Co.	Mary Opal Ingram
Box 1230-B	9740 Dollyshore Place
Indianapolis, IN 46206	Charlotte, N.C. 28215

Internnational Union of Op. Engr., Local 302	Investors Guaranty Life Ins. Co.
Western and Clay Streets	Sunset Highway
Seattle, WA 98121	Mercer Island, Washington 98040

Investors Realty Funds, c/o Ted Bolduc	Investors Thrift
P. O. Box 9546	1 City Blvd., West Suite #1617
Marina Del Rey, CA 90291	Orange, CA 92668

William and Ada Jarvis	W.S. and Dorris F. Jesske
25015 Tulip	11964 Midcake Drive
Loma Linda, CA 92354	Dallas, TX 75818

Lester C. and Mildred T. Johns	Norman and/or Alvina Johnson
Greentree Road	810 Jackson Ave.
Glassboro, N.J. 08028	Takoma Pk, MD 20012

Lila V. Johnston	William F. Jones
15017 S.E. Phone	P. O. Box 22
Portland, OR 972 36	Berrien Springs, MI 49103

E. N. Judson	Morton and Rosylyn Rale
8717 Venice Blvd.	5838 Ranchito Ave
Los Angeles, CA 90034	Van Nuys, CA 91401

Kansas-Nebraska Assoc. of SDA, Inc.	Shokry D. Karmy or Anna B. Kasmy
3440 Urish Road	2156 Scheuber Road
Topeka, Kansas 66604	Chehalis, WA 98532

Lloyd B or Elizabeth L. Kidder	Peter Kompaniez c/0 Loeb & Loeb
12413 Ellen Court	10100 Santa Monica Blvd.
Silver Springs, MD 20904	Los Angeles, CA 90067

Marvin J. or Marjorie C. Krause	Kreedman Mgmt. & Rlty Corp.
Box 1065	9601 Wilshire Blvd., Suite 812
Sitka, Alaska 99835	Beverly Hills, CA 90210

Louise Kuiken (or Wayne Massengill, Trustee)	Ky-Tenn. Conf. Assoc. of SDA
6015 Kratzville Road	Box 459
Evansville, IN 47710	Madison TN 37115

C.P. and/or Lorena Lampson	Dr Landgarten
24412 University Ave #104	(no address available)
Loma Linda, CA 92354

Eda Lang, Yale Diversified Rlty.	Lois E. Laybourn & Norma J. Reile
17133 Ventura Blvd.	Peniel Road, Rt. 1, Box 63
Encino, CA 91316	Tryon, N.C. 28782

Layman Foundation	Levine
Box 1272, Madison College	Desert Lake Drive
Madison, TN 37115	Palm Springs, CA 92264

L. H. T. Properties	John E. and Phyliss L. Libby
2450 W. 3rd Street	Box 212
Craig, CO 81625	Dillingham, AK 99576

Life and Casualty Co of TN. c/o Jenkins and Perry	Lincoln Nat'1 Life Ins. Co.
1900 Central Federal Tower	1300 S. Clinton Street
225 Broadway, San Diego, CA 92101	Fort Wayne, IN 46801

Clarence R & Rubie F. Lindgren	George W & Eunice Ruth Liscombe
1800 Lakewood Ct. 131	612 N. Poplar Street
Eugene OR 97402	Pierre, South Dakota 57501

Loeb & Loeb	Long & Levit/ Barry D. Brown
1 Wilshire Blvd.	1900 Ave. of the Stars #1800
Los Angeles, CA 90017	Los Angeles, CA 90067

Mildred W. Ludders	Paul & Nora MacGlashan
1160 Central Ave., Apt. 12	35630 Rancho Road
Riverside, CA 92507	Yucaipa, CA 92399

Ruth Maier or Margret Maier	Wayne A. Martin
115 W. Columbia Street	4116 Gwinn Drive
Evansville, IN 47710	Norcross, GA 30071

Lacy Massengill	Robert and Kathryn Massengill
2806 14th Street	2804 14th Street
Palmetto, FLA 33561	Palmetto, FL 33561

Wayne L. and Margaret A. Massengill	MasterCharge, B of A, NT & SA
16020 N.E. Stanton	Card Center
Portland, Or. 97230	Pasadena, CA 91127

Sherman Mazur	Kenneth M or Agnes M. McComas
9601 Wilshire Blvd.	308 Ronald Ave
Beverly Hills, CA 90212	Glassboro, N.J. 08028

Donald M & Ellen G. McIvor	Margaret McVeigh &/or Margaret L.
1004 Victoria Ave	Story &/or Patricia Simpson
Saskatoon, Sas. Canada 57N 028	3139 Noriega Street
	San Francisco, CA 94122

Joseph or Anne Melashenko	Amy Ann Miller
1354 Eucalyptus Street	10300 Kings River Road Sp. #80
Rial to, CA 92376	Reedley, CA 93654

Millie's Place	Earl L. or Helen E. Mills
9601 Wilshire Blvd.,	70 N. Meridith Ave.
Beverly Hills, CA 90210	Pasadena, CA 91106

Mitsui Bank	Montana Conference Assoc SDA
333 S. Flower Street	1425 W. Main Street
Los Angeles, CA 90071	Bozeman, MT 59715

Betty J. Moskowitz	R.V. and Evelyn J. Mundall
2752 Casiano Road	Box 17
Los Angeles, CA 90024	San Ignacio Cayo
	British Honduras, C.A.

Murchison Construction Co	Milton JO or Virginia Murray
4777 Auburn Blvd.	13032 Ingleside Drive
Sacramento, CA 95841	Bettsville, MD 20705

Steven Edward Mussen c/o H. Reznikoff	National Bank of Long Beach
3620 Sepulveda	4150 Long Beach Blvd.
Sherman Oaks, CA91403	Long Beach, CA 90807

Bill Nelson Enterprises	John and Helen Nelson or
P. O. Box 527	Frank and Wylodine Baker
Mira Loma, CA 91752	3004 N.E. 160th Drive
	Portland OR 97230

L. H O Netteberg	LaVerne F. Nightingale
2217 Stroden Circle	22733-A Palm Ave
Minneapolis, MINN. 55427	Colton CA 92324

Alice M. Nilsen	Noon & Pratt
482 Califo Street N.W.	1930 Wilshire Blvd. Suite 400
Salem OR 97304	Los Angeles, CA 90057

Northern Union Conf. of SDA	North Pacific Union Conf. Assn. SDA
P.0. Box 27067	P. O. Box 16677
Minneapolis, MN 55427	Portland , OR 97216

Oklahoma Conference of SDA	TI / Olivetti Corp.
P. O, Box 32098	P. O. Box 925
Oklahoma City, Okla. 73132	Tarrytown, N.Y. 10591

Dolores E. Olsen	Anita N. Olsen
6406 Highland Drive	24958 Huron
Everett, WA 98203	Loma Linda, CA 92354

One Hour Delivery	On-Time Messengers SVC
P. O. Box 45167	433 N. Camden Drive S899
Los Angeles, CA 90045	Beverly Hills, CA 90210

Opportunity with Legacy Foundation	Ronald S. Orr
P. O. Box 381	Gibson, Dunn & Crutcher
Bryn Mawr, CA 92318	515 S. Flower Street
	Los Angeles, CA 90071

Pacific Union Assoc. SDA	Pacific Union Income Fund
2686 Towngate Road	2686 Towngate Road
Westlake Village, CA 91361	Westlake Village, CA 91361

Pacific Union Investment Fund	J. Padelford & Son
2686 Towngate Road	S. Pioneer Blvd
Westlake Village, CA 91361	Artesia, CA 90701

Ralph W or Vaneta E. Pearson	Jonathan G. and Olive May Penner
18-131 Langlois Healing Waters IB12	74 Fourth Street
Desert Hot Springs, CA 92241	Berrien Springs, MI 49103

Phillips Instant Printing	Rex Pickell/ Pickell Construction
9601 Wilshire Blvd. #119	5325 Cherry Avenue
Beverly Hills, CA 90210	Long Beach CA 90805

Grace Plahn	Forest C. Port
1840 S. E. River Road	Rte. 4
Hillsboro, OR 97123	Calhoun, GA 30701

J.T. and Edith Porter	Postal Management Services
Rte 1, Box 295X	10520 Magnolia Blvd
Silverton, Oregon 97381	N. Hollywood, CA 91601

Potomac Conf. Corp of SDA	Jack L. and Lucille Price
P. O. Box 1208	4462 Ceder Park Drive
Staunton, VA 24401	Stone Mountain, GA 30083

Anna Wlld Progler	Elford D. and Norabel Radke
4675 Treat Hwy.	10505 NE 187th Street
Adrian, MI 49221	Battle Ground, WA 98604

Russell A or Mary Radke	Damon Raike
1100 Highland Ave	1801 Century Park East
Clarkston, WA 99403	Los Angeles, CA 90067


Sylvia Ramer	Lowell R. Rasmussen
334 E. 45th Street	Rte 8, Box 175-A
Long Beach, CA 90807	Hendersonville, N.C. 28739

Terri I. Rath	H. V. Reed
18412 Maria Place	415 Cole Court
Cerritos, CA 90701	Lee's Summit, MD 64063

E.S. and Norma Jean Reile	Joel Reims, D.D.S. Profit Sharing P1.
6L12 S. 25th Street	7080 Hollywood Blvd #90fi
Lincoln, NB. 68512	Los Angeles, CA Snn28

Helmuth C. and Erma I. Retzer	Allan Richard Reznikoff
18700 No. Cherry Road	3237-D West Denton Avenue
Lodi, CA 95240	Phoenix, AZ 85017

Herbert Reznikoff	Frank E or Evelyn G Rice
3620 Sepulveda	2530 Hill Drive
Sherman Oaks, CA 91403	National City, CA 92050

John J. and Katherine M. Robertson	Sarah Ellen Robertson
5430 College Avenue	125 E. 10th Street
Riverside, CA 92506	Coquille, OR 97423

Kurt Rodan c/o Tita James	San Gabriel Valley Surgical Med. Grp. Inc
11340 W. Olympic Blvd. #222	c/o Leon Beck
Los Angeles, CA 90064	P. O. Box 2225
	Palm Springs, CA 92262

Harvey L and Dorothy Sauder	Savin Corporation
4979 Dalton Drive	17000 Marquardt
Columbia, MD 21045	Cerritos, CA 90701

W. L. Schoepflin	Gerald L. Schulman
805 S. E. 69th	10520 Magnolia Blvd
Portland, OR 97215	N. Hollywood, CA 91601

Schwartz, Kales, Accountancy	Seafirst Mortgage Corp
8530 Wilshire Blvd. #506	C #34005
Beverly Hills, CA 90211	Seattle, Wash. 98140

Mary Karen Sigbornsen	J.A. and Viola Simonsen
Richmont Street	1375 Vereda Barrance
Loma Linda, CA 92354	Vista, CA 92083

Calvin L. and Virginia L. Smith	Grover C. and Francis Smith
c/o Southeast Asia Union Mission	9 Colesville Manor Drive
251 Upper Serangood Road - Singapore 13	Silver Springs, MD 20904
REPUBLIC OF SINGAPORE

Paul G. and James A Smith	Paul G. and Jeanne A Smith
1101 Kingwood Drive	1101 Kingwood Drive
Takoma Park, MD 20012	Takoma Park, MD 20012

Anne Snyder	Serun Soghomonian c/o Gene Lang
1442 S. Wooster #5	17133 Ventura 81Blvd/Yale Diversified Realty
Los Angeles, CA 90035	Encino, CA 91316

Ann Louise Solari, Virginia Lynn	Larry D. and Sherrie D. South
Mazry & Elaine Maryse Solari	Box 596
431 Pebble Beach Drive	LaPorte, Colorado 80535
Aptos, CA 95003

South Dakota Conf. Assoc of SDA	Southern Calif. Assoc of SDA
217 N. Grand	1535 East Chevy Chase Drive
Pierre, SD 565Q1	Glendale CA 91206

Southern California Gas Company	Southwest Estate Service, Inc.
P. O. Box C	Box 999
Monterey, CA 91756	Burleson, TX 76028

Alberta Brown	Springs Community Assoc.
Sparkletts/ForeMost-McKesson	P. O. Box 764
P.0. Box 41049	Rancho Mirage, CA 92270
Los Angeles, CA 90041

Standard Insurance Co	Standard and Poors Corp.
P. O. Box 711	25 Broadway
Portland, Or 97207	New York, N.Y. 10004

State of California Public Emplys Rtrmnt	State Savings and Loan
107 S. Broadway System	Box 62213
Los Angeles, CA	San Francisco, CA 94162

State Savings and Loan Assoc	Sterling Bank of N.Y.
222 N. Eldorado	540 Madison Ave at 55th Street
Stockton, CA 95202	N.Y., N.Y. 10022

Mildred Stokes	Paul and Edith Stone
5700 Kratzville Road	401 S. 8urnside #11K
Evansville, IN 47710	Los Angeles, CA 90036

Elmer Strum	Sulmeyer, Kupetz, Baumann &
Route 2	615 S. Flower Street
Chuckey, TN 37641	Los Angeles, CA 90017
Hazelle Suhrie	Sutro Mortgage Service
Rte #5, Box 64A	4900 Wilshire Blvd
Hendersonville, N.C. 28739	Los Angeles, CA 90010

Lee Stagg or Dorothy Stagg	Gladys K. Taintor
North Pacific Union Conf Assn	11961 Tree Top Circle
	Nevada City, CA 95959

Sr. Jerome Tamkin, or Robert M. Tamkin, or Joel P. Tamkin	Gene B and Cidy Reile Tarr
9007 Melrose Ave	8 Alton Drive
Hollywood, CA 90069	Elizabeth City, N.C. 27090

Tax Collector, L.A. County	Tenzer and Shane Trust Account
P. O. Box 3202, Terminal Annex	2900 Townsgate Road
Los Angeles, CA 90051	Westlake Village, CA 91361

Title Ins. & Trust c/o Doris Hughes	Michael D. Tomlin/Colorado East Ltd.
700 Wilshire Blvd TRUST ACCT.	3000 Pearl Street, Suite 209
Los Angeles, CA 90054	Boulder, Colorado 80301

John D. or Thelma Trude	Raymond Dale and/or Ellen Tunnell
1115 NE 179th	Route 36 Lindsey Lane
Portland, OR 97320	Knoxville, TN 37922

Union Home Loans	United Calif. Bank
17772 Irvine Blvd., #209	707 Wilshire Blvd,
Tustin, CA 92680	Los Angeles, CA 90051

United California Mortgage Company	Upper Columbia Mission Soc. SDA
Bin 74	West 1025 Indiana Ave
Pasadena, CA 91109	Spokane, WA 99205

Leasing Corporation	Valley ENT Medical Group, Inc. Pension Plan
P. O. Box 38133 Rincon Annex	297 West Artesia Suite A
San Francisco, CA 94138	Pomona, CA 91768

Alfred Vanacore	Isidorius Veisas Trust
c/o Gene Lang Yale Diversified Realty	c/o Leon Beck
17133 Ventura Blvd.	P.O.Box 2225 Palm Springs, CA 92262
Encino, CA 91316

Jessica Vicknair	Bruck Van Vranken, M.D.,
c/o Gene Lang Yale Diversified Realty	& Charles Kramer, MD, Inc., a Med. Corp.
17133 Ventura Blvd Encino, CA 91316	440 West Foothill Blvd.
	Glendora, CA 91740

Wlliam J. Wagner M.D.	Arthur or Gertrude C. Wallach
6504 Beverly Blvd.	1722 Benedict Canyon Drive
Everett, Wash. 98203	Beverly Hills, CA 90210

E. R. and Ester Lo Walde	T.W. and Lois Walters
14021 N.E. Fremont Street	14330 S.E. 268 Court
Portland, OR 97230	Boring, OR 97009

Isabel Ward	J.A.Wasemiller and/or WoEo Wasenmiller
4001 Anderson Road	82 Fourth Street
Nashville, TN 37217	Berrien Springs, MI 49103

James E or Kristie Wasenmiller	Wilbur E. 6/or Mrs J.A. Wasenmiller
3363 Huckleberry Court	P. O. Box 849
South Salem, OR 97302	Decatur, GA 30031

Ali Wassil	Ralph or Jeanne Weidman
5158 Highland Ave	North Pacific Union Conf. Assn.
Los Angeles, CA 90041	335 N.E.Jefferson
	Hillsboro, OR 97123

Weijohn Farm	Wells Fargo Bank Auto Lease Ctr.
Rte. 3 Box 3285	P. O. Box 816
Wapato, WA 98951	Anaheim, CA 92805

Western Oregon Conference Association of SDA	Robert L & LaVonne R. Wheatley and Bonnie L. Bailey
605 SE 39th Ave	5471 Peacock Lane
Portland, OR 97214	Riverside, CA 92505

Glenn A. and Beth Whitaker	Ray L. White
3031 E. Chevy Chase Drive	1325 Ink Grade Road
Glendale, CA 91206	Pope Valley CA 94567

Eugene Winter	Anne M Witaker
415 S.E. Date	14093 Davana Terrace
College Place, WA 99324	Sherman Oaks, CA 91423

Patricia Wood	Woodbury and Co.
15 Lincoln Ave. N.	Chadwick Square
Lehigh Acres, FL 33936	Worcester, Mass 01605

Xerox Corporation	Robert Zucherman
2029 Century Pk. East #700	225 E1 Camino Drive
Los Angeles, CA 90067	Beverly Hills, CA 90212

⁵

There are those in the Adventist church that will always feel that the next moves I took were both unwise and unnecessary, but they make much of the text in Matthew 18 under other circumstances when it does not involve them or their church. The words are these:

Moreover, if thy brother shall trespass against thee, go and tell him his fault between thee and him alone; if he shall hear thee, thou hast sinned against thy brother. But if he will not hear thee; then take with thee one or two more, that in the mouth of two or three witnesses every word may be established. And if he shall neglect to hear them tell it unto the church; but if he neglect to hear the church, let him be unto thee as a heathen man and a publican. ⁶

I felt that I personally, as well as the whole church, had been wronged greatly in both deed and fact by the head elder of the church, whose name stood at the top of the list as a priest, because of his great conflict of interest in the Davenport matter. His influence was not on the side of right and he should be instructed as such. So I wrote on June 14, 1977 the following letter to him and to him alone:

The other day I came across a list of names with yours on it, so thought you might like to have a copy to remind you of the Clan and the big time. It is a list of ministers and leaders who have or had invested personal money with Dr Donald Davenport.

It certainly makes interesting reading. It also explains a lot of questions some have had about the workings of the church in the past and how and why some men get where they are. It surely lays to rest the promoted idea of a self-sacrificing, self-denying leadership in this movement. In any other field of human endeavor it also might raise special questions of conflict of interest, influence peddling, and even bribery, when the list is compared with another equally interesting list of all the Conferences and Associations that hold notes that amount to millions with the same man, often encouraged and helped by some of the same leaders and clergy.

We have often written about revival and how it is to be brought about by change, and that that change will come from reform. It is easy to see why we are and will have a difficult time in our circumstances in the church expecting or hoping for such a change to take place.

I have often wondered since seeing the list, what the lay members of the church would think of the message and the Clergy, if the list were published in the Review or some other paper. If, as one leader has said, it was just a good business deal on a personal level, then most of the laymen would be equally interested in making such a sure investment.

You may keep the list, if you wish. It seems to me to be a sad commentary on our times and our leadership in the Church. ⁷

At the same time I sent Elder Cree Sandefur, who at the time was Union President of the Pacific Union, where Davenport seemed to have gotten his start, a short note.

Dear Elder Sandefur,

There came to my attention some time ago a list of names which contained your name along with that of many of your friends. It makes very interesting reading. It also explains a lot of questions that have come to mind in the last few years concerning the church and the work. Some of these names have an interesting history in the field of money and finance. I thought that you might like to keep a copy to remind you of the club and the big time.⁸

I did not choose the words to either man lightly. The Davenport list showed that men in high office in the church helped to put others of their friends in high office. It was true, as Elder Rasmussen had told me in the Academy, that you ride to success on the shoulders of your superiors. It came to me clearer then ever before that it was not God running the church, as I had been told over and over again, but the Piersons and the Sandefurs that put men where they were so they could be helped to do what they wished. It was the Piersons and Sandefurs that got away, free from the slander and shame. Sandefur was Pastor in Long Beach where Davenport was a member and got his start in the church with Cree's help. Sandefur went to Hawaii and Davenport was there. Sandefur went to the east and Davenport was never far away. Sandefur opened doors by his involvement thus encouraging others to enter those open doors. Yet when the house of cards came down, Cree was out with his money as well as out with his "fast" retirement. Davenport himself made it very clear in one of his letters how much help Cree had been to him:

Elder Sandefur took out his money three or three and one half years ago when he became President of the Pacific Union Conference and he and his wife Mildred told me together when I was on the Loma Linda Campus and they were out there that this was one of the hardest decisions that he had ever made because he had done very well with me financially, but since his Union Conference would probably be voting on some of my transactions that he felt best that he should take his money out and I said well that was up to him but that after he had retired if he wanted to he could put his money back in and he said he would most certainly do so.⁹

I wonder since seeing Davenport's letter if Cree did invest again with his friend and if so why he is not listed among those that were left holding the bag. After all, Davenport owed him a lot, at least enough to give him inside information as to when to get out. It was Cree Sandefur that helped to move all the investments that were in the local conferences, where the local laymen and preachers could see them and ask questions, to the Union where they could not see or complain. It was perhaps one of the best moves Cree made for Davenport while President of the Pacific Union, but it did leave the Union holding the bag for that $1,528,094 of loans plus the accrued interest of $120,449.

Editor’s note: In the original typewritten manuscript, there is no footnote for the number 10.

The Davenport list had also shown that most if not all of the Unions in North America were involved with him in some way and that the committees of these institutions of the church, often with their presidents and officers, were personally members of Davenport's financial club. In its article Spectrum said:

Almost everyone interviewed for this article said that individual leaders received higher rates of return on their funds then did church organizations, and several stated that influential and powerful people in the church received better returns than ordinary mortals. And in his last, difficult days, Davenport had apparently paid off some favored creditors. His trustee, Irving Schulmeyer, reported in an application to the judge that "preferences have been made in substantial sums” by Davenport in the 90 days prior to his filing for bankruptcy.¹¹

President Pierson's letter back to me was typically ministerial. It said nothing and did not even say it well, but it did reveal a great deal about the man and his thinking:

It is understandable that you would be surprised to receive a list giving the personal amounts that various individuals have deposited with Dr. Donald Davenport there in California. In the first place, this is strictly confidential information and the fact that it has become somewhat public property is in itself shocking. (I have asked myself many times why he thought it was shocking if it was proper.) I may tell you, however, that this list was compiled August 31, 1971, and with deposits, withdrawals, etc., the list is no longer valid. (This was a straw man tactic; he knew there was a new and current list.) I appreciated very much that you sent the list to me personally instead of passing it along to others. (He did not know this but only hoped so.)

Brother Rea, I would prefer to sit down and talk with you rather than reply by letter, but since it is not likely that there will be opportunity for this, I wish to make a few observations that I hope will be helpful. (He was paid by the church to fly the world and could have come if he had wished and as time has shown, it would have been better if he had not written as he did.)

I cannot speak for any of the other investors on the list, but I wish to speak for myself. As I go through the names there are a number that I, of course, know well, and I also know that they are generous supporters of the Lord's work, (Again a straw man. If most had received the high interest the list reveals, they should have been more generous in supporting the church that they were robbing to make it all possible.) and personally I would not wish to judge their giving by the amount they may have invested with Dr. Davenport. I know some of the persons on the list who have invested money for members of their families in their names.

In the first place, I want to say that as far as I have known, Dr. Davenport's operations for the past many years have always been open and above board, and in every way legitimate. (This is an incredible statement in the light of what his own General Conference Treasurer was saying and writing about.) He has helped many workers and members and some church organizations. To my knowledge no board or committee of which I am a member has any money invested with Dr. Davenport. (This is another incredible statement as the policy of the church matches the General Conference President virtually a member of any and every committee, especially the Unions that were involved.) There can be no conflict of interest here. In fact, I know of only one or two organizations which have money infested with him. (Yet the list I had sent him showed a dozen or more of which at least technically, he was a member.) If they have, according to my information, they have been receiving good interest on their investment and have never lost a penny. (This was also an untrue statement as Davenport was often behind in his interest payments to the churches and Conferences, which the bankruptcy records show.)

Is there something immoral about putting aside money for retirement or toward a home? According to my information, Ellen White owned several properties. (Pierson had always given lip service to the Adventist Prophet even if he did not follow her advice about honest dealing in finance.)

Some of us, Brother Rea, have spent a good share of our ministry in foreign fields. We were separated from our families for years. Our salaries were much less than in the homeland. We lived in mission or rental property. There was no opportunity to build up an equity such as workers here in the homeland are able to do. (What a litany of false reasons for his unethical and illegal actions!) Was it wrong for us to invest our savings where we would receive good interest until we needed it for retirement? I do not believe it is fair to criticize anyone for doing this.

I make no apologies for having a modest sum invested with Dr. Davenport. I do not have time to invest in stocks and bonds, etc., and spend time watching and worrying about the market. We placed our money where we felt impressed and have gone about our business without worrying about it.

As far as sacrificial giving is concerned, Brother Rea, I don't imagine that any of us gives nearly as much as we should when we consider what the Lord has given for us. But I can write in the Review with clear conscience urging our people to give sacrificially. Mrs. Pieron (sic) and I have given from 20 to 35% of our salaries for years in addition to thousands of dollars given to the world field program through my books from which I have foregone royalties that I might have claimed. I also drive a 1972 Chevrolet.

Brother Rea, (And here comes the sermon not the answer to my letter) I was both surprised and disappointed that a pastor in my church (note that he does not say ours or God's but his church) would jump to conclusions as you have (Before it was over most of Adventism as well as those of the world that knew about it jumped to the same conclusions) and write a letter in a questionable spirit (The secretary must have had trouble with the word, questionable, for it is corrected and typed over and over several times. I have wondered if the word he used and erased was questioning.) without checking some facts with me before judging. But this I shall have to leave between you and the Lord.

May the Lord bless and guide you as you feed and lead the flock of God there in Long Beach. (which is exactly what I felt He was doing when I wrote Pierson the letter asking for an explanation). ¹²

Pierson's letter sounded like some ancient pagan love song. He had been taken from the sheep fold of Adventism and exalted to the crown, yet he was poor-mouthing the very system he enjoyed. Some preachers whine a lot. They often rule like some ancient Mongolian Prince. They roam the world always at the people's expense. When they touch the ground from their flight they are wined, dined, and pampered by lesser functionaries, all who are hoping some promotion or crumb of favor will fall their way as a reward. From the beginning to the end the structure favors the executive, the administrator, the divine that has made it to the top. Even the retirement plan he spoke of gives him a leg up on his colleagues. One of the great lies of Adventism is that all men are treated equal in the work of the church. The special privileges of houses, gifts, interest free loans, trips and perks are a way of life with Adventist administrators. It is one of the reasons so many want to be one; and for Pierson to poor-mouth the very system he was defending by his action on the Davenport matter was laughable, if not terribly sad.

What was even sadder was the morality that he showed about the whole affair. Much of his reply did not admit anything or explain anything or apologize for any of his actions or those of his colleagues. He either was unable to understand how he and his friends looked to others or did not care. He didn't even leave the matter between "me and the Lord" as he said. I found out later through the bankruptcy court that even before the ink was dry on my letter to him he had sent it to Dr. Davenport and was playing both sides of the street. His letter to me was dated June 23, and Davenport's letter to him was dated June 28. He wrote to Davenport on the same day he sent me my letter:

Dear Elder Pierson,

I have your letter dated June 23, 1977 and the copy that you wrote to the individual that had written to you.

Without any effort on my part, I believe I have identified this individual as Elder Walter Rea and I did not set out to identify him but that same day there came into my office an Elder and I am going to use all the names that I have access to so you'll know what I'm talking about. This Elder's name was Elder David Neufeld and he told me, "What is this stuff that Walter Rea is peddling around?" and I said, "I don't know what he's peddling around, but I have an idea so would you tell me?" He said that he is telling everybody that you are in serious financial trouble and that specifically he has made three allegations:

1. That the Georgia Cumberland Conference has no money with you and I told him at the present time that Georgia Cumberland Conference has 52,600,000 with me.

2. He stated that all the conferences are calling for their money back and this is in error. Occasionally one wants some of their money for some building project and I send it back to them.

3. He stated that there was a member of the Long Beach Church that had asked for $200,000 and I told him I couldn't pay it. I immediately called up this individual whose name is Widen Burkett and Widen said I did not ask for $200,000 back and I didn't want it back and the party who is stating all this is Walter Rea who is Pastor of the Long Beach Church.

The fourth allegation that Walter Rea made was that recently Elder C. Sandefur pulled out his money because he was worried about my investments and also that it was a conflict of interests.

Elder Sandefur took out his money three or three and one half years ago when he became President of the Pacific Union Conference and he and his wife Mildred told me together when I was on the Loma Linda campus and they were out there that this was one of the hardest decisions that he had ever made because he had done very well with me financially, but since his Union Conference would probably be voting on some of my transactions that he felt best that he should take his money out and I said well that was up to him but that after he had retired if he wanted to he could put his money back in and he said he would most certainly do so.

Elder Pierson, those are four blatant lies and I'm not going to call the Lord's annointed (sic) a liar, but I think I can call truth, truth and falsehood, falsehood. I documented all four of these instances. I documented Walter Rea, Pastor of the Long Beach Church for saying that. I debated whether I should call Elder Rea and I thought by calling him if he's going to tell lies now he would perpetuate his lying program and I'm just going to leave it alone.

Now, to be more specific: I told everybody that vested with me that I would treat their money just like a bank that I would not discuss with or disclose to other people what they had or anything about it. If they wanted to disclose it, that was their personal business and I have never violated that confidence.

I started this investment program about 17 or 18 years ago and nobody has lost a cent of interest or a cent of principal during that time and nobody ever will unless some catastrophe happens that I do not foresee.

For your own information, my financial picture and program has never been better than it is right now and I have no reason to believe that it won't continue to be better.

I'm very disappointed that Elder Walter Rea should take it upon himself to try to do whatever he's doing.

I hear, indirectly, and I'm not in a position to document it, that he is not pleased with the way the Church runs their finances and he is going to help straighten it out any way he can. My former wife, Elizabeth Davenport, worships at the Long Beach Church where he is a Pastor and it is very easy to believe and to think that he got this list of investors from her or through her office.

In the dissolution of marriage settlement I listed my assets and my liabilities and I had to list all of the people that had invested with me, but I made it very clear to my former wife's attorney, William Cree, that this was a confidential matter - that I wanted him to know that I owed - that I would take all the responsibility for the bills and obligations, but that it would serve no useful purpose and it would violate a trust if this became public. Apparently, either my former wife or this attorney saw fit to make it a matter of public record and Elder Walter Rea does not have the best interest of the Church at heart, but perhaps only his own selfish interests to take the matter still further.

As an interesting note, which you may well know, every time there is a vacancy in the President's office of the Southern California Conference, he gets a little group behind him and makes some trouble and runs for the office. I've known him many, many years and this is his program.

Again, Elder Pierson, I'm sorry for this item happening, but for somebody to have to dig into something six years back to make their point is really quite ridiculous.

I thought that you handled his letter in a masterful way and it is not beyond the realm of possibility that within the next year or two everybody within that investor's group will have been paid off because I'm getting into larger and larger buildings and I'm paying off investors as I do that.

I find it quite interesting that he made four allegations in front of Elder Dave Neufeld. I disproved every one of them.

I would like to ask you a question which I don't think you have the answer for, but I think I'm entitled to ask - and that is, "When does a minister of the Seventh-day Adventist Church get a license to lie?"

Please accept my apologies for this unfortunate situation and do whatever you can to protect the good interests of the Church because that's what we all should do. ¹³

Poor Don, still doing his best to come across as "a hell of a guy." The letter not only shows up the deceit in Davenport's makeup but Pierson's as well. It also helps to show how the system had gone wrong with stooges and lies and intimidation. One of those stooges that got away was David Neufeld. He was a left over General Conference man that was put to work in the Pacific Union by Cree Sandefur at half price. He was long overdue for retirement but made up for it by singing the praises of Davenport to all that questioned him. He had his own money invested and encouraged other to do so. He was one of the boys that got out with profit, and long after the debacle he still stood four-square for his friends in the mess and said he felt no guilt for what he did as a double agent for Davenport.

Another name mentioned was also an agent for Davenport. He was my head elder, Widen Burkett. We had discussed Dr. Davenport together; and I had assured him that as a committee member of the Conference he was in a slippery position when it came to the voting of 'funds from the conference to Davenport when he himself was singing his praises as an investor. Another item had come up between us that perhaps chaffed him a bit. It so happened on his retirement as a public school teacher that he received a call to go into the ministry in Nevada. The President of that Conference, Elder Striefling, was a Davenport investor, Burkett was a Davenport investor, and Cree Sandefur, who would have to approve the appointment in the Union, was a Davenport supporter. With so many young men coming out of school without calls into the work I felt that is was wrong for Burkett to receive that call the way it was coming and looking and told him so, and asked him how it would seem if all the circumstances should become known. The call did not materialize but I received the impression Widen was not happy with me for my lack of support for his friend, Davenport. With his $185,000, plus interest, I could understand why.

Two other names should be mentioned as those that got away without much embarrassment or shame. One was John Robertson, a former Lonq Beach Pastor and friend of Dr. Davenport. While pastoring in Glendale, he was unable to convince his board at the Vallejo Drive Church that they should invest with him in Davenport. It caused some problems and some of the elders who talked with me felt strongly that John was putting on too much pressure considering his connections. John later worked in Southeastern California and I guess felt no moral problem with encouraging others to follow Davenport. He later wrote a high sounding moral book called THE WHITE TRUTH seeking to refute my book, THE WHITE LIE, even before I had published it. Another former pastor of Long Beach and friend of Davenport and retiree who was re-hired by Sandefur was Elder Duffield. He had taken trips overseas with the Doctor and had encouraged others to invest with him. In a letter to me he said:

Many of my friends keep inquiring of me about his financial picture. I would like to be able to speak with some degree of certainty about his soundness. I have gotten all my money from him. Confidentially I had $100,000 with him. I must say that he doled me out a bundle of interest over the years. For this I'm deeply grateful. However, I am happy to have my money (principle). The reports I get from various sources, including his first wife, are very dim. ¹⁴

So it wasn't just me that was hearing and speaking the things we were hearing. It was getting late for Davenport and he was thrashing around more and more. What did and does come across over and over again is that one could talk to lawyers, doctors, truck drivers, school children, atheists or infidels, and most if not all could tell you that what was going on was wrong, evil and wicked. But neither then nor since has Pierson, Sandefur, Neufeld, Robertson, Burkett, Duffield, Union Presidents or the church as a whole expressed or admitted the gravity of its sins of involvement. Little or no embarrassment has been shown, much less shame. And perhaps even more amazing, the church as a whole still preaches against those terrible Catholics, those dirty Protestants, and the evil world, not seeming to notice that by their lack of concern over their own amoral or immoral conduct or the condoning of it, they have forfeited any right to condemn or preach reform to others.

Evidently Pierson had not given Davenport enough assurance that he would either stop me or fire me for he wrote again a few weeks later:

Dear Elder Pierson,

I have your letter dated July 19, 1977 and I do not wish to take your valuable time with reading a lot of correspondence.

I will abide by your wishes and let the matter drop unless Elder Walter Rea decides to keep stirring it up. If he decides to do this, I have no alternative but to take care of him in the best way that I see fit.

I would like to close my remarks in this letter with some thoughts that I think are very important.

I consider my word of honor absolute and when these different ministers over the period of seventeen years invested sums with me, they asked me, almost without exception, not to mention the amounts they had with me because they felt it would serve no useful purpose and besides it was their own business.

I have kept that trust all these years and I refuse to even give the General Conference a balance sheet because even though Elder Emmerson and Elder Osborne indicated, via the grapevine, that they wished to have it-- this could reveal the names of the different people and I felt that I would not violate a trust.

The second reason that I am interested in shutting up Elder Walter Rea is that I am aware of a group of laymen that wish to cause embarrassment to the Seventh Day Adventist Church by getting every single bit of financial information that they can and distort and twist and use it to their best advantage to embarrass the Church and I, for one, would like to do everything in my power to protect the Church. I always have and I always will.

I have told you before that I have not lost a single cent of interest or principal for the Church these many years in which I handled millions of dollars for them. I have pride in that relationship. I thank God that I have been successful in difficult times to always provide the Church with a gain and not a loss.

It disturbs me very much that somebody on the Church payroll such as Walter Rea would become involved in a situation where it could become very embarrassing to the Church.

With these facts, I now rest my case I hope that you are effective enough in having Elder Walter Rea realize the folly of his ways and, because he got this list by some devious means, and dug into a domestic situation that has been settled for over rive years only to furnish ammunition for the discontents and malcontents in the Church that he should be advised that this will not help him, but in the long run will hurt his cause.

Elder Pierson, please remember that I am 100% behind the organized Church. There may be people in the Church, such as Elder Walter Rea, that do not do things as I feel they should be done, but that is their problem, not mine.

I promise you that I will not pursue this matter further unless Elder Walter Rea and his ilk (sic) do not take your advice and keep the list confidential. If they don't then I am absolved from my promise to you and I will take the matter in my own hands.

If I understand the Bible correctly, it says that if you have something against your brother, you go to him first. If that doesn't settle it, you take a witness and go to him. If that doesn't settle it, you take the whole Church and go to him and if that doesn't settle it, then you take it to court or some other higher authority.

Elder Pierson, Walter Rea has not done any of those things and I just feel very protective of the Church. I think sometimes some of us laymen must take a strong arm position to defend the Church and to shut UD all of this maliciousness that is going around.

Well, you have heard my story. I have made a promise and I will keep my promise, but my promise has one "out" in it. If Walter Rea is not smart enough to keep his mouth shut, then I am going to move in on him. ¹⁵

Someone has suggested to me since seeing the letter that they sound more like the Mafia than Christians, and I agreed. To believe that the head of a church would be in business with such a man and yet not come to me and talk of what was transpiring is hard to understand. Another interesting thought is that if Pierson was sharing his correspondence from me with Davenport he must have been sharing it with another, Neal Wilson. Why not? It had been done before.

In the early 1960's I was contacted by the then President of the General Conference, R. R. Figuhr. The church had been having a lot of troubles with their head divines in the south,and because I had worked there, been on committees and knew the men, he wondered in his letter if I would be willing to write what I felt were some of the problems. My letter would be confidential of course, he assured me, and I would be doing a good service for the church. I wrote him my convictions, naming names, stating places and specifics, how the leaders were, in my opinion, corrupt, greedy men, how they bought and sold property through our hospitals to protect themselves and to save money through the institutions and then would profit by their methods, how they sold cars to the workers and extracted a personal fee for doing so. I was liberal with my information and the names of men who were participating. ¹⁶

Sometime later I met Elder Neal Wilson at the General Conference session, and he informed me that he had read the letter I had been told was confidential by R. R. Figuhr. I knew from my knowledge of the system I was in trouble. Sure enough, sometime later, one of my friends called and told me that my name had been black listed in the south for all time and I could and would not ever get a call to anything, "not even dog catcher." Knowing how the system operates I was not surprised. I have often been accused of seeking higher office. Knowing some of the men in those offices, I have never known if I should take the rumor as praise or insult. If by the time of the Davenport situation I carried any thought of advancement in the church, it surely would have been an empty basket that carried those thoughts; and I have often said that I may be dumb but I was not entirely stupid.

It was clear to me after Pierson's letter, even without having access until later to the Davenport correspondence that the church and its leaders would do nothing to stop their rush to greed and destruction. If anything was to be done, something or someone other than those involved for personal gain would have to do it. It was clear from my background of years in the service of the church that no reform would come even though I had written Pierson. No change would be made and no clean up would take place. Had I known what I know now, that most of the votes and voices that counted were arrayed against me. I doubt that it would have effected my action. I knew without that information that my time was short and that what I did, I would have to do quickly, or even more millions would be funneled into the pockets of Davenport and his helpers. It has never been clear to me whether Davenport corrupted the clergy, or the other way around, but for me it had to stop.

After much soul searching and a great deal of counsel from those I respected and trusted, I decided on several steps. One of those steps was to release the list I had found to John Adam in Tennessee and to Sydney Allen in Riverside, California. These men had been fighting as laymen at least as long as I had and were doing their best to alert the church of what was going on. I knew that they had access to sources of publication that I did not have and that they had the courage to take the project as far as necessary, though none of us knew how far that would be. It didn't take long for us to find out.

The pressure was building, and Davenport could not ignore it much longer. On April 19, 1979, Davenport sued John Adam and his employer, A. G. Edwards & Sons, Inc., charging that Adam had interfered with his business and defamed his character. He asked for $1 million actual damages and $3 million punitive damages. He followed that up on May 15 with a similar suit against Syndey Allen for $2,550,000. ¹⁷

The lawsuit laid it out better than we had dared believe it would, for it said;

Dr. Davenport borrows funds from various individuals and large institutions including, among others various Divisions and Conferences of the Seventh-day Adventist Church of the United States (Church). That the Church, and various individual members of the Church, for investment purposes, have loaned substantial sums of money to Davenport which loans are reflected by promissory notes, many of which are demand in nature, secured by first mortgages or trust deeds in favor of the lenders, totaling many millions of dollars in secured deeds. . . .and in conjunction with his borrowing activities, has formed close personal relationships with numerous leaders of the Church and other individuals in the Church. Based upon the quality of the secured debt offered the Church, and upon the relationship of friendship and trust between financial representative of the Church . . . .That although Plaintiff has attempted to counteract the conduct of Defendant Adam, Plaintiff fears and truly believes that unless injunctive relief is provided after a hearing of this cause, Plaintiff will be destroyed by the Defendants and that the Plaintiff will suffer irreparable harm since the Defendants' actions will result in a total loss of the trust and confidence of individuals and conferences of the Church, thereby destroying a source of lending which cannot be replaced through other conventional lending sources and requiring Plaintiff to liquidate vast holdings in order to pay off sums of principal and interest which normally and customary would not yet come due (Emphasis supplied) ¹⁸

What Dr. Davenport had done in the lawsuit was to reveal all the information necessary to follow his activity from beginning to end and find that the loose ends had always ended in the church with his friends he had cultivated. He also made it clear that without the friendships he would and could not continue his operation. So in essence he was saying that his empire depended on the payoffs he was giving to Adventist preachers in order to milk the church and other institutions to keep going. The suit did one other thing. It produced his own blueprint on how to bring him down and stop his operation. If one could stop him from bleeding the church and its members, he was through.

With that information the rest was fairly easy. The Government agencies would and could do what the church had failed to do: clean up the act and thus destroy it. I approached the Attorney General's office of the State of California with what information John and others had provided, including fraud, breaking of usury laws, breaking of S.E.C. regulations, and bending of other laws. The I.R.S. office appointed a special agent, Sandra M. Armstrong, to investigate the matter, gave me her card and told me to keep in touch. Those who were aware of these moves guessed correctly that it was only a matter of time before the end could come, and we encouraged all the investors we were able to contact to leave the sinking vessel as soon as they could. I personally talked with many, including such leaders as Elder Heppenstall, Dave Neufeld, Duffield, Burkett and others, including some personal friends of mine as well as Davenports, such as Dr. Wayne Eyer and others. Some did not heed the warning and hence their names appeared on the creditors list when the end came. Those that did get out have ever been grateful.

It was a difficult decision to come to. It was hard to take action that we all knew would embarrass the church. Yet we all knew also that the church was going to be embarrassed anyway and it was harder to stand aside and watch Davenport and the preachers continue to bleed the church and its little people, for it was they that suffered the most. Nothing will erase the conviction that many millions more would have been lost if we had not taken drastic action to stop what was clearly a "scheme," as Emmerson said, to use the church’s money to enrich a few at the expense of the many. None of the people that took our advice and got their money out have had anything but praise for what we did for them, and even some of the ones that turned against us after the bankruptcy said they wished they had followed our advice.

CHAPTER II FOOTNOTES

1. 1975 Constituency Meeting record, Southern California Conference, Pacific Union Conference.

2. Petition for dissolution of marriage in Superior Court, County of Los Angeles, Case No. D795614, Property .

Settlement Agreement. May 1972

3. Ibid., p. 93.

4. Ibid., List of creditors under Property Settlement

5. United States Bankruptcy Court, Central District of California, Filed March 2, 1982. (2nd amended mailing list)

6. Matthew 18: 15-17.

7. Walter Rea to Robert Pierson, June 14, 1977.

8. Walter Rea to Cree Sandefur, June 3, 1977.

9. Donald Davenport to Robert Pierson, June 28, 1977.

10. L. L. Butler, "Update on Davenport Loans", back page of Adventist Review, subtitle, "Summary of Davenport Loans, June 30, 1981".

11. Tom Dybdahl, "Bad Business: The Davenport Fiasco," Spectrum 12, No. 1, (September, 1981) p. 58.

12. Robert Pierson to Walter Rea, June 23, 1977.

13. Donald Davenport to Robert Pierson, June 28, 1977.

14. C. L. Duffield to Walter Rea, February 9, 1978.

15. Donald Davenport TO Robert Pierson, July 25, 1977.

16. Walla Walla Tapes (2) Lecture by Walter Rea, November, 1981.

17. Tom Dybdahl, "Bad Business: The Davenport Fiasco,” Specturm 12, No. 1, (September, 1981) p. 53.

18. Donald J. Davenport vs. John Adam and A. G. Edwards & Sons, Inc., No. 79-229107. United States District Court for the Western District of Tennessee, Western Division.