The case against a DeKalb County minister and his brother, who were accused of selling investments without a license, has been dismissed after they repaid investors $90,000, the district attorney’s office said Tuesday.
The Rev. Wiley Jackson, pastor of Gospel Tabernacle Cathedral, and Rodney Jackson were named in an eight-count indictment in December. The indictment charged that the brothers’ company, Genesis LLC, received at least $12,000 from individuals as far back as 2002 through investment contracts the company was not licensed to issue.
Since the indictment, five more investors have come forward claiming they also lost money, according to the DA’s office, which said the money was paid to seven investors from an escrow account.
Jerry Froelich Jr., an attorney for both Wiley brothers, said his clients did not violate any securities laws and they were prepared to go to trial.
Froelich said the Jacksons acted on the advice of a certified public accountant who also had a securities license. He said the CPA, who has since died, established the investment company in 1999, registered it with the Secretary of State’s office and received a federal tax ID. The investment operations ended around 2005, Froelich said.
“Bishop Jackson had paid most of the investors back with interest in 2008 with his own funds, which he had no obligation to do,” Froelich said. He said the minister, whom he described as a partner in the company, paid out more than $300,000 to investors out of his own pocket. “There were several people who had somehow been overlooked by the bishop’s staff. These people were paid as had been the previous investors.
“We were prepared to go to trial and would have been successful, but the district attorney decided to dismiss the charges,” Froelich said.
District Attorney Robert James, however, said there were no records that indicated Genesis was authorized to do business in Georgia. “It did not exist and it was not licensed to operate in Georgia,” James said.
“We struck this negotiated deal with Rodney and Wiley Jackson to make sure our victims were made whole,” the DA said. “Even if we had received a conviction, it may have been years before they received their money back.”
James said his office has investigated other complaints involving churches allegedly selling securities without a license but this was the first case in which felt he had enough evidence to present to a grand jury.
”Our goal with any case in our office is to find a resolve for those affected by a crime,” James said.
The DA’s office said the original two investors were members of Gospel Tabernacle, which has locations in Atlanta and Stone Mountain. One member gave Genesis $10,000 in 2002 and another gave the company $2,000 the same year. Both lost their money, according to prosecutors. No information was provided on the investors who came forward after the indictment.
The indictment said the Jacksons “failed to inform potential investors that there was a risk that they could lose their principle investment,” a necessary warning to ensure investors would not be misled, the indictment said.
The DA’s office said the state does not intend to seek any further indictments against the Jacksons.
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