Catholicism's Oral Roberts

The problems that put Oral Roberts University into recent headlines pale in comparison to Tom Monaghan's manipulation of Ave Maria enterprises for his personal, business, and banking interests. Monaghan's management is far more repugnant given its scale, financial scope, coercive nature, and depth of self-servitude.

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A central charge against Robert Roberts, President of ORU, is misuse of university funds for personal interests. "University funds" are donations made to a non-profit institution by supporters; except for some guidelines, donors relinquish control of their money to a university. It becomes a university asset.

That is not how Tom Monaghan "gives". In fact, he does not "give" because he fails to relinquish even the smallest bit of control. Tax-exempt money from Monaghan's Ave Maria Foundation is circulated back into his direct control as Chairman/Chancellor at Ave Maria University (AMU) and Ave Maria School of Law (AMSL). He even shares the same CFO between the Foundation, AMU, AMSL, his Florida bank, and his multiple for-profit Florida businesses (via Nua Baile). It would be difficult to imagine a more egregious example of personal interest driving the misuse of a non-profit than for a person to shut-down a highly successful school under his chairmanship in one state (AMSL in Michigan) and uproot it to his for-profit real estate development in another state (south Florida's Ave Maria Town) - a move that directly benefits his other Florida businesses and his chairmanship in a pre-existing non-proft (Florida's AMU) - all while causing chaos for the once-successful institution and its alumni (Michigan's AMSL). AMSL's shutting-down in Michigan and starting-up in Florida may means millions for Monaghan, from condo sales, to land appreciation, to more utility hookups (Monaghan even has a stake in Ave Maria Utilities in Ave Maria Town). It makes the $800 bathtub that ORU put into Richard Robert's house look like peanuts.

But given the recent bubble burst in Florida real estate, Monaghan's land speculation might not make much in the end. The success of AMSL's move from Michigan to Florida is predicated on cash from home sales, not on the Law School's internal success. Chaining the school's future to unrelated businesses, a single decision maker, and unrestrained market forces is the game that this billionaire is playing. The volatility for AMSL is compounded because Monaghan has yet to show any hard guaranteed financial commitment for the school when it gets to Florida. Institutions of higher education should not be the toys of an uber-wealthy businessman with a high school diploma.

Some have argued that Monaghan should be allowed to "spend his money as he pleases". To do so is to disregard restrictions on non-profit and for-profit governance, and the fiduciary obligation to avoid conflicting interests. Tom Monaghan's giving back to himself (i.e. from AMF to AMSL), and his use of non-profits to directly benefit his for-profits, make him a rogue philanthropist of the highest order. He demonstrates nicely why a model founded in self-interest breeds abuse, unaccountability, dysfunction, and failure.

Commonalities Between Monaghan/Roberts:
+ At ORU, Richard Roberts is President; the school's founder, Oral Roberts, serves as Chancellor. Richard Roberts is also Chairman and CEO of Oral Roberts Ministries. Tom Monaghan is Chairman of the Ave Maria Foundation (AMF), an organization that is also run like a one-person "ministry". Monaghan also serves as founder/Chancellor of his Ave Maria University, and as founder/Chairman of Ave Maria School of Law. The Ave Maria presidents are lawyers under Monaghan's direct control; these president-lawyers assume an attorney-client relationship with the Chairman of the supporting "ministry" (Monaghan-AMF).

+ The recent suits against Roberts and Monaghan were each filed by 3 fired professors claiming whistleblower retaliation and breach of contract.

+ The Roberts and Monaghan suits each claimed that their respective institution's nonprofit status was violated. Roberts' case involves a political campaign while Monaghan's involves abusing a Michigan non-profit (i.e. Ave Maria School of Law) to benefit Monaghan's other Florida non-profits (i.e. Ave Maria University), for-profits (i.e. Nua Baile and Ave Maria Development), and personal interests (i.e. Monaghan's private land holdings). See also "Non-profit Watchdog Aims At Ave").

+ The Roberts suit involves accusations of inappropriate sexually-related activity on university grounds, using university resources. The Monaghan suit involves worse accusations: "In 2006, Plaintiff Safranek discovered even more disturbing activity. Based on discussions with law school employees and reports prepared by the Michigan State Police, he concluded that certain staff at Defendant Ave Maria School of Law used their positions and law school resources to obstruct a criminal investigation into a priest’s alleged involvement in sex offenses, including possession of child pornography. At the time of this involvement of law school staff and resources in assisting the accused priest, the matter had been under investigation by the Livingston County Prosecutor’s Office, the Michigan State Police, and/or the Michigan Attorney General’s Office. Defendant Dobranski became aware of the issue, but refused to alert any law enforcement agencies of the role Defendant Ave Maria School of Law had played in possibly obstructing an ongoing criminal investigation. Plaintiff Safranek filed a report with various law enforcement agencies regarding his knowledge of the efforts to obstruct the criminal investigation into the priest’s alleged involvement in sex offenses. The actions of Plaintiffs have led to ever-increasing retaliation, including disgusting and false smears upon Plaintiff Safranek’s character." See AveWatch's BoysCherries story - background, details, series

+ Both Roberts and Monaghan have an odd obsession with money and a personal Divine calling for their academic enterprises. In 1987, Oral Roberts claimed that God would kill him if he didn't raise $8 million for ORU. The recent complaint filed against Monaghan alleges that a justification for the uprooting of Michigan's Ave Maria School of Law to Monaghan's south Florida Ave Maria Town is that "the Virgin Mary, whom Catholics revere as the Mother of God, personally directed him to develop Ave Maria Town and Ave Maria University in Southwest Florida." See also "Give For the Good of Your Soul" and "Ave Maria Cult of Personality".

+ Both Roberts and Monaghan foster charismatic Christian experiences (public healings through channeling; being "slain in the spirit"; speaking in tongues; happy clappy music at liturgy/worship).

+ Despite the small size of their respective universities, both Roberts and Monaghan conduct school business using a private jet.

+ Both Roberts and Monaghan appear to lack financial accountability. The Roberts suit cites many accusations of university misappropriation for personal interest - i.e. "The Roberts home has been remodeled 11 times in the last 14 years. Each time, Mrs. Roberts demands more changes." Similarly, the former CFO of AMU said, under oath, "Mrs. Healy [wife of AMU President Nick Healy] had spent $90,000 using the College’s credit card in order to furnish the [President's] house without prior authorization or knowledge by me." This same CFO also brought to light a questionable payment of $240,000 made to AMU's then-Provost Fr. Joseph Fessio: "When I inquired as to why there was no liability on the financial statements for that, I was told [by Ave administrators] that the liability was, quote, off balance sheet." What else does Monaghan keep "off balance sheet"? More on the former CFO's testimony can be found here; there are stunning accusations of FERPA violations and preferential treatment given to a banker-friend to manage Ave Maria student loans. Many unconfirmed reports of wasteful spending have been sent to AveWatch, including multiple reports from former AMU employees that $30,000 was spent on a dog house for AMU's bulldog mascot.

+ Within their respective entrepreneurial fiefdoms, both Roberts and Monaghan appear to have excessive control over their institution's Board. In the suit, Roberts is quoted as follows concerning ORU's Board: "I have the deck stacked - I am elected to three year terms and if a Regent appears to give me trouble, I remove him. I stack the deck..." AveWatch readers will recall AMSL cofounder and former Board member Charles Rice's controversial removal (1,2,3), as well as Monaghan's other Board manipulations (1,2,3,4), including his use of a small "Executive Team" at the Ave Maria Foundation to make decisions for one school based on factors involving another school.

+ Monaghan and Roberts share tastes in architecture. ORU has its futuristic Prayer Tower while Monaghan has his giant Oratory shaped like a salmon steak. Neither structure is formally recognized as a Catholic Church. Monaghan wants to build the world's largest crucifix on his campus while Roberts has the largest (60-foot-tall) praying hands statue on his campus. The estimated value of ORU's buildings is over $250 million, the same amount that Monaghan claims to be investing into AMU.

Differences Between Monaghan/Roberts:
+ The ORU Board is not chaired by Roberts (Oral or Richard). In fact, the ORU Board Chairman is actively investigating matters using independent third parties - lawyers and accountants - to review and audit the allegations. President Richard Roberts was put on a leave of absence, with his duties given to a Board member. The ORU Chairman is also communicating directly to constituents and the local community, recognizing that "our precious students, faculty, and staff have all suffered". In contrast, Ave Maria Foundation, Law School, University, etc. are all Chaired by Monaghan. His Boards have ignored multiple faculty and alumni votes of no-confidence against the AMSL President. In fact, Ave Maria administrators have initiated a contemptuous campaign of disengagement and intimidation (1,2,3,4,5,6,7) against constituents.

+ ORU is showing transparency by releasing statements from all involved (including the allegations) and by hiring independent third party investigators. ORU's governing board has become "hands-on". Ave Maria, on the other hand, ignores calls for independent outside investigations, releases few details to the public, and lets Monaghan and his lawyer-president run unchecked. This includes the crushing of students and alumni who publicly ask for answers and state opposition to Monaghan's governance and treatment of employee. Requests from a former AMSL Board member to secure new independent investigators for the BoysCherries scandal were denied.

+ The ORU "Golden Eagle" mascot is related to the university's location/wildlife on the Oklahoma prairie. It makes sense. In contrast, AMU's mascot relates to, and makes sense to, just one person - Tom Monaghan. The Ave Maria Gyrenes (short for GI Marines) reflect Monaghan's three years of military service immediately after high school, 50 years ago (1956-1959). Of that service, Monaghan said: "When I was in the Marine Corps, I was aboard a ship in the Pacific doing something I've always done a lot of: day-dreaming. I was thinking about my future, the lifestyle I was going to have, all the cars and the beautiful home and the yachts and the airplanes. I wasn't sure it was going to happen, but it wasn't any fun doing this daydreaming if it wasn't possible. I saved half the money I made in the Marine Corps, but it went to a con artist with an oil-drilling scheme." (Fortune Small Business, September 2003)

+ It is only a matter of time until Monaghan, like Roberts before him, goes on the Larry King show to "set the record straight" (Richard Roberts interview here and here).

A former insider in the Roberts ministry recently said "What others may call extravagance, he (Richard Roberts) may not see as extravagant." (CNN, Oct. 10, 2007). How much more distorted is the perspective of a billionaire and his ministry?

Benjamin Franklin wrote "Sell not Virtue to purchase wealth, nor Liberty to purchase power." When will conservative Catholics stop giving their virtues as cheap barter to access Tom Monaghan's wealth? When will students and employees stop giving their liberties as cheap barter to access his idiosyncratic self-interested power? Whatever degree of disconnected megalomania and kookiness that conservative Catholic supporters of Tom Monaghan might see in Richard or Oral Roberts, they fail to see in their own man Monaghan - another entrepreneur of religion, but with significantly more money, more control, and less charisma.