Church Troubles Grow; McBirnie Seeks to Quit

Faced with mounting financial problems and suffering from poor health, the Rev. William Steuart McBirnie has asked to resign as head minister of United Community Church of Glendale.

The church on Tuesday filed for Chapter 11 bankruptcy in Los Angeles Federal Bankruptcy Court. It is appealing a $1-million judgment and fighting numerous lawsuits from parishioners who claim they were defrauded by McBirnie and his affiliated organizations.

McBirnie announced his resignation several weeks ago at a Sunday service, said Roy Reddick, a member of the church Board of Deacons. Reddick said McBirnie is not in good health but he declined to discuss legal or financial issues. McBirnie could not be reached for comment Friday.

Move to Save the Church

An attorney for United Community Church said bankruptcy papers were filed so that the church’s $3.8-million octagonal Spanish-style church on Colorado Boulevard would not be auctioned off to pay creditors.

“We want the people owed money to be paid off. But we’re not the responsible party and we had to do something to protect my client’s property,” said church attorney Harry F. Scolinos.

An enterprising and charismatic man, McBirnie started his church in 1961 with a congregation of 100 and quickly gained fame as a conservative anti-communist, thanks to a nationally syndicated radio show called “Voice of Americanism.” By 1977, he had numerous affiliate organizations and owned 22 pieces of property in downtown Glendale worth millions of dollars.

17 Lawsuits Pending

At least 17 lawsuits are pending throughout California against McBirnie, Community Churches of America, the Concord Senior Housing Foundation and the California Graduate School of Theology. All three organizations are affiliated with McBirnie, and all three filed for bankruptcy last year.

The bankruptcy filings have frustrated creditors’ efforts to collect money which they loaned to McBirnie and his affiliated organizations and which was used to finance the church’s multimillion-dollar empire.

In an interview late last year, McBirnie told The Times he intended to pay back the loans but was unable to do so because of bad investments and rising interest rates.

Will Oppose Bankruptcy

Attorney Christ Troupis, who is representing 39 church creditors, most of them elderly, said he plans to oppose the bankruptcy filed by United Community Church and will ask the court to determine the validity of the church’s claim. The Glendale property is the church’s main asset and profits from its sale would be used to reimburse parishioners if the bankruptcy is judged invalid, he said.

A Glendale court commissioner last year awarded 24 former members of the United Community church $200,000 in outstanding loans and levied a $1-million judgment against McBirnie and his affiliates for failing to pay back loans. The church is appealing that judgment.