Preacher Being Sued in Fraud Case Concedes a Worth of $3.7 Million

A preacher accused of fraud in financial dealings with a one-time parishioner acknowledged in Orange County Superior Court on Friday that he has $3.7 million in assets, including 22 properties and $671,000 in cash in 11 bank accounts.

The Rev. Marion McCandless, whose church salary was $62,000 last year, also said Friday that he believes that his ministry is at an end, regardless of the verdict in the lawsuit against him.

“I’ve been made to . . . look like a crook. I’ve been made to look like I steal,” said McCandless, 54, of the Westminster Community Church of the Nazarene. “Whether I’m right or wrong, it makes me look wrong. So my whole life’s work has gone down the tubes because of this, win or lose.”

The glimpse into McCandless’ finances came in the third day of trial in the lawsuit filed by Sara Battenschlag, 49, the former parishioner who claimed that McCandless persuaded her to give him $100,000 in cashier’s checks as an investment, promising a 100% return within one year. She says he never paid the money back, and her lawsuit, seeking $900,000 in damages, alleges fraud, misrepresentation and breach of contract.

Battenschlag testified in a Santa Ana courtroom that she gave McCandless the money in January, 1986, one month before she was scheduled for major brain surgery. She described herself as naive about finances and having complete trust in her minister.

McCandless insisted that he tried to return the money when Battenschlag demanded it. However, negotiations between lawyers for the two broke down. The cash remains in a trust account, frozen under a court order obtained last year by Battenschlag’s attorney, Steven A. Silverstein.

Battenschlag, whose grandparents helped found the Church of the Nazarene, which now claims 700,000 members worldwide, testified that she now prays for McCandless.

McCandless testified Friday that he used his days off during his 29-year ministry to learn the real estate business, the source of his wealth.

Studied Instead of Golfing

“Instead of playing golf on Mondays, that was when I would use my time studying real estate,” said McCandless, insisting that none of his wealth came from his church and that “very few” members of his congregation gave him money to invest.

McCandless also said he is acting as a general partner in two building projects worth $8 million, from which he hopes to earn more than $1 million.

“Somehow, I stumbled into this real estate thing, by the blessings of God,” McCandless testified. He said he started with a small purchase in the mid-1950s and by shrewd trading amassed his fortune.

A financial statement dated June 15, 1987, shows that McCandless made $260,000 a year from rental property. The most valuable of his parcels was one at 12494 Harbor Blvd. in Garden Grove, listed at $600,000.

Bank accounts ranged from a high of $330,500 in the American Commercial National Bank to a low of $5,000 in Security Pacific National Bank.

But McCandless testified that his true worth was less than the balance sheet indicated. He said if he liquidated all his property, he would be forced to pay more than $1 million in taxes.

McCandless said in court that he deposited Battenschlag’s $100,000 in his personal accounts. He noted her investment in a ledger, adding that the procedure meant he was giving her “part of the equity from prior investments.”

The tense give-and-take in questioning by Silverstein was apparent in one exchange over $700 in interest earned on Batten-schlag’s $100,000 before it was placed in a trust account on March 11, 1986.

Silverstein noted that it was not in the ledger and apparently did not show up in other financial records.

“Where is it?,” Silverstein asked.

“As I told you, we misfigured,” the minister responded.

“Where is it?” Silverstein persisted.

“I’ll put it into her trust account,” McCandless said.

For the third time, Silverstein asked, “Where is it?”

“How should I know where $700 is? Maybe in my pocket,” McCandless testified.

The Church of the Nazarene, with headquarters in Kansas City, Mo., has 4,902 local congregations grouped into 81 districts in North America.

Dr. Thomas Goble, district supervisor in the City of Orange, said a recent newspaper story was the first he had heard of the lawsuit against McCandless. He was obviously surprised when informed of McCandless’ wealth.

But Goble offered support for the minister, with whom he attended seminary.

“We have a very high standard of ministry. We expect moral and financial integrity in our pastors,” Goble said. “At this time, I have no reason to believe that Rev. McCandless doesn’t measure up to that standard.”