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Preacher Sued in Fraud Case Says He Amassed Fortune in Real Estate

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Times Staff Writer

A fundamentalist preacher accused of fraud in financial dealings with a one-time parishioner acknowledged in Orange County Superior Court on Friday that he has assets worth $3.7 million, 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 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.”

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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 said McCandless never paid back the money, and her lawsuit, seeking $900,000 in damages, alleges fraud, misrepresentation and breach of contract.

Says She Was Naive

Battenschlag testified in a Santa Ana courtroom that she gave McCandless the money in January, 1986, one month before she was scheduled for brain surgery. She described herself as naive about finances and completely trusting of 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 evangelical Church of the Nazarene that 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.

Used Mondays for Study

“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.

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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.

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