SEC Accuses Minister of Affinity Fraud

The Securities and Exchange Commission filed suit against a Baptist minister, accusing him of stealing $3.5 million from more than 150 African American Baptist investors in a religious scam known as affinity fraud.

Ronald Randolph, 48, was accused of selling investment contracts for his fake plastics company, International Polymers Works, the agency said.

The Beaumont, Texas, resident exclusively targeted African American Baptists and promised them returns of 7% to 30%, the SEC alleged.

From 1997 through 2000, Randolph told 155 investors the firm was profitable and had several contracts with major companies, and said the investments were insured by Lloyds of London, the SEC alleged.

“Randolph made false and misleading statements to investors regarding IPW’s business prospects, the security and returns associated with the investment,” the SEC said.

Randolph’s attorney could not be reached for comment.