Fleecing the Faithful—Again: Former YWAM Leader Defrauds Many

A Swedish Christian businessman swindled friends, family, and missionaries of millions of dollars

Ken Walker | posted 6/08/2011 09:52AM

When Jan and Henny Pauw visited Le Rucher on a summer missions trip, they never dreamed it would wind up costing them their retirement nest egg. The Dutch couple became ensnared in a faith-based Ponzi scheme that operated for a dozen years before it unraveled.

Nestled on two acres at the base of France’s Jura Mountains and the nearby Swiss Alps, the Le Rucher retreat center opened in 1994 to help stressed-out missionaries recuperate. But Le Rucher became the setting for the promotion of the fraudulent Nordic Capital Investments (NCI), which has created resentment toward Le Rucher co-founder Erik Spruyt. Last October, Swedish businessman Kristian Westergard, the founder of NCI and a close associate of Spruyt’s, was convicted of gross fraud in Sweden and sentenced to prison.

In 1998, the Pauws went to Le Rucher—then associated with Youth With a Mission (YWAM)—with their evangelical church in Ermelo, the Netherlands. An industrial chemist by trade, Jan had never been on a Christian mission. On the couple’s first trip, Spruyt suggested they consider becoming long-term volunteers. Jan replied that they couldn’t afford it.

When the Pauws returned the following summer, Spruyt repeated the suggestion. Jan demurred. Then, they say, Spruyt introduced them to NCI, a special investment fund that paid interest of 15 percent a year (the rate on a contract they later signed). It had the potential to generate enough income to support the couple. Part of the attraction was the promise that some of the fund’s earnings would generate charitable support for select Christian missions. The Pauws invested euros worth $260,000. The following year they moved to Le Rucher as volunteers.

In total, the couple received more than $230,000 before payments ceased. But the principal amount of their nest egg has vanished. They still rue their decision to trust Spruyt’s referral to NCI. In a 2001 e-mail with a sample NCI contract, he said, “If you want to take this seriously then this is the procedure that I recommend to you with the amount you want to invest.”

“All we have now is our old-age pension and a small pension from my work as an industrial chemist,” Pauw says. “Sometimes we think, How could we have been so stupid to believe them? Why did we trust them?

Read the rest of this article at Christianity Today here >>>

Some remarks

I guess what we are reading here is how well affinity frauds work. You gain the trust of the leaders or as a leader you have a natural amount of trust associated with you and from there on it becomes easier to lure in new victims. And for the record this works the same with all these marvelous business opportunities that lure in the small people. It is not surprising that these business opportunities are so often targeted at church communities: there is a naturally higher level of trust.

Part of why this works is that lack of financial understanding, business understanding, innumeracy so you which is being replaced by trust in the person offering you the opportunity. It is for this reason that leaders are targeted first. Once you have the leader over the bridge the rest of the sheep will follow. And for the record, no one is immune and we all run a risk of falling for it.

On Affinity Fraud

Affinity fraud is when one person gains the trust of others because they share the same religion, race, ethnicity, career or other social characteristic and then deceives them in some kind of financial transaction. Now this is not necessarily intentional, as this may also be the result of a misguided participant in one scheme or another, a gifting club or pyramid scheme or the pyramid scheme posing as a legitimate MLM.

In a world of increasing complexity many do not know how to properly investigate the credibility of an offering and trust becomes an increasing factor relied on.

“You can trust me, because I’m like you. We share the same background and interests. And I can help you make money.”

The normal process of cautious skepticism is replaced by social blah blah, and for the record, it works. Another tactic used is to first lure in some prominent members of a group and once that is done the others are pitched using the credibility and good name of the group leaders: the elder, the pastor etc.

With the hierarchy of leaders and followers already established, the investment becomes merely an extension of our desire to belong and be accepted.

The fact that some of the earlier entrants, the ones you know and trust, are receiving good money is not a guarantee that it is all good, that is the essential working of a pyramid scheme, the high INITIAL returns. The case outlined in Christianity Today show that exactly and there are many more known cases throughout history.

What makes those types of scams extra attractive is that  once an affinity fraud victim realizes that he or she has been scammed, all too often the response is not to notify the authorities but instead to try to solve problems within the group. This usually just ensures that the fraud continues without anyone reporting it to the authorities until it is too late to recover funds. Scammers recognize that the tight-knit structure of many groups makes it less likely that a scam will be detected by regulators and law enforcement officials, and that victims will be more forgiving of one of their own members.

Some tips

Some way to revent becoming a victim of affinity fraud are:

    No matter how well you know someone or think you can trust them, always be cautious when it comes to handing over your hard earned money. Ask questions about the scheme and keep on doing that until you understand the scheme. Let them know that you are aware of all the scams that are taking place regularly in today’s world. Just because a person is a fellow Christian, it does not mean that he or she is a good person who will not cheat you, intentionally or out of ignorance.
    Use the Net, call others with financial; insights and not associated with the scheme or seek professional advice, but whatever you do, never step into a scheme you do not understand.
    The strange thing is that many of these schemes promise high yield on low risk or even risk free investments. In the financial world however the principle  is usually exactly the other way around: the higher the returns the higher the risks. Greed is a sin, not just because the Bible tells us it is, but because nothing good can come of greed. It leaves us wanting more and more, no matter how much we already have. Desist from this emotion and you and your money are safe. Know that God will provide you in all your needs which is something different than all your wants.

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Securities Commission Warning: Illegal Share offer by IRA NRG NZ Limited (INNL)

8 December 2010

News release

The Securities Commission warns people of an illegal share offer by Ira NRG NZ Limited (INNL) and its sole director Simon Romana.  The Commission has banned the company’s website and the content of the website has been removed.  There is no registered prospectus for the offer.

The website of INNL described INNL’s plans to generate electricity and sell it to the national grid.  The website included claims of future income that are not substantiated on the website.  There were no assumptions disclosed relating to the prospective financial information as required by law.

“The public offer of shares by INNL is illegal as there is no prospectus.  Any purported allotment of shares to investors would be void and of no effect.  People should not invest in this company until it complies with the requirements of the Securities Act 1978″ said Securities Commission Chairman, Jane Diplock.

INNL was incorporated in March 2010.


Contact Rebecca Barclay 04 471 76666

More about this company can be found on the company’s website at http://www.aworldwithoutoil.com/ as well as an investment statement.





In a Dutch Magazine (FEM), Edin Mujagic reported on the question of whether or Art is a smart investment. It is reported that on average the ROI of investments in art are below those of stocks and bonds. Investment in art is presented as fad, a hype that comes and goes, with markets being flooded by funds that invest in art, advisers on investment in art and self-help books. Millions of dollars are paid for paintings of famous painters and those that would have invested in art in 2006 would have had a higher ROI on their art than those that had invested in art.

As in wine, you have bad years, good years an exceptional years and apparently 2006 was an exceptional year according to a professor and his promovenus at the University of Tilburg in the Netherlands who concluded that art investments often have a lower ROI than ios commonly thought. Based on the details of 1.1 million sales they come to an average yearly ROI of 4.01%. 1982 was apparently a turning point where the ROI went below that of stocks and bonds. At the same time there were exceptions especially the period of 2002-2007 (11.6% on average) and the late eighties.
Similar as sock and bonds, it does make a difference what you invest your money in. Oil paintings. especially city scenes and self portraits score high, drawings and prints are at the bottom end of the ladder.

Now it may be me, but could it maybe be that art investments follow the general patterns. When there is money around, a surplus even, you can just give an art investment a go without any expertise. The need for expertise, is in periods like this where if you consider investments in art you will need to know what you are doing if you expect it to provide you a return on investment. That is not any different than on the financial market where a number of advisers end up left puzzled and others have a knack of knowing which ones will do great despite the general trends. Investing simply requires expertise and perhaps some patience.

I see business experts claim that this crisis requires the creatives to turn it around, and people that can anticipate results for the mid to longer term. Perhaps investing will turn back to something more of a personal commitment again. I am far from an expert in that field, but  could imagine that this is perhaps a good time to engage someone that understands or has a feel of what YOUNG and UPCOMING artists and works will be hot in the mid to longer term. Something that requires an in depth understanding of both art and its future markets.

At the same time I still find it a strange idea. To me art is something that’s very hard to put a price on, I see millions go for paintings I would not pay a dollar for, but then again, I am not know to be an investment specialist, let alone an art investment specialist. For some reason I have more sympathy for those people you see on those television programs that bought a work of art just because they loved what they were looking at and years down the line they find out they need to call their insurance company because they ended up buying a very special work of art.

Duh that’s why they bought it in the first place; BECAUSE IT WAS SPECIAL,TO THEM. Come to think of that, if all who could afford it, would end up buying with their heart, how many new artists would there be identified as important, upcoming and brilliant? But if you are in the art game for the money, by all means forget what  just said.

I still find it all a hard thing to imagine: here you are painting of $100,000 on the wall, another $25,000 in security and insurance. You friends come along and say wow! And you saying well I hate the painting but it was the best investment the market had on offer. I think when it comes to art and I have the spare money, I’d stick to my heart, who’d wanna look at something he doesn’t like everyday anyway. I will probably never be a smart investor in financial terms. At the same time I think that a smile on my face because I am enjoying a work of art so much is more than money could ever pay for.  Personally, I find a beautiful painting or picture ( to my taste) a fantastic source of ideas or inspiration. Perhaps as an entrepreneur, business owner or employer: what if this work of art inspires so much it brings you or one of your staff members that  one idea that’s worth a million. Now for that let’s say $25,000 and some time you allow for to dream away you may well end up having made the best investment you ever made (of course together with the staff member that came up with the golden idea. Buy that guy an office filled with paintings to his liking!!!!)

The paintings in this blog post are from two artists I really appreciate:

I suggest you go and have a look on their websites or if you are around, perhaps see and exhibition. Nothing beats the real thing of course. And if you are curious about that revolutionary new artist behind the photo at the top of the article; from a confidential source I have heard that that picture was taken with a mobile phone. The artist has a profile here >>> and his gallery  can be found here >>>.  He may well end up being that mid to long term high yield investment you were looking for hahahahahaha. And should you end up feeling defrauded because you find out the picture you bought was taken with a mobile phone; he investigates fraud as well.

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