Church Militant loses control of finances in emergency Dec. 26 hearing

Voris: “Somehow, things have gotten out of control”

By Damien Fisher

At the end of Tuesday’s emergency court hearing held the day after Christmas, United States District Court Judge Joseph LaPlante had pointed parting words for Michael Voris and Mike Sherry.

“Mr. Voris, Mr. Sherry, I look forward to your retention of counsel,” LaPlante said.

Sherry, the current president of Church Militant’s board, and Voris, the now disgraced former board president and founder, agreed to an order that essentially gives New Hampshire priest the Rev. Georges de Laire control over Church Militant finances pending the outcome of the defamation lawsuit. Neither is currently represented by a lawyer, the result of Voris’ so-far disastrous legal machinations.

In perhaps the first good decision Voris has made in the case, he appeared in Tuesday’s Zoom call as an audio-only participant. 

Voris and his assistants at Church Militant, Christine Niles and Simon Rafe, are accused in court documents of hiding and destroying evidence. Voris is also accused of lying about basic facts of the case, hiding the identity of key figure Marc Balestrieri, using Church Militant money to give Balestrieri an interest -free loan, and later threatening Balestrieri when it seemed his testimony could hurt Voris.

Voris and Church Militant defending themselves in court; judge advises a different plan

LaPlante was blunt with the pair, telling them Church Militant’s legal defense up to this point has been “troubling.”

“Unorthodox is the most charitable word I can use,” LaPlante said. “The way it’s been conducted is troubling from the defense’s perspective.”

In August, Voris’s attorneys Kathleen Klaus and Neil Nicholson quit the case, a day after Niles admitted under oath that she had been sitting on texts with Balestrieri that should have been turned over as evidence. LaPLante said Klaus and Nicholson quit because they “could not continue due to the conduct of one of the parties in the case.”

Last week, LaPlante allowed New Hampshire attorney Richard Lehmann to quit the defense. Lehmann cited an untenable conflict of interest that meant he could not represent both St. Michael’s Media and Voris.

Howard Cooper, de Laire’s attorney, said in court the conflict came about because members of Church Militant’s board want to pursue criminal charges against Voris.

Voris: “Somehow, things have gotten out of control”

Voris, perhaps trying to refute the idea he is criminally liable, spoke up during the hearing to set the record straight about Lehmann’s departure.

“Somehow, things have gotten out of control,” Voris said.

Voris started to explain that he and Sherry, as a pair, did not ask Lehmann about separate defenses. Instead, Voris started to say that both he and Sherry had private conversations with Lehmann about different possibilities for the defense. 

It was at this point, LaPlante stopped Voris from speaking.

“I don’t know where you’re going with this,” LaPlante said.

The judge then explained to Voris that his statements were approaching a legal line, and if he continued talking, he would be effectively waiving attorney-client privilege with Lehmann, and all his communications with the former attorney would become discoverable in the trial.

Voris tried to simplify his message while protecting his interests.

“Mr. Sherry and I have not arrived at a decision that we’re two competing parties,” Voris said.

Voris followed this statement with a drawn-out explanation that the pending sale of Church Militant’s only real assets, two office buildings in Ferndale, Michigan — which were the subject of Tuesday’s hearing — have nothing to do with the de Laire lawsuit. LaPlante responded that the reason for the sale is not relevant to the hearing to decide what happens to the money.

“I don’t know what you want me to do with that information,” LaPlante said.

When Voris then tried to explain he had not had a chance to speak to Sherry about these matters before Tuesday’s hearing, the Judge seemed surprised. 

“That’s mystifying,” LaPlante said.

Church Militant sale proceeds to go into escrow so it doesn’t disappear

The lawsuit against Voris and St. Michael’s Media is now a legal slow-motion car wreck, playing out as St. Michael’s media operation, Church Militant, scrambles to stay afloat after Voris was pushed out in November amid allegations of sexual and financial misconduct.

Hemorrhaging donations in wake of the scandal, the Michigan non-profit is about to close on a deal to sell the two office buildings, one which is home to Church Militant’s offices and studio. But under the agreement reached Tuesday, the proceeds of those sales, set to close Thursday, are now frozen in an escrow account.

Sherry was authorized by his board to agree to a capped escrow of $200,000, saying any more could mean the end of Church Militant.

“I can accept a $200,000 attachment, but we cannot do the full amount; we might as well shut down,” Sherry said.

Cooper stressed on Tuesday that de Laire is not trying to end Church Militant, but simply to secure funds that are likely to go to him either in a settlement or in damages awarded by a jury. To that end, Cooper offered to allow Church Militant to access the funds to keep the lights on. But the non-profit would first need to prove the figure they need.

Church Militant must disclose operating expenses

Sherry appeared alone in the Zoom hearing, streaming from an empty studio. He did not seem to understand the proceedings at times. After Cooper’s proposal was repeatedly explained to him, Sherry agreed to allow all the building sale money to go into an escrow account. Sherry is now under court order to file an affidavit stating Church Militant’s monthly operating expenses. The organization will be allowed to draw out that amount from escrow in order to keep operating.

LaPlante said the escrow order is temporary and will be revisited once Voris and Sherry both find new lawyers. The judge suggested whoever Voris and Sherry find to defend them in court, they be first allowed to speak with the attorneys who quit the case. 

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Image: Mike Sherry in a Church Militant studio during Tuesday’s virtual hearing. Courtroom sketch by Simcha Fisher

 

Voris faces possible criminal charges; Uninsured Church Militant looks at liquidation

By Damien Fisher

Michael Voris, the disgraced founder of Church Militant, is broke, unemployed, and now facing a possible criminal investigation.

Voris appeared via video at a hearing in the United States District Court in Concord, New Hampshire on Friday as Judge Joseph LaPlante asked why attorney Richard Lehmann is quitting the defamation case brought by New Hampshire priest the Rev. Georges de Laire.

The answer, it seems, is that Church Militant wants to pursue unspecified criminal charges against Voris.

Voris appeared alone in his video feed and seemed to be streaming himself from his home. A dog could be seen in the background, at times licking itself.

Criminal charges for Voris?

Lehmann recently filed a motion to leave the case as the defense lawyer for Voris and Church Militant, citing an untenable conflict of interest that arose as Lehmann attempted to get the Catholic media non-profit to comply with a court order to stop  hiding evidence.

Howard Cooper, the attorney representing de Laire, told LaPlante that he was informed Lehmann is leaving due to the possibility of a criminal case involving the defendants.

“It’s my understanding there are calls from members of the board for Voris to be criminally prosecuted,” Cooper said.

Cooper wanted Mike Sherry, the current Church Media board president who also attended via video, to confirm a possible criminal investigation into the conflict forcing Lehmann out. The exact nature of that conflict was disclosed in a brief virtual in camera session between LaPlante, Lehmann, Voris, and Sherry, after which LaPlante agreed Lehman cannot stay on the case

“I am going to have to allow (Lehmann) to withdraw,” LaPlante said.

Lehmann is the third Church Militant lawyer to quit the case citing an untenable conflict of interest. The trial in de Laire’s defamation lawsuit is still scheduled for February, and neither Church Militant nor Voris have lawyers.

“I still need to find a lawyer,” Sherry said.

Sherry told LaPlante he would be contacting the Marc Randazza law firm for a recommendation on a new attorney. Randazza is the ethically challenged former gay porn industry lawyer who was barred by LaPlante from representing Voris and Church Militant. Court records cite pending ethics investigation against Randazza as justification.

Voris, broke, will represent himself

Voris, who now cannot rely on Church Militant to provide an attorney, told LaPlante he will likely represent himself at trial out of necessity since he cannot afford to hire counsel.

“Frankly I do not have the financial wherewithal to do that,” Voris said. “I do not have a job, I do not have any money to speak of, except some equity in my home. I would have to be my own counsel.”

LaPlante told Voris it is his right to act as his own attorney, though he strongly discouraged the former broadcaster from representing himself.

If there is good news for Church Militant, it is that de Laire is now offering a settlement agreement, after saying on the record for months he had no plans to deal. The terms of the settlement offer are not being made public, but it will likely be costly for the beleaguered media company.

Church Militant had no defamation liability insurance

Sherry said Church Militant has no insurance to cover damages, and no assets outside of the two commercial buildings that house the organization. Both buildings in Ferndale, Michigan are currently for sale.

At this point, Church Militant could possibly soon lose its home, its equipment, and all its money.

LaPlante pressed Sherry on whether Church Militant has anything of value that could go toward a settlement, or be forcibly turned over through damages. Sherry told LaPlante the equipment inside the building, mostly studio gear, is owned by Church Militant outright and is valued at about $1 million. LaPLante then asked about how much money Church Militant has in cash donation, the major source of revenue.

Sherry did not know the current figures for Church Militant, and LaPlante empathized with Sherry, saying donors didn’t give them money with the intent to pay for damages in a lawsuit, but implied that might be what happens after the buildings and the studio equipment are liquidated.

Church Militant assets for sale, but where will the money go? 

Cooper expressed concern about the impending sale of Church Militant’s buildings, and what might happen to the proceeds. Sherry did not agree to put the sale revenue into an escrow account pending the outcome of the case, as Cooper wants.

LaPlante is calling both sides back to court on Tuesday to give Sherry a chance to speak with a real estate advisor about the escrow proposal. In the meantime, LaPlante said no sale should happen until after the Tuesday conference.

“I don’t want to hear about anybody selling these properties between now and then,” LaPlante said.

If Sherry does not accept a voluntary escrow, Cooper is prepared to file a temporary restraining order against Church Militant and attach a lien on its property, essentially freezing any sales funds.

Still asking for donations

Last week, Sherry sent Church Militant subscribers an email begging for donations, saying its current crisis is the work of the Devil.

We would hate to lose this place to the Devil and allow him to undermine all our work. That is precisely what he wants,” Sherry wrote.

That email did not mention the lawsuit, and it did not mention that the board of a news media non-profit did not ensure it has insurance in place to cover a defamation liability.

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Courtroom sketch of Friday’s hearing by Clara Fisher. Voris appears at right