South End Religious Charity Subject of Investigation

A bankrupt religious charity located in the South End is under investigation by Attorney General Martha Coakley’s office after two of its board members allegedly failed to account for a $400,000 mortgage secured by the charity’s property.

A preliminary injunction was granted this week by Suffolk Superior Court Judge Thomas Connolly, freezing all assets associated with the International Gospel Party Boosting Jesus Groups, Inc. According to the city’s assessment database, the Gospel Party was located for many years at 554 Massachusetts Avenue, in Chester Square.

The injunction prevents the charity’s remaining assets, which total $285,000, from being disseminated to three of its board members: Dwight and Susie Miller, both of Dorchester, and Jennifer Faigel of Newton. 

The funds will be frozen while the Attorney General’s office investigates whether the charity is a valid enterprise.

The Gospel Party, founded 70 years ago, claims to act as a place of worship “to develop Christian fellowship among religious denominations and to promote ‘spiritual, moral, social and civic welfare in the area,’” according to the Attorney General’s office.

The investigation will focus on the alleged mishandling of charitable funds by Dwight and Susie Miller, who took over the Gospel Party in 1994. According to the AG’s office, Dwight Miller took out a second mortgage in the amount of $400,000 in 2009, securing it with the Gospel Party’s property.

“The Millers have failed to account for the proceeds of the loan, which they claim were lent to two business entities unrelated to the Gospel Party and are now unrecoverable,” the Attorney General’s office stated in a press release. 

No mortgage payments were ever made.

At the same time, Dwight Miller allegedly spearheaded a $9.5 million development project in Brockton including a restaurant, jazz club, community theater, coffeehouse, bookstore, sports learning center and public parks.

The Gospel Party filed for Chapter 11 in August of 2010, one day before the bank was allegedly scheduled to foreclose the property mortgaged by Miller. After a year of bankrupcy, the Millers failed to repay the $400,000, and the Mass Ave. building was sold to an individual for $1.3 million, according to court documents. 

“After payment of creditors, including the mortgage bank, there is a remaining fund of approximately $285,000,” the Attorney General's office wrote in the release. “The preliminary injunction will prevent the transfer of these assets back to Gospel Party board members until the Court makes its final ruling.”