1 00:00:00,080 --> 00:00:05,720 In this episode of American Greed, he was the sweet -talking son of a preacher 2 00:00:05,720 --> 00:00:11,240 man. He came out like a Southern Baptist, Holy Ghost -filled, fire 3 00:00:11,240 --> 00:00:12,240 preacher. 4 00:00:12,700 --> 00:00:17,460 Ephraim Taylor II is a big talker. I taught myself how to program computers 5 00:00:17,460 --> 00:00:20,820 making games, selling them to my friends. I ended up in high school 6 00:00:20,820 --> 00:00:21,880 .4 million firm. 7 00:00:22,140 --> 00:00:24,000 But he isn't so sweet. 8 00:00:24,490 --> 00:00:28,090 What we find heinous about this crime is that he was taking advantage of people 9 00:00:28,090 --> 00:00:29,090 in their places of worship. 10 00:00:29,290 --> 00:00:32,290 He came across as a man of God. 11 00:00:32,549 --> 00:00:37,390 Taylor found success early. Young and rich, and we're talking very young and 12 00:00:37,390 --> 00:00:38,790 very rich for Taylor. 13 00:00:39,490 --> 00:00:43,550 Sharing his wealth -building Bible -based secrets with the faithful at 14 00:00:43,550 --> 00:00:45,250 megachurches across the country. 15 00:00:46,030 --> 00:00:51,710 Taylor offers the devout an investment opportunity, he says, as God's stamp of 16 00:00:51,710 --> 00:00:56,390 approval. He would often tell people that they would gain 2 ,400 % on their 17 00:00:56,390 --> 00:01:02,270 investment. As a Christian, a servant of God, you want to be wise with the 18 00:01:02,270 --> 00:01:05,750 wealth that God gives you, and you want to make it multiply. 19 00:01:06,030 --> 00:01:11,350 But when God -fearing investors hand their life savings over to this prophet 20 00:01:11,350 --> 00:01:14,250 prosperity, there's only one problem. 21 00:01:14,490 --> 00:01:15,490 It was a lie. 22 00:01:16,010 --> 00:01:17,910 We've been hoodwinked and bamboozled. 23 00:01:18,110 --> 00:01:19,530 All that money is gone. 24 00:01:34,130 --> 00:01:40,730 In October 2009, Ephraim Taylor, CEO of the socially conscious 25 00:01:40,730 --> 00:01:43,150 investment development group, City Capital. 26 00:01:43,790 --> 00:01:49,070 is making his way through the Bible Belt, pitching his brand on his Building 27 00:01:49,070 --> 00:01:50,009 Wealth Tour. 28 00:01:50,010 --> 00:01:54,850 He recently appeared on television programs like The Today Show and 2020, 29 00:01:55,230 --> 00:02:00,470 promoting his best -selling book, Creating Success from the Inside Out. 30 00:02:01,870 --> 00:02:08,009 On this day, he visits New Birth Missionary Baptist Church, a megachurch 31 00:02:08,009 --> 00:02:09,009 in the heart of Georgia. 32 00:02:09,530 --> 00:02:13,530 Prior to his arrival, Taylor's promotional video is shown to the 33 00:02:13,990 --> 00:02:15,590 piquing their interest. 34 00:02:15,990 --> 00:02:19,590 Good morning. I'm Ephraim Taylor, and I would like to thank Bishop Long for his 35 00:02:19,590 --> 00:02:23,030 sending such a gracious invitation to bring Wealth Tour Live to your beautiful 36 00:02:23,030 --> 00:02:24,170 congregation at New Birth. 37 00:02:24,470 --> 00:02:27,170 Taylor's Wealth Tour is recorded on video. 38 00:02:27,590 --> 00:02:33,050 In attendance that day is congregant James J .B. Bailey, who was impressed by 39 00:02:33,050 --> 00:02:37,550 the endorsement of Bishop Long, reflected prominently on this flyer. 40 00:02:37,930 --> 00:02:42,390 When Ephraim Taylor was introduced by Bishop, he gave us great confidence that 41 00:02:42,390 --> 00:02:44,930 this was a man sent to us by God. 42 00:02:45,190 --> 00:02:50,430 In the recorded video, Bishop Eddie Long readies the congregation for Taylor's 43 00:02:50,430 --> 00:02:54,630 message. Your life is about to change. 44 00:02:54,970 --> 00:02:57,590 If Bishop said he's okay, then he's okay. 45 00:02:57,810 --> 00:03:02,350 Put your hands together and receive my friend, my brother, the great Ephraim 46 00:03:02,350 --> 00:03:08,290 Taylor. The self -proclaimed wealth manager is also the son of a preacher 47 00:03:08,290 --> 00:03:12,750 practiced at the art of mesmerizing a congregation, as this video shows. 48 00:03:13,390 --> 00:03:20,370 Taylor teaches about health, wealth, and 49 00:03:20,370 --> 00:03:22,150 how to get both God's way. 50 00:03:22,610 --> 00:03:25,530 Swept up in this fervor is J .B. Bailey. 51 00:03:25,870 --> 00:03:30,730 He came out like a Southern Baptist, Holy Ghost -filled, fire -baptized 52 00:03:30,730 --> 00:03:31,730 preacher. 53 00:03:32,330 --> 00:03:33,890 He was pretty electrified. 54 00:03:34,150 --> 00:03:37,130 He really kept my attention and everybody else's. 55 00:03:38,510 --> 00:03:45,230 Bailey is the caregiver for his longtime 56 00:03:45,230 --> 00:03:49,230 friend Larry, who suffers from encephalopathy, a brain disorder. 57 00:03:49,610 --> 00:03:53,030 The timing of Taylor's arrival couldn't be more fortuitous. 58 00:03:53,470 --> 00:03:57,350 Ethan Taylor's WEF tour was announced over the pulpit. 59 00:03:57,840 --> 00:04:03,140 I felt that this would be wonderful because we had just acquired monies from 60 00:04:03,140 --> 00:04:04,140 Larry's Insurance. 61 00:04:04,340 --> 00:04:08,800 And I wanted to make sure we did the best that we could for it. 62 00:04:09,220 --> 00:04:13,040 Bailey listens to Taylor's pitch and likes what he hears. 63 00:04:13,780 --> 00:04:20,160 Ephraim Taylor talked to us about so many wonderful avenues of investing and 64 00:04:20,160 --> 00:04:24,140 things to fortify our financial knowledge. 65 00:04:24,670 --> 00:04:26,470 You really felt like this man is brilliant. 66 00:04:26,930 --> 00:04:31,830 Bailey decides to invest $14 ,000 with Taylor and City Capital. 67 00:04:32,150 --> 00:04:36,930 He's hoping the return on investment will provide better care for his friend 68 00:04:36,930 --> 00:04:42,850 Larry. But by the time Taylor's building wealth tour comes to an end, 400 69 00:04:42,850 --> 00:04:47,970 believers, including J .B. Bailey, will be bilked out of more than $16 million. 70 00:04:49,090 --> 00:04:52,610 Ephraim Taylor promised to help others. 71 00:04:53,240 --> 00:04:54,500 so they could help their communities. 72 00:04:55,080 --> 00:04:57,640 But Ethan Taylor was really in the business of helping himself. 73 00:04:58,740 --> 00:05:02,560 What we find heinous about this crime is that he was taking advantage of people 74 00:05:02,560 --> 00:05:03,560 in their places of worship. 75 00:05:04,780 --> 00:05:08,680 He said that he was a minister's son, had grown up in a black church, and 76 00:05:08,680 --> 00:05:10,560 who he was victimizing, was people in black churches. 77 00:05:12,440 --> 00:05:16,900 According to the story Taylor tells in his book, he spends the first year of 78 00:05:16,900 --> 00:05:20,620 life in a cold -water, tin -roof house in Mississippi. 79 00:05:21,610 --> 00:05:26,610 Taylor's father, Ephraim Sr., wanting more for his family, earns a college 80 00:05:26,610 --> 00:05:30,470 degree and the family eventually settles in Oberlin Park, Kansas. 81 00:05:31,110 --> 00:05:34,630 By age 12, Taylor turns his passion into cash. 82 00:05:35,090 --> 00:05:41,090 Well, according to the Ephraim Taylor myth, as a young child, he wanted a 83 00:05:41,090 --> 00:05:45,850 game, went to his mom asking for money to buy one. She turned him down and 84 00:05:45,890 --> 00:05:47,630 why don't you go make one yourself? 85 00:05:48,350 --> 00:05:49,450 So Ephraim did. 86 00:05:50,540 --> 00:05:56,160 He went to the library and set it up on how to create a video game and sold it 87 00:05:56,160 --> 00:05:57,160 to his friends. 88 00:05:57,860 --> 00:06:02,540 Young Ephraim gets his first taste of professional success and likes how it 89 00:06:02,540 --> 00:06:07,860 feels. At age 16, he creates a job search engine with a classmate called 90 00:06:07,860 --> 00:06:14,700 GoFerretGo .com. The idea behind GoFerret .com was to match teenagers who 91 00:06:14,700 --> 00:06:17,660 needed summer jobs with companies that needed summer help. 92 00:06:18,670 --> 00:06:23,650 Taylor wins the Microsoft Teen Tech Fest Challenge, a prestigious nationwide 93 00:06:23,650 --> 00:06:29,610 contest, and is awarded an Entrepreneurial Leadership Scholarship. 94 00:06:29,610 --> 00:06:33,730 shines a spotlight on the rising star, and the money follows. 95 00:06:34,030 --> 00:06:35,530 Or so he says. 96 00:06:36,390 --> 00:06:41,350 He from Taylor claims GoFairGo .com made him a millionaire by the time he was 97 00:06:41,350 --> 00:06:42,350 19. 98 00:06:42,800 --> 00:06:48,620 The young entrepreneur routinely brags that it's worth $3 .5 million, allowing 99 00:06:48,620 --> 00:06:50,420 him to retire as a teenager. 100 00:06:50,900 --> 00:06:55,120 Kathy Lerman is a plaintiff's attorney who represents victims of financial 101 00:06:55,120 --> 00:07:01,950 fraud. There was never $3 .5 million worth of... Anything in GoFerret Go. 102 00:07:02,310 --> 00:07:08,110 Ephraim told that story from the time he was 16 until he was 25. 103 00:07:09,130 --> 00:07:12,490 As seen in these videos posted on YouTube. 104 00:07:14,230 --> 00:07:16,690 And everyone bought into it. 105 00:07:17,190 --> 00:07:20,510 A lot of investors felt that GoFerret .com had promise. 106 00:07:20,790 --> 00:07:25,470 But within a year or so, they realized it was not going to be a moneymaker. And 107 00:07:25,470 --> 00:07:26,790 they pulled the plug. 108 00:07:27,230 --> 00:07:28,530 They never made a dime. 109 00:07:31,240 --> 00:07:37,360 In 2002, Taylor comes out of retirement to help his father fulfill a dream. 110 00:07:37,720 --> 00:07:43,620 They found the Johnson County Church of Christ in Shawnee, Kansas, where Ephraim 111 00:07:43,620 --> 00:07:45,460 Sr. will preside as minister. 112 00:07:46,920 --> 00:07:47,920 Ephraim Jr. 113 00:07:48,140 --> 00:07:53,760 calls on his church community to invest in his plan to help needy families and 114 00:07:53,760 --> 00:07:55,540 resurrect distressed communities. 115 00:07:56,740 --> 00:07:58,980 Ephraim said that he was a socially conscious investor. 116 00:07:59,420 --> 00:08:02,780 That's the pitch that he was giving to congregants. The socially conscious 117 00:08:02,780 --> 00:08:09,620 aspect of his spiel made him seem very altruistic. 118 00:08:09,820 --> 00:08:15,420 A person who was not just interested in money, he was interested in community 119 00:08:15,420 --> 00:08:16,420 and people. 120 00:08:16,640 --> 00:08:20,620 One of the first red flags that something was amiss with the Ephraim 121 00:08:20,620 --> 00:08:21,620 story. 122 00:08:21,690 --> 00:08:24,950 was the lawsuit that was filed by three Kansas City area men. 123 00:08:25,190 --> 00:08:29,650 In the lawsuit, the men say Taylor, claiming to be speaking on behalf of the 124 00:08:29,650 --> 00:08:35,169 Johnson County Church of Christ, convinces them to invest in his plan to 125 00:08:35,169 --> 00:08:36,929 rehab inner city houses. 126 00:08:37,409 --> 00:08:42,530 Ephron's selling points to the three Kansas City investors in convincing them 127 00:08:42,530 --> 00:08:47,870 hand over their quarter million dollars to him was that some of those proceeds 128 00:08:47,870 --> 00:08:48,870 would go to... 129 00:08:49,260 --> 00:08:51,460 further the ministry of his dad's church. 130 00:08:52,500 --> 00:08:55,940 He also promised high rates of returns to investors. 131 00:08:56,380 --> 00:09:00,680 They thought it was a great opportunity to do good and also to make money. 132 00:09:02,040 --> 00:09:08,660 It's unclear what Ephraim did with the $225 ,000 investment money, but the deal 133 00:09:08,660 --> 00:09:09,660 falls apart. 134 00:09:10,060 --> 00:09:12,880 Taylor is sued by the three Kansas City investors. 135 00:09:13,770 --> 00:09:18,010 Although he denies any wrongdoing, Taylor signs a confession of judgment 136 00:09:18,010 --> 00:09:23,810 agrees to return the investors' money, but eventually defaults. Those victims 137 00:09:23,810 --> 00:09:24,830 never got their money back. 138 00:09:25,610 --> 00:09:26,770 Ephraim Taylor Sr. 139 00:09:27,090 --> 00:09:30,210 has not been implicated in any of his son's activities. 140 00:09:32,530 --> 00:09:38,730 In 2005, Bank of America decides not to proceed on a planned $46 million 141 00:09:38,730 --> 00:09:42,930 development project near the Kansas City Historic Jazz District. 142 00:09:43,530 --> 00:09:47,430 home to the American Jazz and the Negro Leagues Baseball Museum. 143 00:09:49,010 --> 00:09:55,630 The Kansas City jazz scene of the 1930s and 40s produced lots of big hits at the 144 00:09:55,630 --> 00:09:58,990 time. Count Basie and others played there. 145 00:09:59,270 --> 00:10:03,690 In recent years, that district had fallen into disrepair. 146 00:10:04,670 --> 00:10:09,890 Taylor sees an opportunity and purchases a large portion of the surrounding land 147 00:10:09,890 --> 00:10:11,130 for $300 ,000. 148 00:10:12,160 --> 00:10:15,720 Taylor claims to be building hundreds of homes for the working class. 149 00:10:16,060 --> 00:10:20,820 The community is excited about the promising plans for the historic 150 00:10:21,880 --> 00:10:26,120 It's not clear to me when he transformed from a legitimate businessman to a 151 00:10:26,120 --> 00:10:31,920 crook. But ultimately, he didn't put a dime into building housing in the area, 152 00:10:32,000 --> 00:10:33,560 and it sat fallow for years. 153 00:10:34,510 --> 00:10:39,810 Despite the complete lack of progress in the development, Taylor had the public 154 00:10:39,810 --> 00:10:42,610 believing he had turned water into wine. 155 00:10:43,030 --> 00:10:49,110 He actually acted like that historic Jazz District investment was successful 156 00:10:49,110 --> 00:10:52,450 that there were investors who had made a ton of money on it. 157 00:10:52,930 --> 00:10:57,610 City Capital, a Nevada -based company that uses money from public stockholders 158 00:10:57,610 --> 00:11:01,190 to invest in developing businesses, takes notice. 159 00:11:02,140 --> 00:11:07,560 They hire 23 -year -old Taylor as their chief executive officer, hoping he is 160 00:11:07,560 --> 00:11:11,800 the silver bullet needed to turn the financially challenged company around. 161 00:11:13,000 --> 00:11:14,600 When American Greed returns, 162 00:11:15,320 --> 00:11:19,400 the self -proclaimed high -performance visionary takes center stage. 163 00:11:19,980 --> 00:11:26,920 He created a person in the media that really didn't exist, 164 00:11:27,200 --> 00:11:30,140 and that's how he was able to scam so many people. 165 00:11:39,950 --> 00:11:45,430 Son of a preacher and investment entrepreneur, Ephraim Taylor is taking 166 00:11:45,430 --> 00:11:46,430 world by storm. 167 00:11:46,570 --> 00:11:47,890 I want you to meet Ephraim Taylor. 168 00:11:48,290 --> 00:11:51,850 Ephraim, great to have you with us. Young and rich, and we're talking very 169 00:11:51,850 --> 00:11:54,590 and very rich. Our next whiz kid is Ephraim Taylor. 170 00:11:54,910 --> 00:11:58,910 And he has a new calling card. He's now the youngest African -American of any 171 00:11:58,910 --> 00:12:02,430 publicly traded company. That was one of his favorite things. 172 00:12:02,690 --> 00:12:07,570 The 25 -year -old releases his best -selling self -empowerment book, and the 173 00:12:07,570 --> 00:12:11,420 media is eating it up. Ephraim Taylor, a Wall Street Journal bestselling author. 174 00:12:11,800 --> 00:12:18,060 Ephraim Taylor's book was part of his strategy to show 175 00:12:18,060 --> 00:12:24,960 his supposed intellect, investment skills, business acumen, 176 00:12:24,960 --> 00:12:30,400 and the fact that he was a success story according to himself. 177 00:12:31,020 --> 00:12:35,140 Taylor woos his audience with his rags -to -riches story. 178 00:12:35,690 --> 00:12:39,250 A little bit short on money for video games, and my mom had challenged me to 179 00:12:39,250 --> 00:12:42,310 an entrepreneur, forgot I'd make my own. Started reading, taught myself how to 180 00:12:42,310 --> 00:12:44,690 program computers and making games, selling them to my friends. 181 00:12:44,950 --> 00:12:49,130 Ended up in high school having a $3 .4 million firm, 13 employees. My high 182 00:12:49,130 --> 00:12:50,630 school history teacher ended up working for me. 183 00:12:50,830 --> 00:12:56,570 He was living off of his myth, and each TV appearance begat another one. 184 00:12:57,189 --> 00:13:01,550 Efron Taylor running two public companies now, a guy doing it all at the 185 00:13:01,550 --> 00:13:02,550 old age of 24. 186 00:13:02,830 --> 00:13:06,450 Good for you, man. Congratulations. He won them all over with his impressive 187 00:13:06,450 --> 00:13:11,390 business pedigree and his socially conscious investment style. Efron Taylor 188 00:13:11,390 --> 00:13:16,450 pitched what was called socially conscious investing, essentially saying, 189 00:13:16,450 --> 00:13:17,450 good with your money. 190 00:13:17,970 --> 00:13:21,070 Invest in things that are good for the community, that will help build the 191 00:13:21,070 --> 00:13:23,110 community, while at the same time making you money. 192 00:13:24,640 --> 00:13:31,360 pledged that the money was always invested in things for people in need or 193 00:13:31,360 --> 00:13:35,840 communities in need, always to benefit others. 194 00:13:36,240 --> 00:13:37,520 You're a venture capitalist now. 195 00:13:37,800 --> 00:13:39,900 I'm more of a social capitalist. Okay. 196 00:13:40,320 --> 00:13:46,000 This was a win -win because you are going to help people who are in your 197 00:13:46,000 --> 00:13:47,000 community. 198 00:13:47,260 --> 00:13:51,560 You are going to make a lot of money as an investor. 199 00:13:51,900 --> 00:13:52,900 He was on. 200 00:13:53,680 --> 00:13:55,340 Every network you could think of. 201 00:13:55,800 --> 00:14:02,460 It helped establish what I call the Ephraim Taylor persona because he 202 00:14:02,460 --> 00:14:05,840 a person in the media that really didn't exist. 203 00:14:06,140 --> 00:14:09,100 And that's how he was able to scam so many people. 204 00:14:09,400 --> 00:14:13,780 Ephraim used the fact that he appeared on all these television shows as a way 205 00:14:13,780 --> 00:14:19,000 get in the door and gain people's trust. It gave him instant credibility when he 206 00:14:19,000 --> 00:14:20,000 was pitching his products. 207 00:14:20,320 --> 00:14:25,640 Taylor seizes the opportunity to use his newfound fame to meet the flock. 208 00:14:27,140 --> 00:14:32,080 Taylor takes his show on the road, promoting his brand with the Building 209 00:14:32,080 --> 00:14:34,360 Tour and traveling across the country. 210 00:14:34,660 --> 00:14:40,200 He visits mega churches to preach prosperity gospel and socially conscious 211 00:14:40,200 --> 00:14:41,200 investing. 212 00:14:41,400 --> 00:14:46,900 Taylor's looking for new recruits. He would actually preach a sermon. 213 00:14:47,440 --> 00:14:52,640 Then as soon as the sermon was over, he would go into his invest with me spiel. 214 00:14:53,300 --> 00:15:00,240 He would tell the congregation how successful he is and how they, as 215 00:15:00,440 --> 00:15:04,560 can help other people by investing with him with his socially conscious 216 00:15:04,560 --> 00:15:05,560 investing. 217 00:15:06,220 --> 00:15:09,500 What is Taylor and City Capital's winning pitch? 218 00:15:10,500 --> 00:15:16,020 Promissory notes. Used to fund small businesses like juice bars, laundromats, 219 00:15:16,020 --> 00:15:17,020 and gas stations. 220 00:15:18,190 --> 00:15:23,230 and provide housing for needy families in often ignored inner city communities. 221 00:15:23,810 --> 00:15:28,730 Promissory notes are essentially documents that he finds saying, I will 222 00:15:28,730 --> 00:15:33,090 back your money plus 20 % at the end of the year. He claimed that he would use 223 00:15:33,090 --> 00:15:36,930 the money from those promissory notes to invest in small businesses around the 224 00:15:36,930 --> 00:15:42,910 country. Unfortunately, he was using it to steal people's money and no one was 225 00:15:42,910 --> 00:15:43,910 helped by it. 226 00:15:45,150 --> 00:15:46,890 When American greed returns. 227 00:15:48,000 --> 00:15:53,180 The prophet of prosperity visits one of the most mega of all mega churches and 228 00:15:53,180 --> 00:15:58,720 uses the Bible as bait. He understood me coming from a Christian perspective. 229 00:15:59,200 --> 00:16:06,080 Reeling in a big pitch. The money that we invested was her dad's life 230 00:16:06,080 --> 00:16:07,080 savings. 231 00:16:19,820 --> 00:16:21,160 In November 2008, 232 00:16:21,860 --> 00:16:27,460 the Building Wealth Tour lands on the doorstep of televangelist Joel Osteen's 233 00:16:27,460 --> 00:16:32,340 Lakewood Mega Church in Houston, Texas, where more than 50 ,000 worship every 234 00:16:32,340 --> 00:16:38,000 week. Among the faithful are Gary and Anita Dorio, who met and got married at 235 00:16:38,000 --> 00:16:43,980 Lakewood. Lakewood Church, beautiful, is the only way I can describe it. 236 00:16:44,480 --> 00:16:46,280 Church everyone would want to go to. 237 00:16:47,180 --> 00:16:48,500 It was like heaven. 238 00:16:48,920 --> 00:16:53,000 And that you saw black people sitting with white people, sitting with 239 00:16:53,400 --> 00:16:56,800 sitting with Asian, and all worshiping God together. 240 00:16:57,980 --> 00:17:01,160 Anita's first visit to Lakewood changed her life. 241 00:17:01,580 --> 00:17:06,060 I had never been in the presence of God like that. 242 00:17:07,520 --> 00:17:11,800 And I would weep throughout the entire praise and worship. 243 00:17:14,109 --> 00:17:17,150 The Holy Spirit did something that had never happened before. 244 00:17:17,430 --> 00:17:19,650 I've never been in his presence like that. 245 00:17:21,609 --> 00:17:25,550 Being moved by the Holy Spirit is a hard act to follow. 246 00:17:25,950 --> 00:17:30,950 But Taylor did his best when he was invited to a Lakewood Church classroom 247 00:17:30,950 --> 00:17:35,410 give a presentation to several Lakewood Church volunteers about biblical 248 00:17:35,410 --> 00:17:40,490 financial principles or stories in the Bible that promote prosperity. 249 00:17:41,580 --> 00:17:43,880 Anita was in attendance at Lakewood Church. 250 00:17:44,300 --> 00:17:51,200 Biblical principles is investing wisely, responsibly, and for 251 00:17:51,200 --> 00:17:58,200 the purpose of furthering the kingdom, but also God wants 252 00:17:58,200 --> 00:17:59,660 us to be prosperous. 253 00:18:00,240 --> 00:18:07,220 There was a series of different seminars over a period of several weeks, and 254 00:18:07,220 --> 00:18:08,980 one's called Don't Bury Your Talents. 255 00:18:09,470 --> 00:18:14,830 During Taylor's seminar at Lakewood, he lures potential investors in with the 256 00:18:14,830 --> 00:18:16,690 Bible's parable of talents. 257 00:18:17,130 --> 00:18:22,290 In it, those who take risks and invest their talents or money are rewarded, 258 00:18:22,430 --> 00:18:26,530 while those who bury or do nothing with their talents are punished. 259 00:18:27,030 --> 00:18:31,930 You want to be a wise investor. You want to be wise with the wealth. 260 00:18:32,320 --> 00:18:36,420 that God gives you, and I really appreciated the fact that, you know, he 261 00:18:36,420 --> 00:18:40,820 understood me coming from a Christian perspective, and his dad was a pastor. 262 00:18:41,080 --> 00:18:44,660 So those were, you know, some of the reasons to want to trust him. 263 00:18:45,380 --> 00:18:49,880 Following the presentation, Gary and Anita Dorio meet privately with Taylor 264 00:18:49,880 --> 00:18:53,800 find his sales pitch and paperwork to be convincing. 265 00:18:54,760 --> 00:18:58,520 Ephraim was charismatic, intelligent. 266 00:18:59,420 --> 00:19:04,040 He was knowledgeable in what he was talking about, and he seemed genuine. 267 00:19:04,620 --> 00:19:10,660 Taylor also talks disparagingly about traditional IRAs or individual 268 00:19:10,660 --> 00:19:15,600 accounts. Playing to their Christian sensibilities, he tells them some mutual 269 00:19:15,600 --> 00:19:20,120 funds invest in ungodly businesses that might not be in line with their 270 00:19:20,120 --> 00:19:22,640 Christian beliefs, like strip clubs. 271 00:19:23,020 --> 00:19:29,170 Which is definitely not something that any of us. in that room would want to be 272 00:19:29,170 --> 00:19:31,470 invested in or associated with. 273 00:19:31,710 --> 00:19:38,190 So it's much more appealing to invest in a company that is, you know, a dry 274 00:19:38,190 --> 00:19:43,530 cleaner or a smoothie shop that helps teenagers with after -school jobs, and 275 00:19:43,530 --> 00:19:46,810 it's a profitable business. So it seems like a win -win -win. 276 00:19:47,070 --> 00:19:51,950 The Dorios consider the pros and cons of the investment opportunity for several 277 00:19:51,950 --> 00:19:52,950 weeks. 278 00:19:53,080 --> 00:19:57,660 In these promissory notes, he was detailing the amount of interest that 279 00:19:57,660 --> 00:20:03,540 paid and how it would be paid. Everything was written out. It seemed 280 00:20:03,540 --> 00:20:06,200 doable. It was just a really good investment. 281 00:20:07,460 --> 00:20:12,200 Eventually, Taylor convinces the Dorios to transfer their money into a self 282 00:20:12,200 --> 00:20:13,280 -directed IRA. 283 00:20:13,860 --> 00:20:19,260 A self -directed IRA allows investors to control the type of businesses that 284 00:20:19,260 --> 00:20:20,340 their money is benefiting. 285 00:20:21,040 --> 00:20:24,960 So I like the idea with self -directed IRAs that I could choose the businesses 286 00:20:24,960 --> 00:20:28,980 that I wanted to invest in. Because with traditional IRAs, you don't get to 287 00:20:28,980 --> 00:20:29,980 choose. 288 00:20:30,440 --> 00:20:35,220 Taylor, along with City Capital employees, provide investors with 289 00:20:35,220 --> 00:20:41,300 needed to transfer their savings from a traditional IRA to a self -directed IRA 290 00:20:41,300 --> 00:20:42,300 account. 291 00:20:42,650 --> 00:20:48,050 Once investors signed over the use of the funds to the self -directed IRA, 292 00:20:48,330 --> 00:20:50,870 Taylor and City Capital had full use of the funds. 293 00:20:51,630 --> 00:20:56,590 The Dorios invest their entire life savings with Ephraim Taylor and City 294 00:20:56,590 --> 00:20:59,030 Capital's socially conscious investments. 295 00:20:59,790 --> 00:21:06,190 So I invested $1 .3 million, which was my family's inheritance. 296 00:21:07,000 --> 00:21:13,160 My dad worked for Texaco, and he always contributed the maximum to his 401K. 297 00:21:13,540 --> 00:21:15,500 And that is where the money came from. 298 00:21:16,920 --> 00:21:22,220 Anita's father had set up a trust for his wife, Anita, and her two siblings. 299 00:21:22,680 --> 00:21:27,040 Number one priority was to take care of his wife in her latter years. 300 00:21:27,400 --> 00:21:29,780 Second was to take care of the children. 301 00:21:30,300 --> 00:21:33,960 Anita requests an account statement every quarter. 302 00:21:34,520 --> 00:21:38,780 The statements looked good. I mean, they were exactly what they needed to be. It 303 00:21:38,780 --> 00:21:40,700 showed, you know, the money growing. 304 00:21:41,360 --> 00:21:46,400 The Dorios become Taylor's number one investor, putting in more money than 305 00:21:46,400 --> 00:21:47,400 anyone else. 306 00:21:47,980 --> 00:21:50,220 Initially, they were pleased with their investment. 307 00:21:50,600 --> 00:21:55,200 City Capital is paying them $11 ,000 a month for almost a year. 308 00:21:55,820 --> 00:21:58,800 Every month, the money was wired into our account. 309 00:21:59,020 --> 00:22:03,680 If Ephraim was in the Houston area, he would contact us and set up a lunch. 310 00:22:04,330 --> 00:22:08,050 a dinner, and he would keep us up to speed on what's going on with city 311 00:22:08,490 --> 00:22:12,250 He was here in Africa, or he was in this part of the world doing this. 312 00:22:12,610 --> 00:22:17,170 So it kind of reinforced our trust in him. 313 00:22:17,770 --> 00:22:20,190 Until one day, the payment stopped. 314 00:22:21,350 --> 00:22:25,110 We tried to call to find out what was going on. We could not get in touch with 315 00:22:25,110 --> 00:22:27,830 our account managers. We could not get in touch with Ephraim. 316 00:22:28,450 --> 00:22:30,970 And that's when we realized things were going south. 317 00:22:33,230 --> 00:22:37,990 According to Lakewood Church, guest speakers are not allowed to sell their 318 00:22:37,990 --> 00:22:38,990 services to members. 319 00:22:39,690 --> 00:22:42,910 Taylor was invited to speak about biblical financial principles. 320 00:22:43,270 --> 00:22:48,490 When he started promoting his financial services, they say he was quickly shut 321 00:22:48,490 --> 00:22:49,490 down. 322 00:22:50,370 --> 00:22:54,790 Next on American Greed, Taylor is desperate for cash. 323 00:22:55,270 --> 00:23:00,290 Ephraim did not have the money to pay the returns or the original amount back 324 00:23:00,290 --> 00:23:01,259 the investor. 325 00:23:01,260 --> 00:23:04,280 And rolls the dice on sweepstakes machines? 326 00:23:04,780 --> 00:23:07,500 That's the first question most church folks say. You know, we don't want to be 327 00:23:07,500 --> 00:23:08,500 gambling. 328 00:23:08,660 --> 00:23:11,580 We were sure, even in writing, it wasn't gambling. 329 00:23:21,920 --> 00:23:27,200 In 2009, Ephraim Taylor's Building Wealth Tour is crisscrossing the 330 00:23:27,760 --> 00:23:32,660 adding one church after another to his brochure, convincing the faithful to 331 00:23:32,660 --> 00:23:35,980 socially conscious investments with city capital. 332 00:23:36,360 --> 00:23:41,480 Taylor has handed out numerous promissory notes while on tour that 333 00:23:41,480 --> 00:23:45,260 investors a 12 to 20 percent return on their investment. 334 00:23:45,600 --> 00:23:49,200 The promissory notes were due typically after a year. 335 00:23:49,400 --> 00:23:54,420 He claimed that he would use the money from those promissory notes to invest in 336 00:23:54,420 --> 00:23:55,720 small businesses around the country. 337 00:23:56,590 --> 00:24:00,270 It turns out he was taking in that money and not investing in those businesses 338 00:24:00,270 --> 00:24:01,270 that he was promising. 339 00:24:01,650 --> 00:24:08,130 Ephraim Taylor used investors' money for his media appearances, book tours, etc. 340 00:24:08,670 --> 00:24:12,910 Funds were used for commissions to Taylor, also to other employees. 341 00:24:13,830 --> 00:24:19,570 Ephraim did not have the money to pay the returns or the original amount back 342 00:24:19,570 --> 00:24:20,429 the investor. 343 00:24:20,430 --> 00:24:23,070 There was also a squeaky wheel policy where... 344 00:24:23,360 --> 00:24:27,720 If the investor were to complain loud enough and often enough that they were 345 00:24:27,720 --> 00:24:33,920 given some type of return or funds in order to pacify them to keep the scheme 346 00:24:33,920 --> 00:24:34,920 going. 347 00:24:35,300 --> 00:24:39,840 Quickly running out of other people's money, Taylor and City Capital need a 348 00:24:39,840 --> 00:24:40,840 revenue stream. 349 00:24:41,000 --> 00:24:45,060 And they start promoting video poker -like sweepstakes machines. 350 00:24:45,660 --> 00:24:48,860 Taylor creates this video to entice investors. 351 00:24:50,000 --> 00:24:53,320 Hey, I'm glad that you made it here, and I'm glad that you made the decision to 352 00:24:53,320 --> 00:24:56,880 take the time to read more about the sweepstakes income generation 353 00:24:57,800 --> 00:25:03,380 Sweepstakes machines look, sound, and feel like slot machines, but in reality, 354 00:25:03,500 --> 00:25:05,840 they're computers loaded with casino games. 355 00:25:06,660 --> 00:25:10,640 She initially had some heartache about it because sweepstakes machines aren't 356 00:25:10,640 --> 00:25:13,860 generally considered a Christian or socially conscious investment. 357 00:25:14,320 --> 00:25:17,820 So Ephraim's marketing brochure had to be convincing. 358 00:25:18,760 --> 00:25:21,380 Sweepstakes machines are a gray area. 359 00:25:22,080 --> 00:25:26,440 That's why Ephraim stressed that the sweepstakes machines were not gambling. 360 00:25:27,620 --> 00:25:32,420 But he never told investors about the risks of illegality, nor did he tell 361 00:25:32,420 --> 00:25:34,760 that law enforcement had actually raided parlors. 362 00:25:35,440 --> 00:25:41,200 The machines were his last -ditch effort to generate new investor money to pay 363 00:25:41,200 --> 00:25:42,300 back his earlier investors. 364 00:25:43,280 --> 00:25:44,280 Desperate for money? 365 00:25:44,860 --> 00:25:49,400 Taylor and his CityCapital team made outlandish propositions to potential 366 00:25:49,400 --> 00:25:51,020 sweepstakes machine investors. 367 00:25:51,680 --> 00:25:58,380 The offer? For a mere $5 ,000, the investor purchases a sweepstakes machine 368 00:25:58,380 --> 00:26:03,120 CityCapital will maintain and place in a high -traffic area, yielding the 369 00:26:03,120 --> 00:26:06,840 investor an unheard -of return on their initial investment. 370 00:26:07,300 --> 00:26:11,020 So with these machines, he would often tell people that they would gain at a 371 00:26:11,020 --> 00:26:12,020 minimum 300%. 372 00:26:12,350 --> 00:26:13,350 on their investment. 373 00:26:13,430 --> 00:26:18,110 Often he would tell people they would get 2 ,400 % on their investment. 374 00:26:18,390 --> 00:26:20,130 It was all a lie. None of that was true. 375 00:26:20,370 --> 00:26:26,230 If a 2 ,400 % return on investment didn't convince investors to sign on the 376 00:26:26,230 --> 00:26:29,990 dotted line, making that offer risk -free certainly would. 377 00:26:30,290 --> 00:26:34,150 And Taylor uses YouTube videos to lure investors. 378 00:26:34,730 --> 00:26:37,990 That's right. I've taken all the risk off the table by guaranteeing that 379 00:26:37,990 --> 00:26:40,450 make your investment back or we'll buy the machine back. 380 00:26:40,780 --> 00:26:41,900 So what do you have to lose? 381 00:26:42,280 --> 00:26:48,440 In October 2009, Taylor's building wealth tour heads south to New Birth 382 00:26:48,440 --> 00:26:50,620 Missionary Baptist Church near Atlanta. 383 00:26:51,140 --> 00:26:55,920 In addition to pushing his regular investments, Taylor presents his latest 384 00:26:55,920 --> 00:26:59,220 offering, risk -free sweepstakes machines. 385 00:27:00,280 --> 00:27:03,740 J .B. Bailey and several church members are initially cautious. 386 00:27:04,340 --> 00:27:07,280 That's the first question the church folks say is, you know, we don't want to 387 00:27:07,280 --> 00:27:08,280 gambling. 388 00:27:08,350 --> 00:27:11,870 And we were sure, even in writing, it wasn't gambling. 389 00:27:12,290 --> 00:27:16,270 Ephraim Taylor and City Capital offered J .B. Bailey a bargain. 390 00:27:16,510 --> 00:27:17,510 He gave me a discount. 391 00:27:17,650 --> 00:27:23,030 I had four machines that could have been $20 ,000, but he sold them to me for 392 00:27:23,030 --> 00:27:24,770 close to $14 ,000. 393 00:27:25,310 --> 00:27:30,630 Also in the church that day is Lillian Wells, an active parishioner at New 394 00:27:30,630 --> 00:27:32,310 for more than 20 years. 395 00:27:32,670 --> 00:27:37,990 The wealth building tour was supposed to be able to show us how we can enjoy our 396 00:27:37,990 --> 00:27:42,790 life in our older age and also be able to leave a legacy for our children. 397 00:27:43,170 --> 00:27:46,430 At the seminar, Taylor follows his now familiar script. 398 00:27:47,150 --> 00:27:51,350 He makes numerous biblical references, talks about socially conscious 399 00:27:51,530 --> 00:27:56,590 and says traditional IRAs could be investing their money in ungodly 400 00:27:57,210 --> 00:28:02,410 Taylor and City Capital employees convince Wells that a self -directed IRA 401 00:28:02,410 --> 00:28:03,990 give her the freedom she desires. 402 00:28:04,650 --> 00:28:10,130 You're trying to live in a godly way, so the only way you can control where your 403 00:28:10,130 --> 00:28:13,090 money is being invested is through the self -directing IRA. 404 00:28:14,620 --> 00:28:19,600 Lillian is given the opportunity to invest in apartment buildings in 405 00:28:20,040 --> 00:28:22,000 At first, she is hesitant. 406 00:28:22,380 --> 00:28:26,540 I wanted to do my own investments here in the Georgia area. 407 00:28:26,760 --> 00:28:33,400 Well, then they offered me 20 % return on the investment if I would let 408 00:28:33,400 --> 00:28:36,500 him, you know, invest it their way. 409 00:28:37,330 --> 00:28:42,430 Wells is offered a promissory note that will provide a 20 % return on investment 410 00:28:42,430 --> 00:28:44,110 in just nine months. 411 00:28:44,370 --> 00:28:49,350 It isn't long before she moves her entire life savings into a self 412 00:28:49,350 --> 00:28:55,470 IRA. The only way you can leave a legacy or leave something for your children is 413 00:28:55,470 --> 00:28:57,490 that you've got to gain wealth now. 414 00:28:58,330 --> 00:29:01,130 I invested $122 ,000. 415 00:29:03,090 --> 00:29:04,790 When American Greed returns. 416 00:29:05,720 --> 00:29:07,160 The feds come knocking. 417 00:29:07,600 --> 00:29:13,240 The SEC tried to reach out to Ethan Taylor. We sent him subpoenas at 418 00:29:13,240 --> 00:29:16,120 addresses. And Taylor goes on the lam. 419 00:29:16,380 --> 00:29:21,040 He had disappeared, and attorneys around the country were looking for him 420 00:29:21,040 --> 00:29:22,040 without success. 421 00:29:28,740 --> 00:29:34,800 In 2010, despite not having enough money to cover payroll and business expenses, 422 00:29:35,370 --> 00:29:40,590 Ephraim Taylor is brazenly spending the life savings of his investors for his 423 00:29:40,590 --> 00:29:41,590 own benefit. 424 00:29:42,850 --> 00:29:48,990 Ephraim spent millions of dollars paying off his personal credit card, rent at 425 00:29:48,990 --> 00:29:53,830 his New York City, Toronto apartment, studio time for his wife's music career, 426 00:29:53,950 --> 00:29:56,950 and the production of her music video, Billionaire. 427 00:29:57,900 --> 00:30:02,340 In the music video, Taylor's wife, Michelle, pays homage to an extravagant 428 00:30:02,340 --> 00:30:06,220 lifestyle, and they post on YouTube for all to see. 429 00:30:06,420 --> 00:30:10,220 The lyrics to the song are all about wealth and being a billionaire, and you 430 00:30:10,220 --> 00:30:12,360 aren't. It was very good. 431 00:30:16,140 --> 00:30:22,740 But someone who is there is her 432 00:30:22,740 --> 00:30:24,420 husband, Ethan Taylor. 433 00:30:24,800 --> 00:30:26,760 The billionaire is not my taste in music. 434 00:30:27,480 --> 00:30:28,740 But he had a nice cameo. 435 00:30:29,280 --> 00:30:35,360 It was the biggest slap in the face to these investors when they found out 436 00:30:35,360 --> 00:30:37,960 that's what their money had been used for. 437 00:30:38,200 --> 00:30:43,340 While the Taylors are off pretending to be billionaires, investors are wondering 438 00:30:43,340 --> 00:30:44,540 where their money is. 439 00:30:45,160 --> 00:30:49,700 When the Dorios' monthly payments stop, they try contacting city capital 440 00:30:49,700 --> 00:30:52,280 numerous times, but get the runaround. 441 00:30:52,820 --> 00:30:56,120 That definitely gave me a great deal of concern. 442 00:30:56,680 --> 00:31:00,740 And I knew I needed to start finding out what is the truth and what's going on. 443 00:31:01,240 --> 00:31:04,620 We could not get in touch with our account managers. We could not get in 444 00:31:04,620 --> 00:31:05,620 with Ephraim. 445 00:31:06,040 --> 00:31:08,180 That's when we realized things were going south. 446 00:31:10,560 --> 00:31:13,600 Lillian Wells is also looking to cash out. 447 00:31:13,920 --> 00:31:19,980 At the end of this nine months, I was ready to invest my money in Georgia. 448 00:31:20,440 --> 00:31:23,020 And I called them to get... 449 00:31:23,230 --> 00:31:26,550 My return and my original investment. 450 00:31:26,930 --> 00:31:31,690 And J .B. Bailey knew something wasn't quite right when he stopped receiving 451 00:31:31,690 --> 00:31:33,450 checks from City Capital. 452 00:31:33,690 --> 00:31:38,750 These checks I got over a period of maybe four to six months. 453 00:31:39,050 --> 00:31:45,890 They went from $240 to maybe $150, maybe to $100 to nothing. 454 00:31:46,170 --> 00:31:49,710 And then at that point, that's when I know it was. 455 00:31:50,800 --> 00:31:52,680 We've been hoodwinked and bamboozled. 456 00:31:53,420 --> 00:31:56,900 City Capital was running out of money to pay its earlier investors, and they 457 00:31:56,900 --> 00:32:00,200 started asking for their returns, and there simply wasn't money to pay them. 458 00:32:01,200 --> 00:32:03,460 Taylor's hustle is running out of steam. 459 00:32:04,280 --> 00:32:07,940 You run out of money to pay the investors who want their returns, and so 460 00:32:07,940 --> 00:32:11,740 need new investors to pay it, and ultimately it collapses under its own 461 00:32:11,740 --> 00:32:12,740 because you run out of money. 462 00:32:14,000 --> 00:32:19,680 By the fall of 2010, Taylor's pristine image is starting to tarnish. 463 00:32:20,750 --> 00:32:25,730 The Dorios filed a lawsuit, and the Securities and Exchange Commission 464 00:32:25,730 --> 00:32:31,190 investigating. We looked at City Capital's website and learned that it 465 00:32:31,190 --> 00:32:34,650 earth -shattering returns far greater than any bank could return. 466 00:32:35,370 --> 00:32:36,710 Those were red flags. 467 00:32:37,770 --> 00:32:43,710 Panicked investors call City Capital for answers, and frustrated employees quit. 468 00:32:44,950 --> 00:32:47,230 Lillian Wells is one of those investors. 469 00:32:48,000 --> 00:32:52,940 Numerous attempts to contact city capital to retrieve her life savings go 470 00:32:52,940 --> 00:32:59,500 unanswered. I was still hopeful and still trying to get in touch with them 471 00:32:59,500 --> 00:33:00,680 getting my money back. 472 00:33:01,060 --> 00:33:06,140 By October, city capital is out of money and can no longer keep the lid on the 473 00:33:06,140 --> 00:33:07,140 pressure cooker. 474 00:33:07,360 --> 00:33:12,120 Taylor abruptly steps down as CEO and slithers into hiding. 475 00:33:12,880 --> 00:33:15,720 The SEC tried to reach out to Ethan Taylor. 476 00:33:16,440 --> 00:33:19,560 We sent him subpoenas at multiple addresses. 477 00:33:20,160 --> 00:33:21,900 We never heard from Ethan Taylor. 478 00:33:22,720 --> 00:33:23,860 He had disappeared. 479 00:33:24,740 --> 00:33:27,920 Attorneys around the country were looking for him without success. 480 00:33:28,820 --> 00:33:33,980 Lillian Wells and 12 other victims of Taylor at Newberth looked to Bishop 481 00:33:33,980 --> 00:33:35,080 Long for a solution. 482 00:33:35,520 --> 00:33:42,260 I think he was surprised at the amount that all of us had invested, and it was 483 00:33:42,260 --> 00:33:44,320 over a million -some dollars. 484 00:33:45,840 --> 00:33:51,100 We were looking for help on how to get Ephraim to give us our money back. 485 00:33:51,640 --> 00:33:54,640 Bishop Eddie Long died in 2017. 486 00:33:55,640 --> 00:33:59,860 Requests by American Greed to speak with New Birth Missionary Baptist Church 487 00:33:59,860 --> 00:34:06,360 have gone unanswered. By April 2011, the Dorios reach a $1 .2 million settlement 488 00:34:06,360 --> 00:34:11,360 with city capital, which does not admit any wrongdoing. But it's too late. 489 00:34:12,400 --> 00:34:14,440 It's fine if they say you won. 490 00:34:15,100 --> 00:34:21,520 If there's no way to go after the person or get anything, it's pretty empty. 491 00:34:21,600 --> 00:34:23,820 And that's basically what happened to us. 492 00:34:24,560 --> 00:34:26,340 When American Greed returns, 493 00:34:27,460 --> 00:34:31,620 Ephraim Taylor is forced out of hiding. A TV crew tracked him down. 494 00:34:31,860 --> 00:34:35,780 And Michelle is spotted working at a massage parlor. 495 00:34:47,400 --> 00:34:53,540 By September 2012, multiple government agencies are investigating Ephraim 496 00:34:53,540 --> 00:34:54,540 II. 497 00:34:54,719 --> 00:34:58,980 Attorneys filed multiple lawsuits against Taylor and city capital. 498 00:34:59,580 --> 00:35:02,900 No one knew where he had gone. He had disappeared. 499 00:35:03,300 --> 00:35:06,800 Attorneys around the country were looking for him, but without success. 500 00:35:07,740 --> 00:35:12,100 The Securities and Exchange Commission files civil charges against Taylor, 501 00:35:12,260 --> 00:35:18,700 claiming he operated a Ponzi scheme to swindle over $11 million, primarily from 502 00:35:18,700 --> 00:35:20,460 African -American churchgoers. 503 00:35:20,940 --> 00:35:26,960 The SEC states that they are unaware of his whereabouts, and many subpoenas have 504 00:35:26,960 --> 00:35:28,100 gone unanswered. 505 00:35:28,460 --> 00:35:31,560 The Taylors, it seems, have gone underground. 506 00:35:33,340 --> 00:35:35,200 In August 2013, 507 00:35:36,200 --> 00:35:41,020 Ephraim and Michelle Taylor are spotted by a network news crew in Lenexa, 508 00:35:41,160 --> 00:35:42,160 Kansas. 509 00:35:44,940 --> 00:35:50,900 One day drawn to the media spotlight, Taylor is now hiding from it. And he and 510 00:35:50,900 --> 00:35:53,980 his wife drive away, eluding questions from the press. 511 00:35:54,760 --> 00:35:59,620 Ephraim Taylor, the big talker, the preacher's son who could charm anyone, 512 00:35:59,840 --> 00:36:04,960 suddenly was silent when confronted by questions from the media. 513 00:36:05,840 --> 00:36:10,320 A short time later, the news crew has another encounter with Michelle Taylor 514 00:36:10,320 --> 00:36:15,120 when she arrives at the day spa under the alias of Liz Taylor. 515 00:36:16,500 --> 00:36:23,280 A TV crew tracked it down and put a microphone into Michelle's face, asking 516 00:36:23,280 --> 00:36:26,780 her about the money. She seemed like a caged animal. 517 00:36:27,320 --> 00:36:32,420 In the end, many of Taylor's victims lose their entire life savings. 518 00:36:32,920 --> 00:36:34,520 People are emotionally devastated. 519 00:36:35,230 --> 00:36:38,570 Some people lost everything they had. So after a long career and having done the 520 00:36:38,570 --> 00:36:41,350 right thing and thinking they were going to have an opportunity to rest, they 521 00:36:41,350 --> 00:36:43,850 had to return to work because they didn't have any money to live off of. 522 00:36:45,070 --> 00:36:49,510 Like many of Taylor's victims, Lillian Wells files for bankruptcy. 523 00:36:49,990 --> 00:36:55,790 The money that I was trying to build wealth on to leave for my grandkids and 524 00:36:55,790 --> 00:37:00,350 everything was all gone. So now I had to work to just survive. 525 00:37:01,290 --> 00:37:03,950 But the damage runs much deeper. 526 00:37:05,270 --> 00:37:11,630 I lost the church family that I had due to 527 00:37:11,630 --> 00:37:16,790 the involvement of it. I loved New Birth, still do. 528 00:37:17,410 --> 00:37:23,230 I miss being with people that I had been with for more than 20 -something years. 529 00:37:24,830 --> 00:37:30,130 Lillian and several New Birth members, including J .B. Bailey, recoup an 530 00:37:30,130 --> 00:37:33,550 undisclosed amount in a civil suit against Bishop Long. 531 00:37:34,060 --> 00:37:36,600 Despite his claims, he did nothing wrong. 532 00:37:36,960 --> 00:37:43,620 Because of the lawsuit, some of the people that were friends to you, they 533 00:37:43,620 --> 00:37:47,200 at things in a different way than you may look at it. 534 00:37:48,140 --> 00:37:52,060 It's changed the way J .B. Bailey practices his faith. 535 00:37:52,600 --> 00:37:54,640 I no longer go to New Birth. 536 00:37:55,100 --> 00:37:59,520 I didn't give up on God, but I gave up on... 537 00:38:00,000 --> 00:38:05,440 man's system of how they have church and the tradition of what we say church is. 538 00:38:05,760 --> 00:38:10,240 The singing, the hoopla, and all the celebrities. 539 00:38:10,900 --> 00:38:17,200 You know, when it all boils down to, is your inner soul really being fed? 540 00:38:17,660 --> 00:38:19,220 Are you really happy? 541 00:38:19,860 --> 00:38:26,640 And oddly, you know, even though Larry and I live like we do, I can say I'm 542 00:38:26,640 --> 00:38:27,640 happy. 543 00:38:28,300 --> 00:38:34,140 Taylor's biggest investors, Gary and Anita Dorio, face the unthinkable. 544 00:38:34,520 --> 00:38:38,740 We lost the home to foreclosure. And when we went to court, the judge gave us 545 00:38:38,740 --> 00:38:39,780 six days to vacate. 546 00:38:40,480 --> 00:38:45,220 But the financial loss only scratches the surface of their suffering. 547 00:38:45,640 --> 00:38:52,040 The first and foremost goal of the trust was to take care of my wife's mom in 548 00:38:52,040 --> 00:38:52,919 her retirement. 549 00:38:52,920 --> 00:38:56,040 She developed a form of Parkinson's. 550 00:38:56,270 --> 00:39:01,690 that required 24 -7 care, she needed to be full -time nursing home. And we could 551 00:39:01,690 --> 00:39:07,430 not afford to do that, so we were taking care of her 24 -7 at home. 552 00:39:07,770 --> 00:39:10,430 The human cost is immeasurable. 553 00:39:10,890 --> 00:39:15,490 Now, we had nothing to fall back on. We were starting from zero in our late 40s 554 00:39:15,490 --> 00:39:18,930 and had to rebuild and still are rebuilding everything. 555 00:39:20,390 --> 00:39:25,390 So many people were just devastated by this. 556 00:39:26,250 --> 00:39:29,130 Families destroyed, dreams destroyed. 557 00:39:30,470 --> 00:39:35,630 Despite changing their lives forever, the Dorios still find mercy in their 558 00:39:35,630 --> 00:39:36,630 hearts for Taylor. 559 00:39:37,030 --> 00:39:41,630 I forgive you, Ephraim. I prayed for you and your family because I know they'll 560 00:39:41,630 --> 00:39:42,630 never be the same. 561 00:39:43,670 --> 00:39:48,990 Although the Dorios no longer attend Lakewood Church, the experience hasn't 562 00:39:48,990 --> 00:39:50,010 shaken their faith. 563 00:39:51,770 --> 00:39:57,270 Ephraim Taylor did come to this event at Lakewood Church. I do not hold Lakewood 564 00:39:57,270 --> 00:39:58,270 responsible. 565 00:39:58,390 --> 00:40:03,850 My faith has grown, and definitely it made Gary and I, our marriage, stronger 566 00:40:03,850 --> 00:40:09,310 because we went through a huge thing together. You can either let something 567 00:40:09,310 --> 00:40:14,430 horrific bring you closer together or tear you apart. It brought us closer 568 00:40:14,430 --> 00:40:15,430 together. 569 00:40:16,490 --> 00:40:21,310 In June 2014, Ephraim Taylor surrenders to authorities. 570 00:40:21,510 --> 00:40:25,670 He pleads guilty to conspiracy to commit mail and wire fraud. 571 00:40:26,090 --> 00:40:30,790 The computer whiz kid with a promising future ends up bilking more than 400 572 00:40:30,790 --> 00:40:34,610 people in 43 states out of $16 million. 573 00:40:36,110 --> 00:40:40,190 Taylor declined interview requests by American Greed. 574 00:40:41,040 --> 00:40:46,740 Was he a good guy in the beginning and turned bad guy, or was he just a wolf in 575 00:40:46,740 --> 00:40:47,740 sheep's clothing? 576 00:40:48,420 --> 00:40:50,280 Ephraim wanted to live a certain lifestyle. 577 00:40:50,840 --> 00:40:53,020 To do so, he had to rip off people. 578 00:40:54,340 --> 00:40:58,900 Ephraim convinced investors to give him their entire retirement nest egg. 579 00:40:59,540 --> 00:41:00,800 All of that money is gone. 580 00:41:01,960 --> 00:41:06,300 Ephraim Taylor is sentenced to almost 20 years in prison. 581 00:41:06,910 --> 00:41:10,690 and is ordered to pay restitution in the amount of more than $15 million. 582 00:41:11,590 --> 00:41:17,610 His wife, Michelle Taylor, was never implicated or charged in any crime. 583 00:41:18,870 --> 00:41:25,430 In the end, this prophet of prosperity turned out to be a false prophet. As the 584 00:41:25,430 --> 00:41:31,290 Bible warns, beware of false prophets who come to you in sheep's clothing, but 585 00:41:31,290 --> 00:41:33,750 inwardly are ravenous wolves. 586 00:41:34,990 --> 00:41:38,830 I can't think of a single business that Ephraim participated in that was 587 00:41:38,830 --> 00:41:42,990 successful. The victims will never see a dime from Ephraim Taylor. 588 00:41:44,450 --> 00:41:46,910 Do your homework, and you need to be aware. 589 00:41:47,190 --> 00:41:52,190 Do due diligence. No matter how much someone else has said they've done it, 590 00:41:52,190 --> 00:41:53,430 make sure you check it out first. 591 00:41:54,770 --> 00:42:00,690 I believe all churches should have a tenet that says we do not allow. 592 00:42:01,230 --> 00:42:07,010 any type of investment advisors or sponsors to speak in our pulpit or to 593 00:42:07,010 --> 00:42:08,530 presentations to our flock. 594 00:42:09,110 --> 00:42:13,510 If we had that, this religious affinity fraud would stop.