What should become of two life insurance policies taken out by Greater Salem Church on its former co-pastors, Anthony and Harriet Jinwright?
A bankruptcy court judge has been asked to decide.
The polices, issued by Prudential Insurance Company of America, have a total cash value estimated at $32,000 to $35,000.
A court-appointed restructuring officer assigned to oversee Greater Salem’s Chapter 11 bankruptcy petition wants to cash in the policies to help the church emerge from reorganization. But as of Wednesday, Prudential had refused the restructuring officer’s request.
Documents filed with the U.S. Bankruptcy Court in uptown Charlotte did not indicate why Prudential had declined to surrender the proceeds.
A hearing is scheduled for April 27.
The Jinwrights, convicted in May 2010 on multiple counts related to tax evasion, were sentenced to years in prison. Less than a month before they faced sentencing, Greater Salem sought bankruptcy court protection to avoid a foreclosure sale after the church defaulted on a $5 million loan.
Robert Weld, assigned by the court to oversee the church’s fiinancial operations, filed papers sayinig both Greater Salem and its creditors would benefit if he were allowed to cash in the policies.
In a separate action, the federal government has begun seizing cash accounts once owned by the Jinwrights, who were ordered to pay restitution totaling more than $1.2 million. Included in the $44,000 seized as of March 4 were two Prudential accounts owned by Anthony Jinwright and valued at $20,302. The account numbers relating to the seized assets did not match the account numbers on the life insurance polices, according to separate documents filed in bankruptcy court and in Federal District Court in uptown Charlotte.
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