THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, September 24, 1994 TAG: 9409240236
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Short : 38 lines
A federal appeals court Friday reinstated security fraud claims against PTL founder Jim Bakker in a civil case brought by about 150,000 people who purchased ``lifetime partnerships'' in his organization.
A unanimous three-judge panel of the 4th U.S. Circuit Court of Appeals said U.S. District Judge James B. McMillan of Charlotte, N.C., erred when he threw out the securities fraud claims. A jury should have considered the matter, the appeals court ruled.
A jury in the civil case last year found Bakker guilty of common law fraud violations and ordered him to pay nearly $260 million in damages.
Harold Bender, one of Bakker's attorneys, said he had not seen the appeals court's ruling.
``We're certainly disappointed that the securities fraud claim was reinstated,'' he said.
Bender said a rehearing by the full appeals court ``is certainly an option,'' but he could not say what steps would be taken before talking to Bakker.
Bakker was convicted of fraud and conspiracy in a separate criminal trial in 1989 and was sentenced to 45 years in prison.
He has been released on parole and is now under post-release supervision at a halfway house in Asheville, N.C.
Bender said Bakker, who entered the halfway house July 1, is expected to be out in December.
KEYWORDS: LAWSUIT RULING FRAUD by CNB