David Jang’s Olivet Sect Hit With Racketeering Suit

Companies, colleges and churches with alleged links to David Jang’s Olivet Christian sect are being sued by a creditor who is claiming at least $8.6 million in damages over allegations of racketeering and wire fraud.

Some of the companies have countersued the creditor, Cornerstone Payment Systems Inc, for alleged usury and unjust enrichment.

A lawyer for the companies has said the Cornerstone allegations will be contested.

Why It Matters

The lawsuit adds to the legal challenges facing the Olivet network of churches and colleges operated by Korean-American cleric Jang, whose Olivet University is under a separate and ongoing federal investigation over alleged money laundering, visa fraud and labor trafficking, according to federal and local officials.

The racketeering lawsuit is the second to be filed against Jang’s disciples. Another was settled in 2023.

Jang’s disciples have been in legal trouble for much of the past decade but most of the controversy has centered on Olivet University. However, this lawsuit also alleges links to the alleged racketeering scheme from Jang’s church, the World Olivet Assembly — a global denomination with members in 130 counties.

What To Know

The suit, filed by Cornerstone in California in April does not name Jang as a defendant but identifies as defendants several institutions of Olivet, which it calls “The Community.” Those include Jang’s flagship college, Olivet University; Jang’s church, the World Olivet Assembly; its American branch, Olivet Assembly USA; Jubilee University; and the Assembly’s new college Great Commission University.

Six online retailers are named as defendants — Pleros LLC, Auden Lilly Group LLC, Quba.pro Inc, Standard Goods LLC, Standard Way LLC and Rodem Tree LLC. The suit alleges that these were controlled by people identified as members of Olivet. Other companies named are Dover Greens LLC; 1000 East First Estates LLC; Jubilee World, Inc; 7725 Penrose LLC; Christian Innovation Center LLC; Good Manager Holdings Inc.; and John Doe Corporation.

The case names individual defendants as Nicholas Haman; Jung Mi Lee; Daewon Kim; Younghai “Emily” Ko; Alma Osorio; Ruby Hwang; Juan We “Anthony” Chiu; Andrew “Tony” Lin; Haejo Yim; and John Doe.

Some of these are among Jang’s top disciples. Lin is a former chairman of Olivet University’s board of trustees. Chiu is an official and pastor of the U.S. branch of Olivet Assembly and is listed in a 2023 990 as Chairman of Great Commission University’s board.

The suit says Mark “Marion” Spisak — Executive Director of the World Olivet Assembly — manages East First Estates LLC, one of the defendants. He is not identified as a defendant.

In the suit, Cornerstone says it entered into factoring agreements under which it gave the defendant companies funding in return for a legally binding pledge to repay Cornerstone from accounts receivables — money owed to them by third parties.

But instead of investing the cash in their businesses and paying back Cornerstone when the third parties paid up, the lawsuit alleges that Jang’s disciples diverted the funds to Olivet-related charities, including for purchases of real estate.

“Since at least 2019, the Merchant Defendants, and, upon information and belief, for much longer for certain members of the Enterprise, have engaged in conduct including wire fraud, money laundering, and related conduct through their various entities to channel funds and resources to advance the Community,” the suit says.

The court has given the defendants until October 6 to file a response.

Allegations to be contested

Olivet’s lawyer, Jim Hefner of Hahn Loeser & Parks LLP, said he was not authorized to make a statement and would contest the Cornerstone allegations in the response.

Several of the defendants have countersued Cornerstone. Rodem Tree sued Cornerstone in May, accusing it of usury: charging interest in excess of limits set by California law. It demanded payment of more than $166,000 plus attorneys’ fees. Auden Lilly, Pleros, Standard Way and Standard Goods sued Cornerstone days later, accusing it of unfair competition and unjust enrichment. Their demand exceeds $700,000.

Neither Cornerstone nor its lawyers immediately responded to a Newsweek request for comment.

World Olivet Assembly and Olivet University and the other defendants contacted by Newsweek did not respond to requests for comment on this article.

Newsweek is owned by two former members of David Jang’s church. Their departure from the sect in 2022 and 2023 triggered a series of lawsuits, some of which are still playing out in court. Olivet has previously accused Newsweek‘s owners of weaponizing the newsroom in these legal disputes, an allegation the company and editorial leaders have denied. Olivet has brought defamation suits against individual Newsweek journalists, including those responsible for this article.

Olivet University has been under federal investigation for money laundering, visa fraud and labor trafficking since at least 2021, when agents of Homeland Security Investigations raided its campus in Anza, California, according to federal and local officials. While Olivet has repeatedly denied the existence of a criminal investigation, a motion filed in court on July 2nd in another lawsuit quoted an assistant U.S. Attorney as saying the federal probe was still ongoing.[CS3]

The e-commerce businesses run by Jang’s disciples have been a source of legal and media controversy since the 2010s. In Texas in 2023, 8Fig made allegations similar to Cornerstone’s. The lawsuit was settled in September 2023, with terms not made public.

What Happens Next

Defendants named in the Cornerstone lawsuit have been given until October 6 to file a response. The lawyer has said the allegations will be contested while in the meantime the companies challenged have brought their own countersuits.

Editorial Note: Newsweek, several of its officers, and the article authors have been sued by Olivet University for defamation on articles related to the criminal investigations into its activities.