Misappropriation of Organization Funds – Ferrel v. Israelite House of David

Sommers Schwartz attorney David M. Black filed a lawsuit against the Israelite House of David (IHOD), a voluntary religious organization. According to the complaint, the organization holds significant assets and the defendants, who are IHOD members, committed fraud and deception by misapplying the organization’s funds. The complaint asserts the defendants have jeopardized the organization’s favored §501(d) tax status under the Internal Revenue Code and have exposed the plaintiff, a former IHOD member and trustee, to potential tax liabilities. The commercial dispute is currently pending in Oakland County, Michigan Circuit Court.