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Newsweek
2 days ago
- Business
- Newsweek
David Jang's Olivet Sect Hit With Racketeering Suit
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. 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, 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. This image features a sign reading Olivet University and an image of cleric David Jang This image features a sign reading Olivet University and an image of cleric David Jang Illustration by Newsweek 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.
Int'l Business Times
05-08-2025
- Politics
- Int'l Business Times
Judge Allows Defamation Suit Against Newsweek Reporter to Proceed Amid Allegations of Visa Fraud Conspiracy
A federal judge has declined to dismiss a defamation lawsuit filed by Olivet University against Newsweek reporter Alex Rouhandeh, signaling a potential landmark case concerning media conduct and immigration manipulation. In a July 22 ruling, Judge Steven Merryday determined that Rouhandeh's article, which falsely claimed Olivet "pleaded guilty to money laundering," constitutes a materially false statement, thus supporting a valid defamation claim. Olivet had, in fact, pleaded guilty to "conspiracy in the fifth degree," a misdemeanor. The court acknowledged this distinction as having "substantial" legal and reputational significance. Beyond this legal ruling, emerging evidence suggests a broader operation involving fabricated trafficking claims, immigration fraud, and a concerted effort to undermine a Christian educational institution through media channels. In contrast to these allegations, Olivet University continues its development, recently securing unanimous zoning approval in Riverside County, California , for a significant expansion phase. T-Visa Conspiracy: The Alleged Roles of Sophia Yu, Tingbo Cao, and Dev Pragad Central to the lawsuit is a growing body of evidence reportedly linking Newsweek insiders to an alleged T-Visa (Victims of Human Trafficking visa) abuse scheme. This scheme purportedly aimed to manufacture human trafficking accusations against Olivet University in exchange for immigration benefits. Tingbo Cao, an international student, who stated in the past that he "came to the U.S. to live a better life", has emerged as a new figure in this alleged scheme. Sources indicate that Sophia Yu, a close associate of Newsweek CEO Dev Pragad, allegedly instructed Cao and others to falsely claim trafficking by Olivet to qualify for T-Visas. Ms. Yu reportedly promised individuals protection, housing, and legal assistance in exchange for their participation. One insider described her actions as those of a "T-Visa broker," characterizing the operation as "fraud posing as humanitarian advocacy." Ms. Yu's activities have reportedly drawn further scrutiny due to her documented association with a media outlet reportedly tied to pro–North Korean ideologies. This connection raises concerns about potential collaboration between international propaganda entities and U.S. corporate media, working together to target religious institutions in America. Evidence has also reportedly surfaced regarding Dev Pragad's links to these operations, including allegations of his financial support for platforms described as promoting fabricated narratives with foreign hosting. One such fringe outlet was reportedly characterized by Mr. Pragad as a "nuclear bomb" in a private conversation, raising concerns about foreign-backed smear operations. Newsweek's primary reporters involved in the coverage against Olivet, Alex Rouhandeh (of Persian descent) and Naveed Jamali (of Pakistani heritage), have also been noted. While journalistic diversity is valued, critics contend that their assignments and tactics have been exploited under Mr. Pragad's leadership to spearhead a coordinated and malicious campaign, particularly against Christian institutions. Coordinated Witness Recruitment: Newsweek's Alleged Ongoing Campaign As the lawsuit progresses, Newsweek reportedly continues its efforts. Multiple sources indicate that the outlet is developing another report, allegedly utilizing a dismissed Indian student identified as "Isaac," who was previously expelled from Olivet due to alleged misconduct. This is not the first instance of Newsweek and Mr. Pragad being accused of recruiting compromised sources. A 2022 exposé alleged that Mr. Pragad personally contacted individuals connected to a known extortion network targeting Olivet. Internal sources have also claimed that Mr. Pragad previously attempted to recruit Indian students by offering promises of immigration support, legal aid, or employment, raising significant ethical and legal questions. The central question remains: who is orchestrating these activities? Sources now point to Dev Pragad as the alleged mastermind behind the anti-Olivet operation. Further inquiries include Sophia Yu's specific role, whether Mr. Pragad funded her, and if individuals were compensated or promised favors for their cooperation. A whistleblower stated, "When Sophia was grooming Tingbo, she made it clear she wasn't doing it alone. Someone was supporting her. The question is—was that someone Dev?" Newsweek's Acquisition, Sophia Yu, and Alleged Criminal Exploitation of Visas Adding another layer of complexity, Newsweek recently acquired an advertising company where Sophia Yu previously worked. Ms. Yu has reportedly resumed a position of influence within this acquired company, raising questions about the motivations behind the acquisition. Insiders claim that Ms. Yu has brought Tingbo Cao and his wife into the company, effectively providing employment to individuals she allegedly coached into making false trafficking claims. This suggests a potential criminal network exploiting immigration law to recruit labor under false pretenses, with alleged financial backing from media figures. If substantiated, these allegations would represent a significant abuse of journalistic and immigration systems, allegedly orchestrated by Newsweek leadership. Key questions remain for Mr. Pragad: whether he funded Sophia Yu and her operations, whether he possessed knowledge of the alleged recruitment and coaching of witnesses, and whether the acquisition of AdPrime Media was a strategic maneuver to leverage T-Visa applicants for labor or influence. Newsweek's Business Model: "Circular Hoax" and "Arson" Newsweek has consistently invoked "ongoing investigations" to legitimize its reports. Critics, however, contend this is a self-serving deception: Newsweek and its allies allegedly file complaints with government agencies, then cite the mere existence of these complaints as evidence of wrongdoing. Despite Newsweek's claims, some agencies have already returned property to Olivet University, suggesting the absence of active investigations . Nevertheless, Newsweek reporters, such as Mr. Rouhandeh, continue to portray these as active investigations to construct a narrative of guilt. It has been unequivocally stated that the "human trafficking" narrative against Olivet was reportedly fabricated by Newsweek, as documented in a prior International Business Times article . These accusations allegedly originated from coordinated media manipulation rather than genuine victim claims. The initial trafficking allegation was reportedly made by Newsweek in 2022, two years before the four students who filed a lawsuit against Olivet University. Some of these students, as noted, were reportedly recruited and potentially funded by Mr. Pragad himself, ostensibly to corroborate the earlier false trafficking allegations. "This is their playbook," remarked one legal expert. "Create the scandal, feed it to the government, then report that a scandal is being investigated. It's a circular hoax." Even media critic Jon Stewart has publicly criticized Newsweek's tactics, reportedly describing their business model as "arson" after Newsweek misconstrued comments he made to imply a link between J.K. Rowling and antisemitism. Stewart subsequently refuted the claim on X (formerly Twitter) with a video clip asserting that Newsweek "sets up the fire, not the good kind but a terrible one, and reports provocatively on it." Newsweek's alleged "arson" model is further evidenced by a recent complaint filed by an acquaintance of Mr. Pragad. Cornerstone Payment Systems, owned by Mr. Nick Logan, a business partner and friend of Mr. Pragad, is involved. In a recent court filing, Mr. Pragad reportedly downplayed his relationship with Cornerstone, falsely claiming he was compelled to take a loan due to Olivet. In reality, Mr. Pragad allegedly secured the loan to establish ties with Mr. Logan and his Republican network, even referring others to obtain similar loans from Mr. Logan to strengthen this relationship. Now, Mr. Pragad is reportedly influencing Mr. Logan to initiate a meritless lawsuit. Olivet University stated it has not been served with the complaint nor signed a waiver of service. An attorney representing the defendants confirmed that the plaintiff acknowledged Olivet University owes no balance and was fully repaid. Olivet anticipates being voluntarily dropped from the suit. According to Olivet, this attempted shakedown constitutes another smear tactic by Newsweek to disseminate false information online for its own legal advantage. Newsweek reportedly influenced Cornerstone to initiate this lawsuit against Olivet, and then is writing an article about the matter. Even though Olivet does not owe any money to the plaintiffs, but the complaint becomes publicly available, and Newsweek allegedly propagates these false allegations as true. Olivet University Prepares for Trial with Legal Validation With a clear ruling from a federal judge, Olivet University is now preparing to bring the defamation matter to trial. The court's decision not only rejected all of Mr. Rouhandeh's motions to dismiss—including arguments based on retraction statutes, the "substantial truth" doctrine, and fair reporting privilege—but also affirmed that the university's claims warrant a jury trial. Legal observers suggest the case could potentially expose the full extent of Newsweek's alleged involvement in media entrapment, immigration fraud, and witness tampering. "This is not just defamation. It's sabotage," commented a legal analyst familiar with the case. "They are reportedly attempting to undermine a Christian educational institution for financial and strategic gain, and they have allegedly crossed multiple legal lines to achieve this."
