being repeatedly told that the American election process is deeply corrupted.

In fact, Mr. Mastriano’s candidacy has from its inception been propelled by his role in disputing the 2020 presidential election lost by Mr. Trump.

county by county, but election experts say they do not reflect factors as benign as changes in addresses.

“They’re in search of solutions to a problem that doesn’t exist,” Kyle Miller, a Navy veteran and state representative for Protect Democracy, a national advocacy organization, said in an interview in Harrisburg. “They are basing this on faulty data and internet rumors.”

Some Republican lawmakers have leaned on false claims to call for changes to rules about mail-in ballots and other measures intended to make it easier for people to vote. Several counties have already reversed some of the decisions, including the number and location of drop boxes for ballots.

Mr. Miller, among others, warned that the flurry of false claims about balloting could be a trial run for challenging the results of the presidential election in 2024, in which Pennsylvania could again be a crucial swing state.

In Chester County, a largely white region that borders Delaware and Maryland that is roughly split between Republicans and Democrats, the effort to sow confusion came the old-fashioned way: in the mail.

Letters dated Sept. 12 began arriving in mailboxes across the county, warning people that their votes in the 2020 presidential election might not have counted. “Because you have a track record of consistently voting, we find it unusual that your record indicates that you did not vote,” the letter, which was unsigned, said.

The sender called itself “Data Insights,” based in the county seat of West Chester, though no known record of such a company exists, according to county officials. The letters did include copies of the recipients’ voting records. The letters urged recipients to write to the county commissioners or attend the commission’s meetings in the county seat of West Chester, in September and October. Dozens of recipients did.

The county administrator, Robert J. Kagel, tried to assure them that their votes were actually counted. He urged anyone concerned to contact the county’s voter services department.

Even so, at county meetings in September and October, speaker after speaker lined up to question the letter and the ballot process generally — and to air an array of grievances and conspiracy theories.

They included the discredited claims of the film “2000 Mules” that operatives have been stuffing boxes for mail-in ballots. One attendee warned that votes were being tabulated by the Communist Party of China or the World Economic Forum.

“I don’t know where my vote is,” another resident, Barbara Ellis of Berwyn, told the commissioners in October. “I don’t know if it was manipulated in the machines, in another country.”

As of Oct. 20, 59 people in Chester County had contacted officials with concerns raised in the letter, but in each case, it was determined that the voters’ ballots had been cast and counted, said Rebecca Brain, a county spokesman.

Who exactly sent the letters remains a mystery, which only fuels more conspiracy theories.

“It seems very official,” Charlotte Valyo, the chairwoman of the Democratic Party in the county, said of the letter. She described it as part of “an ongoing, constant campaign to undermine the confidence in our voting system.” The county’s Republican Party did not respond to a request for comment.

Disinformation may not be the only cause of the deepening partisan chasm in the state — or the nation — but it has undoubtedly worsened it. The danger, Ms. Valyo warned, was discouraging voting by sowing distrust in the ability of election officials to tally the votes.

“People might think, ‘Why bother, if they’re that messed up?’”

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AHF Condemns ‘LA’s Housing Standstill’ in Latest L.A. Times Ad

LOS ANGELES–(BUSINESS WIRE)–AHF and its housing advocacy division, Housing Is A Human Right (HHR), will run the latest in a series of housing advocacy ads, this time targeting both the City of Los Angeles and the entrenched bureaucracy at the Los Angeles Department of Water and Power (DWP) in a full-page, full-color ad set to run this Sunday, October 30th in the Los Angeles Times. The ad headlined “LA’s Housing Standstill,” condemns all the players holding up creation of affordable housing, stating that “It is virtually impossible to get anything built in Los Angeles in less than five years.”

After launching its Healthy Housing Foundation (HHF) in 2017 to help alleviate the twin homelessness and housing affordability crises in Los Angeles, AHF quickly learned that working within the city’s existing framework and bureaucracies—like the DWP—to produce low-income housing in Los Angeles is disastrous for people seeking to create affordable housing—even more so for those individuals who need it.

AHF’s ad continues:

“The city claims homelessness is an emergency, but it sure doesn’t act like it.

Whether it’s DWP bringing in power or getting plans approved-nobody’s in a hurry.

But if we are to tackle homelessness, we need urgency.”

AHF summed up its cri de couer for far greater urgency by all city departments, including DWP, noting:

“1,500 people die on the streets every year.”

AIDS Healthcare Foundation (AHF), the largest global AIDS organization, currently provides medical care and/or services to over 1.6 million clients in 45 countries worldwide in the US, Africa, Latin America/Caribbean, the Asia/Pacific Region and Europe. To learn more about AHF, please visit our website: www.aidshealth.org, find us on Facebook: www.facebook.com/aidshealth and follow us on Twitter: @aidshealthcare and Instagram: @aidshealthcare

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Why Am I Seeing That Political Ad? Check Your ‘Trump Resistance’ Score.

The advent of computer modeling helped automate voter targeting, making it more efficient.

In the 1960s, a market researcher in Los Angeles, Vincent Barabba, developed a computer program to help political campaigns decide which neighborhoods to target. The system overlaid voting precinct maps with details on individuals’ voting histories along with U.S. census data on household economics, ethnic makeup and family composition.

In 1966, political consultants used the system to help Ronald Reagan’s campaign for governor of California identify neighborhoods with potential swing voters, like middle-aged, white, male union members, and target them with ads.

Critics worried about the technology’s potential to influence voters, deriding it as a “sinister new development dreamt up by manipulative social scientists,” according to “Selling Ronald Reagan,” a book on the Hollywood actor’s political transformation.

By the early 2000s, campaigns had moved on to more advanced targeting methods.

For the re-election campaign of President George W. Bush in 2004, Republican consultants classified American voters into discrete buckets, like “Flag and Family Republicans” and “Religious Democrats.” Then they used the segmentation to target Republicans and swing voters living in towns that typically voted Democrat, said Michael Meyers, the president of TargetPoint Consulting, who worked on the Bush campaign.

In 2008, the Obama presidential campaign widely used individualized voter scores. Republicans soon beefed up their own voter-profiling and targeting operations.

A decade later, when Cambridge Analytica — a voter-profiling firm that covertly data-mined and scored millions of Facebook users — became front-page news, many national political campaigns were already using voter scores. Now, even local candidates use them.

This spring, the Government Accountability Office issued a report warning that the practice of consumer scoring lacked transparency and could cause harm. Although the report did not specifically examine voter scores, it urged Congress to consider enacting consumer protections around scoring.

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Amazon Labor Union, With Renewed Momentum, Faces Next Test

The Amazon Labor Union has built momentum leading up to an election this week at an 800-person warehouse near Albany, N.Y.

A federal labor official recently endorsed the union’s election victory at a Staten Island warehouse in April, which Amazon has challenged, while workers’ frustrations over pay and safety have created an opportunity to add supporters and pressure the company to bargain.

But the union faces questions about whether it can translate such opportunities into lasting gains. For months after its victory at the 8,000-person warehouse on Staten Island, the union appeared to be out of its depths. It nearly buckled under a crush of international media attention and lost a vote at a second Staten Island warehouse in May.

At times, it has neglected organizing inside the original warehouse, known as JFK8, where high turnover means the union must do constant outreach just to maintain support — to say nothing of expanding. Christian Smalls, the union’s president and a former JFK8 employee, seemed distracted as he traveled widely. There was burnout and infighting in the group, and several core members left or were pushed out.

attempt to overturn its victory, which consumed time and resources, as supporters and leaders testified in hearings that dragged across 24 business days beginning in mid-June. The union delayed plans to train more workers as organizers. A national organizing call was put on hold.

a party in Hollywood and decided that the Amazon Labor Union “understood where we were coming from,” she recalled in an interview.

could spend years appealing the election result on Staten Island, and the company still has enormous power over JFK8 workers. After workers protested Amazon’s response to a fire at the site last week, the company suspended more than 60 of them with pay while, it said, it investigated what had occurred. The union filed unfair-labor-practice charges over the suspensions; Amazon said most of the workers had returned to work.

unusually high injury rates, among other safety issues. The facility was evacuated after a cardboard compactor caught fire last week, two days after the JFK8 fire, which was similar.

“The timeline to fix things is before something tragic happens,” Ms. Goodall said.

She accused Amazon of running an aggressive anti-union campaign, including regular meetings with employees in which it questions the union’s credibility and suggests that workers could end up worse off if they unionize.

Mr. Flaningan, the company spokesman, said that while injuries increased as Amazon trained hundreds of thousands of new workers in 2021, the company believed that its safety record surpassed that of other retailers over a broader period.

“Like many other companies, we hold these meetings because it’s important that everyone understands the facts about joining a union and the election process itself,” he said, adding that the decision to unionize is up to employees.

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Moss & Company Finds More Property Owners Choosing to Go Local for Management Needs

SHERMAN OAKS, Calif.–(BUSINESS WIRE)–When it comes to choosing a property management company, the size of a company often becomes a sticking point for many property owners. It’s not hard to understand the many advantages a national property manager can offer to an owner, such as vast resources and economies of scale at a national level. In the past year, however, there’s been a trend of many property owners turning to the regional managers, in some cases at a higher fee, to improve their bottom line. So, what is it that prompts the property owners to leave their national operators and go local? We’ve spoken with a few of these property owners and it turns out bigger isn’t always better when it comes to operating real estate.

Location, location, location!

Property owners often turn to regional property managers for the extensive knowledge of the area. In most cases, the regional companies have the staff, including key decision makers, live and work in the areas where the properties are located. It is not uncommon for a CEO of a regional company to personally stop by the properties they manage and shop the competition. This type of a hands-on approach allows regional operators to make better informed decisions to improve operations, and to adopt to any sub-market changes quickly.

To reduce liability and risk, a property manager must be current and well-versed not only in Federal Fair Housing laws, but also in the local ordinances and regulations. Regional operators are typically very familiar with all the nuances of the local laws, and are often the first to hear and act on any changes that occur in their localities. This enables regional operators to ensure protection of the managed assets while reducing liability and risk for property owners.

A more concentrated regional footprint of a local company can offer better economies of scale when compared to a dispersed footprint of a national company. The local plumber doesn’t care about how many buildings their customer has in other states. Having more properties located near each other gives regional operators greater leverage to negotiate with property vendors. This leverage leads to better service and greater savings for property owners.

Flexibility and Agility.

There is no one-size-fits-all when it comes to property management. Every asset and every owner requires individual attention and strategy, and tailoring to each need can be a challenge for any operator. A national operator may have a steady hand on the pulse of their portfolio at a macro level, but can miss the mark by not adjusting to the unique needs of a property. This is often the case when a national company takes on smaller size properties, and tries to fit them into their national model. National operators usually look for cost-saving models based on streamlined process and limited flexibility, often unwilling to take on properties smaller than 100 units or an owner with a single asset. On the other hand, most regional companies will gladly take on smaller buildings as their models typically allow for more flexibility and agility, which in turn better aligns with the owner’s vision and goals.

Human Connection.

It doesn’t matter how big or technologically advanced the property management company is, if it lacks human connection it is destined to eventually lose customers. So, while national operators become increasingly reliant on automation and tech-heavy reporting, regional operators continue focusing on personal interactions and building relationships.

To understand the importance of human connection in property management, we spoke with Chris Gray, President at Moss & Company Property Management. “Property management companies are only as good as the people that make up the team of employees,” says Mr. Gray. “Good team members want progress and growth in their careers. With 14,000 units in Los Angeles, we are able to offer our employees more opportunities for advancement without having to pack their bags and move their families across the state lines. Our concentrated footprint allows us to build a tight knit culture resulting in employment tenure of 20-30 years. Our clients love the consistency, and our employees love the growth. This along with our local purchasing power, due to size, provides our clients with better results and therefore greater returns.”

About Moss & Company

Moss & Company boasts its reputation of being the regional expert, operating nearly 14,000 residential units and approximately 2 million square feet of commercial space in the Greater Los Angeles area. Founded in 1960 with headquarters in Sherman Oaks, Moss & Company is Southern California’s premier property management firm.

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CorpHousing Group Inc. Announces 2022 Second Quarter Financial Results

MIAMI–(BUSINESS WIRE)–CorpHousing Group Inc. (“CorpHousing,” “CHG”, or the “Company”) (Nasdaq: CHG), which utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities, today announced financial results for the second quarter (“Q2 2022”) and six months ended June 30, 2022.

2022 Second Quarter Financial Overview Compared to 2021 Second Quarter

2022 Six Months Financial Overview Compared to 2021 Six Months

Operational Highlights

“We are excited to announce our Q2 results, which we believe reflect the success of our asset-light business model, the vibrancy of our target markers, and the opportunities inherent in our industry,” said Brian Ferdinand, Chairman and Chief Executive Officer of CorpHousing Group. “Q2 2022 net rental revenue increased by 144%, gross profit increased 19-fold, net income improved by $1.9 million, and EBITDA for the quarter was $2.1 million. Our available units for rent increased quarter over quarter, occupancy rates improved as the effects of COVID pandemic wane, and we realized certain efficiencies from scale.

“We currently operate hotels under long-term lease agreements in Boston, Denver, Los Angeles, greater Miami, New York City, Washington, DC, and Seattle, and will commence operations in New Orleans in mid-October.

We are in various stages of negotiation with a variety of potential partners that represent thousands of additional hotel units in destination locations across the United States and Europe. We believe that we are creating win-win opportunities by providing property owners the ability to create stable cash flow streams to maximize returns on their properties, which have been significantly impacted by restrictions on travel and leisure activities due to the COVID-19 pandemic. CHG then markets these units under our customer facing LuxUrbanTM brand to increase occupancy rates and drive operational efficiencies, thus creating the opportunity to generate high margin, recurring and predictable revenue streams. Supported by a strengthened balance sheet and seasoned team of executives, we believe that are well positioned to advance our highly scalable, predictable, and profitable business model and look forward to our future with confidence.”

Q2 2022 Overview

Net rental revenue in Q2 2022 increased 144% to $10.2 million from $4.2 million in the second quarter ended June 30, 2021 (“Q2 2021”), driven primarily by an increase in average units available to rent from 376 in Q2 2021 to 565 at Q2 2022, as well as better occupancy rates and average daily rates (“ADRs”) over this period.

Cost of revenue, which includes rental expenses for available units to rent, rose to $7.3 million in Q2 2022 from $4.0 million in Q2 2021, due primarily to the increase in size of CHG’s rental unit portfolio, as well as related increases in furniture rentals, cleaning costs, cable / WIFI costs and credit card processing fees.

Gross profit improved to $2.9 million, or 28% of net rental revenue, from $0.1 million, or 3.5% of net rental revenue. Higher gross profit and gross margin was primarily attributable to a reduction in the impact of COVID-19 on our operations, higher unit counts and better occupancy rates and ADRs.

Total general and administrative expenses in Q2 2022 increased to $0.9 million, or 9% of net rental revenue, from $0.7 million, or 18% of net rental revenue, in Q2 2021, attributable to an increased number of units in operation.

Income before provision for income taxes improved to $1.5 million from a loss of $(1.1) million, reflecting a significant increase in net rental revenue in Q2 2022 compared to Q2 2021 and the benefits of scale-driven operating efficiencies.

Net income improved to $0.8 million, or $0.04 per diluted share, compared to a net loss of $(1.1) million.

EBITDA rose to $2.1 million, or 21% of net rental revenue, in Q2 2022 compared to negative EBITDA of $(0.6) million.

For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see “Note Regarding Use of Non-GAAP Financial Measures” below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures. The company presents non-GAAP measures such as EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the company’s operating performance.

Conference Call and Webcast

The Company will host a conference call on Tuesday, September 27, 2022 at 9:00 am Eastern Time to discuss the results.

Investors interested in participating in the live call can dial:

A webcast of the event may be accessed via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ltKz5SSV.

CorpHousing Group Inc.

CorpHousing Group (CHG) utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities. The Company’s future growth focuses primarily on seeking to create “win-win” opportunities for owners of dislocated hotels, including those impacted by COVID-19 travel restrictions, while providing CHG favorable operating margins. CHG operates these properties in a cost-effective manner by leveraging technology to identify, acquire, manage, and market them globally to business and vacation travelers through dozens of third-party sales and distribution channels, and the Company’s own online portal. Guests at the Company’s properties are provided Heroic Service™ under CHG’s consumer brands, including LuxUrban. CHG’s Heroic ServiceTM provides guests a hassle-free experience which exceeds their expectations with “Heroes” who respond to any issue in a timely, thoughtful, and thorough manner.

Forward Looking Statements

This press release contains forward-looking statements, including with respect to the expected closing of noted lease transactions and continued closing on additional leases for properties in the Company’s pipeline, as well the Company’s anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in the prospectus forming part of the Company’s effective Registration Statement on Form S-1 (File No. 333-262114). Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projection provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

The Company seeks to achieve profitable, long-term growth by monitoring and analyzing key operating metrics, including EBITDA. The Company defines EBITDA as net income before interest, taxes, and depreciation. The Company’s management uses this non-GAAP financial metric and related computations to evaluate and manage the business and to plan and make near and long-term operating and strategic decisions. The management team believes this non-GAAP financial metric is useful to investors to provide supplemental information in addition to the GAAP financial results. Management reviews the use of its primary key operating metrics from time-to-time. EBITDA is not intended to be a substitute for any GAAP financial measure and as calculated, may not be comparable to similarly titled measures of performance of other companies in other industries or within the same industry. The Company’s management team believes it is useful to provide investors with the same financial information that it uses internally to make comparisons of historical operating results, identify trends in underlying operating results, and evaluate its business.

A reconciliation of net income to EBITDA will be provided in the company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2022 to be filed on September 26, 2022, under the section thereof entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Reconciliation of Unaudited Historical Results to EBITDA.”

Condensed Consolidated Balance Sheet

(Unaudited)

 

 

 

(unaudited)

 

 

 

 

June 30,

 

December 31,

 

 

2022

 

2021

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$

556

 

 

$

6,998

 

Processor retained funds

 

 

4,616,255

 

 

 

56,864

 

Prepaid expenses and other current assets

 

 

512,939

 

 

 

166,667

 

Deferred offering costs

 

 

1,234,500

 

 

 

771,954

 

Security deposits – current

 

 

276,943

 

 

 

276,943

 

Total Current Assets

 

$

6,641,193

 

 

$

1,279,426

 

Other Assets

 

 

 

 

 

 

Furniture and equipment, net

 

 

8,944

 

 

 

11,500

 

Restricted cash

 

 

1,100,000

 

 

 

1,100,000

 

Security deposits – noncurrent

 

 

4,108,010

 

 

 

1,377,010

 

Operating lease right-of-use asset, net

 

 

49,941,971

 

 

 

 

Total Other Assets

 

 

55,158,925

 

 

 

2,488,510

 

Total Assets

 

$

61,800,118

 

 

$

3,767,936

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

5,301,053

 

 

$

4,209,366

 

Rents received in advance

 

 

4,071,095

 

 

 

1,819,943

 

Merchant cash advances – net of unamortized costs of $0 and $57,768, respectively

 

 

575,489

 

 

 

1,386,008

 

Loans payable – current portion

 

 

2,780,054

 

 

 

1,267,004

 

Loans payable – SBA – PPP Loan – current portion

 

 

815,183

 

 

 

815,183

 

Convertible loans payable – related parties – current portion

 

 

2,596,865

 

 

 

 

Loans payable – related parties – current portion

 

 

1,071,128

 

 

 

22,221

 

Operating lease liability – current

 

 

7,182,381

 

 

 

 

Income taxes payable

 

 

750,000

 

 

 

 

Total Current Liabilities

 

 

25,143,248

 

 

 

9,519,725

 

Long-Term Liabilities

 

 

 

 

 

 

Loans payable

 

 

545,789

 

 

 

925,114

 

Loans payable – SBA – EIDL Loan

 

 

800,000

 

 

 

800,000

 

Loans payable – related parties

 

 

 

 

 

496,500

 

Convertible loans payable – related parties

 

 

700,195

 

 

 

2,608,860

 

Line of credit

 

 

94,975

 

 

 

94,975

 

Deferred rent

 

 

 

 

 

536,812

 

Operating lease liability

 

 

43,962,492

 

 

 

 

Total Long-term Liabilities

 

 

46,103,451

 

 

 

5,462,261

 

Total Liabilities

 

 

71,246,699

 

 

 

14,981,986

 

Commitments and Contingencies

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

Members’ Deficit

 

 

 

 

 

(11,214,050

)

Common stock (shares authorized, issued and outstanding – 90,000,000; 21,675,001; 21,675,001; respectively)

 

 

216

 

 

 

 

Accumulated deficit

 

 

(9,446,797

)

 

 

 

Total Stockholders’ Deficit

 

 

(9,446,581

)

 

 

(11,214,050

)

Total Liabilities and Stockholders’ Deficit

 

$

61,800,118

 

 

$

3,767,936

 

Condensed Consolidated Statement of Operations

(Unaudited)

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

June 30, 2022

 

June 30, 2021

 

June 30, 2022

 

June 30, 2021

Rental Revenue

 

$

12,656,540

 

 

$

6,728,686

 

 

$

24,419,439

 

 

$

11,688,873

 

Refunds and Allowances

 

 

2,455,202

 

 

 

2,545,820

 

 

 

5,118,676

 

 

 

4,199,978

 

Net Rental Revenue

 

 

10,201,338

 

 

 

4,182,866

 

 

 

19,300,763

 

 

 

7,488,895

 

Cost of Revenue

 

 

7,344,720

 

 

 

4,035,238

 

 

 

13,930,882

 

 

 

7,920,531

 

Gross Profit (Loss)

 

 

2,856,618

 

 

 

147,628

 

 

 

5,369,881

 

 

 

(431,636

)

General and Administrative Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and other

 

 

809,121

 

 

 

701,040

 

 

 

1,559,742

 

 

 

1,258,458

 

Professional fees

 

 

76,500

 

 

 

37,390

 

 

 

305,485

 

 

 

90,404

 

Total General and Administrative Expenses

 

 

885,621

 

 

 

738,430

 

 

 

1,865,227

 

 

 

1,348,862

 

Net Income (Loss) Before Other Income (Expense)

 

 

1,970,997

 

 

 

(590,802

)

 

 

3,504,654

 

 

 

(1,780,498

)

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

137,154

 

 

 

434

 

 

 

587,067

 

 

 

467

 

Interest and financing costs

 

 

(595,742

)

 

 

(542,764

)

 

 

(1,159,879

)

 

 

(660,007

)

Total Other Expenses

 

 

(458,588

)

 

 

(542,330

)

 

 

(572,812

)

 

 

(659,540

)

Income (Loss) Before Provision for Income Taxes

 

 

1,512,409

 

 

 

(1,133,132

)

 

 

2,931,842

 

 

 

(2,440,038

)

Provision for Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

750,000

 

 

 

 

 

 

750,000

 

 

 

 

Net Income (Loss)

 

$

762,409

 

 

$

(1,133,132

)

 

$

2,181,842

 

 

$

(2,440,038

)

Basic and diluted earnings per common share

 

$

0.04

 

 

$

 

 

$

0.10

 

 

$

 

Basic and diluted weighted average number of common shares outstanding

 

 

21,675,001

 

 

 

 

 

 

21,315,747

 

 

 

 

Non-GAAP Financial Measures

To supplement the condensed consolidate financial statements, which are prepared in accordance with GAAP, we use EBITDA as a non-GAAP financial measure.

The following table provides reconciliation of net income (loss) to EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, (unaudited)

 

Six Months Ended June 30, (unaudited)

 

 

2022

 

2021

 

2022

 

2021

Net Income (loss)

 

$

762,409

 

$

(1,133,132

)

 

$

2,181,842

 

$

(2,440,038

)

Provision for Income Taxes

 

$

750,000

 

$

 

 

$

750,000

 

$

 

Interest and Financing cost

 

$

595,742

 

$

542,764

 

 

$

1,159,879

 

$

660,007

 

Depreciation Expense

 

$

 

$

 

 

$

2,556

 

$

 

EBITDA

 

$

2,108,151

 

$

(590,368

)

 

$

4,094,277

 

$

(1,780,031

)

EBITDA is defined as net income or loss before the impact of interest, taxes and depreciation and amortization. EBITDA is a key measure of our financial performance and measures our efficiency and operating cash flow before financing costs, taxes and working capital needs. We utilize EBITDA because it provides us with an operating metric closely tied to the operations of the business.

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They Were Entitled to Free Care. Hospitals Hounded Them to Pay.

In 2018, senior executives at one of the country’s largest nonprofit hospital chains, Providence, were frustrated. They were spending hundreds of millions of dollars providing free health care to patients. It was eating into their bottom line.

The executives, led by Providence’s chief financial officer at the time, devised a solution: a program called Rev-Up.

Rev-Up provided Providence’s employees with a detailed playbook for wringing money out of patients — even those who were supposed to receive free care because of their low incomes, a New York Times investigation found.

nonprofits like Providence. They enjoy lucrative tax exemptions; Providence avoids more than $1 billion a year in taxes. In exchange, the Internal Revenue Service requires them to provide services, such as free care for the poor, that benefit the communities in which they operate.

But in recent decades, many of the hospitals have become virtually indistinguishable from for-profit companies, adopting an unrelenting focus on the bottom line and straying from their traditional charitable missions.

focused on investments in rich communities at the expense of poorer ones.

And, as Providence illustrates, some hospital systems have not only reduced their emphasis on providing free care to the poor but also developed elaborate systems to convert needy patients into sources of revenue. The result, in the case of Providence, is that thousands of poor patients were saddled with debts that they never should have owed, The Times found.

provide. That was below the average of 2 percent for nonprofit hospitals nationwide, according to an analysis of hospital financial records by Ge Bai, a professor at the Johns Hopkins Bloomberg School of Public Health.

Ten states, however, have adopted their own laws that specify which patients, based on their income and family size, qualify for free or discounted care. Among them is Washington, where Providence is based. All hospitals in the state must provide free care for anyone who makes under 300 percent of the federal poverty level. For a family of four, that threshold is $83,250 a year.

In February, Bob Ferguson, the state’s attorney general, accused Providence of violating state law, in part by using debt collectors to pursue more than 55,000 patient accounts. The suit alleged that Providence wrongly claimed those patients owed a total of more than $73 million.

Providence, which is fighting the lawsuit, has said it will stop using debt collectors to pursue money from low-income patients who should qualify for free care in Washington.

But The Times found that the problems extend beyond Washington. In interviews, patients in California and Oregon who qualified for free care said they had been charged thousands of dollars and then harassed by collection agents. Many saw their credit scores ruined. Others had to cut back on groceries to pay what Providence claimed they owed. In both states, nonprofit hospitals are required by law to provide low-income patients with free or discounted care.

“I felt a little betrayed,” said Bev Kolpin, 57, who had worked as a sonogram technician at a Providence hospital in Oregon. Then she went on unpaid leave to have surgery to remove a cyst. The hospital billed her $8,000 even though she was eligible for discounted care, she said. “I had worked for them and given them so much, and they didn’t give me anything.” (The hospital forgave her debt only after a lawyer contacted Providence on Ms. Kolpin’s behalf.)

was a single room with four beds. The hospital charged patients $1 a day, not including extras like whiskey.

Patients rarely paid in cash, sometimes offering chickens, ducks and blankets in exchange for care.

At the time, hospitals in the United States were set up to do what Providence did — provide inexpensive care to the poor. Wealthier people usually hired doctors to treat them at home.

wrote to the Senate in 2005.

Some hospital executives have embraced the comparison to for-profit companies. Dr. Rod Hochman, Providence’s chief executive, told an industry publication in 2021 that “‘nonprofit health care’ is a misnomer.”

“It is tax-exempt health care,” he said. “It still makes profits.”

Those profits, he added, support the hospital’s mission. “Every dollar we make is going to go right back into Seattle, Portland, Los Angeles, Alaska and Montana.”

Since Dr. Hochman took over in 2013, Providence has become a financial powerhouse. Last year, it earned $1.2 billion in profits through investments. (So far this year, Providence has lost money.)

Providence also owes some of its wealth to its nonprofit status. In 2019, the latest year available, Providence received roughly $1.2 billion in federal, state and local tax breaks, according to the Lown Institute, a think tank that studies health care.

a speech by the Rev. Dr. Martin Luther King Jr.: “If it falls your lot to be a street sweeper, sweep streets like Michelangelo painted pictures.”

Ms. Tizon, the spokeswoman for Providence, said the intent of Rev-Up was “not to target or pressure those in financial distress.” Instead, she said, “it aimed to provide patients with greater pricing transparency.”

“We recognize the tone of the training materials developed by McKinsey was not consistent with our values,” she said, adding that Providence modified the materials “to ensure we are communicating with each patient with compassion and respect.”

But employees who were responsible for collecting money from patients said the aggressive tactics went beyond the scripts provided by McKinsey. In some Providence collection departments, wall-mounted charts shaped like oversize thermometers tracked employees’ progress toward hitting their monthly collection goals, the current and former Providence employees said.

On Halloween at one of Providence’s hospitals, an employee dressed up as a wrestler named Rev-Up Ricky, according to the Washington lawsuit. Another costume featured a giant cardboard dollar sign with “How” printed on top of it, referring to the way the staff was supposed to ask patients how, not whether, they would pay. Ms. Tizon said such costumes were “not the culture we strive for.”

financial assistance policy, his low income qualified him for free care.

In early 2021, Mr. Aguirre said, he received a bill from Providence for $4,394.45. He told Providence that he could not afford to pay.

Providence sent his account to Harris & Harris, a debt collection company. Mr. Aguirre said that Harris & Harris employees had called him repeatedly for weeks and that the ordeal made him wary of going to Providence again.

“I try my best not to go to their emergency room even though my daughters have gotten sick, and I got sick,” Mr. Aguirre said, noting that one of his daughters needed a biopsy and that he had trouble breathing when he had Covid. “I have this big fear in me.”

That is the outcome that hospitals like Providence may be hoping for, said Dean A. Zerbe, who investigated nonprofit hospitals when he worked for the Senate Finance Committee under Senator Charles E. Grassley, Republican of Iowa.

“They just want to make sure that they never come back to that hospital and they tell all their friends never to go back to that hospital,” Mr. Zerbe said.

The Everett Daily Herald, Providence forgave her bill and refunded the payments she had made.

In June, she got another letter from Providence. This one asked her to donate money to the hospital: “No gift is too small to make a meaningful impact.”

In 2019, Vanessa Weller, a single mother who is a manager at a Wendy’s restaurant in Anchorage, went to Providence Alaska Medical Center, the state’s largest hospital.

She was 24 weeks pregnant and experiencing severe abdominal pains. “Let this just be cramps,” she recalled telling herself.

Ms. Weller was in labor. She gave birth via cesarean section to a boy who weighed barely a pound. She named him Isaiah. As she was lying in bed, pain radiating across her abdomen, she said, a hospital employee asked how she would like to pay. She replied that she had applied for Medicaid, which she hoped would cover the bill.

After five days in the hospital, Isaiah died.

Then Ms. Weller got caught up in Providence’s new, revenue-boosting policies.

The phone calls began about a month after she left the hospital. Ms. Weller remembers panicking when Providence employees told her what she owed: $125,000, or about four times her annual salary.

She said she had repeatedly told Providence that she was already stretched thin as a single mother with a toddler. Providence’s representatives asked if she could pay half the amount. On later calls, she said, she was offered a payment plan.

“It was like they were following some script,” she said. “Like robots.”

Later that year, a Providence executive questioned why Ms. Weller had a balance, given her low income, according to emails disclosed in Washington’s litigation with Providence. A colleague replied that her debts previously would have been forgiven but that Providence’s new policy meant that “balances after Medicaid are being excluded from presumptive charity process.”

Ms. Weller said she had to change her phone number to make the calls stop. Her credit score plummeted from a decent 650 to a lousy 400. She has not paid any of her bill.

Susan C. Beachy and Beena Raghavendran contributed research.

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Embattled Sarver Says He’s Decided To Sell Suns, Mercury

By Associated Press
September 21, 2022

Robert Sarver is the primary owner of NBA’s Phoenix Suns and WNBA’s Phoenix Mercury, he was recently suspended for racist and misogynistic conduct.

Robert Sarver says he has started the process of selling the Phoenix Suns and Phoenix Mercury, a move that comes only eight days after he was suspended by the NBA over workplace misconduct including racist speech and hostile behavior toward employees.

Sarver made the announcement Wednesday, saying selling “is the best course of action,” although he initially hoped that he would be able to keep control of the franchises — pointing to his record that, he claims, paints a dramatically different picture of who he is and what he stands for.

“But in our current unforgiving climate, it has become painfully clear that that is no longer possible — that whatever good I have done, or could still do, is outweighed by things I have said in the past,” Sarver wrote in a statement. “For those reasons, I am beginning the process of seeking buyers for the Suns and Mercury.”

Sarver bought the teams in July 2004. He is not the lone owner, but the primary one.

Assuming no other team is sold in the interim, it would be the first sale in the NBA since a group led by Qualtrics co-founder Ryan Smith bought the Utah Jazz in 2021 for about $1.7 billion.

It’s not known if Sarver has established an asking price. Forbes recently estimated the value of the Suns at $1.8 billion.

An independent report that was commissioned by the NBA last November and took about 10 months to complete found that Sarver “repeated or purported to repeat the N-word on at least five occasions spanning his tenure with the Suns,” though added that the investigation “makes no finding that Sarver used this racially insensitive language with the intent to demean or denigrate.”

The study also concluded that Sarver used demeaning language toward female employees, including telling a pregnant employee that she would not be able to do her job after becoming a mother; made off-color comments and jokes about sex and anatomy; and yelled and cursed at employees in ways that would be considered bullying “under workplace standards.”

Once that report was completed, NBA Commissioner Adam Silver suspended Sarver for one year and fined him $10 million — the maximum allowed by league rule.

“Words that I deeply regret now overshadow nearly two decades of building organizations that brought people together — and strengthened the Phoenix area — through the unifying power of professional men’s and women’s basketball,” Sarver wrote. “As a man of faith, I believe in atonement and the path to forgiveness. I expected that the commissioner’s one-year suspension would provide the time for me to focus, make amends and remove my personal controversy from the teams that I and so many fans love.”

Barely a week later, Sarver evidently realized that would not be possible.

His decision comes after a chorus of voices — from players like Suns guard Chris Paul and Los Angeles Lakers star LeBron James, to longtime team sponsors like PayPal, and even the National Basketball Players Association — said the one-year suspension wasn’t enough.

Suns vice chairman Jahm Najafi called last week for Sarver to resign, saying there should be “zero tolerance” for lewd, misogynistic and racist conduct in any workplace. Najafi, in that same statement, also said he did not have designs on becoming the team’s primary owner.

“I do not want to be a distraction to these two teams and the fine people who work so hard to bring the joy and excitement of basketball to fans around the world,” Sarver wrote. “I want what’s best for these two organizations, the players, the employees, the fans, the community, my fellow owners, the NBA and the WNBA. This is the best course of action for everyone.”

Sarver, through his attorney, argued to the NBA during the investigative process that his record as an owner shows a “longstanding commitment to social and racial justice” and that it shows he’s had a “commitment to diversity, equity, and inclusion.” Among the examples Sarver cited was what he described as a league-best rate of 55% employment of minorities within the Suns’ front office and how more than half of the team’s coaches and general managers in his tenure — including current coach Monty Williams and current GM James Jones — are Black.

Additional reporting by The Associated Press.

: newsy.com

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A New California Law Could Raise Minimum Wages

California Governor Gavin Newsom signed a bill that will give minimum wage workers more say in their pay and work conditions.

Fast food chain workers in one state could soon be making triple the federal minimum wage. And that shift might have national ripple effects for low-wage workers. 

It comes from a recently passed law in California that gives new power to workers across the fast-food industry to set standards on wages and working conditions.  

It’s a system that could start a new way for workers in other states to fight for a living wage, but restaurant owners, fast food companies and trade associations worry it could raise food prices in an economy suffering from inflation. 

So, where did this come from? And how will it affect the fast-food industry? 

California passed AB 257, also known as the FAST Recovery Act. It’s a law that Governor Gavin Newsom signed on Labor Day. 

“We recognize there are sectors of our economy where we’re falling a bit short and one of those areas is fast food workers. A bill that empowers our workers, particularly in that sector giving them more voice, giving them more choice, creating a new council, and I’m proud on Labor Day, to sign that bill and enshrine it in law,” said Newsom.  

It creates a fast food council system that will consist of workers, industry representatives, franchise owners and state officials. They’d work together to set labor standards for workers, including the minimum wage. 

We should note we don’t know yet what number they would land on for a minimum wage, and an increase may be gradual. But the law says it can be anything up to $22 an hour.

That number on its own could be groundbreaking. It would be a 40% pay hike from the state’s existing minimum wage of $15 per hour for most workers. And it covers more than half a million employees who work at restaurants with 100 or more locations.

California is the third-most expensive state in the U.S. to live in and has half of the top ten most expensive metro areas, according to the Bureau of Economic Analysis.  

Anneisha Williams, a single mother of six, is an employee at Jack In The Box. She’s fighting for $15 an hour.

“That will go to my bills because my rent has gone up. You know, they talk about how minimum wage is going up. We need it because the cost of living went up,” said Williams. 

Fast food workers in California, like Los Angeles have had it especially rough in the past few years. Her challenges have led her to join the Fight for 15 Movement advocating for a higher minimum wage. 

A study earlier this year by the UCLA Labor Center surveyed fast food workers in Los Angeles. It found that in addition to limited protections from COVID-19 infection, many workers faced threats of wage theft, lost hours and a lack of paid sick leave. 

“I did lose out on wages, you know, because I had to take off for school. And they don’t pay you for taking off. I don’t have sick time to take off for work, so I had no choice but to lose out on those wages for the time that I did so. It was two, on two occasions that I had to miss out for a couple of days out on work because of COVID,” said Williams. 

Nearly two-thirds of workers experienced wage theft, including a lack of reimbursements for supplies, late paychecks and limited breaks. And nearly a third of workers, including Anneisha, said they weren’t provided with paid sick time. 

“With this bill, AB 257— that will help us be able to collect our wages that we missed out on in case, you know, things like that happen. Our kids get sick or we get sick or something, you know? That right there would have our back, you know, that would be it for us. You know, who, who wants to miss out on money when they’re sick?” she said. 

Businesses already have some worries about this. Large chains including Chipotle, Chick-Fil-A and In-N-Out are sponsoring efforts to block the bill. 

The National Restaurant Association and the International Franchise Association put out a joint statement condemning the bill for unfairly punishing small businesses and portraying restaurants as bad employers. They worry the law could lead to food prices rising too quickly.  

Jeff Hanscom is the vice president of state and local govt. relations at the International Franchise Association. 

“There’s no doubt that 257 and the wage council will ultimately, ultimately lead to higher labor costs, which will then ultimately lead to higher food costs for the consumer. And for franchisees who are already operating on very thin margins and not just franchisees, it will affect restaurant owners who are already operating on very thin margins. You have to pass the cost along somewhere,” said Hanscom. 

But the numbers seem to indicate the effects on prices may be relatively small. Michael Reich, a UC Berkeley economist and wage expert, told Newsy that a study by researchers at the Boston Federal Reserve and MIT found that a sudden minimum wage bump from $15 to $22 would increase prices, but just a pinch. 

“My calculation is that just looking at this business model, the increase in prices going up to $22 would be about 2 to 3%. So that means for something like a $2 Burger King bacon cheeseburger, is one example, or the Taco Bell burrito, that’s $2. That’s about a nickel increase. That isn’t going to really deter people from buying those items,” said Reich. 

Industry groups have also supported a referendum that could block the law from taking effect. If they get enough signatures by December 1, the law would be put on hold until a statewide referendum in 2024. 

Industry advocates warn this law targets not just large fast-food providers, but the smaller, usually locally-owned franchisee businesses that run individual locations.

“We’re talking about nearly 15,000 franchise businesses that are impacted by 257 or at least 15,000 units in California that are part of chains with 100 or more locations. But 70% of those — 70% of the franchisees in California — only own one store,” said Hanscom.  

Legal challenges could also be on the way, as there are questions about whether this setup that allows bargaining for industry-wide standards could be blocked because it’s not one covered by the existing federal law called the National Labor Relations Act. 

San Francisco-based lawyer Ellen Bronchetti works with employers in labor law cases and says that businesses could use this route in an effort to block AB 257 from taking effect. 

“There’s an argument that the NLRA is the sole and exclusive law that should govern how employees can work together collectively to force their employers to increase, to provide better wages and working conditions,” said Bronchetti. 

If the council system takes effect, this could have consequences for fast food workers in other parts of the country, if other states try a system like this that relies on bargaining agreements that cover entire industries. 

“This type of system has had various degrees of success overseas in places like Europe and South America and Canada, but it’s not recognized as a standard in the United States. This type of council proposal in the statute, in effect, does create what I would view as the first of its kind sectoral bargaining mandate that we’ve seen, and it could have a huge ripple effect if it’s successful not just on the fast food industry, but on other industries,” said Bronchetti. 

And companies are already moving forward, at least on minimum wage increases. That’s in line with data showing that the previous minimum wage increase in California, a gradual rise to $15 an hour, drove wages even higher than that. 

“Wages have been rising since just before the pandemic and through the pandemic, and especially in restaurants. And so now the actual entry wage, the starting wage is well above $15. It’s more like $17, $18 in many parts of California,” said Hanscom. 

: newsy.com

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Mexican Faith Leader Jailed For Sex Abuse; Flock Stays Loyal

Legions of Naasón Joaquín García’s followers remain loyal to him, viewing his imprisonment as a challenge that will strengthen their church.

Their spiritual leader is behind bars in California after pleading guilty to sexually abusing minors. Yet legions of followers of Naasón Joaquín García in his home base in Mexico remain fervently loyal to him, viewing his imprisonment as a challenge that will strengthen their church, La Luz del Mundo (The Light of the World), rather than weaken it.

His continued hold on his flock was evident recently at the Christian church’s main temple in Guadalajara, as thousands gathered to pray for their absent leader during their Holy Supper, the most sacred festivity for La Luz del Mundo. To gasps of surprise, Joaquín García addressed the congregation by telephone from his Los Angeles prison, where he is serving a 16-year sentence.

“I do not see the bars that separate me from you,” he told his followers. “I see your beautiful faces … because you are the children of God.”

Even outside the temple, the sound of his voice stirred emotions among dozens of devotees guarding entries to the sanctuary. Nearly all closed their eyes. Many lifted their fists. Some knelt and wept.

Near the end of the call, Joaquín García asked his followers to raise their hands and their voices to God and repeat after him: “I promise you, Lord, that whatever the suffering, I will never abandon you.”

It seems clear that many members of the church, founded in Mexico in 1926 and now active in many countries, aren’t ready to abandon Joaquín García as their “apostle” — the term used for the church’s leader. Many believe he was sent by God to preach to them and are convinced he is innocent, despite his guilty plea.

“The apostle always shows determination to move forward,” said Phares Ruiz, who traveled from El Salvador to attend the Holy Supper. “He’s firm in his convictions, and the church is firm as well in its purpose of moving forward.”

Ruiz told The Associated Press that his family has belonged to La Luz del Mundo for three generations.

Joaquín García, 53, was arrested in 2019 in California. He initially faced more than 20 charges, but most were dismissed after a plea deal with prosecutors. The church contended that prosecutors withheld or doctored evidence, and said Joaquín García pleaded guilty because he didn’t think he could get a fair trial.

“The Apostle of Jesus Christ has had no choice but to accept with much pain that the agreement presented is the best way forward to protect the church and his family,” the church said.

The home base of the church is the Guadalajara neighborhood of Hermosa Provincia, Spanish for “beautiful province.” Jericho, Bethlehem and Nazareth are among the names of roads converging on the white temple that locals call “the cake,” for its white tiers that diminish in size as they rise upward.

Congregation members in the neighborhood call each other “brother” and “sister” and take pride in helping one another. The church’s media relations office claims there is no crime in the area.

The neighborhood has cafeterias, clinics, a recreation center and a store that sells Bibles and religious-themed games for children. From the walls hang photographs of Joaquín García, smiling and wearing a tuxedo. Spanning the main street is a sculpture spelling “innocent” in Spanish.

Sara Pozos, 49, is among many in the neighborhood who believe their leader’s imprisonment has strengthened the church.

“I think it changed for the better in the sense that now we feel more united, and we feel more empowered,” she said.

“It has been a very difficult issue, of course, for him and for us,” she added. “We all suffer something in life, but one learns to know those moments where you see that God is doing something to help you, to get ahead, not to let you fall.”

Another neighborhood resident, Sailem Castillo, also said she was upbeat despite Joaquín García’s imprisonment.

“For us everything is very nice, everything continues to work,” she said. “Ministers, pastors and deacons have their same duties. They bless the bread, the wine, and do other things as if he were here, although physically he is not.”

The jailed leader is the grandson of La Luz del Mundo’s founder: Eusebio Joaquín González, a member of the military who began preaching in 1926. He’s known to church members as Aarón — a result, he said, of God asking him to change his name.

Aarón’s wife was the church’s first member. Today it claims a membership of more than 5 million in some 50 nations.

La Luz del Mundo is sometimes described as evangelical, but its members do not embrace this term. The church’s doctrine is learned from the cradle. Parents give biblical names to their children and take them to the temple at 40 days old to promise they will guide them to follow their path.

Most teachings translate into something quotidian. During services, the women sit to the right and men to the left. In some cities, people tithe more than 10% of their monthly income to the church. Biblical verses are cited to explain behavior.

Castillo, a recently married woman of 25, told AP the church advises members how “to lead a decent life,” in which women may not drink alcohol or go out on frequent dates. Like other women in Hermosa Provincia, she wears dresses and skirts that are not form-fitting, eschews makeup and earrings and wears her hair long.

The religion is “very demanding,” said Arlene M. Sánchez-Walsh, a professor of religious studies at Azusa Pacific University, a Christian institution near Los Angeles.

“It is not sufficient to say ‘I have converted’ or “I have baptized'” she said. “You have to follow certain steps to prove your loyalty.”

For some young people, these steps include memorizing songs honoring the apostle, reading the Bible before bed and not marrying someone from outside the church.

“All this goes to show that although you are part of this world, you have accepted a very particular way of life because you are Christian,” Sánchez-Walsh said.

Those born in the community are baptized at 14 because, according to the church, that lets them decide whether to reaffirm or leave the faith. Nevertheless, there are former members who say their ceremony was not optional.

Ahead of the baptism, in a ritual known as “the revivals,” children undergo days of prayer and fasting inside a temple. The revival consists of repeating “Glory to Christ” nonstop until the youths are heard speaking in tongues to testify that the Holy Spirit has entered them.

For Raquel Haifa, 43, fulfilling the revivals was a traumatizing experience that she considers abusive, because minors are not able to decline to take part.

“I did cry, because I was saying, ‘God, deliver me from this, make this time pass quickly,'” Haifa said from Texas.

Currently, journalists are not allowed to attend services or take photographs inside the church’s temples. Since Joaquín García’s arrest, La Luz del Mundo’s media relations team says it cannot make official statements on his case because litigation is ongoing.

On Sept. 8 a lawsuit was filed in California against Joaquín García and four church members alleged to be complicit in the sex abuse. The suit was filed by five women who — under the pseudonym Jane Doe — were identified as victims in the original criminal charges against him.

It accuses Joaquín García of conditioning victims, under the guise of religion, to serve him above all else, ultimately resulting in the sexual abuse over the course of several years.

The lawsuit includes detailed accounts from the five plaintiffs alleging that they were pressured by Joaquín García and his associates into performing for pornographic photo shoots, and were forced to engage in sex acts with him.

“The church weaponized the faith of their most vulnerable members,” said Jonati Joey Yedidsion, one of the lawyers handling the lawsuit. “Instead of protecting those innocent women, Naasón and the church fostered and then brutally preyed on their blind trust and allegiance in the ‘Apostle'”.

The case has been difficult for some former members who have distanced themselves from the church.

Speaking on a podcast called “I Left a Sect,” Lo-ami Salazar said Hermosa Provincia used to be her “happy place.”

“Knowing that these abuses took place there, in my happy place, in my safe place, is horrible,” she said.

Additional reporting by the Associated Press.

: newsy.com

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