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Submitted by admin on Sat, 2007-03-24 11:00. ::

The state investigation also received the applications listed church members as employees of the church for a group life insurance policy. American Church United and Phillips "knew that the list of church members, the applications, documents concerning claims and other documents submitted to the insurer contained materially false, incorrect and misleading information," the state said.

Phillips and American Church United solicited people to become members of the church "with the promise that a membership would include group life insurance, thereby effectively selling insurance to these individuals," the state said.

American Church United, according to its Web site, has as its goal to provide "a collective voice for the African-American Church in America ..."

AIG Life Insurance earlier this month filed a federal lawsuit against Phillips, accusing him of defrauding the company. The insurer claims Phillips falsified paperwork and fraudulently claimed that people who weren't members of American Church United were members when they died.

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