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Lawsuit Accuses Gateway Church of Committing Fraud with Members’ Tithe Money

Por Julie Roys
gateway church lawsuit morris tithe fraud
A group of members of Gateway Church in Southlake, Texas, have filed a proposed class action lawsuit regarding the use of parishioners' tithe money, which also names founding pastor Robert Morris. (TRR Graphic)

A group of members of Dallas-based Gateway Church have filed a proposed class action lawsuit, alleging that the church fraudulently claimed it was giving 15% of members’ tithe to global missions, but did not.

According to the suit, Gateway should have been giving away a minimum of $15 million a year to global missions, since the church had annual revenue around $100 million.

However, the suit claims Gateway hired a “seasoned CPA” to oversee its global ministries in July 2011. And during his tenure, which ended in 2014, “he never observed the Global Ministries fund give away more than $3 million in any year,” the suit states.

Following initial publication of this article, Gateway Church spokesperson Lawrence Swicegood provided a statement.

“We do not comment on pending litigation,” Swicegood told El Informe Roys (TRR). “These are serious allegations. Some of these concerns were brought to us recently, and we are actively investigating them. Funds donated to our church are sacred, and it is important that we hold ourselves to the highest biblical standards of ethics and integrity.”

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The lawsuit was filed today in federal court in Sherman, Texas, on behalf of four Gateway members and others “similarly situated.” 

According to Attorney Lu Pham, who’s representing the plaintiffs, the suit is seeking class certification. If granted, the lawsuit will seek $100 million in damages.

Named as defendants in the suit are Gateway Church, former Gateway Senior Pastor Robert Morris, former Gateway Executive Senior Pastor Thomas Lane, Executive Global Pastor Kevin Grove, and former Executive Pastor and Founding Elder Steve Dulin.

robert morris gateway scandal
Pastor Robert Morris preaches at Gateway Church in Southlake, Texas. (Photo: Facebook)

The suit comes as Gateway has been embroiled in controversy, following allegations that its founding Pastor Robert Morris sexually molested an Oklahoma woman in the 1980s, beginning when she was 12 years old.

Morris resigned soon after the allegations surfaced. And his son, James Morris, who was slated to take over the church, también renunció y es comenzando una nueva iglesia.

Gateway accused of reneging on its promise

According to the suit, Morris and other Gateway leaders promised members that 15% of their tithe dollars would be distributed to global missions and Jewish ministry partners.

This claim was documented in the Members’ Handbook given to new members, the suit says. Plus, the church’s website currently claims, “The first 15% of Gateway’s tithe is set aside to support local, national, and international outreach efforts.”

Additionally, Morris stated in 2023 that 10 years ago, Gateway passed giving “$20 million a year . . . but now it’s over $25 million,” the suit said.

However, the suit claims Gateway regularly failed to make good on its promise, citing an unnamed CPA who used to administrate the global fund.

gateway tithe graham
Gateway Church welcomed Franklin Graham for Global Impact Weekend in Sept. 2017. (Screengrab)

According to the lawsuit, the unspent balance in the global fund was $20 million in 2013 and was growing by approximately $10 million per year.

“In spite of that, Robert Morris and other leaders at Gateway misled the congregation during Global Impact Weekend each year by stating that the full amount was being given to missions when, in fact, it was not,” the suit states.

Suit alleges church covered up financial discrepancies

The suit also claims that a member of Gateway’s global staff noticed that “several entries, amounting to $1 million, were unaccounted for.”

When the CPA asked former Gateway CFO Randy Bell about the issue, “Bell stated he did not know what the entries represented but that they were ‘elder approved,’” the lawsuit states.

kevin grove gateway
Kevin Grove (Photo: Gateway Church)

The CPA asked which elder approved the entries and Bell allegedly said he did not know, “stating instead that it came from Kevin Grove,” a current Gateway elder and executive global pastor.

When the CPA asked Grove about the reconciliation errors, Grove became “visibly enraged and, with a raised voice, instructed the CPA to ‘quit reconciling the accounts,’” the suit states. It adds, “Around this time period, the CPA began to find similar unexplained entries.”

tom lane
Tom Lane (Video screengrab)

The CPA took his concerns to former Executive Senior Pastor Tom Lane, telling Lane that if his concerns were not addressed, he’d resign, the suit states.

Lane told the CPA he would take his concerns to Robert Morris, the suit says.

“A few days later, Tom Lane told the CPA, ‘I spoke to Robert over the weekend, and we agreed to accept your resignation,’” according to the suit.

Lack of transparency?

The plaintiffs named in the lawsuit—Katherine and Garry Leach, and Mark and Terri Browder—claim they went to church leaders due to the sexual assault allegations against Morris disclosed this summer.

They say they were seeking answers about the use of tithe money, but “Gateway refused to be transparent when trying to answer even simple questions about the use of tithing dollars.

“Defendants’ refusal to answer even the most basic of questions is the reason for this lawsuit,” the suit states. It adds that the plaintiffs “seek transparency and an explanation (of) what happened to the 15% of funds collected that Robert Morris, Tom Lane, and the other name Defendants promised would be used for global missions.”

The suit also noted that Morris “promised on multiple occasions that if the congregation is not happy with the use of its money, it can get the money back.”

Como reported by TRR, one of the defendants, Katherine Leach, asked Gateway Church to return her tithe money. According to the suit, Gateway church has not responded.

Leach also has posted videos on her Facebook page of Morris offering his “Money Back Guarantee.”

“Many people have requested refund of their tithes only to be stonewalled and ignored by the Defendants,” the lawsuits states.

According to Attorney Lu Pham, the lawsuit is “not about money” but about transparency and accountability.

 “If Gateway would just open up the books and show us that the money was used for the purposes it was intended for, this lawsuit would go away very quickly,” Pham said.

He added that if his clients prevail, they plan to give the money to the ministries that should have received the money long ago.

One of the plaintiffs, Mark Browder, told TRR, “We are filing this suit as a last resort due to the complete lack of transparency across many levels by Gateway leadership.”

Similarly, Katherine Leach told TRR, “I realize from the surface this looks horrible if you don’t know the backstory and motivation behind it. I mean who asks for their tithe money back? Then again, what Pastor does an infomercial with God’s money?”

Leach noted several concerns about Gateway, which led her to file the suit. These include what she termed Gateway’s “complete lack of compassion” towards Morris’ alleged victim and “the inner workings of Gateway Church: bullying, unwanted sexual advances, abuse, people being silenced with NDAs, as well as their ongoing refusal to provide their bylaws and financial records.”

“Due to their lack of integrity in these very significant areas, I do not feel confident Gateway Church handled my tithe above reproach,” she said. Leach added that she filed the suit with a “very heavy heart and as an absolute last resort.”

*TRR has spoken exclusively with the CPA named in this lawsuit and will be releasing his story next week. We are holding the piece to give Gateway more time to respond.

Lawsuit filed Oct. 4, 2024 – Former members v. Gateway Church, Morris, elder board, et. al.

Lawsuit vs Gateway Church

Update 10/5: This article has been updated to include a statement from Gateway Church.

Julie Roys es una reportera de investigación veterana y fundadora de The Roys Report. Anteriormente, también presentó un programa de entrevistas nacional en Moody Radio Network, llamado Up for Debate, y ha trabajado como reportera de televisión para una filial de CBS. Sus artículos han aparecido en numerosas publicaciones periódicas.

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27 Respuestas

  1. So if understand this correctly Morris was a self appointed King of this church and he had a handful of princes of the church appointed by him who reported only to him handling everything from HR to finances. What could possibly go wrong. I will never understand why anyone would even think of belonging to or giving to a church with this form of governance.

    1. Bill, my thoughts and feeling exactly. Not only am I perplexed why people affiliate themselves with these originations, why would you also financially support something that by definition – in light of autocracy, group think, nepotism, & preoccupation with marketing and money – doesn’t even fit the biblical description of a Christian Church – body of Christ?

      1. Because of their itching ears. Jesus prophesied it long ago. People do not want good governance because they do not want true doctrine. They will pay any price for a lie that goes along with their confirmation bias.

  2. Good for Leach, Browder and friends who are actually seeking truth, accountability and justice from these “Godly” low-lifes. They are heroes and heroines in my book! It’s a shame that it will take a secular court to adjudicate between factions but clearly Morris et al., are without scruples, ethics or conscience, so what else can be done?

  3. Some time ago when I came across The Report, it struck me as incredibly negative. However when my eyes were opened I started to really appreciate what you were doing. I’m a 75 year old retired pastor working as a grocery store cashier to make ends meet. Thus making a donation isn’t something I can handle. Just recently via Kindle I finished reading Tim Alberta’s two works, American Carnage and the Kingdom Power and Glory. The latter chronicled your experience at Moody Bible Institute and how it lead to you authoring “The Report”. Super well done young lady! I spent four years at a Bible College and five at two seminaries, but the truth revealed in Tim’s The kingdom, Power and Glory shook me to the core. So again many thanks

  4. I have been going to gateway for years I really love this church and the people. I’ve attended other churches and this is something that has always bothered me about gateway no transparency. That and the leadership. The body of elders were and are weak. What I saw and experienced was they went along with everything Robert Morris wanted, no questions asked. And even though he’s gone it seems his hand is still on the church. I hate to say it but Im glad about the law suit. These people bringing the suit are asking questions. And when others have asked questions they were ignored or never answered. In one case a person who questioned things was blocked by security from even attending church. Doesn’t sound like the house of God!

    1. There is nothing like the house of God . Those who remain in Jesus Christ, in His Word, are living stones being built upon the foundation of Jesus Christ, . Himself being the corner stone and the apostles being the walls foundation. Built by the Holy spirit as we feed on the Word of God. Being renewed inside out by the Holy spirit. Please don’t be deceived by man-made gospels.
      (2 cor 11:3-4)Ask the Lord Jesus to teach you as you read the Word. Please return to the gospel of God’s kingdom,Jesus Christ,as given to us in the Word of God.
      Living stones :1 Peter 2:4-7,
      Foundation:Math 7:24-25,
      1cor3:1-23,Rev 21:14
      Finally please obey: 2Thess 2:15.
      Phil 4:9,Phil 3:17
      Pray Eph 1:17-21
      Dios lo bendiga.

  5. So they put a pedo-sexual predator in charge of the money bag with no accountability?

    Can hardly wait for Franklin Graham (& Billy) to also be exposed.

    #StoneCutters

  6. This Gateway 💩 just keeps piling higher and higher.

    I have a question, if someone could be so kind as to answer: are the Gateway churches in other cities (eg Austin) part of this same Gateway?

    1. Jolene, I can tell you the Gateway Church in Katy, TX is (Houston). But they recently changed their name in the wake of this uproar. This is Robert Morris’s son-in-law’s church. And I can tell you, cause I live in Katy, that I hear worse things about the Katy church than the mothership.

  7. In my experience, these funds are referred to as the “Missions & Giving” fund and any payment to another church or ministry comes out of this fund. Although leadership will emphasize the global missions aspect of these finances, in reality the bulk of expenditures from these funds come from guest speaker honorariums and related expenses.

  8. Too big. Too much money. People..we need to get back to real local churches. A multi million dollar church..Is not right..Our treasure is in heaven. Not here. Lets start conducting ourselves as if we really believe that this is exactly where all this trouble in today’s church starts.

  9. They aren’t going to win their case. IRS regulations state that any donation made voluntarily to an organization – even if under false promises – is not refundable for any reason. Only if the donation was not made voluntarily – such as someone hacking into one’s account and diverting funds – would the recipient be required to return it.

    The only purpose the lawsuit provides is to show how the church lied to its members for its own benefit.

  10. I’ve said it in the comments of every Gateway article. Gateway is bad news. Their other campuses are even worse than the mothership. I live in Katy, TX, where Morris’s son-in-law is the lead person. It’s remarkable the things I hear about that church, in terms of negative things. I’ve just kindly told people to “be careful” when choosing to go there. It’s amazing that people choose churches based on the show/music and ignore lack of Biblical doctrine or integrity. But… here we are.

    I guarantee, more will be uncovered about Gateway in years to come. But we will never truly know all the shady stuff that went on there.

  11. When the full truth comes out, and it will come out, the body of Christ and the world will be shocked at how many in the “religious community” are actually snakes who have masqueraded as believers. These are the days of revelation; God is revealing the lies/deception and what has been hidden.

    1. I totally agree. In these last days, the greatest deception has been in the church. When people realize that one of their greatest enemies who hates Christians and who is the leader of the Khazarian Mafia but who loves to take $ from Christians was interviewed and put on a pedestal by Robert Morris and GW. The tables are being flipped.

  12. Sad to say this seems to be the method of operation for any leader that has been associated with Gateway (Southlake). No transparency, no accountability. Don’t bother asking for it, because the transparency will never come. Houston, Scottsdale, AZ, Colorado wherever a Gateway Church plant is sent transparency will not follow. This is a learned behavior from the mothership.

  13. A lot of negative comments are made by Protestants about the Roman Catholic Church, given what that Church has done in the past and does now. Should Roman Catholics (and others) make negative generalizations about Protestant churches, given the practices of Protestant churches that we read about here and elsewhere?

    The Roys Report and Christian Post have had a lot of news articles about problems in a lot of churches. It’s true that “good news is no news” but I have another issue. My impression is that some have gone into the business of “Church” the way that others have gone into sales or accounting or finance or music or government or whatever because there is money and adulation available to those that make it big. They put on “Church” clothing and adopt “Church” behavior and make a lot of money doing so. Some of these people resemble those in leadership in New York City and Chicago at the moment. Why did these suspect “Church” leaders go into the business of “Church” in the first place? Why did they follow practices that resulted in their getting heaps of money and loads of fans?

  14. Remember husband and wife Ananias and Sapphira in the New Testament? (Acts 5:1-11). They sold their land and gave the money to the apostles as an offering. But when the couple gave the money, they claimed it represented all of the proceeds they received from the sale of the land, when the truth was that they kept back a portion of the proceeds for themselves.

    Peter told the couple that they weren’t obligated to sell the land and give all of the money to the apostles, but when they did so, they shouldn’t have lied and said the money they gave represented all of the proceeds from the sale. Peter said “You have not just lied to human beings, but to God.” (Acts 5:4). Both Ananias and Sapphira fell down dead, and “great fear seized the whole church and all who heard about these events” (Acts 5:10-11).

    If it is true that Gateway repeatedly claimed to be giving 15% of its income to global missions but was in fact, giving far less, then did they lie not just to men, but also to God?

  15. I’m praying that God would intervene and help Pastor Robert and Debbie Morris out with the ministry the enemy is attacking them for a reason because they’re very valuable to the kingdom of God and I pray that love Prevail in Jesus name amen

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