The U.S. Securities and Exchange Commission has been investigating the troubled Global Ministries Foundation for at least a month.
Michael J. Adler, senior counsel working for SEC's enforcement division, requested a list of "documents and data relevant to an ongoing investigation" from Donald Shapiro, a court-appointed receiver overseeing Warren and Tulane apartment complexes in Memphis owned by GMF.
"The Commission considers potentially relevant documents to include those created on or after June 1, 2010 that were created, modified or accessed by Rev. Richard Hamlet, Alan Swafford, Dr. Thomas Stovall, Natalie Metcalf or Nancy Hall," according to the letter dated July 18.
Rev. Richard Hamlet is the founder and CEO of Global Ministries Foundation. Metcalf is Hamlet's daughter. And Hall works for GMF. Both Swafford and Stovall are the only board members for GMF.
It is unclear what SEC is investigating, but the list of documents Adler requested are all related to the $11.8 million bond the Memphis Health, Educational and Housing facilities board approved in 2011. Hamlet used that bond to buy federally subsidized Warren Apartments and Tulane Apartments.
"GMF will continue to fully cooperate with the government's investigation as called upon," said Audrey Young, GMF spokeswoman.
Last week, federal agents executed a search warrant inside GMF's headquarters in Memphis and a related warrant inside the offices of the Gill Group in Dexter, Missouri, which appraised many properties GMF has purchased in Memphis using local municipal bonds. The company was also previously listed on the nonprofit's website as a major donor for GMF.
The search warrants are part of an ongoing investigation by the U.S. Department of Housing and Urban Development's Office of Inspector General.
GMF has been under scrutiny by local, state and federal agencies since an investigation by The Commercial Appeal in April 2015 found poor living conditions at three GMF properties.
The investigation found millions of dollars were shifted from the housing nonprofit founded by Richard Hamlet to his religious nonprofit. Tax forms from 2014 show $7.1 million was moved from GMF-Preservation of Affordability Corp., Hamlet's housing nonprofit, to GMF, Hamlet's religious nonprofit. He told the newspaper previously that none of the three Memphis properties were profitable, so no funds from those properties were involved.
In February, HUD stopped its subsidies and ordered more than 1,000 residents to relocate. A HUD inspection found significant problems at the Warren and Tulane apartments, including exposed wires, missing kitchen cabinets, damaged doors, cockroach and rat infestations, unusable fire exits, inoperable locks, leaking plumbing and inoperable kitchen appliances.
