In the avalanche of press coverage that’s followed New Era’s spectacular demise, the focus has fallen squarely on the big-name philanthropists who’ve been fleeced by what authorities say was a half-billion-dollar Ponzi scheme. Among the victims: venture capitalist Laurance Rockefeller and former treasury secretary William Simon. But these deep-pocketed donors are in far better shape than the hundreds of institutions-many of them small evangelical groups–that were stripped of cash by New Era’s fall. None has been hit harder than Lancaster Bible, and its tale shows how even cautious souls can fall victim to a well-run seam.
While accountants and the Feds sort through the mess, Peterson tried to explain how he got duped. He first heard about New ra from a friend two years ago and saw it as a quick way to bulk up the building fund. “It looked like a great answer to a need we’d been thinking and praying about,” he says, as the words “God is faithful” float on his computer’s screen saver behind him. He did his homework before signing on, scrutinizing New Era’s records and calling other colleges, which all said the program worked swell. It worked smoothly for Peter-son, too, until two weeks ago when a colleague called. “Have you seen The Wall Street Journal?” he asked. “I’ve read my Bible. . .but I haven’t read The Wall Street Journal,” Peterson replied. The paper broke the story of New Era’s troubles; hours later the charity filed for bankruptcy. Since then he’s been calling board members and reassuring students that their scholarships are safe. Last week he sent letters sking supporters to pray for the school.
Just outside his office, the farmland where the new library was to go will now grow corn for years to come; and without the new chapel, the school will keep holding church services in its gym. Peterson says he’s not angry–he’s even praying for New Era founder John G. Bennett Jr., who faces SEC charges–and intends to reconstruct the building fund “one donor at a time . . . one dollar at a time.” For now, he and the rest of New Era’s believers are left with a grim reality: what seemed like pennies from heaven will probably come back as pennies on the dollar.
