VIRGINIA:

IN THE CIRCUIT COURT OF PRINCE WILLIAM COUNTY

GERTRUDE BROWN,
Plaintiff,
v.
JONATHAN MERRILL KELLEY and
CHARLA KAY KELLEY,
Case No. CL13001781-00
Defendants.
SECOND AMENDED COMPLAINT
Plaintiff Gertrude Brown (Plaintiff), by and through her undersigned counsel, hereby
asserts the following Amended Complaint against Defendants Jonathan Merrill Kelley and
Charla Kay Kelley (collectively, Defendants) and states as follows:
PARTIES
1.

Plaintiff Gertrude Brown is an individual residing at 3030 Fox Lair Drive, Apt.

304, Woodbridge, VA 22191.

2.

Defendant Jonathan Merrill Kelley is an individual who, upon information and

belief, has an address at 9275 Sumner Lake Blvd., Manassas, Virginia 20110-4682. Mr. Kelley
is the President of Capital Worship Center (CWC), a Virginia corporation which has
conducted twice-weekly church services at a variety of locations in Manassas, Virginia and
Centreville, Virginia. Mr. Kelley has served as Senior Pastor of CWC since at least 1999.
3.

Defendant Charla Kay Kelley is an individual who, upon information and belief,

has an address at 9275 Sumner Lake Blvd., Manassas, Virginia 20110-4682. Mrs. Kelley is

-1-

married to Mr. Kelley and is also a Pastor of CWC, as well as one of its two Vice Presidents and
a Director. She has also served as Music Director of CWC since at least 1999.
JURISDICTION AND VENUE
4.

This Court has subject matter jurisdiction under Va. Code 17.1-513 because

Plaintiff seeks money damages in excess of $100, exclusive of interest, costs, and attorneys fees.
5.

This Court also has subject matter jurisdiction under section 523(a)(3)(B) of title

11 of the United States Code (the Bankruptcy Code) because where a party fails in its
bankruptcy case to list or provide notice to a creditor in time to permit the creditor to bring an
action to determine the dischargeability of a debt, state and bankruptcy courts have concurrent
jurisdiction to determine nondischargeability under Bankruptcy Code section 523(a)(3)(B). See,
e.g., In re Parks, 1996 WL 33676728, at *5 (Bankr. E.D. Va. Feb. 15, 1996) (complaints arising
under . . . 523(a)(3)(B) . . . can be brought in nonbankruptcy (state) forums with which the
bankruptcy court would share concurrent jurisdiction) (quoting In re Banks-Davis, 148 B.R.
810, 813 (Bankr. E.D. Va. 1992)).
6.

Defendants are subject to personal jurisdiction in the Commonwealth under Va.

Code 8.01-328.1 because the causes of action arise from the transaction of business occurring
in the Commonwealth and because the tortious injury occurred in the Commonwealth.
7.

Venue is proper under Va. Code 8.01-262 because the Defendants reside in

Prince William County, because the causes of action arose in Prince William County, and
because Defendants regularly conduct substantial business activity in Prince William County.
FACTUAL ALLEGATIONS:
SOLICITATIONS BY PASTORS JONATHAN AND CHARLA KELLEY
8.

On information and belief, CWC was founded in or around 1967 by a United

Pentecostal Church International minister, James M. Kelley (Bishop Kelley). Bishop Kelley

-2-

served as CWCs first Pastor until his retirement in 1992. Upon Bishop Kelleys retirement in
1992, his son, Jonathan Merrill Kelley (Pastor Jonathan Kelley or Defendant), became
Senior Pastor of CWC. In 2005, CWC was reorganized as a Virginia corporation. Since that
time Pastor Jonathan Kelley has served as President of the corporate entity, and, in addition to
Pastor and Music Director, Pastor Charla Kay Kelley (Pastor Charla Kelley or Defendant
Charla Kelley) has served as a Vice President and a Director.
9.

As ecclesiastical officers of CWC, Pastor Jonathan Kelley and Pastor Charla

Kelley are authorized to acquire and hold real and personal property for the benefit of CWC. See
Va. Code Ann. 57-16(A).
10.

Pastor Jonathan Kelley and Pastor Charla Kelley used CWCs status as a church

to raise funds from parishioners and the general public purportedly in support of general church
activities and the establishment of a building fund for the construction of a new church building.
Pastor Jonathan Kelley and Pastor Charla Kelley raised these funds for CWC through, inter alia,
collections from its parishioners during twice-weekly services, semi-annual building fund drives,
written solicitations to CWC parishioners for donations for specific purposes, and invitations to
donate via CWCs website, www.capitalworshipcenter.com.
11.

On information and belief, CWC parishioners were expected to contribute ten

percent (10%) of their annual income in the form of donations or tithes for religious and
benevolent purposes. Envelopes for deposits from each parishioner were circulated during each
twice-weekly church service. A copy of an exemplary donation envelope is attached hereto as
Attachment 1, Exhibit 1.1

Attachment 1 is the Complaint filed in Brown v. Capital Worship Center, Case No.
CL12006659-00, which is discussed in greater detail below.

-3-

12.

Additionally, during its twice-weekly church services, Pastor Jonathan Kelley and

Pastor Charla Kelley exhorted parishioners to contribute specific amounts of money as additional
offerings to CWC, and circulated a second set of donation envelopes for each parishioner to
deposit these offerings.
CWCS BUILDING FUND
13.

CWC did not own a building in which to conduct business, hold church-related

classes, or conduct services.

14.

Instead, CWC leased parish office and classroom space in an office park located

at 11234 Balls Ford Road, Manassas, Virginia 20109 (the Manassas Office) in which it
conducted business and held church-related classes. CWC conducted services twice weekly at
various Fairfax County and Prince William County schools in Centreville and Manassas.
15.

On information and belief, between 2001 and 2003 CWC acquired several parcels

of land in Fairfax County collectively having a street address of 7000 Ordway Road, Centreville,
Virginia 20121 (the Ordway Road Property).
16.

Pastor Jonathan Kelley and Pastor Charla Kelley repeatedly solicited donations

from CWC parishioners for the construction of a church building on the Ordway Road Property,
indicating that those donations would be placed in a segregated building fund (the CWC
Building Fund).
17.

These solicitations took several forms, including semi-annual Building Fund

drives. For example, in the Fall of 2005, using a building fund commitment card, CWC asked
its members to commit [themselves] to make the necessary sacrifices and sow this seed towards
the new building and future of Capital Worship Center, instructed individuals to select an

-4-

amount of either $2000, $1000 or $500, and to sign an acknowledgement that the pledge was
due in full on December 11, 2005. See Attachment 1, Exhibit 2.
18.

Pastor Jonathan Kelley also sent written correspondence to CWC parishioners

soliciting donations for the Building Fund. In an example dated December 3, 2005, Pastor
Jonathan Kelley exhorted parishioners to contribute money to the Building Fund, stating that
God has given us a great opportunity in allowing all of our contributions to [CWC] to be taxdeductible. This is truly a great blessing. See Attachment 1, Exhibit 3.
GERTRUDE BROWNS CONTRIBUTIONS
19.

Plaintiff Gertrude Brown (Ms. Brown) was a parishioner at CWC between 1985

and 1989, and again between 1999 and 2012. Each year that Ms. Brown was a parishioner at
CWC, she contributed substantial portions -- between 25-30% -- of her annual income to CWC
in the form of tithes, offerings, and contributions to CWCs Building Fund. Generally, these
contributions amounted to between $4,000 and $6,000 per year.
20.

Ms. Browns contributions were recorded on statements prepared by CWCs

accountants, Chitwood & Chitwood. See Attachment 1, Exhibits 11-15 (showing Ms. Browns
contributions for calendar years 2007-2011). These statements show the date of the donation and
the type of donation - either tithes, offerings, or contribution to CWCs Building Fund (the latter
indicated on the statements as Bldg).
21.

In 2003, Ms. Brown suffered an accident which caused her to take an early

retirement for disability and has prevented her from engaging in meaningful employment. Since
2003, Ms. Browns sole forms of income have been the disability payments she receives from
her previous employer and her retirement pay from six years of active duty military service.

-5-

22.

Pastor Jonathan Kelley and Pastor Charla Kelley were aware of the 2003 accident,

knew that Ms. Brown stood to receive a damage award or settlement, and actively solicited her to
contribute a portion of the award or settlement proceeds to CWC.
23.

On August 3, 2009, Ms. Brown received a one-time settlement as a result of the

2003 accident.
24.

On August 4, 2009, Ms. Brown donated $54,000 to CWC. See Attachment 1,

Exhibit 16. Ms. Brown personally handed the $54,000 check to Pastor Jonathan Kelley at
CWCs Manassas Office.
25.

On August 4, 2009, Ms. Brown gave Pastor Jonathan Kelley and Pastor Charla

Kelley a gift of $5,000. See Attachment 1, Exhibit 17. Ms. Brown personally handed the $5,000
check to Pastor Jonathan Kelley at the Manassas Office.
26.

On August 6, 2009, the $54,000 check was deposited into CWCs bank account

and the $5,000 check was deposited into the Kelleys joint personal bank account. See
Attachment 1, Exhibits 16 and 17.
GERTRUDE BROWNS LOAN
27.

On or about August 10, 2009, Pastor Jonathan Kelley invited Ms. Brown to a

meeting at CWCs Manassas Office. During this meeting, Pastor Jonathan Kelley asked Ms.
Brown to loan CWC $80,000.
28.

Ms. Brown recalls Pastor Jonathan Kelley telling her that CWC needed the funds

because he was having trouble with the property.

29.

Ms. Brown reasonably understood Pastor Kelleys statement to mean that CWC

needed the money in conjunction with its ongoing efforts to construct a church on the Ordway
Road Property.

-6-

30.

Accordingly, Ms. Brown reasonably believed that she was making an $80,000

loan to CWC and that the $80,000 would be used to construct a church building on the Ordway
Road Property.
31.

As Ms. Brown has recently learned, CWC never had a Building Fund or any other

account to fund the effort to construct a church building on the Ordway Road Property.
32.

Upon information and belief, CWC has not used funds solicited from parishioners

for the construction of a church building on the Ordway Road Property for that purpose since
2007.
33.

Pastor Jonathan Kelley thus misrepresented the purpose for which Ms. Browns

$80,000 would be used.

34.

Pastor Jonathan Kelley thus concealed from Ms. Brown the fact that he did not

intend to forward the money to CWC to fund efforts to construct a church building.
35.

On August 11, 2009, Pastor Jonathan Kelley accompanied Ms. Brown to her

bank, Navy Federal Credit Union, where she obtained a cashiers check in the amount of
$80,000. See Attachment 1, Exhibit 18. When the bank teller requested the name of the payee to
whom the check should be made payable, Pastor Jonathan Kelley directed that the check be
made payable directly to himself. Ms. Brown did not question Pastor Jonathan Kelleys motives
in asking that the check be made out in his name and assumed that Pastor Kelley would provide
the funds to CWC. [were her assumptions really that specific?]
36.

On August 12, 2009, the $80,000 check was deposited into the Defendants joint

personal bank account (the same account into which the $5,000 check had been deposited six
days earlier). See Attachment 1, Exhibit 17.

-7-

37.

Pastor Jonathan Kelley promised that the loan would be repaid by CWC in six

months. Ms. Brown construed that to mean it would be repaid on March 11, 2010.
38.

The $80,000 was not repaid on March 11, 2010, when Ms. Brown believed it

would be.
39.

Shortly after March 11, 2010, Ms. Brown went to CWCs Manassas office and

asked Pastor Jonathan Kelley when the $80,000 loan would be repaid.
40.

At this meeting, Pastor Jonathan Kelley told Ms. Brown that CWC required an

additional three months for repayment.

41.

The $80,000 was not repaid on June 11, 2010.

42.

In October 2010, Ms. Brown met with Pastor Jonathan Kelley at CWCs

Manassas Office to ask for repayment of the loan. Pastor Charla Kelley attended this meeting.
43.

At this meeting Ms. Brown recalls telling the Defendants: The reason I am here

is because I desperately need my money back. It's been well over the time when you said you
would repay me. You can even give it to me in increments. Ms. Brown also recalls telling the
Defendants that she was suffering with dental problems, stating: I put getting my teeth fixed on
hold when I gave you this money. I need this done. I need this for my health.
44.

In response to this request, Ms. Brown recalls Pastor Jonathan Kelley telling her

I am still dealing with the property at this time and I am still going through more financial
difficulties, and I am going to get it back to you. I am trying to get our church built.
45.

In response, Ms. Brown recalls telling Pastor Jonathan Kelley: OK, Sir. I just

need it -- whenever you can work it out.

46.

Pastor Charla Kelley remained silent during this meeting. Pastor Charla Kelley

has never said another word to Ms. Brown.

-8-

47.

On or about September 15, 2011, Ms. Brown again met with Pastor Jonathan

Kelley seeking repayment of the $80,000 loan. Pastor Jonathan Kelley responded again that
CWC required additional time.
48.

On or about January 18, 2012, Ms. Brown sent a note to Pastor Jonathan Kelley

advising him that she was experiencing financial hardship as a result of CWCs failure to repay
the loan and asking that she receive at least partial repayment immediately. See Attachment 1,
Exhibit 19. Neither Defendant nor any other representative of CWC has responded to this letter.
49.

As of the date hereof, no portion of the loan has been repaid to Ms. Brown.

50.

Upon information and belief, Pastor Jonathan Kelley never advanced the proceeds

of Ms. Browns $80,000 loan to CWC or utilized the funds for CWCs benefit as contemplated
by Va. Code Ann. 57-16(A). Instead, Pastor Jonathan Kelley and Pastor Charla Kelley used
the proceeds to fund their extravagant lifestyles.
51.

Until very recently, Ms. Brown considered Pastor Jonathan Kelley and Pastor

Charla Kelley her trusted spiritual advisors.

KELLEYS BANKRUPTCY
52.

On March 1, 2011, Defendants filed a single, joint voluntary petition for relief

under Chapter 13 of the Bankruptcy Code in the Eastern District of Virginia (Alexandria) (the
Bankruptcy Court), Case No. 11-11469-SSM (the Kelleys Bankruptcy Case). See
Attachment 2, Petition. On March 22, 2011, Defendants voluntarily converted their Chapter 13
case to a liquidation case under Chapter 7, and filed joint schedules of assets and liabilities the
same day.
53.

Defendants bankruptcy filing and related public documents provide insight into

the extravagant lifestyle they led at the time Ms. Brown made her $80,000 loan to CWC. In

-9-

2004, Defendants purchased and mortgaged a newly-constructed 4-bedroom, 5-bathroom, 4,781

sq. ft. house in Manassas, Virginia for $668,945. See Attachment 1, Exhibits 8 and 9. In 2007,
Defendants purchased a 2006 Bentley Continental Flying Spur, again via a bank loan, with a
base price of $164,990. See Attachment 3. In 2009, they purchased a 2009 Mercedes-Benz
S-Class vehicle for $93,976, and three Yamaha four-wheelers at a total cost of $12,185. See
Attachment 1, Exhibit 7, Schedule D. On information and belief, Defendants also possessed a
Hummer H2 vehicle in 2009.
54.

Defendants also used corporate credit cards opened in the name of CWC to

purchase a variety of goods and services from various creditors including American Express,
Bank of America, Macys, Best Buy, Neiman Marcus, and Nordstrom. See Attachment 1,
Exhibit 7, Schedule F. Many of these charges, totaling $258,604, were for luxury goods and
services, including a $53,467.80 purchase at MARYLAND DIAMOND for
JEWELRY/WATCH/ SILVERWR, and a second purchase of $3,505.29 at Macys for
DIAMOND SOLITAIR/WE. See Attachment 1, Exhibit 10 and its attached Exhibit A.
55.

On March 7, 2011, Defendants filed with the Bankruptcy Court their joint creditor

matrix, i.e., the list of creditors that debtors must file with their bankruptcy petition (the
Creditor Matrix). See Local Rule 1007-1(H)(1) of the Local Bankruptcy Rules for the Eastern
District of Virginia (The debtor shall file with the petition a list containing the name and
address of each creditor which shall serve as a mailing matrix.). The Creditor Matrix is used by
the clerk of court to provide due process to creditors and other parties in interest in the form of
notice of the commencement of the bankruptcy case and the deadline for taking various actions
in the case, including the meeting of creditors proscribed by Bankruptcy Code section 341(a)

- 10 -

(the Meeting of Creditors) and the deadline for filing proofs of claims so that creditors can
establish the validity, amount and priority of their claims against the debtor.
56.

Defendants did not list Ms. Brown either as a creditor in their bankruptcy case or

a notice party on their Creditor Matrix. See Attachment 1, Exhibit 7, Schedule F and
Attachment 4, Creditor Matrix. Ms. Brown therefore did not receive notice of the Kelleys
Bankruptcy Case, was not given any notice of any proceedings and/or deadlines applicable to
creditors of Defendants, and was not otherwise aware of the proceedings. In any event, even if
Ms. Brown had somehow learned of the Kelleys Bankruptcy Case, she would have had no
reason to appear in the proceedings because she had no reason to believe that she had a claim
against Defendants at that time. In fact, had Ms. Brown been aware of the Kelleys Bankruptcy
Case, her exclusion from the creditor matrix would have served only to reinforce her
understanding that the proceeds of her $80,000 loan had been advanced to CWC as intended.
57.

The primary purpose of a Chapter 7 liquidation case is to provide a fresh start to

individual debtors overburdened by debt. This fresh start is implemented through the discharge
granted under Bankruptcy Code section 727, which permanently releases a debtor from personal
liability from certain types of debts, and which prohibits creditors of the debtor from taking any
form of collection action on discharged debts.
58.

The Bankruptcy Code, however, does not relieve an individual debtor from all

obligations. Among the obligations that are not affected by a discharge are obligations with
respect to money obtained by false pretenses, false representation, actual fraud, larceny or
damages resulting from willful and malicious injury. See 11 U.S.C. 523(a)(2)(A), (4) and (6).
Creditors who believe their claims are not dischargeable can move to establish that fact by filing

- 11 -

with the Bankruptcy Court a complaint to determine the dischargeability of a debt (a

Nondischargeability Action).
59.

Ordinarily, creditors are required to file a Nondischargeability Action with the

Bankruptcy Court within 60 days after the date first set for the Meeting of Creditors. As a
general rule, creditors who fail to timely file a Nondischargeability Action will have their claims
discharged. Where, as here, a creditor is not notified of a bankruptcy case, the deadline for filing
a Nondischargeability Action does not apply and the creditor may make such a request in state
court subsequent to the bankruptcy proceeding.
60.

On March 25, 2011, the Bankruptcy Court set the deadline to file a

Nondischargeability Action in the Kelleys Bankruptcy Case as June 27, 2011. See
Attachment 5, Notice of Chapter 7 Case, Meeting of Creditors, & Deadlines. Because Ms.
Brown was neither scheduled as a creditor nor listed as a notice party on the Creditor Matrix, she
did not receive notice of the Kelleys Bankruptcy Case generally or of this deadline specifically.
See id., attached Certificate of Notice. Moreover, because Ms. Brown had understood that she
had made the $80,000 loan to CWC, not Defendants, she had no reason to believe, at that time,
that she had a claim of any nature against Defendants. Accordingly, the deadline to file a
Nondischargeability Action pursuant to Bankruptcy Code section 523(a)(3)(B) was not
applicable to Ms. Brown.
61.

On August 1, 2011, the Chapter 7 trustee appointed in the Kelleys Bankruptcy

Case reported that the Kelleys Bankruptcy Case was a no-asset case, i.e., that there is no
property available for distribution from the [Kelleys] estate over and above that exempted by
law. See Attachment 6, Chapter 7 Trustees Report (Docket No. 50). Defendants were granted
a discharge under Bankruptcy Code section 727 on July 1, 2011. The order granting the

- 12 -

discharge noted that certain debts were not discharged, including debts which were not properly
listed by the debtor. See Attachment 7, Discharge of the Joint Debtors. Ms. Browns claim
against Defendants, based upon actual fraud and the false representation that the loan was to be
advanced to CWC to be used in connection with the construction of a new church facility, was
therefore not discharged.
62.

The Kelleys Bankruptcy Case was closed on August 9, 2011. Ms. Brown did not

have actual knowledge of the Kelleys Bankruptcy Case until well after the case was closed.
Even then, Ms. Brown had no reason to believe that Defendants had failed to advance the
$80,000 to CWC and that she therefore had a claim against Defendants.
BROWN V. CWC LITIGATION
63.

On September 26, 2012, Ms. Brown filed a Complaint in this Court against CWC,

seeking to recover her donations to the CWC Building Fund, her other contributions, and the
$80,000 loan described above (the Brown v. CWC Case). Brown v. Capital Worship Center,
Case No. CL12006659-00; see Attachment 1. Specifically, Ms. Brown alleged that CWC,
through its agent Pastor Jonathan Kelley, had (1) committed actual fraud relative to Ms. Browns
contributions to CWCs Building Fund, had (2) committed constructive fraud relative to Ms.
Browns tithes and other contributions to CWC, had (3) breached its contract with Ms. Brown by
failing to repay the $80,000 loan, and had (4) received unjust enrichment as a result of accepting
the $80,000 loan proceeds. See Attachment 1, 44-71. Ms. Brown served her first set of
discovery requests on CWC on October 4, 2012.
64.

On October 18, 2012, Pastor Jonathan Kelley filed with this Court documents

purporting to be a responsive Plea in Bar and Demurrer on behalf of CWC. On October 26,
2012, Ms. Brown moved to strike the documents as nullities in view of the fact that they were

- 13 -

signed and filed by Pastor Jonathan Kelley, a non-attorney, and sought default judgment for
CWCs failure to timely respond to her Complaint.
65.

A hearing on Ms. Browns motion to strike and for default judgment was held in

this Court, before the Honorable Craig Johnson, on November 9, 2012. At the hearing, Pastor
Jonathan Kelley appeared on behalf of CWC, without legal counsel. After a brief series of
questions establishing that CWC was a corporate entity, that Pastor Jonathan Kelley is not a
licensed attorney, and that CWC had not retained any other legal counsel, Judge Johnson struck
the purported Plea in Bar and Demurrer, indicated that default was appropriate and ordered a
second hearing for the submission of ex parte proof on the amount of damages owed to Ms.
Brown. See Attachment 8. Ms. Browns damages hearing was conducted on December 7, 2012,
see Attachment 9, and a Post-Hearing Memorandum summarizing her claims was submitted on
December 13, 2012, see Attachment 10.
CWC BANKRUPTCY AND MS. BROWNS DISCOVERY OF
PASTOR JONATHAN KELLEYS FRAUDULENT BEHAVIOR
66.

On January 2, 2013, CWC filed a voluntary petition for relief under Chapter 7 of

the Bankruptcy Code in the Eastern District of Virginia (Alexandria), Case No. 13-10022-RGM
(the CWC Bankruptcy Case). See Attachment 11, Petition. On January 4, 2013, CWC filed a
Suggestion in Bankruptcy in this Court in the Brown v. CWC Case disclosing that CWC had
filed for bankruptcy and noting that the automatic stay provisions of 362 are in effect at this
time. See Attachment 12, Suggestion in Bankruptcy. Since the filing of the Suggestion in
Bankruptcy, Ms. Brown has taken no further action in the Brown v. CWC Case.
67.

On January 8, 2013, the Bankruptcy Court designated Pastor Jonathan Kelley as

the debtor designee, to perform the duties imposed on CWC by the Bankruptcy Code. See
Attachment 13, Order of Designation. As the debtor designee, Pastor Jonathan Kelley prepared

- 14 -

the schedules of assets and liabilities that were filed by CWC on January 16, 2013 (the CWC
Bankruptcy Schedules).
68.

On the CWC Bankruptcy Schedules Ms. Brown is listed as an unsecured creditor

with a claim in an undetermined amount incurred in 2004 and with consideration listed as gifts
& tithes. See Attachment 14, Schedule F.
69.

On February 4, 2013, CWC filed statements of financial affairs (the CWC

Statements). The CWC Statements were also prepared by Pastor Jonathan Kelley. See
Attachment 15, Statements.
70.

Pastor Jonathan Kelley did not include the $80,000 loan made by Ms. Brown to

CWC in the CWC Bankruptcy Schedules or Statements.

71.

Having reviewed the CWC Bankruptcy Schedules and Statements, it has become

apparent that the $80,000 loan was never advanced by Pastor Jonathan Kelley and Pastor Charla
Kelley to CWC.
72.

Furthermore, at the Meeting of Creditors in the CWC Bankruptcy Case held on

February 11, 2013, Pastor Jonathan Kelley admitted under oath that CWC has never had a
Building Fund.
73.

During CWCs bankruptcy, the Ordway Road Property was sold at foreclosure for

$1 million.
74.

The CWC Bankruptcy Case was closed on May 14, 2013.

75.

Upon information and belief, Pastor Jonathan Kelley continues to conduct

religious services and, despite the fact the Ordway Road Property was sold during CWCs
bankruptcy, has announced his intention to build a church. Upon information and belief, he has
done so in order to solicit money from his parishioners.

- 15 -

COUNT I
(Actual Fraud -- Pastor Jonathan Kelley)
76.

Plaintiff incorporates by reference herein all the allegations set forth in

Paragraphs 1 through 75.

77.

Under Virginia law fraud occurs when (1) a false representation (2) of a material

fact was (3) made intentionally and knowingly (4) with the intent to mislead, that (5) the injured
party relied on the misrepresentation, and (6) was damaged as a result of his reliance on the
misrepresentation. Nationwide Mut. Ins. Co. v. Hargraves, 242 Va. 88, 92 (1991).
78.

Pastor Jonathan Kelley solicited a loan of $80,000 from Ms. Brown, representing

that CWC needed the loan proceeds for the property.

79.

This representation was false because Pastor Jonathan Kelley knew Ms. Brown

would understand the property to be a reference to the Ordway Road Property, and because
Pastor Jonathan Kelley had no intention of forwarding the funds to CWC to build a church on the
Ordway Road Property.
80.

This representation was material because Ms. Brown made the loan to help CWC

build a church on the Ordway Road Property.

81.

Pastor Jonathan Kelley knew the representation was false because he had no

intention of forwarding the proceeds to CWC for the purpose of building a church on the Ordway
Road Property.
82.

Pastor Jonathan Kelley intended to mislead Ms. Brown by representing that the

loan proceeds would be used for the Ordway Road Property, and intended to induce Ms.
Browns reliance on that false representation.

- 16 -

83.

Plaintiff reasonably relied on Pastor Jonathan Kelleys representation that the

funds were to be loaned to CWC for the purpose of building a church on the Ordway Road
Property.
84.

Pastor Jonathan Kelley did not advance to CWC the $80,000 loan proceeds that

he received from Plaintiff and no portion of the $80,000 was used for the purpose of building a
church on the Ordway Road Property.
85.

Instead, Pastor Jonathan Kelley deposited the loan proceeds into his and Pastor

Charla Kelleys joint personal account and, with Pastor Charla Kelley, used the loan proceeds to
fund Defendants extravagant lifestyle.
86.

As a direct and proximate result of Pastor Jonathan Kelleys wrongful actions,

Ms. Brown has suffered compensatory damages in an amount to be proven at trial, but which in
any event exceed $80,000.
87.

Punitive damages of $350,000 should also be awarded against Pastor Jonathan

Kelley for his intentional and fraudulent conduct.

COUNT II
(Fraudulent Concealment - Pastor Jonathan Kelley)
88.

Plaintiff incorporates by reference herein all the allegations set forth in

Paragraphs 1 through 87.

89.

The concealment of a material fact may constitute fraud. Spence v. Griffin, 236

Va. 21, 28 (1988)

90.

Pastor Jonathan Kelley, Ms. Browns trusted spiritual advisor, concealed from

Ms. Brown the fact that, at the time of the loan, he had no intention to forward the loan proceeds
to CWC for the construction of a church building on the Ordway Road Property.

- 17 -

91.

Pastor Jonathan Kelley concealed from Ms. Brown the fact that that CWC never

had a Building Fund.

92.

Pastor Jonathan Kelley concealed from Ms. Brown the fact that CWC had not

used any of the funds which it had received from Ms. Brown and other parishioners for the
construction of a church building on the Ordway Road Property for that purpose since at least
2007.
93.

Pastor Jonathan Kelley concealed these facts from Ms. Brown as an inducement

to make the loan.

94.

Pastor Jonathan Kelley concealed these facts from Ms. Brown knowing that she

would not have made the loan had she known them.
95.

Pastor Jonathan Kelley concealed these facts from Ms. Brown intending to

mislead Ms. Brown into believing that the $80,000 she loaned CWC would be used in
conjunction with the construction of the Ordway Road Property.
96.

As a direct and proximate result of Pastor Jonathan Kelleys fraudulent

concealment, Plaintiff has suffered compensatory damages in an amount to be proven at trial, but
which in any event exceed $80,000.
97.

Punitive damages of $350,000 should also be awarded against Pastor Jonathan

Kelley for his intentional and fraudulent conduct.

COUNT III
(Fraudulent Concealment - Pastor Charla Kelley)
98.

Plaintiff incorporates by reference herein all the allegations set forth in

Paragraphs 1 through 97.

- 18 -

99.

The concealment of a material fact may constitute fraud. Spence v. Griffin, 236

Va. 21, 28 (1988)

100.

Pastor Charla Kelley, Ms. Browns trusted spiritual advisor, concealed from Ms.

Brown the fact that the $80,000 loaned by Ms. Brown for the property would not be used by
CWC to help build a church on the Ordway Road Property.
101.

Pastor Charla Kelley concealed from Ms. Brown the fact that CWC never had a

Building Fund.
102.

Pastor Charla Kelley concealed from Ms. Brown the fact that CWC had not used

any of the funds which it had collected from Ms. Brown and other parishioners for the
construction of a church building on the Ordway Road Property for that purpose since at least
2007.
103.

Pastor Charla Kelley intentionally concealed these facts from Ms. Brown at the

October 2010 meeting with Ms. Brown, and at all other times.
104.

Pastor Charla Kelley concealed these facts from Ms. Brown knowing that Ms.

Brown would not have made the loan had she known them.
105.

Pastor Charla Kelley concealed these facts from Ms. Brown, intending to mislead

Ms. Brown into believing that the $80,000 she had loaned CWC was being used in conjunction
with the construction of a church on the Ordway Road Property.
106.

Ms. Brown reasonably relied on Pastor Charla Kelleys silence in the face of her

belief that the funds had been loaned for the purpose of constructing a church on the Ordway
Road Property.

- 19 -

107.

As a direct and proximate result of Pastor Charla Kelleys fraudulent

concealment, Plaintiff has suffered compensatory damages in an amount to be proven at trial, but
which in any event exceed $80,000.
108.

Punitive damages of $350,000 should also be awarded against Pastor Charla

Kelley for her intentional and tortious conduct.

COUNT IV
(Unjust Enrichment - Pastor Jonathan Kelley)
109.

Plaintiff incorporates by reference herein all the allegations set forth in

Paragraphs 1 through 108.

110.

Pastor Jonathan Kelley solicited a loan of $80,000 from Ms. Brown, representing

that the loan proceeds would be used by CWC in connection with the property, which he knew
Ms. Brown would understand to refer to the Ordway Road Property and CWCs efforts to
construct a church there.
111.

Pastor Jonathan Kelley did not advance to CWC the $80,000 loan proceeds that

he received from Ms. Brown. Instead, Pastor Jonathan Kelley deposited the loan proceeds into
his own, personal account, and he and Pastor Charla Kelley used the loan proceeds to fund their
personal extravagant lifestyle.
112.

By providing Pastor Kelley the sum of $80,000, which was ultimately retained by

Pastor Jonathan Kelley and Pastor Charla Kelley, Ms. Brown conferred on Pastor Jonathan
Kelley a benefit.
113.

By accepting the $80,000, Pastor Jonathan Kelley accepted the benefit conferred

on him, albeit involuntarily, by Ms. Brown.

- 20 -

114.

By refusing to return the $80,000, and by concealing the use of the money, Pastor

Jonathan Kelley has retained the benefit conferred on him by Ms. Brown in circumstances that
render it inequitable for him to retain the benefit without paying for its value.
115.

To avoid such unjust enrichment, Ms. Brown is entitled to restitution in the full

amount of this $80,000 benefit.

COUNT V
(Unjust Enrichment - Pastor Charla Kelley)
116.

Plaintiff incorporates by reference herein all the allegations set forth in

Paragraphs 1 through 115.

117.

Pastor Jonathan Kelley solicited a loan of $80,000 from Ms. Brown, representing

that the loan proceeds would be used by CWC in connection with the property, which he
knew Ms. Brown would understand to refer to the Ordway Road Property and CWCs efforts to
construct a church there.
118.

Pastor Jonathan Kelley did not advance to CWC the $80,000 loan proceeds that

he received from Ms. Brown. Instead, Pastor Jonathan Kelley deposited the loan proceeds into
his and Pastor Charla Kelleys own, personal bank account, and he and Pastor Charla Kelley
used the loan proceeds to fund their personal extravagant lifestyle.
119.

Pastor Charla Kelley concealed from Ms. Brown that the $80,000 had not been

used by CWC in connection with the construction of a church building on the Ordway Road
Property and that she and Pastor Jonathan Kelley had used the funds to pay for their extravagant
lifestyle.

- 21 -

120.

By providing Pastor Jonathan Kelley the sum of $80,000, which was ultimately

retained by both Defendants in their personal bank account, Ms. Brown conferred a benefit on
Pastor Charla Kelley.
121.

By accepting the $80,000, Pastor Charla Kelley accepted the benefit conferred on

her, albeit involuntarily, by Ms. Brown.

122.

By refusing to return the $80,000, and by concealing the use of the money, Pastor

Charla Kelley retained the benefit conferred on her by Ms. Brown in circumstances that render it
inequitable for her to retain the benefit without paying for its value.
123.

To avoid such unjust enrichment, Ms. Brown is entitled to restitution in the full

amount of this $80,000 benefit.

COUNT VI
(Nondischargeability of Debts)
124.

Plaintiff incorporates by reference herein all the allegations set forth in

Paragraphs 1 through 123.

125.

Defendants did not schedule Plaintiff as a creditor in their bankruptcy case and

did not include Ms. Brown as a notice party on their Creditor Matrix. As a result, Plaintiff did
not receive notice of the Kelleys Bankruptcy Case.
126.

Plaintiff did not have actual knowledge of the Kelleys Bankruptcy Case before

June 27, 2011, the deadline to bring a Nondischargeability Action.

127.

Plaintiff did not have any reason to believe that she was a creditor of Defendants

prior to June 27, 2011, the deadline to bring a Nondischargeability Action.

128.

As set forth in Counts I-V, Defendants debt to Plaintiff is of a kind specified in

Bankruptcy Code section 523(a)(2)(A).

- 22 -

129.

Defendants debt to Plaintiff is nondischargeable under Bankruptcy Code section

523(a)(3)(B) and was therefore not discharged in the Kelleys Bankruptcy Case.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff respectfully prays that this Court enter judgment in its favor and
against the Defendants and that the Court:

award Plaintiff damages sustained as a result of Pastor Jonathan Kelleys

fraudulent conduct in an amount to be determined at trial, but which in any event
exceeds $80,000 in compensatory damages as to Count I, and punitive damages
up to $350,000, to be paid jointly and severally by Defendants;

award Plaintiff damages sustained as a result of Pastor Jonathan Kelleys

fraudulent concealment in an amount to be determined at trial, but which in any
event exceeds $80,000 in compensatory damages as to Count II, and punitive
damages up to $350,000, to be paid jointly and severally by Defendants;

award Plaintiff damages sustained as a result of Pastor Charla Kelleys fraudulent

concealment in an amount to be determined at trial, but which in any event
exceeds $80,000 in compensatory damages as to Count III, and punitive damages
up to $350,000, to be paid jointly and severally by Defendants;

award Plaintiff restitution in the amount of $80,000 to avoid the unjust

enrichment conferred upon Pastor Jonathan Kelley as a result of his retention of
the $80,000 loaned by Ms. Brown to CWC, to be paid by Pastor Jonathan Kelley;

award Plaintiff restitution in the amount of $80,000 to avoid the unjust

enrichment conferred upon Pastor Charla Kelley as a result of her retention of the
$80,000 loaned by Ms. Brown to CWC, to be paid by Pastor Charla Kelley;

- 23 -

determine that Defendants debt to Plaintiff is nondischargeable under

Bankruptcy Code section 523(a)(3)(B);

award Plaintiff all costs incurred in pursuing this action, including attorneys fees
and costs, and pre- and post-judgment interest, to be paid by Defendants;

grant such other and further relief as the Court may deem just and proper.
JURY TRIAL DEMAND

Plaintiff demands a trial by jury on all counts and causes of action so triable.
Dated: May 28, 2014
Respectfully submitted,

____________________________
David P. Metzger (VSB 22869)
C. Scott Morrow (VSB 65764)
Kristen R. O. Riemenschneider (VSB 73360)
Dana Y. Elliott (admitted pro hac vice)
ARNOLD & PORTER LLP
555 Twelfth St. N.W.
Washington, D.C. 20004
202.942.5000 (direct)
202.942.5999 (fax)
David.Metzger@aporter.com
Scott.Morrow@aporter.com
Kristen.Riemenschneider@aporter.com
Dana.Elliott@aporter.com
Counsel for Plaintiff Gertrude Brown

- 24 -

CERTIFICATE OF SERVICE
I hereby certify that on this 28th day of May, 2014, a true and accurate copy of the
foregoing was served via e-mail and first class mail to the following individuals:
Jonathan Merrill Kelley and
Charla Kay Kelley
9275 Sumner Lake Blvd.
Manassas, VA 20110-4682
mtvt7@aol.com
loveoasis838@gmail.com
Defendants

Kristen Riemenschneider

- 25 -