Are LSM and DCP separate and independent or joined at the hip?
The SPIN
Benson Phillips said that LSM is separate from DCP: "The Living Stream Ministry does not control or direct the DCP. They have their own brothers and corporation and offices and directors. They take care of their own work. LSM is a separate entity. LSM is LSM; DCP is DCP." [Washington, D.C., Nov. 2006]
The FACTS
However, consider the following facts:
Interlocking directorates: Andrew Yu and Dick Taylor were listed as directors of DCP by California’s Office of the Attorney General and DCP’s IRS tax records for 2002 and 2003. Andrew Yu and Dick Taylor also serve as directors of LSM.
Financial dependence:
According to publicly-available IRS tax records, LSM contributed $130,000 to DCP in 2002. LSM funds accounted for 34% of DCP’s total receipts that year.
According to IRS tax records, LSM contributed $108,000 to DCP in 2004 (even when Andrew Yu & Dick Taylor no longer sat on DCP’s board). LSM funds still accounted for 12% of DCP’s total receipts in 2004.
During the 3-year period from 2002- 2004, LSM contributed over $250,000 to DCP.
Do LSM and DCP really "have their own directors"? Can a reasonable observer conclude that LSM and DCP are financially independent? Did Benson tell the whole truth when he said, "LSM is a separate entity. LSM is LSM; DCP is DCP"? Legally, LSM and DCP may be separate corporations, but the facts show that they are actually and practically joined at the hip.