Newspaper Article

Did minister skip tax?
By Bill Alnor
Delaware County Daily Times August 5, 1986

The Rev. Frederick Drummond allegedly avoided paying about $2,600 in Pennsylvania sales taxes by using a kitchen modeling firms federal tax number when he paid a Rolls Royce refurbishing bill, the Daily Times has learned.

The state Revenue Department has begun an inquiry into the transactions which allegedly occurred in 1983 and 1984.

According to Ralph Pruiett, vice president of AI Pruiett and Sons, Inc, of Glen Rack, York County, Drummond, pastor of the Church of Our Saviour in Concordville, told him he had a "tax exemption number" for an out-of-state firm . The bill for restoration work on his Rolls Royce in 1983 and 1984 was more than $43,000.

The federal tax exemption number Drummond furnished him with was "23-2181338," Pruiett said. A check with the state Revenue Department revealed that the number belonged to the "Durawood of Delaware" firm and was registered at an address in Long Island, N.Y.

Durawood was a Delaware Corporation which was almost entirely staffed by members of Drummond's church and of which Drummond bragged to be "Chairman of the Board". In a recent interview, however, he disclaimed any involvement saying "I had nothing to do with" Durawood. The car on which the work was done was leased by Drummond personally and not by the Durawood firm according to Essex Leasing Inc., the care lessor.

By using the number of the Delaware firm, Drummond avoided paying, the 6 percent Pennsylvania sales tax. Delaware has no sales tax.

Drummond did not return a phone call inquiring about the taxes on the Rolls.

"Someone along the line should pay that sales tax," said Pruiett, explaining the transaction.

"He didn't pay us and he used that tax number as the reason -- the Durawood sales tax number."

Pruiett said that when he explained to Drummond that about $2,600 in sales tax was due, Drummond said he had a "tax exemption number" and that he'd bring it when he came to pick up the car.

"Seventy percent of our customers are outside the state.

Dr. Drummond wasn't. But he said 'I have a number and I'll bring it,'"- Pruiett said.

State sales tax laws allow for out-of-state residents and businesses purchasing items in the Commonwealth or having various services performed on a product to be returned to their state to pay that state's sales tax rates to avoid Pennsylvania's sales tax.

Susan Cassel of the Pennsylvania Revenue Department said that car restoration work done in Pennsylvania even for out-of-state corporation was still subject to a sales tax.

If an individual didn't pay the sales tax in Pennsylvania, a sales tax would have to be paid to the second state, she said. The only exception, however, is Delaware which has no sales tax.

Minister Claimed no ties to firm
BETHEL - The Rev. Frederick Drummond's alleged use of the Durawood of Delaware Inc.'s federal tax number to avoid sales tax on his polls Royce restoration work contradicts public documents and statements by the pastor who told the Daily Times he had nothing to do with the Durawood firm.

Corporation records reveal Durawood's officers were David Durham and Richard Price, both members of Church of Our Saviour. Durham is the brother-in-law of Drummond's wife Lorraine.

Dozens of companies nationwide have filed suits against the Durawood kitchen remodeling firm alleging that the company didn't pay its bills and owes them thousands of dollars.

Numerous former members of the church have said Drummond controlled Durawood which was staffed almost entirely by church members who were recruited under the belief that the Durawood profits were to be used to send missionaries around the world.

No missionaries were ever sent out, the former members claim The Daily Times has learned that when Durawood was formed it did well for a short time and the South African-born minister frequently bragged from the pulpit that he was "chairman of the board of a nationwide company"

Court records show that during the Durawood upswing, Drummond leased a 1963 Silver Cloud Rolls Royce with am option to purchase the luxury car.. This was m addition to his late model $35,000 Jaguar.

According to Don Van Staat of the Essex Leasing Company, on his credit application dated Sept, 20, 1982 Drummond stated he was "owner of Durawood of Delaware Inc."

Reverend fighting to keep Rolls
CONCORD - The Rolls Royce leased by the Rev. Frederick Drummond is being repossessed, according to an official of the Essex Leasing Company, the firm that owns the luxury car.

And Drummond, the controversial minister of the Church of Our Saviour in Concordville, is tenaciously fighting the action, company officials say.

He has the car locked in the garage of his mansion and is demanding a court order before he'll give it up, according to Don Van Staat of the leasing company which is based in Essex Conn.
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Twice in the past two weeks a local car recovery firm has been dispatched to Drummond's residence at 2089 Foulk Road only to be thwarted in its attempt to recover the car.

The car recovery firm has bee sent to the home by the Essex firm and the New England Savings Bank which is seeking to recover its lease collateral, according to Van Staat.

The New England Savings Bank has responded to Drummond's alleged demand for a court order, by retaining Media attorney Arnold Rubin who is seeking a replevin order to get the car back.

A replevin order allows a filing party to take possession of the item in question before the matter goes to further litigation.

Drummond did not return several telephone calls to his residence inquiring about the repossession action.

In a recent interview with the Daily Times Drummond said he had given the car to the church. During a sermon in December 1985 Drummond displayed what appeared to be a car title, declared he didn't want his Rolls any longer, then placed the paper into the offering basket, former church members say.

"How many people do you know who gave away a $17,000 car?" Drummond recently asked a reporter.

Van Staat said the paper Drummond allegedly placed to the offering basket couldn't have been the title since he holds the title of the car.

Van Staat said the reason for the repossession action is that Drummond is two months 'in default" with his payments of $744.92 per month. He also said Drummond apparently has tax liens against his property which voids the lease agreement.

The official added that Drummond called him three times in the past week to try to prevent the repossession action.

"He was very smooth and he tried to convince me not to do it, "said Van Staat.

"I said to him, You told the papers you gave the Rolls Royce to the church, and on your credit application you said you owned the Durawood Company but you told the papers you had nothing to do with Durawood;" Van Staat said recalling the conversation.

'He (Drummond) said 'I was owner Durawood, but I divested myself of it' and 'You know how the papers are,'" said Van Staat, recalling his conversation with Drummond on Thursday.

Van Staat said that Drummond owes about $21,000 on the car which includes about $14,000 his firm lent him to have major refurbishing work done on the vehicle in 1983 and 1984.