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Debbie Dujanovic ReportingAn Eyewitness News investigation today prompted state licensing officials to shut down a program operated by a local church, for a large number of wide-ranging violations.
Investigative Reporter Debbie Dujanovic uncovered exploitation of labor, paying men 28-cents an hour, violations the State found as a result of our two-month investigation.
The men in our report, thought they'd found a support program that would help them keep the faith, find a job and give them shelter, while they turned their lives around. Here's what we uncovered about a pastor and his flock.
Pastor Steve Sandlin: "I don't trust you. I don't have any confidence that you are reporting the truth at all."
Pastor Steve Sandlin runs Central Christian Church in Salt Lake. On one floor he delivers the word of God.
Pastor Steve Sandlin: "I pray that you would open our eyes to see just how terrible sin is. Who is the truth? Jesus is the truth."
On another, he reaches out to homeless men, men on parole, through a church shelter called House of Refuge. It's a state licensed program promising Christian values and life skills. Judges send men there, state agencies drop them off. What they might not know is what's down in the basement.
Documents show the Pastor runs a private business, Transmetron.
James Johnson, Former Homeless Man: "The pastor ownsthe company, Pastor Steve."
Men told us they're forced to sign contracts.
James Auston, Court Ordered to Program: "He'll stand up and threaten, 'We'll just put you back in jail, contact your probation officer.' He threatens us with jail all the time."
James Johnson: "I wasn't in a place to try and say anything because I had no other place to turn."
James Auston: "I was referred up here, thinking that this program was something else that it's not."
The men say they work in an area of the church basement. It's one room, with two Transmetrons. On one side is Transmetron Staffing Agency. The men say if they find work outside the church, the company collects a fee. On the other side, they say they work as telemarketers.
Former House of Refuge Resident: "What we do is sell drug testing supplies."
James Johnson: "On any given day I probably make 150 calls, most of them cold calls."
Their pay?
John Rupp, Court Ordered to Program: "For the first three and a half weeks I was there, I believe I was making 58-cents an hour."
James Auston: "My pay? I'm making $1.28 an hour." Debbie Dujanovic: "You're working 40 to 50 hours a week?"
House of Refuge Client: "Yeah, I make $60 a week."
And he says the men don't get paychecks, but receipts, because the contract says whatever they do make must be donated back to the program. Do it for six-months and the contract states, they get a "love offering," part of your donation back. Except Leo Duran says he got kicked out with days to go.
Leo Duran, Former House of Refuge Resident: "When he threw me out, I had to go back on the streets, live with my friends, and start over."
We took our investigation to six state agencies, our first stop the Labor Commission.
Brent Asay, Utah Labor Commission: "Based on what you've told me, it would appear this is something for us to look into."
After our visit, the company was put on notice: follow state law, pay minimum wage -- $5.15 an hour, and make up back pay.
Pastor Steve Sandlin: "I'm paying the residents $5.15 an hour."
Reporter: "Since when? Since the Labor Commission made the ruling?"
Pastor Steve Sandlin: "Yes, that's right."
Next was Consumer Protection. Investigators went to see why there's a phone bank in the church basement.
Francine Giani, Division of Consumer Protection: "They are not registered to do business in the state of Utah as telemarketers."
Based on our investigation, the Department of Human Services launched its own. Tonight they issued a revocation notice. The report cites exploitation: using the men's labor for personal gain.
Ken Stettler, Dept. of Human Services: "If you're going to be in this program, this is who you will fork for and this is what you will be paid, and so they didn't have an option."
The state plans to revoke the license in 10-days, but it can request a hearing.
Because of our investigation, other agencies took action. The Justice system and Corrections department authorized men to get out of the program and the Utah Food Bank cut off its free food deliveries, concerned the men were being charged for food.
