Attorney General Looking Into Jesus House for Possible Mismanagement of Funds

By Rusty Surette, NEWS 9

OKLAHOMA CITY -- A spokesman for the Oklahoma Attorney General's Office said the agency is looking into accusations of mismanaged money flowing through the Jesus House.

According to the non-profit organization's website, Jesus House is an inner city, non-denominational, non-profit Christian outreach providing shelter, food, clothing, and goods to the community's needy. Every penny that comes into the building is donated, so it can be tough at times to house and feed the nearly 80 homeless and mentally ill residents who call the Jesus House home.

"It's kind of a difficult situation right now," said Executive Director Jan Mercer. "We're completely out of funds and overdrawn at the bank."

Mercer said Jesus House is about $1,500 in the hole and the group is behind on utility bills.

"We're like the poor helping the poor over here," Mercer said.

Not so, said at least one person who sent NEWS 9 and the Attorney General's Office an anonymous letter. The letter states Mercer is far from poor, and some of the money being donated to Jesus House is going right into her pockets.

Mercer, 59, strongly denies those allegations even though she admitted to driving a luxury vehicle and lives in a $1,600 a month high-rise luxury condo in Oklahoma City. Mercer said she also pays a mortgage on a home on N.W. 24th Street. When asked about her living quarters, Mercer said her home is being rented out to her son and she's staying at the condo for security reasons.

That, however, could easily be traced back to her annual salary.

According to Form 990 documents Jesus House has filed with the federal government, Mercer's salary in 2008 totaled $154,295. That's nearly a $53,000 pay raise from what she was making in 2007.

Financial statements for 2009 were not available for viewing.

Mercer said her salary changes every year because she's entitled to receive 12 percent of the funds that come into Jesus House. That figure is set by the Jesus House board of directors.

"It sounds like good money, but I haven't been paid in a month because donations aren't coming in," Mercer said.

Mercer added that some of her salary goes to help others, and she's doing several jobs lately due to layoffs. She said she has an idea where the letter might have come from.

"Yeah. A disgruntled employee," she said.

To put it into perspective, comparing Mercer's salary with that of other executive directors of similar centers, Mercer makes more money even though the other executives' non-profit organizations take in millions of dollars more than Jesus House. In 2007 the head of the City Rescue Mission, took a total compensation package of $85,000. The head of the John 316 Mission in Tulsa took home $91,00 in 2008.