A class action has been filed against accounting firm Ent & Imler Group, P.C. (ENTCPA) and certain of its officers and directors by stockholders who purchased investment notes offered by the firm on behalf of the Church Extension of the Chruch of God (CEG) between April 30, 1998 and April 30, 2002. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated December 13, 2004, the complaint charges Ent & Imler, which acted as CEG's independent auditors from December 1997 to September 2002, with violating the federal securities laws by certifying CEG's consolidated financial statements which were made a part of certain Offering Circulars, with Ent & Imler's approval, and otherwise helping to prepare the Offering Circulars. The complaint alleges that the Offering Circulars, including the consolidated financial statements, contained fraudulent misrepresentations and omissions that misled stockholders and concealed CEG's true financial condition, including misrepresenting that the proceeds from the sale of Investment Notes would be used primarily to fund church loans and that CEG maintained a reserve of liquid assets equal to a percentage of CEG's outstanding note obligations, and omitting information that CEG was engaging in a series of high-risk "bargain sale" transactions using inflated appraisals and other means to exaggerate the value of the properties or businesses acquired by CEG.