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JIM BAKKER'S FALL from a man of God to a man of fraud marked one of the largest religious swindles in history. Bakker, born in Muskegon, Michigan, in 1940, sowed his share of wild oats as a youth but eventually settled down to study the ministry. Inspired by an Oral Roberts's revival meeting, Bakker decided to pursue the profitable combination of religion and show business.

In the early 1960s, Bakker, along with his wife Tammy Faye (who was easily recognized by her liberal use of make-up and colorful eye shadow), worked with Pat Robertson on the Christian Broadcasting Network (CBN) and developed a successful children's show.

After an acrimonious break from CBN, the Bakkers partnered with Paul Crouch and the Trinity Broadcasting Network to air a daily talk show hosted by the husband-wife team called “Praise the Lord” (PTL). After a falling-out with Crouch, the Bakkers transformed PTL (now tagged People that Love) into a late-night, talk-show program in 1974. Within two years, the PTL show was being broadcast on 70 commercial stations and 20 cable services, and boasted more than 13 million viewers. The Bakkers also owned a 2,300-acre Christian theme park in Charlotte, North Carolina, that grossed $130 million annually.

The ministry continued to grow, despite an uncomfortable and often hostile relationship with the Federal Communications Commission (FCC) over improper financial practices. The first large-scale scandal occurred in 1979 after PTL raised $350,000 to upgrade its overseas television and diverted the money to pay the Bakkers' personal bills.

The FCC's attempt to prosecute resulted only in administrative sanctions. The Bakkers attracted an even higher level of attention after additional rumors of wrongdoing emerged in 1987. Jim Bakker admitted having a one-night sexual encounter with 21-year-old Jessica Hahn, a former church secretary. Hahn's claim of sexual misconduct resulted in a $265,000 pay-off and PTL was now dubbed “Pay the Lady.”

Tammy Faye Bakker's drug dependency also became public, and meanwhile the Internal Revenue Service (IRS) revoked PTL's tax-exempt status. In the wake of the scandals, Jim Bakker resigned from PTL and was defrocked by the Assemblies of God Church. In 1988, Jim Bakker was charged with diverting millions of dollars from the PTL ministry to his personal use.

As details became public, the sordid particulars of the couple's extravagant lifestyle shocked the religious and secular worlds. The Bakkers' accumulated assets included: a house in Palm Desert, California, valued at $600,000; a house in Gatlinburg, Tennessee, renovated at a cost of $340,000; a $600,000 condominium in Florida with $60,000 worth of gold fixtures; a $500,000 house in Palm Springs, California; a collection of Rolex watches; three Mercedes; his and hers Rolls Royces; a $6,000 playhouse for their children; and an air-conditioned doghouse for Tammy's Saint Bernard dog.

Jim Bakker used his television show and directmail advertisements to induce followers to become life-time lodging partners in the Heritage USA theme park. A “gift” of $1,000, for example, allowed a member to stay free in the Grand Hotel for four days and enjoy a vacation of religious activities. Bakker sold 66,683 fully paid partnerships in the Grand Hotel though he originally had limited the lodging sales to 25,000. The partnership programs for the Grand Hotel ranged from $500 to $10,000 and netted approximately $67 million for the Bakkers.

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