On April 28, 1987, Rev. Jerry Falwell, who had replaced Rev. Jim Bakker as chairman of the PTL organization when Mr. Bakker had resigned in March because of a sex scandal, announced that the PTL board of directors had cut off all income to Mr. Bakker and his wife Tammy Faye; had obtained the resignation of Rev. Richard Dortch, PTL president and a longtime associate of Mr. Bakker; and stopped payments from a $265,000 fund established for Jessica Hahn, the church secretary with whom Mr. Bakker had had sex in 1980. Mr. Falwell said that PTL was $50 million in debt.
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