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An Upper Marlboro couple is suing their former church, The Soul Factory, for more than $7.7 million in financial and emotional damages, claiming they spiraled into bankruptcy after church leaders failed to repay more than $886,500 the couple says they gave to the church.

Deron Cloud, who founded the Forestville church in 1996, and others named in the suit deny any wrongdoing, saying money given by the couple, Jose and Yvette Strickland, was a gift.

The 3,000-member church is known for non-traditional services infused with music and popular theatrical productions. It also has a satellite location in Stone Mountain, Ga., just outside of Atlanta.

The Stricklands, members of the church from 2000 to 2006, claim the failure of the church to repay money they claim they loaned forced them to declare bankruptcy, destroyed Jose Strickland's real estate business and caused their family severe emotional distress.

No loan agreement was ever put into writing, according to the Stricklands' lawsuit, since the couple said they trusted Cloud, as their spiritual leader, to honor an alleged verbal agreement.

"We've been through hell and back," Jose Strickland said.

Cloud said Tuesday he has documented proof that the Stricklands made strictly charitable donations and the amounts they gave was far less than the $886,500 quoted in the lawsuit.

"Had we received anything near that, there would have been no reason to raise a building fund," Cloud said, referring to fundraising efforts in 2006 to establish the Stone Mountain location. "And never, never would I receive a loan and not ... sign any papers."

Cloud's attorney, Timothy Obitts, of McLean, Va., said he is preparing to file a motion to dismiss the lawsuit. Obitts is representing Cloud and his wife, Jill Cloud, who live in Forestville; church members Rivion and Aretha Johnson of Brandywine; and church members Joseph and Asia Stoddard of Upper Marlboro, all of whom are named in the suit.

The Johnsons and Stoddards, whom Cloud said were also involved in the church's financial dealings, did not return requests for comment.

According to court records, no further action has been scheduled yet on the case.

According to the Strickland's lawsuit, the couple began attending services regularly in 2000. They became active members of the church and were included in Cloud's social circle, traveling to Las Vegas and Atlantic City, N.J., and attending sporting events with Cloud and other members.

In March 2006, Strickland said Cloud called him asking for $1.5 million to help them establish the Stone Mountain church.

Strickland said he and his wife agreed, pulling together whatever cash they had available and taking out loans with a private lender, Ed Laos, against seven properties they owned in Maryland and Washington, D.C. By December 2006, Strickland said his family lent Soul Factory about $886,500.

Laos could not be reached for comment.

Strickland said he and Cloud, Joseph Stoddard and Rivion Johnson came to a verbal agreement that the church would pay back the loan.

"I've done business with a handshake before and never had trouble before," he said. "I was a member of the church, I trusted [Cloud]."

According to the lawsuit, the Stricklands allege church leaders made nine payments of unknown sums of money to Laos but stopped making payments by mid-2007.

The Strickland's attorney, Michael Trevelline of the District, said the checks or other documents related to those nine payments include the name of the church or someone connected with the church, although he has not seen them yet.

Jose Strickland said he continued asking Cloud and other church leaders to repay the loan with no success. All seven properties that had loans taken out against them have either been foreclosed or foreclosure is pending.

According to the lawsuit, the Stricklands are suing for $6.7 million in unpaid money, lost property and other related financial losses. The Stricklands are also suing for $1 million in punitive damages based on claims that Cloud and others with the church knowingly committed fraud.

"Why in the world would someone... put themselves in financial jeopardy if there weren't some type of understanding," Trevelline said.

Cloud called Strickland's version of events "untrue." He said Jose Strickland approached him in 2006 with a pledge for a donation that was less than $886,500, but Cloud declined to reveal the amount.

According to Cloud, when it came time to collect on pledges, Strickland told Cloud he was facing financial hardships and would have trouble fulfilling the full amount of the pledge.

Cloud said church officials agreed to help Strickland by making a payment on a loan he owed to a private lender — Cloud did not know whether the loan was related to the Stricklands' donation — with the understanding Strickland would then be able to fulfill his pledge.

After the Stone Mountain church opened in 2007, Cloud said Jose Strickland asked him for his donation back, claiming he was facing further financial troubles and needed the money. Cloud said he told Strickland he could not do that.

"The name of the church and my name will be vindicated," Cloud said.