You have me wondering if this guy started the church by himself, or if it is affiliated with some denomination.
If it is affiliated with some denomination, it would seem wise to me to contact your pastor's superiors and tell them what is happening. If the pastor started the church himself, with no connection to any other church, then you might find yourself a better church. Actually, you are always free to look for a church more to your liking.
You could also sit down and try to talk some sense into him. If he repents, fine. If not, do what you have to do, but don't give him a penny, and tell your friends not to give him a penny.