UPDATED::2 members of secretive Word of Faith sect charged in benefits scheme

UPDATE::  Member of secretive church pleads guilty in benefits scheme

A member of a secretive North Carolina church pleaded guilty Friday to taking part in an unemployment fraud scheme benefiting businesses with ties to the congregation.


Diane McKinny appeared before a federal judge and admitted to a count of making a fraudulent claim for unemployment benefits, according to court filings. The charge carries a maximum sentence of five years in prison. The online docket didn’t immediately list a date for sentencing.


McKinny was the fourth person to plead guilty as part of an investigation into the scheme involving multiple businesses linked to Word of Faith Fellowship in Spindale.


Her employer Kent Covington, who was also a Word of Faith minister, was sentenced last month to 34 months in prison on a charge of conspiracy to commit mail fraud. Two others listed on a church website as ministers have been sentenced to probation after admitting fraud at a podiatry clinic.

UPDATE::  Minister at secretive N Carolina church sentenced for fraud

A minster at a secretive church in rural North Carolina has been sentenced to 34 months in prison, plus two years supervise release and ordered to pay more than $466,000 in restitution for his role in an unemployment fraud scheme involving businesses owned by church leaders.

Marion Kent Covington is a minister at the Word of Faith Fellowship in Spindale. He was sentenced Thursday in U.S. District Court in Asheville on one count of conspiracy to commit mail fraud.

The development follows an investigation by The Associated Press that documented claims of fraud and abuse at the church.

UPDATE;;  Head of secretive North Carolina sect named in fraud scam

The leader of a secretive church in North Carolina has been named in federal court records as someone who “promoted” an unemployment fraud scheme involving businesses owned by members of her congregation.

Jane Whaley, leader of the Word of Faith Fellowship, was named in a document filed Thursday in U.S. District Court in Asheville that describes a fraud conspiracy charge faced by one of her trusted advisers, Kent Covington.

In a 2017 investigation into claims of physical and emotional abuse at the church in Spindale, The Associated Press reported that authorities were looking into the unemployment claims of congregants and their businesses.

Whaley was named in a document that describes the fraud conspiracy charge faced by Covington, a church minister. His lawyer, Stephen Cash, said his client was expected to plead guilty in the case next week.

UPDATE::  2 members of secretive sect plead guilty to fraud charges

Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, pleaded guilty to one count each of wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. They were charged earlier in May. Both men are pictured on the Word of Faith Fellowship's website under a section for pastors and ministers, though the church was not mentioned during the hearing.

Other than the men's spouses, no church members attended Friday's hearing in federal court in Asheville.

Jerry Gross owned the Foot & Ankle Center of the Carolinas in Forest City, North Carolina. His son worked there, managing business operations, including payroll and personnel decisions, according to court records.

As part of his plea deal, Jerry Gross agreed to cooperate with the government. The criminal investigation into Word of Faith is ongoing. Former church member John Huddle of Marion said Friday he was interviewed several months ago by state criminal investigators and U.S. Department of Homeland Security agents. He said he was asked not to discuss the topic of his interview.

Two members of a secretive evangelical church in North Carolina were charged Friday in an unemployment benefits scheme that former congregants have said was part of plan to keep money flowing into the church despite the struggling economy.

As part of an ongoing investigation into physical and emotional abuse at the Word of Faith Fellowship Church in Spindale, the Associated Press reported in September that authorities were looking into the unemployment dealings of congregants and their businesses.

Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, were charged with wire fraud in U.S. District Court in Asheville. They were both charged in a criminal bill of information, which generally means defendants have agreed to waive indictment and plead guilty. They will appear in court May 25.

Jerry Gross owned the Foot & Ankle Center of the Carolinas in Forest City. His son worked there, according to court records.

2 members of secretive Word of Faith sect charged in benefits scheme