Chicago pastor charged with bilking federal program to feed needy kids, spending $142,000 on a Bentley for himself - Chicago Tribune

Smith, who has led the New Life Impact Church in the Lawndale neighborhood for years, has been indicted on charges alleging he stole hundreds of thousands of dollars from a federal program intended to feed needy children, spending the money on a $142,000 Bentley luxury vehicle and other personal expenses.

It’s not the first time that Smith, 45, has been accused of financial malfeasance. Nearly a decade ago, he pleaded guilty in DuPage County to using forged signatures to swindle an elderly man’s estate out of more than $100,000, court records show.
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The indictment against Smith alleged he defrauded the federal Child and Adult Care Food Program that is administered locally by the Illinois State Board of Education and intended to provide meals for children in impoverished neighborhoods.

Chicago pastor charged with bilking federal program to feed needy kids, spending $142,000 on a Bentley for himself - Chicago Tribune

UPDATED::College President Pleads Guilty Before Arkansas Fraud Trial | Arkansas News | US News

UPDATE::  Former Arkansas State Senator Sentenced To 220 Months In Federal Prison For Wire Fraud, Mail Fraud And Money

Former Arkansas State Senator Johnathan Woods was sentenced today to 220 months in prison for organizing and leading a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, many of which were funneled through a consultant’s business, announced U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, FBI Special Agent in Charge Diane Upchurch and IRS Special Agent in Charge Tamera Cantu.

The president of a Christian college in Springdale pleaded guilty to a fraud charge Wednesday, admitting he took part in what prosecutors called a kickback scheme involving his school.

Oren Paris III had faced a trial Monday with former state Sen. Jon Woods and consultant Randell Shelton. Instead, the president of Ecclesia College pleaded guilty in federal court.

Prosecutors say Paris paid kickbacks to Woods and then-Rep. Micah Neal in return for $550,000 in state grants in 2013-14, using Shelton's consulting firm as a go-between. Neal pleaded guilty last year but has not been sentenced.

College President Pleads Guilty Before Arkansas Fraud Trial | Arkansas News | US News

Former LA church chairman charged with $11.4M theft - SFChronicle.com

The former board chairman of the Fifth Church of Christ, Scientist in Los Angeles has been charged with stealing $11.4 million and using it for personal expenses, including buying a home and a membership to an exclusive dining club at Disneyland.

Fifty-four-year-old Charles Sebesta of Huntington Beach was arrested Monday on a federal grand jury indictment alleging wire fraud, bank fraud and identity theft.

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Prosecutors say for at least a decade beginning in 2006, Sebesta had money sent to bank accounts in his name, the names of his family members and several phony companies.

Former LA church chairman charged with $11.4M theft - SFChronicle.com

Florence pastor sentenced to four years in prison for fraud | WPDE

Tony McElveen, Sr. has been sentenced to more than four years in prison followed by two years of supervised release, according to a news release from the Eastern District of the North Carolina Department of Justice.

McElveen was also sentenced to pay full restitution and ordered to forfeit $107,390.

On May 30, 2019, he pled guilty to bank fraud and aggravated identity theft.

According to the news release, McElveen used his position as BB&T branch manager, in Rowland, to steal the personal identifiers of two elderly customers to fraudulently obtain loans and credit cards in their names.

Florence pastor sentenced to four years in prison for fraud | WPDE

Disgraced pastor accused of not paying back $50K loan from...

A Starke couple turns to the I-TEAM after they say their trusted pastor failed to pay them back after loaning him thousands of dollars. The pastor is Kyle Harrison -- the same pastor that has been at the center of numerous I-TEAM investigations over the past few years.

At the time of the loan, Harrison was the senior pastor at Harvest Church in Starke. Mike and Charlene Oliver trusted him so much, Mike agreed to loan Harrison $50,000 as an investment into Harrison's business, Transformation Ministries.
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The Olivers now say they believe Harrison took advantage of Mike's medical condition and never thought he would have to pay back the money because Mike was so sick.  

Disgraced pastor accused of not paying back $50K loan from...

Bronx pastor accused of fleecing Harlem nonprofit to fuel lavish lifestyle

The CEO of a tax-payer funded nonprofit that serves some of the city’s neediest city populations bilked the organization out more than half a million dollars to fund lavish vacations and high-end dinners, prosecutors said.

Reginald Williams, 67, allegedly hatched a series of schemes to rip off the the Addicts Rehabilitation Center Foundation, which he ran, and a related group called the Addicts Rehabilitation Center Fund.

Both groups provide social services and housing to drug addicts and those living with HIV and AIDS.
Williams is also the longtime pastor of the Charity Baptist Church in the South Bronx.

 Williams also enlisted the help of co-defendants Naomi Barrera, 42, the current president and CEO of the ARC Foundation, and Bennie Hadnott, 74, a financial consultant, to pull off the schemes.

Bronx pastor accused of fleecing Harlem nonprofit to fuel lavish lifestyle

Judge to sentence woman who spent investor money on prayers - ABC News

A Maryland investment adviser was sentenced Wednesday to 20 years in prison for defrauding investors out of millions of dollars, some of which she spent on astrological gems, cosmetic medical procedures and religious rituals in India.
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Jurors heard testimony that Bennett used investors' money to pay more than $800,000 for prayers by Hindu priests in India to ward off federal investigators while her business was collapsing. Bennett paid a man in Washington state to arrange for the rituals while she faced a Ponzi scheme investigation by the U.S. Securities and Exchange Commission.

"I am in a very very tough fight going against my enemies and I need all the help I can get," Bennett wrote in an email to Puja.net website operator Benjamin Collins.

Investigators also discovered evidence in Bennett's home in Chevy Chase, Maryland, that she tried to silence SEC investigators by casting "hoodoo" spells, according to an FBI agent's affidavit. Agents found instructions for placing people under a "Beef Tongue Shut Up Hoodoo Spell" and found the initials of SEC attorneys written on the lids of Mason jars stored in Bennett's freezers, the affidavit said. Hoodoo is a set of magical or spiritual practices and beliefs with origins in West Africa.

Judge to sentence woman who spent investor money on prayers - ABC News

UPDATED::Kirbyjon Caldwell - Houston megachurch pastor and spiritual adviser to George W. Bush - indicted on fraud charges - Houston Chronicle

 UPDATE::  Guilty plea in fraud case; megachurch pastor awaits trial

A Louisiana investment adviser pleaded guilty Tuesday to conspiracy to commit wire fraud in a $3.5 million case that also involves a minister who was once a spiritual adviser to former President George W. Bush.

Gregory Alan Smith, 55, of Shreveport, is scheduled for sentencing Dec. 11, U.S. Attorney David Joseph said in a news release.

The sentencing date is nine days after the scheduled start of trial for Kirbyjon Caldwell, who officiated at the 2008 wedding of Bush’s daughter Jenna and remains pastor of Windsor Village United Methodist Church, a Houston megachurch.

Smith and Caldwell were charged last year on 12 counts each of wire fraud, conspiracy and money laundering. Caldwell has pleaded not guilty.

 A prominent Houston pastor and spiritual adviser to President George W. Bush has been indicted on federal charges that he sold millions of dollars in worthless Chinese bonds to elderly and vulnerable investors, according to federal authorities.

Kirbyjon H. Caldwell, 64, and Shreveport financial planner Gregory Alan Smith, 55, were charged with 13 counts of conspiracy, wire fraud and money laundering.

Caldwell is accused of using his position as the senior pastor of the Windsor Village United Methodist Church to help lure nearly $3.5 million in investments into historic Chinese bonds that are not recognized by the Chinese government. He and Smith told investors they could see returns as high as 15 times their initial investment, according to the indictment.

Kirbyjon Caldwell - Houston megachurch pastor and spiritual adviser to George W. Bush - indicted on fraud charges - Houston Chronicle

Feds move to seize homes and businesses from polygamous Kingston Group as fraud defendants plead guilty - The Salt Lake Tribune

The owners of Washakie Renewable Energy pleaded guilty to charges Thursday in what the government has called a $511 million biofuel fraud, and the pleas could have repercussions for the polygamous sect to which they belong.

Jacob O. Kingston, the company’s CEO, pleaded guilty Thursday to 41 charges including money laundering, fraud, conspiracy and witness tampering and obstruction of justice, according to a court docket. His brother and the chief financial officer, Isaiah E. Kingston, pleaded guilty to 17 counts.

Their mother, Rachel Ann Kingston, 64, also pleaded guilty to five counts. Jacob Kingston’s legal wife, Sally, pleaded guilty to two counts.

Feds move to seize homes and businesses from polygamous Kingston Group as fraud defendants plead guilty - The Salt Lake Tribune

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

UPDATED::Polygamous leader pleads not guilty to fleeing fraud charges | Miami Herald

UPDATE:: Utah drops its investigation into FLDS food stamp fraud

The state of Utah has dropped its investigation into food stamp fraud involving members of the Fundamentalist LDS Church.

Utah's Department of Workforce Services confirmed to FOX 13 it had ended the investigation, deciding to not pursue any action against rank-and-file members of the polygamous church who may have been caught up in what became the nation's biggest welfare abuse case.

"As we’ve gotten that evidence back from our federal partners, there is not enough evidence to pursue any individuals," said Nate McDonald, assistant deputy director of DWS. "So at this point, there’s no further action we’re taking any action against any individuals."

UPDATE:: Ex-Polygamous Sect Leader Gets Nearly 5 Years in Fraud Case

A former polygamous sect leader was sentenced Wednesday to nearly five years in prison for his role in carrying out an elaborate food stamp fraud scheme and for escaping home confinement while awaiting trial.

The sentencing of Lyle Jeffs closes the book on a major government bust that took several years to investigate, culminating in February 2016 with fraud and money laundering charges against him and 10 other group members.

Lyle Jeffs was accused of being the ring-leader of a scheme that diverted some $11 million in food-stamp benefits to a communal storehouse and front companies over several years.

U.S. District Judge Ted Stewart said during a hearing in Salt Lake City that Lyle Jeffs deserved the 57-month prison sentence because his behavior showed he doesn't respect U.S. laws and puts his allegiance to his brother and the sect's imprisoned prophet, Warren Jeffs, above everything else.

UPDATE::  Judge: Lyle Jeffs jury will be told there is no rule against food donations, if you are allowed to buy the food

A federal judge on Wednesday ruled on the most contentious issue in the upcoming food-stamp fraud trial of former polygamous sect leader Lyle Jeffs — what the law says. 

Judge Ted Stewart, in a written ruling, said the jury will be told that only people authorized to receive benefits from the Supplemental Nutrition Assistance Program (SNAP) may use those benefits to purchase food. 

However, there is no prohibition on donating that food once it’s purchased, Stewart ruled, and he will not tell the jury otherwise. 

A polygamous leader who was captured nearly a year after escaping home confinement on federal food-stamp fraud allegations pleaded not guilty Monday to new charges from his time on the run.

Lyle Jeffs faces up to 10 years in prison if convicted on a felony charge connected to being a fugitive. It is on top of charges in a multimillion-dollar food-stamp scheme that he is accused of helping orchestrate in a polygamous community on the Arizona-Utah border.
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Many of the other 10 defendants in the food-stamp scheme struck plea deals with federal prosecutors, but authorities consider Lyle Jeffs to more culpable than others, prosecutor Robert Lund said.

Polygamous leader pleads not guilty to fleeing fraud charges | Miami Herald

UPDATED::Pastor and wife found guilty in defrauding of friends, flock of millions of dollars - The Washington Post

UPDATE::  Virginia pastor gets 8 years for $2 million fraud scheme

A northern Virginia pastor has been sentenced to eight years in prison for a $2 million fraud scheme that victimized members of his congregation and other clergymen.

A jury convicted 54-year-old Terry Millender, the former senior pastor of Victorious Life Church in Alexandria, on multiple fraud counts in a 2017 trial. A jury also convicted his wife, Brenda Millender, on some counts and acquitted her on others before a judge vacated all counts against her.

The Alexandria, Va., pastor told his parishioners they could benefit themselves while doing good if they invested in his Christian-based company lending small amounts of money to entrepreneurs in developing countries.

Instead, a jury in Alexandria federal court agreed that Terry Millender and his wife Brenda Millender, who together ran Victorious Life Church, defrauded their friends and flock out of millions of dollars.

Terry Millender told investors they would make their money back with profit, all while fueling growth in developing countries. But that never happened.

Pastor and wife found guilty in defrauding of friends, flock of millions of dollars - The Washington Post

Powhatan County preacher indicted in Jamaican telemarketing scheme targeting seniors

A Powhatan County preacher who authorities suspect of being part of Jamaican Sweepstakes telemarketing scheme responsible for swindling senior citizens across the nation out of at least $153,000 has been indicted on charges of stealing $51,000 from a Portsmouth woman.

The telemarketing scam was used to convince the 86-year-old woman she had won $2.5 million in cash and a 2017 Mercedes GL that she would receive if she paid the taxes and fees in advance, according to court records. The records show she was told to send checks for various amounts to Frederick Shmidt at his address on Huguenot Trail in Powhatan County.

On Tuesday, Feb. 12, a Powhatan grand jury indicted Shmidt, 81, of Powhatan on four felony counts of obtaining money by false pretenses between April and August 2018.

While all four of the charges Shmidt was indicted on are related to the Portsmouth woman’s case, a search warrant affidavit identifies four more individuals who reported being victims of similar crimes involving sending money to cover fees and taxes to Shmidt’s address for winnings they did not receive.

Powhatan County preacher indicted in Jamaican telemarketing scheme targeting seniors

Tampa pastor, daughter plead guilty to tax fraud charges - Story | FOX 13 Tampa Bay

A Bay Area pastor and his daughter pleaded guilty to charges of conspiracy to fraud the United States government stemming from their tax preparation business according to a plea agreement filed in federal court this week.

55-year-old Luckner Stimphil and 31-year-old Elwolfine Dufort started running their tax preparation business under the name "Top Popular Tax" back in June 2011. Around the same time, he also served as pastor at First Calvary Family Life Ministry in Tampa.

The church's address is also listed as the business address. According to the indictment, he and his daughter assisted people with filing their taxes. In exchange, they charged a 10 percent fee from their client's tax returns.

Tampa pastor, daughter plead guilty to tax fraud charges - Story | FOX 13 Tampa Bay

Christian publishing company owned by News Corp found guilty of significant fraud and destroying evidence

HarperCollins Christian Publishing company displays its mission front and center on its website. “We inspire the world by meeting the needs of people with content that promotes Biblical principles and honors Jesus Christ,” the site proudly displays. But it seems the company’s “Biblical principles” didn’t prevent a hefty swindle.

The company was successfully sued by ePAC Technologies, whose CEO invented a way to quickly print and bind books.According to court documents, HarperCollins Christian attempted to buy ePAC, except it was all allegedly a ruse that lasted for years with no final acquisition.

A jury in the United States District Court for the Middle District of Tennessee ultimately found in favor of ePAC. “The jury awarded EPAC Technologies, Inc., a leading high-technology manufacturer and printer, $12 million in punitive damages on top of more than $3 million in compensatory damages for fraud and breach of contract,” the release says.

Christian publishing company owned by News Corp found guilty of significant fraud and destroying evidence

Pastor charged with defrauding local businessmen of more than $20,000

J.B. Williams, a Tallahassee pastor and former chairman of a nonprofit organization that loaned money to black businesses, has been charged with defrauding two local business owners out of untold thousands of dollars.

Williams was arrested Friday and charged with grand theft of $20,000 to $100,000, criminal use of personal identification information, organized scheme to defraud over $20,000 less than $50,000, and bank fraud.

He was released on a $10,000 bond. The case was assigned to Leon Circuit Judge Francis Allman. No hearing date was set.

Pastor charged with defrauding local businessmen of more than $20,000

Court docs allege priest lied about cancer diagnosis, sex addiction therapy and charity projects | Starkville Daily News

Starkville priest is at the center of a criminal investigation involving a string of fraudulent charity efforts that federal agents believe was covered up by church leaders in Jackson.

According to a 37-page affidavit filed Friday by Department of Homeland Security Special Agent William G. Childers in U.S. District Court in Jackson, an ongoing investigation into Father Lenin Vargas-Gutierrez, a pastor at St. Joseph Catholic Church in Starkville, shows the priest is accused of lying about being diagnosed with cancer and soliciting money from parishioners for treatment and other pet projects.

The Catholic Diocese of Jackson on Monday posted to its website, saying federal agents served search and seizure warrants on the chancery office and on St. Joseph Parish on Wednesday, Nov. 7.

Vargas, a native of Mexico, has been in Starkville for roughly five years, according to court records and agents claim, through the use of confidential informants, that Vargas, who was actually diagnosed with HIV in 2014, used the fake cancer claims to solicit tens of thousands of dollars from church parishioners over the last several years.

Court docs allege priest lied about cancer diagnosis, sex addiction therapy and charity projects | Starkville Daily News

Seven People, Including Rabbi, Arrested in $14 Million Rockland County Funding Scam: Feds - NBC New York

Seven Monsey and Kiryas Joel residents - including a rabbi - were arrested Wednesday in connection with an alleged $14 million dollar rip-off of a federal school technology funding program, federal prosecutors said. The FBI arrested the seven for allegedly stealing money meant to help underprivileged children.

Prosecutors said the suspects lied to claim they were serving as independent consultants and vendors to help obtain and provide telecommunication services to private religious school students across Rockland County. Federal dollars would come from the federal E-Rate program which is funded by the FCC. But investigators said the services were never provided with the seven allegedly stealing much of the money from 2010-2016. 

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Simon Goldenbrener and Moshe Scwartz are accused of helping to run the criminal ring. Rabbi Aron Melber who work at a religious school in Rockland allegedly used his school to try to obtain over $1 million in funds – some which was then allegedly shared among members of the ring or used for purposes not included in the E-rate program.

Seven People, Including Rabbi, Arrested in $14 Million Rockland County Funding Scam: Feds - NBC New York

Bogalusa pastor pleads guilty to stealing $95K in disability benefits | NOLA.com

A longtime pastor of a Bogalusa church pleaded guilty to the theft of more than $95,000 in Social Security disability benefits, U.S. Attorney Duane A. Evans said Thursday (July 26).

Jerry R. Newton, 54, of Slidell, is set for an Oct. 25 sentencing hearing before U. S. District Court Judge Jane Triche Milazzo.

Newton, who served as pastor of Bogalusa Baptist Church since May of 2007, pleaded guilty to one count of theft of government funds, Evans' office reported in a news release.

According to court documents, Newton applied for Social Security disability benefits, a process that requires the applicant to disclose any employment or income. Newton did not disclose to the Social Security Administration that he had a paid position with the church and owned two businesses when he applied for disability benefits. Newton owned Still Dreaming Graphics, LLC, and Kclean Sweep, a cleaning service, the U.S. Attorney's office reported.

Bogalusa pastor pleads guilty to stealing $95K in disability benefits | NOLA.com

From church deacon to bank fraud: Pikeville man sentenced | Lexington Herald Leader

The dozens of letters sent to U.S. District Judge Karen Caldwell paint an image of one of Pikeville’s most respected sons.

The letters gush over Brent Lee’s leadership role at First Baptist Church of Pikeville, his professionalism as a banker, and his reputation as a loving father and husband.

But on Wednesday, Lee was sentenced to 18 months in prison for conspiracy to commit bank fraud. His sentence also includes paying $248,000 in restitution to the bank he defrauded, and serving a supervised release for five years after his prison sentence.

Read more here: https://www.kentucky.com/news/state/article215824830.html#storylink=cpy

From church deacon to bank fraud: Pikeville man sentenced | Lexington Herald Leader