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Tag: Black Collar Crime

Black Collar Crime: Evangelical Professor David DeHaven Accused of Unlawful Photography

david dehaven

Dr. David DeHaven, an adjunct professor at Liberty University in Lynchburg, Virginia, stand accused of filming and photographing minors in a state of undress.

The Richmond Times-Telegraph reports:

DeHaven, 49, taught for Liberty University Online as an adjunct instructor of business. Scott Lamb, senior vice president of communications at Liberty University, said DeHaven has been suspended pending the outcome of the charges. DeHaven also operates D3 Coaching, an executive coaching and strategy consulting business.

DeHaven is a former president of the Parent Teacher Student Association at James River High School, Principal Jamie Talbott said.

DeHaven’s Linkedin profile makes no mention of his work at Liberty University.

DeHaven’s business, D3 Coaching.

Black Collar Crime: Evangelical Pastor Cesar Guerrero Charged with Sexually Coercing a Minor

pastor cesar guerrero

Cesar Guerrero, pastor of Mision Cristiana el Calvario Church in Sharonville, Ohio, is facing federal charges in connection with his alleged coercion of a minor female.  He also faces allegations of rape and sexual assault.

The Highland County Press reports:

According to the affidavit filed in support of the criminal complaint, the Sharonville Police Department received several complaints on Aug. 7 regarding the pastor of Mision Cristiana el Calvario Church and a minor female victim.

Guerrero allegedly contacted the 17-year-old victim through the Facebook Messenger app and told the victim he had dreamed of her dressed in white and walking in a dark place. The victim told the pastor she had been sexually molested in Guatemala.

It is alleged Guerrero told the victim that God was speaking to him and the only way to get out of the dark place was for her to have sexual relations with Guerrero. The pastor allegedly referred to this as a “cleansing process.

The affidavit details that Guerrero allegedly requested a nude video call with the victim as well as photos of her genitalia. He cited several biblical verses while making the request.

Further, it is alleged the victim met with the pastor at the Sharonville church on July 30. The pastor allegedly raped the victim.

On Aug. 9, officials with the FBI and Sharonville Police received information from a second alleged victim. According to the affidavit, the second victim had allegedly been sexually assaulted by the pastor on more than one occasion, beginning when the victim was 14 years old.

Guerrero allegedly told the second victim to show him how she kissed her boyfriend before assaulting her and telling her if she was a child of God she would obey him.

It is also alleged that Guerrero sexually assaulted this second victim on another occasion at his home.

The victim’s father stated:

“Angry, frustrated, can’t believe. You don’t believe in God no more. He’s been using God’s Word to tell the girls to do sexual things and the girls was really thought that was coming from God.”

Black Collar Crime: Civil Suit Against Temple Baptist Church in Kokomo, Indiana Dismissed

pastor mike holloway

Please read previous posts on this scandal: Black Collar Crime: Woman Claims Evangelical Pastor Mike Holloway Knew She Had Been Sexually Abused and Did Nothing, Black Collar Crime: Evangelical Pastor Mike Holloway Denies He Knew Anything About Woman’s Sex Abuse Claim, Black Collar Crime: Another Victim Comes Forward in Temple Baptist Church of Kokomo Sex Abuse Scandal, Black Collar Crime: The Temple Baptist Church of Kokomo Sex Abuse Scandal Continues, Black Collar Crime: Alleged Victim Count Up to Ten in Temple Baptist Church of Kokomo Sexual Abuse Scandal, Black Collar Crime: The Cover-up Continues at Temple Baptist Church in Kokomo, Indiana and Black Collar Crime: Jane Doe Files Civil Suit Against Temple Baptist Church and Pastor Mike Holloway.

In 2017, a civil lawsuit was filed against Temple Baptist Church in Kokomo, Indiana, alleging the church and its pastor, Mike Holloway, covered up sexual abuse. Last month, Cass County Superior Court II, Judge Richard Maughmer ruled in favor of the church, saying the suit fell outside the bounds of the statute of limitations and that evidence being submitted by the alleged victime was inadmissible.

The Herald Bulletin reports:

In an effort to eliminate future legal fees and end any doubt of innocence regarding what it refers to as unsubstantiated allegations, Temple Baptist Church in Kokomo has entered into a “nuisance” settlement with a former member.

That woman claimed church officials did not take proper action when they discovered allegations of sexual abuse against her that took place nearly 30 years ago.

During a hearing on the civil case last month in Cass County Superior Court II, Judge Richard Maughmer actually ruled in favor of Temple Baptist, stating there was an absence of evidence to support the woman’s allegations, a church press release stated.

The nuisance agreement — which essentially means the plaintiff won’t be able to take the church back to court for this matter in the future — came as a result of a recommendation by the church’s insurance company, a Temple Baptist press release stated.

According to the release, Temple Baptist’s insurance company is set to pay the woman $7,500 for attorney fees and related expenses, and any remaining balance will be paid to the woman’s creditors as she filed for bankruptcy prior to filing the civil lawsuit.

“We intended to see the process through and continue defending what was being said about our church,” Temple Baptist Pastor Dr. Mike Holloway said in the release. “After much deliberation, we eventually decided to accept our insurer’s decision, which allows us to return to a singular focus of reaching our community for Christ and continuing to spread the Gospel around the world.”

….

“As a church in operation for more than 50 years, we understand some people disagree with our beliefs, and we accept that detractors will sometimes provide information critical of our church and those beliefs,” Holloway noted in the release.

“However, the campaign far exceeded all decency in an attempt to ruin the lives of innocent people and the testimony of the church. … I am grateful for the steadfastness of our church members and supporters during this time. Let us continue to show sympathy to those involved, while being grateful that our church has been vindicated.”

We will likely never know for certain what happened at Temple Baptist Church. I will leave it to readers to decide if the church and its pastor aren’t as “innocent” as they say they are. I am of the opinion that something smells in this sordid story. What, exactly, remains unknown. Yes, sometimes people make false allegations. Is this a case of a vindictive woman going after an IFB church and its pastor? I don’t think so. That said, the Superior Court has ruled and the woman has agreed to a financial settlement. This effectively puts an end to this story.

Black Collar Crime: Evangelical Teacher Austin Greenway Charged with Sexual Abuse

austin greenway

The Black Collar Crime Series relies on public news stories and publicly available information for its content. If any incorrect information is found, please contact Bruce Gerencser. Nothing in this post should be construed as an accusation of guilt. Those accused of crimes are innocent until proven guilty.

Austin Greenway, a teacher at North Valley Early Learning Center in Margaret, Alabama, was charged earlier this week with sexually abusing a 9-year-old child. The Center is a ministry of North Valley Church in Odenville, Alabama.

AL.com reports:

In June, the St. Clair County Sheriff’s Office Investigators were contacted by the Margaret Police Department to look into allegations of sexual abuse of a 9-year-old child at North Valley Early Learning Center in Margaret. The center is a ministry of North Valley Church.

The suspect, Austin Blake Greenway, had been employed at North Valley as a teacher for the past two years. After an extensive investigation, the case was presented to a St. Clair County grand jury, resulting in an indictment for sexual abuse of a child under 12 years old, and school employee engaged in a sex act with a student under the age of 19.

Greenway was released on a $50,000 bond.

Black Collar Crime: Evangelical Pastor Dan Broxterman Charged with Rape

Dan Broxterman, the former pastor of FUN CHURCH (now closed)  in Hamilton, Ohio, was indicted recently on ten counts of rape. One alleged victim was under the age of thirteen. Local 12-News reports:

A Butler County grand jury indicted Dan Broxterman, 56, on Aug. 8. According to the indictment, the rapes occurred from 2014 through July 2019. Broxterman was a pastor and the lead singer of a tribute band. He also faces charges of gross sexual imposition and disseminating matter harmful to juveniles.

Tammy Mercer attended one of Broxterman’s churches from 2010 until 2013. She believes many people were fooled by him. But, she said she became suspicious after learning he was ordained by paying $50 online. She also said she found out he was allowing teenagers to sleep over at the church and engage in sexual activity.

According to Local 12-News, Broxterman served time for gross sexual imposition in 1990 and 1994.

fun church

Broxterman previously pastored Tree of Life Church (now closed) in Hamilton, Ohio. A church listing website had this to say about Tree of Life and its pastor:

We have church in the Hamilton Family Fun Center and always have a reason to laugh. Pastor Dan makes sure of that! The kids love us because of our 222 CLUB. The music is powerful and energetic. Come worship with us! Turning Hamilton Downside Up From The Outside In!

“Kids love us”, and our pastor loves kids too. He’s a pedophile who pays close attention to church children.  Praise Jesus!

According to Linkedin, Broxterman is the business development manager for Ohio Valley Insurance and Financial Group in Fairfield, Ohio. I suspect he is not doing much “developing” since he is sitting in jail with a $1 million bond.

dan broxterman 2

Broxterman is the lead singer for PUSH — a DIO tribute band.  Broxterman’s Twitter account mentions he is the lead singer for a called Holy Diver.

Black Collar Crime: Evangelical Pastor Kyle Harrison Accused of Absconding with $50,000

pastor kyle harrison

The Black Collar Crime Series relies on public news stories and publicly available information for its content. If any incorrect information is found, please contact Bruce Gerencser. Nothing in this post should be construed as an accusation of guilt. Those accused of crimes are innocent until proven guilty.

In 2017, Kyle Harrison, pastor of Harvest Church in Starke, Florida, was accused of misrepresenting himself as a licensed contractor. Harrison later pleaded guilty and was ordered to repay the victim $26,009.25 he took from her as payment for the work he never completed. Harrison was fired from his job with Harvest Church and now lives in Orlando, Florida.

Last week, Mike and Charlene Oliver accused Harrison of not returning a $50,000 investment loan. News 4-JAX reports:

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.

….

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

As a member of Harvest Church, Mike had turned to Harrison for spiritual guidance when Mike was diagnosed at age 40 with lung disease. He was given just three to five years to live and wanted his family to benefit from the investment if he died.

“I wanted to have money come back for my family in case something happened, and I was no longer here,” Mike explained.

The only cure was a lung transplant, but because of Mike’s deteriorating medical condition, he says two hospitals had already denied enrolling him as an organ recipient.

“He was the pastor, so why wouldn’t you trust the pastor,” said Mike.

“He made us feel like he genuinely loved us,” said Charlene.

….

Mike says he was forced to take medical retirement as a Corrections Officer, and Transformation Ministries — which employed ex-offenders as car mechanics — appeared to be a viable business.

“We had a whole bunch of business,” said Mike, who spent time working at the shop himself.

The Olivers drew up a lengthy contract, which has Kyle Harrison’s signature. It detailed a monthly payment plan of $488 and included a list of collateral that would become the Olivers’ property if Harrison failed to repay the loan.

“At first he paid us,” said Mike.

But that didn’t last. The Olivers said the monthly payments became more inconsistent.

“He’s the pastor, so we were like, ‘We will give you a little more time,'” Mike said he told Harrison.

….

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.

….

They said they have not heard from Harrison in more than a year and said Harrison’s phone has been disconnected.

While the Olivers said they know they probably won’t get their money back, they reached out to the I-TEAM because they want to warn anyone else who might come in contact with Harrison.

“He has the gift of gab,” said Charlene.

“He is not what he pretends to be. He’ll make you feel like everything he’s doing is Godly and, ‘I’m trying to help you,’ and that’s not the case.” Mike added. “I don’t want nobody else to be hurt by him or anyone else. I want people to be careful, be careful.”

Sadly, some congregants learn the hard way that pastors can be grifters, and just because they are charming and charismatic doesn’t mean they won’t fleece you if given the opportunity.

Transformation Ministries is now closed. It is highly unlikely that the Olivers will see their $50,000 again. Giving money to God and his representatives on earth is always risky business.

Kyle Harrison’s testimony:

During the foundational stage of our church, Harvest Christian Fellowship in 1998, I was seeking the voice of the Father concerning His plan and purpose for this ministry. My personal testimony concerning drug abuse is not that impressive compared to some. In the mid 80’s like many other high school students I drank, smoked pot, and experimented with powder cocaine. But by the time I graduated from high school I had given all that up, at the time I thought I gave it up for a girl, who six months latter became my wonderful wife. But soon after that I realized it was all in the plan of God.

In 1999 while praying on a park bench at 2 am, at a time where I felt that I was in desperate need of a word form God, the Spirit of God led me to Matthew’s gospel. There I saw the Jesus made the statement that basically said, if the multitude had not made the choice to follow Christ they would not have had a physical need. God began to show me that there was going to be people in our future that were going to make the decision to follow Christ, and because of that choice they were going to have needs that typical church ministry could not meet. So from that moment on my spirit was open to any opportunity that would bring that word into fruition.    Not long after Transformation Ministries was born.

As the years have rolled on we have done many  things wrong, and many right. All the while trying to hear the voice of the Lord. The need for this type of skill training ministry is undeniable, and as we look into the future, we see the need getting greater and greater.

Prior to becoming pastor of Harvest Church, Harrison was a worship leader. A 2001 Charisma article mentions Harrison:

Members of the ethnically diverse fellowship [Potter’s House] describe [Vaughn] McLaughlin as a spiritual father who has gone out on a limb to lead them. Kyle Harrison, pastor of Harvest Christian Fellowship in Starke, Florida, was a worship leader when he met McLaughlin. Now he is pastoring the only multiethnic congregation within three counties of his church.

Harrison, who is white, says McLaughlin has mentored him and even paid his debts. “This man who I call my bishop, if it weren’t improper, I’d call him father,” Harrison says.

And he [McLaughlin] “even paid my debts.” Warning, Will Robinson, Warning!

Black Collar Crime: IFB Preacher Cameron Giovanelli Charged with Sexual Assault

cameron giovanelli

The Black Collar Crime Series relies on public news stories and publicly available information for its content. If any incorrect information is found, please contact Bruce Gerencser. Nothing in this post should be construed as an accusation of guilt. Those accused of crimes are innocent until proven guilty.

In May 2018, I wrote a post about the sexual assault allegations made against Independent Fundamentalist Baptist (IFB) preacher and college president Cameron Giovanelli. (Please see Black Collar Crime: IFB Preacher Cameron Giovanelli Accused of Sexual Assault)  Giovanelli resigned from Golden State Baptist College and did what disgraced IFB preachers often do: moved across the country, joined up with one of his preacher buddies, and continued on in the ministry as if nothing happened.

In May 2019, I received word that Giovanelli was in Florida working as the associate pastor of Immanuel Baptist Church in Jacksonville, Florida. Giovanelli planned on helping Immanuel Baptist’s pastor, Greg Neal, start a new unaccredited IFB secondary institution called North Florida Baptist College. Neal, himself, was caught up in a sex scandal in 2011 when he was accused of video voyeurism. You can read more about Neal’s brush with the law here and here. Neal, unfortunately, escaped prosecution. (Please see Black Collar Crime: Pastor Cameron Giovanelli Resurrects From the Dead, Found in Florida)

cameron giovanelli charges

Earlier this week, Giovanelli was charged by Baltimore, Maryland County police with sexual abuse of a minor and several other sex crimes. If convicted, Giovanelli faces up to thirty-six years in prison. (Case Information)

WBAL-11 reports:

Police charging documents claim Giovanelli initially tried to teach her how to kiss which turned into a daily encounter and eventually sexual assault. Police say an associate pastor at the church became suspicious. The associate said he confronted Giovanelli and told him to stop and the associate got an email later that night from Giovanelli thanking him.

“[Thanks] for saving his life and saving his ministry …. He thought God sent him to stop him from doing something,” said Giovanelli in police charging documents.

An investigation was opened in May 2018 when the victim reported the abuse to police. The completed investigation was submitted to the office of the state’s attorney, at which time the decision was made to charge Giovanelli.

An arrest warrant was obtained and served on Monday. Giovanelli voluntarily turned himself in to police Tuesday. He was released on his own recognizance at an initial bail hearing under the condition that he have no contact with any minor.

Based on information provided by the victim, police believe it is likely there are additional victims who were abused by Giovanelli during his time as pastor at the church [Calvary Baptist Church in Dundalk, Maryland] and school located in the 7300 block of Manchester Road.

 

Black Collar Crime: Church of Christ Preacher Charles Andrews Arrested on Child Porn Charges

pastor charles andrews

The Black Collar Crime Series relies on public news stories and publicly available information for its content. If any incorrect information is found, please contact Bruce Gerencser. Nothing in this post should be construed as an accusation of guilt. Those accused of crimes are innocent until proven guilty.

Charles Andrews, pastor of Osprey Church of Christ in Osprey, Florida, stands accused of possession of child pornography. In yet another case of churches not vetting their ministers, news reports state that Andrews is a registered sex offender who was convicted in 2006 in Alabama of second-degree sexual abuse.  It took me all of sixty-seconds to find this:

charles andrews registered sex offenderThere’s no excuse for churches NOT doing their due diligence regarding potential or current pastors.  Shame on Osprey Church of Christ for giving a registered sex offender access to their church and its children.  Just remember, while he was preaching Jesus on Sunday morning, after church he was allegedly looking at photos of children being sexually abused. What say ye, members of Osprey Church of Christ?

Channel 8 News reports:

The National Center for Missing and Exploited Children reported Charles Andrews to the Sarasota County Sherif’s Office after learning he had downloaded approximately 70 images of child pornography using two different e-mail accounts, the latter agency said.

According to the release, Andrews is a minister at Osprey Church of Christ, 406 Pennsylvania Avenue. He is also a registered sex offender who was convicted in 2006 in Alabama of second-degree sexual abuse.

Investigators say Andrews shared six images of child pornography a total of 70 times. He also shared “non-illegal images of child erotica” using both accounts.

Investigators traced the IP address that Andrews allegedly used to download the images to his home in Englewood. There, they confiscated a computer, external hard drive and other digital storage devices.

Deputies say they discovered more than 500 images of child pornography, including at least 50 depicting sexual battery of a child.

“We usually charge about forty counts at a time for possession, possession of child pornography,” said Kaitlyn Perez, a spokeswoman for the Sarasota County Sheriff’s Office. “In this case, Mr. Andrews’ database of child pornography was so specifically heinous … it really elevated the crime. Of those five hundred images, at least fifty of them depicted sexual battery on a child.”

Andrews was arrested Tuesday for 500 felony counts of Possession of Child Pornography and three counts of Failure to Meet the Registration Requirements of a Sex Offender.

Black Collar Crime: IFB Pastor Richard Micks Second Rape Trial Declared a Mistrial

richard mick

The Black Collar Crime Series relies on public news stories and publicly available information for its content. If any incorrect information is found, please contact Bruce Gerencser. Nothing in this post should be construed as an accusation of guilt. Those accused of crimes are innocent until proven guilty.

(Previous posts about Richard Mick: Black Collar Crime: IFB Preacher Richard Mick has Rape Conviction Overturned and Black Collar Crime: IFB Pastor Richard Mick Faces New Trial, Out on Bond and Black Collar Crime: IFB Pastor Richard Mick on Trial Again for Rape)

Earlier this week, Richard Mick, the former pastor of Lighthouse Baptist Church in Sandusky, Ohio — an Independent Fundamentalist Baptist (IFB) congregation — was on trial again, facing 12 felony accounts for crimes allegedly committed against three children. Mick was previously convicted on these charges and sentenced to life in prison. During his trial, his attorney, K. Ronald Bailey, refused to participate in Mick’s defense. An Ohio appeals court, citing ineffective counsel, overturned Mick’s conviction and ordered a new trial. Surprisingly, K. Ronald Bailey is still Mick’s attorney.

Today, Erie County Common Pleas Court Judge Tygh Tone declared a mistrial, saying evidence withheld from the defense the prosecution could hurt Mick’s right to due process.

The Sandusky Register reports:

On Thursday, following two full days of testimony, including from all three victims, the trial came to an abrupt halt.

Defense attorney Meredith O’Brien made a mistrial motion in the morning after speaking to a Sandusky police detective who was about to be called as a defense witness. The detective provided the defense copies of police reports related to the investigation.

Included in those reports was a March 2019 Sandusky report detailing the detective’s interview with a relative of one victim, who already testified. That report was not given to defense attorneys by the prosecution during the evidence discovery process, O’Brien said.

During the interview, the relative provided information that was apparently inconsistent with the victim’s testimony in the trial. Tone said he also read the report, and said it details “more serious accusations than what the defendant was charged with.” Mick was indicted across two cases, merged into one for trial, in 2014 and 2016.

O’Brien argued that if the defense had that police report prior to the trial, it would have changed their entire strategy.

“Every witness would have been questioned differently,” O’Brien said. “This entire trial is now infected.”

Assistant Erie County prosecutor Paulette Lilly did not deny that the report wasn’t provided to the defense but argued the report shouldn’t be grounds for a mistrial as the allegations of one victim don’t affect those of the other two victims.

“The report is not an interview with a victim,” she said. “It’s the recollection of (the relative’s) conversation with (the victim) three years earlier. It’s not a statement of (the victim’s.)”

After hearing arguments from both sides, Tone decided that the incident hurt Mick’s right to due process and ruled a mistrial. He said they will eventually set a pretrial hearing to discuss details of the new trial.

Currently, Mick is out on bond. Hopefully, the third time is a charm, and once the iron jail doors finally clang shut on the “good” pastor, they will remain shut.

Previous Sandusky Register article about the trial.

Black Collar Crime: Methodist Pastor Kirbyjon Caldwell’s Co-Defendant Pleads Guilty to Fraud

kirbyjon caldwell

The Black Collar Crime Series relies on public news stories and publicly available information for its content. If any incorrect information is found, please contact Bruce Gerencser. Nothing in this post should be construed as an accusation of guilt. Those accused of crimes are innocent until proven guilty.

In March 2018, Kirbyjon Caldwell, pastor of Windsor Village United Methodist Church in Houston, Texas, was indicted and charged with “conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiring to commit money laundering and three counts of money laundering.”

KTBS-3 reports:

A Shreveport financial planner and the pastor of a Houston, Texas, megachurch are accused of bilking investors of more than $1 million.

Thursday, a federal grand jury returned a 13-count indictment against Gregory Alan Smith, 55, of Shreveport and Kirbyjon H. Caldwell, 64, of Houston.

Smith is the owner of Greg Smith Financial Group. Caldwell is pastor of Windsor Village United Methodist Church, a 16,000-member megachurch in Houston. He was an unofficial advisor to former presidents George W. Bush and Barack Obama.

Smith and Caldwell are charged with conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiring to commit money laundering and three counts of money laundering.

According to the indictment, Smith used his influence and status as the operator and manager of Smith Financial Group in Shreveport, and Caldwell used his influence and status as pastor at his church to lure investors to pay more than $1 million to invest in Historical Chinese bonds.

These bonds were issued by the former Republic of China prior to losing power to the communist government in 1949. They are not recognized by China’s current government and have no investment value.

Smith and Caldwell promised high rates of return, sometimes three to 15 times the value of the investments, according to the indictme.

Federal authorities allege Smith and Caldwell used investors’ money to pay personal loans, credit card balances, mortgages, vehicle purchases and other personal expenses.

….

The Houston Chronicle adds:

A prominent Houston pastor and spiritual adviser to President George W. Bush has been indicted on federal charges he sold more than more than $1 million 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 indicted Thursday on 13 charges accusing them of wire fraud and money laundering, the U.S. Attorney’s Office for the Western District of Louisiana said in a Thursday statement.

Caldwell is accused of using his position as the senior pastor of the Windsor Village United Methodist Church to lure more than $1 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, prosecutors said.

The indictment accuses the men of cheating 29 investors between April 2013 and August 2014 of nearly $3.5 million for what were described as “mere collectible memoribilia.”

….

Caldwell, a Houston native, developed a friendship with George W. Bush when he was governor of Texas, and he offered the benediction to Bush’s 2001 inauguration as president. He also performed the wedding for Bush’s daughter, Jenna, in Crawford in Central Texas.

Caldwell co-authored a 1999 book, The Gospel of Good Success. His work is credited with helping create the White House Office of Faith-Based and Community Initiatives under Bush.

….

Yesterday, Caldwell’s co-conspirator, Gregory Alan Smith, pleaded guilty to wire fraud.

Click 2 Houston reports:

The man who is a co-defendant with Houston Pastor Kirbyjon Caldwell in a case accusing them of defrauding investors of millions of dollars pleaded guilty Tuesday to wire fraud.

Gregory Alan Smith is a Shreveport, Louisiana, investment advisor. Caldwell is senior pastor at Windsor Village United Methodist Church in Houston.

The pair told investors that the historical Chinese bonds, which reportedly have been in default since 1939 and aren’t recognized by the current Chinese government, could provide exorbitant, risk-free returns on their investments and that the bonds would be sold by Caldwell to a third party or redeemed by the Chinese government, court documents state.

The indictment states Smith recruited the victims through his connections to prospective investors, telling them he was an investment advisor and had personally invested hundreds of thousands in the deal.

Caldwell then told investors to wire the money to a bank account controlled by his attorney or an account of a limited liability company of which he is a member, the indictment reads. Caldwell is accused of then transferring the money to his personal account, the personal account of Smith or a Mexican business associate.

Caldwell and Smith promised investors they would be paid and offered a wide range of excuses for why they were not seeing returns, according to court documents.

Caldwell, 64, received $760,000, which he used for personal expenses, including mortgage payments, the indictment claims.

Caldwell’s limited liability company also received $1 million, of which $175,000 was transferred to Caldwell, according to the indictment.

Smith received $1 million of investor funds, which he used for luxury vehicles, the indictment claimed.

None of the investors received any money back, according to the court documents.

Smith faces five to seven years in prison, a $1 million fine, restitution, forfeiture and five years of supervised release.

Caldwell continues to insist that he is innocent. His trial is scheduled to begin on December 2, 2019.

 

Bruce Gerencser