Image Credit: Luca Sartoni / CC
The Tennessee Conservative [By Adelia Kirchner] –
According to a press release from the U.S. Attorney’s Office, a federal grand jury in the Western District of Tennessee has officially indicted three Memphis pastors and four other Tennessee business owners for alleged misuse of Covid-19 relief funds.
These individuals along with three others from Mississippi and Arkansas collectively defrauded over $950,000 from the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), both federal stimulus programs that fell under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
This defrauding was allegedly done by falsifying information on behalf of their churches or businesses and using Covid-19 relief monies for personal expenses.
Stephen Brown, with Light of Glory International Church in Memphis has been charged with two counts of wire fraud for allegedly submitting a fraudulent EIDL application on behalf of the church and a fraudulent PPP application on behalf of Stephen Brown Ministries. He obtained approximately $149,900 in EIDL proceeds.
Frederick Smith, with New Life Holiness Church in Memphis has been charged with two counts of wire fraud for allegedly submitting a fraudulent PPP application on behalf of the church and a fraudulent EIDL application on behalf of Fred Smith Ministries. He obtained approximately $150,275 in PPP loan proceeds.
Cleveland Wells, with Glory to God Ministries in Memphis has been charged with two counts of wire fraud for allegedly submitting a fraudulent EIDL application on behalf of the ministry and a fraudulent PPP application on behalf of his business, Don’t Worry About it Home Solutions. He obtained approximately $149,900 in EIDL proceeds.
Pastor Wells was approached by Fox13 for comment on Wednesday.
“The way it looks, it looks incriminating,” he stated. “But it’s not the way it looks and that’s all I can really say about that.”
Rodrick Flowers, owner of the Ezential Consulting & Management Firm, has been charged with 12 counts of wire fraud for allegedly submitting fraudulent EIDL and PPP applications on behalf of the firm. He obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds.
According to officials, Flowers also allegedly “submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants.”
LaTonya Herman, the owner of LaTonya Herman, has been charged with two counts of wire fraud for allegedly submitting fraudulent EIDL and PPP applications on behalf of her business. She obtained approximately $93,800 in EIDL proceeds.
Mary Payne, the owner of Right Now Staffing, has been charged with two counts of wire fraud for allegedly submitting fraudulent EIDL and PPP applications on behalf of her business. She obtained approximately $4,000 in an EIDL advance.
Krystall Sherrod, the owner of Krystal Sherrod, has been charged with one count of wire fraud for allegedly submitting a fraudulent EIDL application on behalf of her business. She obtained approximately $83,300 in EIDL proceeds.
If convicted, each of these individuals will face a maximum of 20 years in prison per wire fraud count.
About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee. You can reach Adelia at adelia@tennesseeconservativenews.com.
