Preacher gets 17 1/2 years for stealing millions from churches

Received by Newsfinder from APMay 5, 2005 15:40 Eastern Time * Editors Note UPDATES throughout reaction and further details; No pickup. By ERRIN HAINESAssociated Press WriterROME, Ga. (AP) _ A small-town preacher was sentenced to 17 1/2 years in prison Thursday for stealing nearly $9 million from some 1,600 black churches across the country by promising them big returns on small investments. Abraham Kennard also was ordered to pay nearly $8 million in restitution, pay almost $600,000 in back taxes and perform 120 hours of community service upon his release from prison. Kennard, 46, of Wildwood, Ga., was found guilty by a federal jury in February on 116 counts, including fraud and evasion. Prosecutors said he ran a pyramid scheme that took advantage of the tight network of black preachers to which he belonged. Kennard, who was talkative while representing himself during his three-week trial, made no statement at his sentencing. He could have received up to 33 years in prison. “These people lost everything they had. Some even lost their church. The court cannot ignore that,” U.S. District Judge Harold L. Murphy told Kennard as his sentence was handed down. Prosecutors said Kennard claimed his company was developing Christian resorts around the country. He told preachers that for a fee of a few thousand dollars, their churches could be “members” of his company. In return, he promised that in time the churches would get a grant or a forgivable loan of up to $500,000. The scheme spread as the trusting ministers told their friends, relatives and fellow pastors. Churches in 41 states received “grants” from Kennard totaling more than $1 billion, prosecutors said. “This was a disturbing criminal scheme that preyed on trusting members of the faith community,” Assistant U.S. Attorney David McClernan said. Kennard had argued during his trial that he was only guilty of being wealthy. “It’s not a law against riding in a Cadillac if you don’t want to ride in a Volkswagen,” Kennard told the jury in his opening remarks. Michael Trost, who served as Kennard’s standby counsel, said he believed Kennard intended to help the churches. Trost said that Kennard plans to appeal his conviction and sentence. “I believe there’s some good in him. There’s good and bad in everybody,” said the Rev. William Bellafant, a pastor from Columbia, Tenn., who was one of Kennard’s victims. Bellafant testified as a prosecution witness at the trial yet he hugged Kennard after leaving the stand. Prosecutors said Kennard’s assets have been forfeited and will be sold to help pay the restitution owed to the many victims. Kennard’s brother, Laboyce, was found guilty in February of conspiracy to commit money laundering. Prosecutors said he accepted more than $360,000 from his brother. He is set to be sentenced Friday. The Kennards’ cousin, Jannie Trammel, and stepbrother Alvin Jasper also were indicted on related charges but pleaded guilty and testified at the Abraham Kennard’s trial. A lawyer was charged with money laundering and will be tried later.