Ex-bishop pleads guilty to wire, mail fraud in multimillion dollar church property scheme
Staccato Powell, a former bishop of the African Methodist Episcopal Zion Church, pleaded guilty to wire fraud, mail fraud, and conspiracy charges linked to a scheme to unlawfully acquire church properties in California. Shortly after becoming bishop in 2016, he established Western Episcopal District, Inc. and instructed pastors to transfer property deeds to it, using falsified documents to secure loans. Notably, he obtained $3. 75 million from First AME Zion Church despite church trustees voting against the property transfer.
Powell admitted to diverting loan funds for personal benefit, including purchasing real estate for his children and paying off his mortgage. His fraudulent activities led to WED Inc. filing for bankruptcy in July 2020, with over $26 million in assets and more than $12 million in liabilities. He agreed to pay restitution of at least $3 million and faces a potential 20-year prison sentence at his upcoming sentencing on September 23. Co-defendant Sheila Quintana, who served as CFO, also pleaded guilty to conspiracy charges.
This case highlights significant issues of financial misconduct within religious organizations.