Former pastor sentenced to prison for fraud
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SENTINEL STAFF REPORT
BENTON — A former church pastor in Hamilton County was sentenced to 21 months in prison for fraudulently obtaining and using nearly $200,000 of COVID-19 money from the SBA by misrepresenting to the Small Business Administration (SBA) that the money would be used for his church.
Terry L. Hall, 58, of McLeansboro, pleaded guilty to two counts of wire fraud and three counts of making false statements. Following imprisonment, he will serve two years of supervised release and has been ordered to pay $199,900 plus the accrued interest back to the SBA.
“The vast majority of pastors across southern Illinois answered the pandemic with selfless service,” said U.S. Attorney Steven D. Weinhoeft. “Terry Hall chose a different path: he requested federal relief on behalf of his congregation, then used nearly $200,000 for purely personal expenses. Conduct that far from the calling of ministry demands accountability, and accountability arrived in the form of a 21-month federal prison sentence.”
Enacted in March 2020, the Coronavirus Aid, Relief, and Economic Security Act provided emergency financial assistance to Americans suffering from the impacts of the pandemic.
Under the CARES Act and administered by the SBA, the Economic Injury Disaster Loan program provided low-interest funding to small businesses, renters, and homeowners. As appropriated, EIDL funds could be used for payroll, sick leave, production costs, and other general business expenses.
“FBI Springfield is committed to exposing those who abuse positions of trust in southern Illinois,” said Special Agent in Charge of FBI Springfield Field Office, Christopher J. S. Johnson. “Our communities deserve honesty, and we remain steadfast in holding accountable anyone who violates that trust.”
According to the indictment, Hall was the lead pastor of a religious congregation in McLeansboro. As pastor, Hall applied for economic relief on behalf of the church and received two EIDL disbursements totaling approximately $199,900 to his personal bank account in 2020. To ensure he received the loan, Hall created fake documents, contacted elected representatives, and intimidated fellow church members.
Hall admitted to using the EIDL funds to pay off his mortgage, the construction of a pole barn, various travel and other personal expenses like clothing, gas, and food. The church did not receive any assistance to alleviate the economic hardships during the pandemic.
The FBI Springfield Field Office led the investigation, and Assistant U.S. Attorney Kathleen Howard prosecuted the case.
