Minister Found Guilty of Fraud

A minister was convicted Monday of stealing nearly $9 million from hundreds of small churches across the country by promising them big returns on small investments.

Abraham Kennard was found guilty by a federal jury in Rome, Ga., on 116 counts, including fraud.

Prosecutors said he ran a pyramid scheme that took advantage of the tight network of black ministers to which he belonged.

“I know you can see clearly it was a scheme, all right. And for some 1,600 churches, it was a nightmare,” prosecutor David McClernan said during closing arguments.

Kennard, 46, of Wildwood, Ga., countered that he was not guilty of anything.

“It’s not a law against riding in a Cadillac if you don’t want to ride in a Volkswagen,” Kennard, who represented himself, said in his opening remarks. Michael Trost, who served as Kennard’s standby counsel, said he believed Kennard intended to help the churches.

Kennard is scheduled to be sentenced April 15.

Prosecutors said Kennard claimed that his company was developing Christian resorts throughout the country. He told ministers that for 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 as much as $500,000.

The scheme spread as ministers told their friends, relatives and fellow pastors.

“It wasn’t about ignorance. It was about trust,” said the Rev. James Cane of Victory Worship Center in Birmingham, Ala., one of several ministers who testified for the government.

Kennard’s brother, Laboyce, was also found guilty Monday of conspiracy to commit money laundering. Prosecutors said he accepted more than $360,000 from his brother.

Laboyce Kennard’s lawyer said his client was trying to start his own business and had no knowledge of his brother’s church enterprise.

The Kennards’ cousin, Jannie Trammel, and stepbrother, Alvin Jasper, also were indicted but pleaded guilty and testified at the trial.