The Church of God International Headquarters in ClevelandA former communications director for the Church of God's international headquarters in Cleveland, Tenn., pleaded guilty Wednesday to stealing nearly $1 million from church coffers through an elaborate scheme.
On Friday, federal prosecutors filed charges alleging Troy Scot Carter had stolen $100,000 by creating false invoices for audiovisual services for which the church did not owe. But in his plea on Wednesday, Carter went further, admitting to stealing a total of $889,766 from the church, which oversees some 36,000 congregations across the globe.
In his plea agreement, Carter and Assistant U.S. Attorney James Brooks agreed that Carter would serve up to 10 years in prison and three years of supervised release and pay $100 in a special assessment, along with forfeiture and restitution.
Carter admitted to an elaborate scheme in which he pocketed money from contracts between the church and private companies providing audiovisual services for the church's biannual conventions.
Court documents show Carter admitted to:
Stealing $372,350 by creating false invoices claiming his own company, Platinum Productions, had completed audiovisual services that it had not performed.
Pocketing $300,416.10 in hotel rebates that historically had been turned over to the Church of God.
Taking some $117,000 by scheming to obtain a refund from a company that provided AV services for a church conference. Carter convinced the company that the church had prematurely paid for services and had the contractor send the funds to his personal company.
Siphoning off $100,000 by presenting a false bill to the Church of God, which paid $100,000 for services owed by Carter's own company.
Officials said Carter was employed at the church from 2004 to 2013, though church leaders said no former or current elected church officials had any knowledge of his crimes. And the church says it has changed its practices to safeguard against fraud in the future.
In a statement released Wednesday, members of the Church of God's Executive Committee said they expected to recoup much of the stolen money through an insurance policy that protects against fraud.
"We want our constituents to know that their donated monies are safe and being used properly for their intended works," the church's statement said. "We ask that you join us in prayer for all involved and for the ministry of the Church of God."
Contact staff writer Kevin Hardy at khardy@times freepress.com or 423-757-6249.