Authorities: Former communications director swindled $100,000 from Church of God

Prosecutors say a former communications director swindled $100,000 while working at the Church of God international headquarters, seen here in Cleveland, Tenn.
Prosecutors say a former communications director swindled $100,000 while working at the Church of God international headquarters, seen here in Cleveland, Tenn.

Federal prosecutors say a former Church of God communications director swindled $100,000 from church coffers while working at the denomination's international headquarters in Cleveland, Tenn.

In court documents filed Friday, Assistant U.S. Attorney James Brooks alleged that Troy Scot Carter stole from the church by creating false invoices for audiovisual services for which the church did not owe. 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 crime.

Brooks alleges that Carter's own production company, without church knowledge, obtained a contract to provide audiovisual services for the 2010 Empowered 21 conference at Oral Roberts University in Tulsa, Okla. Carter's firm then subcontracted the actual work out to Indiana company Majestic Productions. Carter was to be paid $44,520 and Majestic agreed to be paid $166,900 for the work.

But Carter only paid Majestic $66,900 -- not the $166,900 he owed them, court records allege. In order to pay the remaining $100,000 he owed, Carter submitted a false bill to the Church of God purporting to be for a down payment owed to Majestic for work it intended to do for the church.

"In fact, Majestic was to perform services for the Church of God in 2010, but did not require this down payment and the $100,000 never became part of Majestic's actual bill," court papers say.

The church mailed a check to Majestic, which allowed Carter to pocket the $100,000 from the Tulsa job. Carter's attorney, Barry Abbott, said it was too early to comment on the charges.

The Church of God is one of the world's largest Pentecostal denominations, with 36,000 congregations around the world. Church officials didn't want to be interviewed on Monday. But the church's International Executive Committee did release a statement on the incident.

Church leaders said they learned of the financial irregularities two years ago and contacted their in-house counsel as well as the Federal Bureau of Investigation. In the statement, the executive committee said it has "fully cooperated" with the investigation. Church leaders expect to recoup the $100,000 lost through an insurance policy that protects the Church of God against fraud.

"The church has taken additional measures to ensure that this type of scenario will not occur in the future. The church will take further steps to evaluate the prospects of exercising its legal options to recoup all of the money which was taken and is advised that restitution will probably be a part of any order of the court.

"We urge prayer for all involved and for the continued ministry of the church."

Contact Kevin Hardy at khardy@timesfree press.com or 423-757-6249.

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