On September 18, 2020, a Clovis church’s former executive pastor pleaded guilty to seven wire fraud charges of over $2 million.
Sherman Smith, 74, the former executive pastor, was indicted in August of last year for the white-collared crimes he committed from 2015 to 2016 against the church’s investors and the Sonrise Church on Locan Avenue in Clovis.
Smith was in charge of the church’s assets, where he collects cash, checks, and even rolled-over retirement accounts for personal gain. Of course, the money was meant for mortgage payments for the church but was used for an undisclosed real estate development project.
Two investors rolled over their retirement accounts to Smith after signing a promissory note that authorized bank investors to transfer money to the real estate development project. Over $95,000 were taken from each investor, where only $38,000 was transferred to the church’s account and the rest to Smith’s account.
Smith also ran a publishing business where he published his book, Life Under Pressure, a self-help book to overcome financial adversity. A part from the funds he took went into his publishing company and payments on his car and credit cards.
After scamming the first two investors, he convinced two other investors racking up $900,000 for the real estate development project between March and May of 2016, none of which made it to the church’s account.
The Sonrise Church discovered account abnormalities, which then became a Federal Bureau Investigations case.
In July 2016, Smith admitted to mishandling assets made out for the church’s real estate development project after filing an FBI report. The damage was done; by then, Smith had already wired a total of $2,083,315.90.
The Sonrise Church has not made any public announcement other than a Facebook status posted on August 22 of this year. Extra fencing would be less exposure from the media, especially children who may attend the church.
Smith is expected to be sentenced December 11 later this year, where he could face 20 years of imprisonment and a $250,000 fine.