Raleigh Pastor Pleads Guilty to COVID-19 Loan Fraud
A Raleigh pastor has pleaded guilty to federal charges after prosecutors say he fraudulently obtained more than $400,000 in COVID-19 relief loans for personal use.
According to the U.S. Department of Justice, 45-year-old Mitchell Summerfield pleaded guilty this week to conspiracy to commit bank fraud and wire fraud. He now faces up to 30 years in prison, a $1 million fine, and five years of supervised release. As part of the plea, Summerfield must also pay restitution in an amount to be determined.
Summerfield served as pastor of the Word of God Fellowship Church in Raleigh and operated several businesses, including Winning Ways, KHS Investments, and Vision and Destiny. Court documents state that he conspired with others to submit fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) using those entities.
The PPP program was created in March 2020 to provide forgivable loans to small businesses struggling to stay afloat during the pandemic. Prosecutors say Summerfield submitted multiple applications with false information, including fabricated IRS forms and income tax returns, to secure loan funding.
The Justice Department alleges that the funds were used unlawfully, including for personal expenses.
