A former senior official in one of the United States’ oldest historically Black denominations has admitted to orchestrating a scheme that diverted millions of dollars through forged documents and real estate misrepresentations.

According to The Christian Post, Staccato Powell, a former bishop and leader within the African Methodist Episcopal Zion Church, pleaded guilty on Tuesday to wire fraud, mail fraud, and conspiracy charges tied to the illegal acquisition of multiple church properties in California.

Powell, 65, entered the guilty plea in federal court, acknowledging his role in a multi-year plan to take unlawful control of church assets. The scheme impacted several AME Zion congregations across California and resulted in significant financial losses.

Originally from North Carolina, Powell began preaching at age 16 after surviving a car crash and soon became a pastor at 18. He climbed the ranks of the AME Zion Church, eventually becoming bishop of its Western Episcopal District and later president of the denomination’s Board of Bishops in 2020.

Shortly after assuming the bishop role in 2016, Powell established a corporate entity called Western Episcopal District, Inc., also known as WED, Inc. He operated as its CEO and directed leaders within his jurisdiction to transfer ownership of their church properties to the new entity.

Fraudulent Loans Secured Using Church Property

In the following year, WED, Inc. began acquiring loans using the church properties as collateral. Prosecutors allege that Powell, along with other officials, submitted fabricated documents, including falsified church resolutions, in order to support these applications.

Among the houses of worship affected by the scheme were longtime congregations such as First AME Zion Church in Los Angeles, Greater Cooper AME Zion Church in Oakland, and University AME Zion Church in Palo Alto. These institutions were left financially vulnerable as a result of the unauthorized transactions.

Federal investigators say Powell used portions of the acquired loan funds for his own benefit. According to court documents, those expenditures included paying off debts on his personal residence and purchasing properties in North Carolina for two of his children.

Co-conspirator Also Pleaded Guilty to Related Charges

Sheila Quintana, who served as chief financial officer of WED, Inc. from 2017 to 2019, previously admitted to her role in the scheme. Her guilty plea in April underscored the depth of internal involvement in the operation.

Authorities say Quintana and other WED officers worked under Powell’s supervision to carry out the fraudulent processes. Their actions allegedly included preparing and submitting fake paperwork to obtain the funds through secured loans.

The fraudulent maneuver allowed Powell’s entity to gain control over valuable church real estate, all while circumventing the established governance structure of the AME Zion denomination.

Bishop Removed Following Church Trial

In response to reports of financial misconduct, the AME Zion Church took internal action in 2021. After a church trial, Powell was stripped of his bishopric and removed from church leadership entirely.

His legal troubles soon escalated. In January 2022, Powell and Quintana were both indicted on fraud charges. He was arrested in Wake Forest, North Carolina, and appeared in federal court shortly thereafter.

Quintana was apprehended in Vallejo, California, and appeared before a Sacramento court, setting the stage for the criminal proceedings that followed.

Restitution and Sentencing Await

As part of his plea agreement, Powell acknowledged responsibility for financial losses potentially reaching $12.4 million. He has committed to paying restitution ranging from $3 million up to the full estimated amount.

The former bishop also agreed to relinquish any claims or rights to AME Zion Church properties, formally severing his ties from the assets central to the scheme.

Powell has been released on bond and is scheduled to be sentenced on Sept. 23 before Senior U.S. District Judge Jeffrey S. White. He faces a maximum of 20 years in prison per count, as well as a potential fine of $250,000 for each charge.