A former bishop in the African Methodist Episcopal Zion Church (AME Zion) pleaded guilty to multiple fraud charges in federal court in connection with a scheme to obtain control of church properties in California.
According to court documents and the plea agreement, in 2016, Staccato Powell was selected as a bishop in 2016 and was assigned to AME Zion Church’s Western Episcopal District, a geographic division of the church covering several states in the western states including California. After becoming a bishop, Powell formed an entity called Western Episcopal District Inc. (WED Inc.) and made himself CEO and Sheila Quintana the chief financial officer from 2017 to 2019.
In 2016, Powell instructed pastors of AME Zion Churches throughout the Western Episcopal District to sign deeds granting WED Inc. title to their congregation’s property – typically the church building, but also any outbuildings, lots, parking lots, and residences used by the pastors. At Powell’s direction, Quintana and other WED, Inc. officers worked on completing the necessary steps to accomplish the transfer of titles through grant deeds.
Starting in early 2017, Powell instructed Quintana and other WED Inc. officers to obtain loans using the property of local AME Zion Churches acquired through the grant deeds as collateral for the loans. In response to the lenders’ request for confirmation of the local AME Zion Church’s authorization of the loan, Powell coordinated the creation of fraudulent documents purporting to be resolutions by churches to support WED Inc.’s loan applications.
In pleading guilty, Powell admitted to fraudulently obtaining mortgages on five church properties. Powell also admitted that he directed WED Inc. to borrow $2.15 million in September 2019 to pay off other outstanding loans and $3 million in December 2019 to pay off the September 2019 loan, using several AME church properties in Arizona and California as collateral.
In addition, Powell diverted some of the funds borrowed by WED Inc., using properties of local AME Zion Churches as collateral, for his personal benefit, including purchase of real property in North Carolina for two of his children and payment of mortgage debt that he owed on a residence in North Carolina. Powell caused WED Inc. to file for bankruptcy in a July 2020 petition, in which it claimed its assets included 11 churches, a parsonage, and Powell’s official residence. The petition stated that WED Inc.’s real property was worth over $26 million with debts totaling over $12 million.
Powell pleaded guilty to wire fraud, mail fraud, conspiracy to commit wire fraud and mail fraud as part of a scheme to gain control of church properties via forged documents and false statements. As part of his guilty plea, Powell will pay restitution in an amount no less than $3 million and no greater than $12.4 million, and he also agreed to forfeit any interest, claim, or right in the properties of the AME Zion Church denomination.
Powell is currently released on bond. His sentencing hearing is scheduled for Sept. 23, and he faces a maximum statutory penalty of 20 years and a $250,000 fine for each count.
Quintana pleaded guilty to conspiracy to commit wire fraud and mail fraud in April. She faces a maximum sentence of five years in prison and a $250,000 fine for conspiracy to commit wire fraud and mail fraud.
Photo courtesy of Staccato Powell’s Facebook page
