Preacher convicted in fraud case

ATLANTA – A preacher was convicted Monday of stealing nearly $9 million from hundreds of small black churches across the country by promising them big returns on small investments.

Abraham Kennard was found guilty by a federal jury in Rome, Ga., on 116 counts, including fraud and evasion.

Prosecutors said he ran a pyramid scheme that took advantage of the tight network of black preachers to which he belonged.

“I know you can see clearly it was a scheme, all right. And for some 1,600 churches, it was a nightmare,” prosecutor David McClernan said during closing arguments.

Kennard, 46, of Wildwood, Ga., contended he was not guilty of anything.

“It’s not a law against riding in a Cadillac if you don’t want to ride in a Volkswagen,” Kennard, who represented himself, said in his opening remarks.

Michael Trost, who served as Kennard’s standby counsel, said he believes Kennard intended to help the churches.

Sentencing is scheduled for April 15.

Prosecutors said Kennard claimed his company was developing Christian resorts around the country. He told preachers that for a fee of a few thousand dollars, their churches could be “members” of his company. In return, he promised that, in time, the churches would get a grant or a forgivable loan of up to $500,000.

The scheme spread as the trusting ministers told their friends, relatives and fellow pastors.

“It wasn’t about ignorance. It was about trust,” said the Rev. James Cane of Victory Worship Center in Birmingham, Ala., one of several preachers who testified for the government.

Kennard’s brother, Laboyce, also was found guilty Monday of conspiracy to commit money laundering. Prosecutors said he accepted more than $360,000 from his brother.

Laboyce Kennard’s attorney said his client was only trying to start his own business and had no knowledge of his brother’s church enterprise.

The Kennards’ cousin Jannie Trammel and stepbrother Alvin Jasper also were indicted but pleaded guilty and testified at the trial. A lawyer was charged with money laundering and will be tried later.