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Ex-Church Chairman Accused of $11.5 Million Fraud
LOS ANGELES – Charles Thomas Sebesta, 54, of Huntington Beach, is facing a mountain of charges after federal prosecutors allege he systematically looted the Los Angeles branch of the Christian Science Church for over a decade. Sebesta, the former chairman, is accused of wire fraud, bank fraud, and aggravated identity theft, totaling a staggering $11.5 million in stolen assets. He’s expected to appear in federal court today to answer to the indictment.
The indictment details a brazen scheme stretching from August 2006 through December 2016. Sebesta, initially hired as a facilities manager in 2001, allegedly gained control of the church’s finances and used his position to funnel money into accounts he controlled – including those belonging to family members and fictitious companies. He didn’t stop at shell corporations; prosecutors say he forged the signature of a church member to authorize checks drawn from the church’s accounts.
The scale of the alleged theft is particularly galling. In 2008, when the church sold a Hollywood property for $12.8 million, Sebesta allegedly siphoned off the majority of the proceeds for himself. This included a $2,019,000 down payment on a home purchased with cashier’s checks drawn directly from church funds. He then allegedly disguised the thefts within church records, labeling them as “donations” or payments for fabricated environmental remediation projects. The Secret Service investigation uncovered a meticulous attempt to cover his tracks.
Sebesta’s alleged spending wasn’t limited to real estate. The indictment reveals a taste for the high life. In June 2010, he reportedly used stolen church funds to secure a membership at Club 33, Disneyland’s ultra-exclusive dining club. He then allegedly hosted entertainment companies and their employees, all on the church’s dime. Further, Sebesta allegedly wired $1.86 million and $309,622 in church money to his personal tax accounts in 2009 and 2010, scheming to receive inflated tax refunds from both the U.S. Treasury and the California Franchise Tax Board.
Adding another layer of deceit, Sebesta is accused of creating fake email accounts, even impersonating a prominent real estate executive, to further his fraudulent scheme. The indictment also alleges he stole $34,032 from a private high school where he was also employed. The total amount of stolen funds from both institutions reaches $11,438,213. If convicted on all counts, Sebesta faces a potential sentence exceeding 250 years in federal prison.
The U.S. Attorney’s Office stresses that an indictment is merely an allegation, and Sebesta is presumed innocent until proven guilty beyond a reasonable doubt. The investigation was conducted by the United States Secret Service, with the prosecution handled by Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section. This case serves as a stark reminder that even seemingly devout institutions are vulnerable to greed and betrayal.
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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