A Houston pastor has pleaded guilty to his role in a multimillion-dollar investment scheme that targeted Louisiana residents, many of whom are elderly and retired.
Kirbyjon H. Caldwell, senior pastor of Windsor Village United Methodist Church, entered a guilty plea to conspiracy to commit wire fraud in connection to the scheme.
Caldwell and his codefendant, Gregory A. Smith, a Shreveport investment advisor, used their positions to persuade victims to invest approximately $3.5 million in what they claimed were historical Chinese bonds.
However, the bonds are not recognized by China’s current government and have no investment value.
Smith’s sales pitch to investors promised exponential returns on their investments, but victims were not told of the true nature of the bonds or that no previous investor had ever obtained the promised return on an investment.
After Smith made the fraudulent pitch, victims were instructed to wire funds to various bank accounts under Caldwell’s control. In 2013 and 2014, approximately $3.5 million was invested, with Caldwell receiving around $900,000 and Smith getting $1.08 million.
Caldwell and Smith used the money to pay down debts, purchase luxury items, and maintain their lifestyles. The pair offered excuses and defended the legitimacy of the deals when investors began to question why they had not received the promised returns.
Under the terms of his plea agreement, Caldwell faces between five and seven years in prison, a fine of up to $250,000, and up to three years of supervised release. Caldwell has already made partial restitution to the victims and has agreed to pay the remaining balance of $1,951,478.00 before sentencing.
Sentencing for Caldwell is set for July 22, 2020, while Smith’s sentencing is scheduled for May 4, 2020.
The FBI conducted the investigation, and Assistant U.S. Attorneys Seth D. Reeg and C. Mignonne Griffing are prosecuting the case.
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Key Facts
- State: Louisiana
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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