Paul Mitchell, Tax Evasion, New York 2022

"Tax evasion is a serious crime that undermines trust in our financial system," said Acting Assistant Attorney General Matthew R. Galeotti of the Criminal Division. "The guilty plea in this case demonstrates the government’s commitment to holding accountable those who cheat the system and deprive the public of much-needed revenue."

BROOKLYN, NY – In a shocking turn of events, Paul Mitchell, the lead pastor of a Brooklyn church and president of a local daycare, pleaded guilty to a tax evasion scheme that spanned seven years.

According to court filings, Mitchell used the church and daycare’s credit cards to pay for his personal expenses, including men’s clothing, thousands of dollars in jewelry, luxury watches, and life insurance premiums. He also wrote checks from the church’s bank accounts to pay his own credit card bills and personal income taxes.

As part of the scheme, Mitchell frequently withdrew large amounts of cash from bank accounts for the church and the daycare and transferred funds from those accounts into his own bank accounts. He failed to report his use of the stolen funds as income on his personal income tax returns, which significantly reduced his tax burden and allowed him to evade the payment of personal income taxes.

The scheme resulted in a staggering tax loss of approximately $2,906,072 to the IRS and approximately $316,699 to New York State between 2015 and 2022.

Mitchell faces a maximum penalty of five years in prison, restitution, and fines of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The government’s case is being handled by the Public Integrity Section. Assistant U.S. Attorney Miranda Gonzalez for the Eastern District of New York and Trial Attorney Catriona M. Coppler of the Justice Division’s Tax Section are prosecuting this case.

Paul Mitchell, 65, of Brooklyn, New York, pleaded guilty to one count of tax evasion. The exact date of the crime was not specified in the source.

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