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Preacher accused of preying on faithful awaits verdict
More articles on this topic: Abraham KennardROME, Ga. – The faith of more than 1,600 small, black churches in 41 states was the foundation for a $9 million scheme carried out by a north Georgia preacher, prosecutors said Thursday.
The churches scraped together the $3,000 fee to join as “members” of the Rev. Abraham Kennard’s business, expecting a windfall for their churches, but the money never came.
Jurors, who began deliberating Friday morning, are now deciding whether that dream was a dupe. Kennard was on trial for a month, accused of bilking nearly $9 million from 1,600 churches in 41 states in just over a year. Federal prosecutors say the charismatic preacher took advantage of the nation’s tight network of black churches to launch a fast-growing pyramid scheme.
“I know you can see clearly it was a scheme, all right. And for some 1,600 churches, it was a nightmare,” Assistant U.S. Attorney David McClernan told jurors during closing arguments.
“When he convinced them to give their money, he lied to them, he gained their trust and then he betrayed them,” McClernan said.
Saying he was backed by more than $100 million in investments, Kennard told preachers that for a fee of a few thousand dollars their churches could be “members” of his company, which he said was developing Christian resorts around the country. In return, he promised that in a few months those churches would get a $500,000 windfall.
It wasn’t his flashy promotional video, the limos, jets or fancy suits that convinced so many ministers that Kennard was the real deal – it was word of mouth.
The 46-year-old Kennard and his colleagues allegedly persuaded some preachers to sign on, and then it spread through black churches, as the trusted and trusting ministers told their friends, nephews, cousins, brothers and, most importantly, fellow pastors.
“It wasn’t about ignorance. It was about trust,” said the Rev. James Cane of Victory Worship Center in Birmingham, Ala.
“It was like a domino effect,” added the Rev. Willie Robbins of the Greater Cathedral Worship Center in Nashville, Tenn., who helped spread the word to Cane and other pastors. “I had preachers telling me, ‘I don’t trust him, but I trust you.’”
Cane was one of several pastors who has testified against Kennard at his trial. Kennard is charged with 132 counts, from money laundering to tax evasion to mail fraud.
Kennard was tried with his brother, Laboyce, who was charged with conspiracy to launder money. Prosecutors said he received more than $360,000 from Abraham Kennard.
Laboyce Kennard’s attorney, Giles Jones, said Thursday his client was trying only to start his own business and had no knowledge of his brother’s church enterprise.
“They want to make a big deal that he stuck his head in the sand,” Jones said.
According to prosecutors, Kennard promised forgivable loans or nonrefundable grants of up to $500,000 for every $3,000 that members paid into his Network International Investment Corp. He represented the business – based in Wildwood near the Georgia-Tennessee border – as a $25 million corporation with more than $100 million in investments.
Prosecutors say Kennard told member churches that $72 million of the investments would be used to build resorts, and they would share the remaining funds. The resorts were never built, and, in most cases, the money never came.
Big plans churches had for their money – for expansions, outreach programs and drug rehabilitation classes – were dashed.
Meanwhile, much of the money Kennard received went to himself and his family: cash, cruises and more than a dozen cars – including several Cadillacs and Mercedes-Benzes, prosecutors said.
The vehicles, along with Kennard’s assets, were seized by the government. Kennard also used the money to pay for private jets and limousines he used during trips to promote his program.
His cousin, Jannie Trammel, and his stepbrother, Alvin Jasper, also were indicted but pleaded guilty and testified at Kennard’s trial. Lawyer R. Scott Cunningham is charged with money laundering, but will be tried later.
Kennard, who is acting as his own attorney, maintains that his actions were not criminal or meant to defraud anyone.
“It’s not a law against riding in a Cadillac if you don’t want to ride in a Volkswagen,” said Kennard in his opening remarks.
Michael Trost, who was appointed as Kennard’s lawyer but became standby counsel when Kennard chose to represent himself, said his client had no intent to defraud anyone.
“Abraham’s vision to help churches failed to unfold,” Trost said. “The last thing in the world he wanted to do was to hurt the very people he was trying to help.”
Trammel, who served as Kennard’s right-hand and often helped sell the program to preachers, said she was willfully blinded by her charismatic cousin.
“Because of my relation with him, I didn’t see those red flags,” she testified. “There’s no question people were misled.”
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