A former bishop and president of The African Methodist Episcopal Zion Church has pleaded guilty to defrauding several congregations of the historically black denomination.
Staccato Powell, 65, pleaded guilty on Tuesday to wire fraud, mail fraud, conspiracy to commit wire fraud and mail fraud as part of a scheme to gain control of church properties in California via forged documents and false statements.
Prosecutors say Powell formed an entity known as Western Episcopal District, Inc. in 2016, shortly after becoming bishop of the AME Zion Church's Western Episcopal District.
He served as the chief executive officer of WED, Inc., while Sheila Quintana was the chief financial officer from 2017 to 2019. Quintana pleaded guilty to fraud charges in April.
In 2016, Powell was accused of instructing pastors in the Western Episcopal District to sign deeds granting WED, Inc. title to their church's property. Beginning in 2017, Powell had Quintana and other WED, Inc. officers get loans using the church properties as collateral.
The U.S. Attorney's Office for the Northern District of California states that Powell oversaw the creation of documents falsely claiming to be resolutions from churches, which were used to support the loan applications.
Congregations impacted by the fraud include First AME Zion Church in Los Angeles, First AME Zion Church in San Jose, Greater Cooper AME Zion Church in Oakland, Kyles Temple in Vallejo and University AME Zion Church of Palo Alto.
Authorities allege that Powell also diverted some of the funds for his own personal benefit, buying properties in North Carolina for two of his children and paying off a mortgage debt he owed on a residence located in North Carolina.
Powell had agreed to pay between $3 million and $12.4 million in restitution, and to also forfeit any claim, interest or right in the properties of the AME Zion Church, according to a statement from the U.S. Attorney's Office.
Powell had been released on bond and awaits a sentencing hearing scheduled for Sept. 23 before Senior U.S. District Judge Jeffrey S. White. He faces up to 20 years in prison and a fine of $250,000 for every count.
Born in North Carolina in 1956, Powell became a preacher in the AME Zion Church at age 16 after miraculously surviving a serious car accident. He became a pastor by age 18.
In 2013, Powell helped to found a revival movement called "new church Believers," which was centered on a desire to return American Christianity to "the old church."
In an interview with The Christian Post at the time, Powell believed that churches in the United States "must reconnect with the roots of Christianity or wither as divided branches."
"Church as we know has not positively impacted them to alter conditions, change lives and create sustainable communities. Clearly this is not what was envisioned or operative in the first century apostolic era church of Jesus Christ," he said.
"New church is not a repudiation of or antithetical to what presently exist. This is not a 'tea party' movement in opposition to the established church … [it's] an effort to bring to bear the transformative influence and impact of the Spirit's power and presence in the world."
In February 2020, shortly before the COVID-19 pandemic began, Bishop Powell was promoted to the office of president of the AME Zion Church Board of Bishops, succeeding Bishop Michael A. Frencher, Sr.
However, Powell was removed as a bishop in 2021 following a church trial centered on allegations that he had mishandled millions of dollars of church funds.
In January 2022, Powell and Quintana were both indicted on fraud charges. Powell was arrested in Wake Forest, North Carolina, and appeared in federal court. Quintana was arrested in Vallejo, California, and appeared in a Sacramento court.
