Former Clovis pastor could spend 20 years in prison if convicted of alleged fraud
A former Clovis pastor faces up to 20 years in prison if convicted of alleged fraud charges related to a proposed church development, the U.S. Attorney’s Office announced Thursday.
The charges against Sherman Smith, 73, are connected to his former work as executive pastor of Sonrise Church of Clovis.
He allegedly defrauded investors of more than $2 million. He was indicted Thursday on seven counts of wire fraud.
“Smith allegedly induced investors, including church congregants, to give money to the church by representing that the money would be used to finance a real estate development project for the benefit of the church,” wrote U.S. Attorney McGregor Scott’s office in news release from the Eastern District of California.
“Smith made appeals from the pulpit, via email, and in person for monies to pay off the church’s mortgage and fund an income-generating development.
“Smith collected cash, checks, and rolled-over retirement accounts to fund the church’s project, but he did not disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures.”
The case, being prosecuted by Assistant U.S. Attorney Laura Withers, is the product of an investigation by the FBI. It was filed in U.S. District Court in Fresno last week.
The criminal complaint states the alleged crimes occurred between February 2015 and July 2016.
Sonrise Church of Clovis is not commenting on the case until after court hearings, a church staffer told The Bee on Thursday.
The Bee reported on related allegations in 2016. At that time, the church’s senior pastor, J. Otis Ledbetter, issued a statement that said it is “with great sadness that I must confirm that it appears that a former church staff member may have misappropriated funds belonging to Sonrise Church of Clovis and its congregation.”
A church news release at that time also stated that “accounting abnormalities” were discovered, and that the church contacted local, state and federal authorities.
A Facebook group titled Residents Opposed to Sonrise Church Development created in late 2013 linked to former cases against Smith for similar allegations.
A spokeswoman for the U.S. Attorney’s Office said she can’t comment on a defendant’s criminal history. Her office identified Smith as a current resident of Monterey.
Smith is also an author of numerous financial help books, according to his author bio page online.
The Fresno County Jail log shows Smith was arrested Aug. 21.
This story was originally published August 29, 2019 at 4:37 PM.
