Former Clovis pastor pleas guilty to defrauding church members in development scheme

A former Clovis pastor faces 20 years in prison after pleading guilty Friday to a real estate scheme that defrauded investors — some of whom were his own congregants — of more than $2 million.

Sherman Smith was indicted on seven counts of wire fraud last year stemming from crimes he committed in 2015-2016, while he was executive pastor of of Sonrise Church of Clovis, a the popular church at Ashlan and Locan avenues.

Sherman is scheduled to be sentenced Dec. 11.

According to court documents, Smith induced investors, including congregants, to give money to the church, saying the money would be used to finance a real estate development project.

Smith made appeals from the pulpit, via email, and in person to collect cash, checks and rolled-over retirement accounts that totaled more than $2 million, according to court records. The money was supposed to be used to pay off the church’s mortgage and fund an income-generating development.

Instead, Sherman used the money for personal expenses, to operate a publishing business and to invest in foreign ventures.

The church discovered “accounting abnormalities” in July 2016 and contacted local, state and federal authorities. The case was eventually investigated by the FBI.

Smith faces a maximum penalty of 20 years in prison and a $250,000 fine, though the sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, according to a new release from the Department of Justice.