‘A con man and a thief.’ Former Clovis pastor sentenced to 7 years in prison for fraud
A former Clovis pastor was sentenced to seven years in prison for fraud related to a proposed church development, the U.S. Attorney’s Office announced Friday morning.
The sentence against Sherman Smith, 73, of Monterey is connected to his former work as executive pastor of Sonrise Church of Clovis.
Smith pleaded guilty in September 2019 to wire fraud amounting to more than $2 million, officials said.
U.S. District Judge Dale Drozd called Smith a “con man and a thief” and ordered him to pay about $2.2 million in restitution for his scheme to defraud church congregants and others.
“Smith’s actions in this case went far beyond ‘misappropriation,’” U.S. Attorney McGregor Scott said in a news release. “In asking for church donations to support his scheme, he targeted widows for their deceased husband’s life insurance money; he asked for money to be withdrawn from retirements accounts; he damaged marriages and family relationships; he took away parents’ dreams of affording college for their children, and he destroyed lives.”
Smith’s prison sentence is his second. He previously served 37 months in prison for securities fraud that caused a loss of over $5 million with 38 different victims.
Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office said the FBI is committed to investigating allegations of “significant financial crime, especially those involving individuals who exploit trusted, valued relationships.”
“While today’s sentence offers some justice to Smith’s victims, many face a long journey to financial recovery from the hardship this scheme created,” Ragan said. “We ask the public to commit to researching all financial investment opportunities, regardless of who is proposing or coordinating the investment.”
The criminal complaint states the crimes occurred between February 2015 and July 2016. The Bee reported on then-allegations in 2016.
According to court documents, Smith made appeals from the pulpit, via email, and in person for money to pay off the church’s mortgage and to fund an income-generating development. He collected cash, checks, and rolled-over retirement accounts to fund it, but didn’t disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures.
The case was the product of an FBI investigation and was prosecuted by Assistant U.S. Attorney Laura Withers.
