New York pastor pleads guilty to $3 million tax evasion scheme
Quick Summary
- New York pastor Paul Mitchell pleads guilty to a $3 million tax evasion scheme.
- Mitchell used church and daycare funds for personal expenses from 2015 to 2022.
- He faces up to five years in prison, restitution, and fines up to $250,000.
A New York pastor has pleaded guilty to a tax evasion scheme that resulted in more than $3 million in losses of state and federal taxes.
Paul Mitchell, who served as the lead pastor of a church and president of a daycare, pleaded guilty on Tuesday to a charge of one count of tax evasion.
According to a press release from the United States Department of Justice, Mitchell operated a church and a daycare center. From 2015 to 2022, he used the credit cards of both the church and the daycare to pay for personal expenses, including thousands of dollars in clothing, jewelry, luxury watches and life insurance premiums.
According to the DOJ, Mithcell also wrote checks from the church's bank accounts to pay his credit card bills and personal income taxes.
Mitchell often withdrew substantial amounts from the church and daycare bank accounts, sending the funds to his personal bank accounts. He also failed to report these transfers on his personal tax returns.
“As a result of his conduct, Mitchell caused a tax loss of approximately $2,906,072 to the IRS and approximately $316,699 to New York state between 2015 and 2022,” stated the DOJ.
“Mitchell faces a maximum penalty of five years in prison, restitution and fines of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.”
The litigation was handled by the Public Integrity Section, with Assistant U.S. Attorney Miranda Gonzalez for the Eastern District of New York and Trial Attorney Catriona M. Coppler of the DOJ’s Tax Section of the Criminal Division prosecuting the case.
Last November, Influence magazine cited research from the Center for the Study of Global Christianity of Gordon-Conwell Theological Seminary, which estimated that embezzlement will cost Christian ministry organizations worldwide approximately $70 billion this year.
As a contrast, the Center report estimated that, over the course of the same period, congregations globally will receive only about $60 billion in foreign missions funding.
“As an auditor who has investigated fraud in churches and nonprofits for more than 30 years, I’ve seen firsthand how these issues impact all areas of ministry,” wrote Rollie Dimos for Influence.
“Damage from financial scandals typically extends far beyond the immediate loss. Donor confidence also takes a hit, along with the church’s reputation in the community.”
