A pastor who swindled $3.5million in Covid aid cash to fund his lavish life-style has been sentenced to 18 months in jail.
Rudolph Brooks, 48, pleaded responsible to wire fraud and cash laundering final month after he exploited the pandemic-era Paycheck Safety Program (PPP).
Brooks was arrested in April 2021 for fraudulently acquiring PPP loans after submitting falsified paperwork for companies below his management, the Justice Division mentioned.
He secured $3.5million after inflating worker numbers and payroll bills on his mortgage purposes. He then used the funds on private bills together with a 2018 Tesla Mannequin 3, property in an prosperous Maryland city, and lavish spending at eating places, grocery shops and different retailers.
Brooks, founder and senior pastor at Kingdom Tabernacle of Restoration church, was additionally ordered to forfeit over $2million, the Tesla and the true property he bought with the fraudulently obtained funds, court docket data from Tuesday’s sentencing revealed.
The fraud was not tied to Brooks’ place on the church.
Rudolph Brooks, 48, pleaded responsible to wire fraud and cash laundering final month after he exploited the Covid Paycheck Safety Program (PPP). Brooks, founder and senior pastor at Kingdom Tabernacle of Restoration church, was sentenced to 18 months in jail on Tuesday. He’s pictured preaching throughout a service on the church
He secured $3.5million after inflating worker numbers and payroll bills on his mortgage purposes. He then used the funds on private bills together with a 2018 Tesla Mannequin 3, (inventory picture) property within the prosperous city of Higher Marlboro, Maryland, and lavish spending at eating places, grocery shops and different retailers
Brooks admitted utilizing PPP mortgage proceeds for his private profit and on funds and purchases that weren’t permitted below this system, DOJ filings state.
Along with utilizing to funds to purchase a residence, luxurious automobile and different lavish purchasing bills, Brooks additionally made money withdrawals and transfers to different financial institution accounts below his management.
He pleaded responsible to prices of wire fraud and cash laundering on August 27 and was sentenced on Tuesday.
A decide ordered the pastor to serve 18 months in jail, adopted by two years of supervised launch, and mandated the forfeiture of a number of belongings.
Brooks utilized for the PPP mortgage below a Maryland-based automotive dealership that he owns known as Vehicles Direct in Could 2020, court docket paperwork revealed.
He acquired $1.5million PPP mortgage, deposited straight right into a Vehicles Direct checking account on which he was the only real signator, after submitting faux tax and payroll types associated to the dealership.
Brooks utilized for the PPP mortgage below his Maryland-based automotive dealership, Vehicles Direct, Kingdom Tabernacle (pictured) and an organization known as Madaro, LLC
Brooks acquired $1.5million PPP mortgage in Could 2020, deposited straight right into a Vehicles Direct checking account on which he was the only real signator, after submitting faux tax and payroll types associated to the dealership. He then transferred cash from these Vehicles Direct accounts into his personal private accounts and used the funds on bank card payments
He fraudulently utilized for 2 different PPP loans for $1.8million and $200,000. These funds have been deposited into accounts related to Kingdom Tabernacle and Madaro, LLC, each of which he was the sole signator.
He then opened up a checking account below the identify Payroll by BJM, wherein he transferred $500,000 of the mortgage funds. He additionally opened up further financial institution accounts utilizing the Vehicles Direct identify that he transferred mortgage funds into.
Brooks then transferred cash from these Vehicles Direct accounts into his personal private accounts and used the funds on bank card payments, at eating places, retail shops, grocery shops, automotive auctioneers and mortgage funds on his residence.
His purchases included a $507,010 property in Higher Marlboro, Maryland, bought below the identify of Rudolph Brooks, and a 2018 Tesla Mannequin 3, bought for $60,407 in his son’s identify. The automobile was later registered in Maryland in Brooks’ personal identify.
Beneath the federal authorities’s PPP mortgage necessities, funds are for use on payroll prices, mortgage curiosity, hire and utilities.
Brooks additionally allegedly tried to obtain funds via the Financial Damage Catastrophe Mortgage (EIJD) program, court docket data state.
He utilized for the loans via Vehicles Direct and Kingdom Tabernacle, however each purposes have been rejected by the Small Enterprise Administration as a consequence of ‘unsatisfactory credit score historical past’.
