ST. LOUIS — A former Missouri pastor has been convicted of orchestrating nearly $1.9 million in pandemic-relief, auto and personal loan fraud, including a scheme in which parishioners were directed to open accounts at Navy Federal Credit Union to receive fraudulently obtained loan proceeds.
A federal jury in St. Louis convicted Kenneth C. Sparks III, 56, on Aug. 26 of all 20 counts against him, including one count of conspiracy to commit wire fraud, six counts of wire fraud, three counts of aggravated identity theft and 10 counts of money laundering, according to the U.S. Attorney’s Office for the Eastern District of Missouri. Jurors deliberated for about an hour.
Sparks, who served as a visiting minister at Faith Walk Ministry in Paris, Missouri, orchestrated a $1.2 million fraud involving federal pandemic-relief programs and a separate $685,000 auto and personal loan scheme, prosecutors said.
Parishioners’ Information Used to Obtain Loans
Sparks initially was invited to Faith Walk Ministry to preach for three days but remained at the church for three years, during which prosecutors said he turned the church, its employees and parishioners into what Assistant U.S. Attorney Derek Wiseman described during closing arguments as a “full-time fraud operation.”
Sparks portrayed himself as a prophet and apostle of God whose authority could not be questioned, according to evidence presented at trial.
Prosecutors said Sparks first fraudulently obtained an Economic Injury Disaster Loan for himself after the COVID-19 pandemic began and then obtained personal and banking information from parishioners that was used to seek additional loans. Sparks told church members and employees their information would be used to repair their credit, obtain grants to construct a megachurch or both, according to the Justice Department.
Approximately 40 fraudulent Economic Injury Disaster Loan and Paycheck Protection Program loans ultimately were obtained, prosecutors said.
An earlier federal indictment said Sparks and his co-conspirators obtained more than $1 million in PPP loans in the names of other people after obtaining church members’ personal and financial information. Prosecutors said false tax documents also were created to support some of the fraudulent applications.
Navy Federal Accounts Used to Receive Proceeds
Court records in the case identified Navy Federal Credit Union as the financial institution where church members were directed to open accounts that subsequently received proceeds from fraudulent PPP loans.
After Navy Federal detected suspected fraud and froze several of the accounts, Sparks and another defendant coached church members on what to tell Navy Federal employees in an effort to have the restrictions removed, according to accounts of the federal court records.
Church members were given scripts containing false explanations to provide if financial institution employees questioned them about the loans. The Justice Department confirmed following Sparks’ conviction that parishioners were supplied with scripts for use if questioned by bank officials, although its announcement did not identify Navy Federal by name.
Additional Allegations
The court records further alleged that Navy Federal subsequently lifted restrictions on the accounts, allowing Sparks to direct church members where to send the proceeds.
When some parishioners began questioning Sparks about the money moving through their accounts, court records said he invoked his religious authority to discourage them from challenging him.
The Justice Department said prosecutors established at trial that Sparks “exploited the faith of his congregation” to obtain parishioners’ personal and banking information.
More Than $1 Million Went to Sparks
IRS Criminal Investigation Special Agent Aaron Joifrita testified that approximately $1.2 million in pandemic loans were obtained in the names of parishioners and church employees, according to the U.S. Attorney’s Office.
More than $1 million of the proceeds ultimately went to Sparks, prosecutors said.
Evidence presented at trial showed Sparks wrote approximately $313,000 in checks to himself and obtained another $172,000 through cash withdrawals or advances. He spent approximately $168,000 at luxury retailers, $127,000 on real estate and $47,000 on jewelry, including a diamond-studded Rolex watch, prosecutors said.
Sparks also used similar methods to orchestrate a separate scheme involving $685,000 in auto and personal loans obtained in his name and the names of other people, according to prosecutors.
The combined pandemic, auto and personal loan schemes involved approximately $1.885 million.
10 Others Accept Responsibility
Sparks was one of multiple defendants prosecuted in connection with the fraud.
When the pandemic-loan case was announced in 2024, federal prosecutors also charged Faith Walk Ministry lead minister and CEO Harold G. Long, administrative assistant Mya M. McClain, church member Javonte D. Long and Maryland resident Jeffrey C. Oboite. Prosecutors alleged Oboite taught Sparks and McClain how to submit fraudulent PPP loan applications.
The U.S. Attorney’s Office said following Sparks’ conviction that 10 other defendants have pleaded guilty or otherwise accepted responsibility in connection with the broader case.
Sparks is scheduled to be sentenced Dec. 1.
The case was investigated by the U.S. Postal Inspection Service and IRS Criminal Investigation. Assistant U.S. Attorneys Derek Wiseman and Karin Schute prosecuted the case.
