Bay Area Bishop Pleads Guilty To Wire, Mail Fraud In Multi-Million Dollar Scheme

OAKLAND, CA— A former bishop pleaded guilty on Tuesday in a Bay Area federal court to wire fraud, mail fraud and conspiracy charges tied to a sweeping scheme to seize control of church properties across California.

Staccato Powell, 65, is a former bishop of the African Methodist Episcopal Zion Church’s Western Episcopal District. In an Oakland court, Powell admitted orchestrating a scheme to seize control of multiple AME Zion church properties in the Bay Area and beyond, according to a news release from the Department of Justice.

"Powell instructed pastors of AME Zion Churches throughout the Western Episcopal District to sign deeds granting WED, Inc. title to their congregation’s property – typically the church building, but also any outbuildings, lots, parking lots, and residences used by the pastors," according to a release from the DOJ.

In pleading guilty, Powell admitted to fraudulently obtaining churches in Vallejo, San Jose, Oakland, Palo Alto and Los Angeles.

The former bishop also admitted to directing WED, Inc. to borrow $2.15 million in September 2019 to pay off other outstanding loans and $3 million in December 2019 to pay off the September 2019 loan, using several AME church properties in Arizona and California as collateral, the release states.

The defrauded Bay Area congregations include Kyles Temple AME Zion Church in Vallejo, First AME Zion Church in San Jose, Greater Cooper AME Zion Church in Oakland, and University AME Zion Church in Palo Alto.

Powell admitted he knew the San Jose church had not authorized either the initial $750,000 loan or a subsequent $3 million loan obtained against its property. Greater Cooper AME Zion Church in Oakland similarly faced unauthorized loans totaling approximately $1.6 million. University AME Zion Church of Palo Alto saw its property encumbered first by a $2 million loan, later increased to a total of $3.6 million, without congregational approval, according to the DOJ.

In Vallejo, Powell said he fraudulently used the property of Kyles Temple AME Zion Church to secure financing for his home in Granite Bay, California, relying on falsified church resolutions to back his actions.

Powell’s co-defendant, Sheila Quintana, previously pleaded guilty in April to similar charges related to the same scheme, the DOJ stated.

Powell is scheduled for sentencing on Sept. 23. He faces a maximum sentence of 20 years in prison and a $250,000 fine for each count. Authorities said Powell remains out of custody on bond pending sentencing.