A district judge in Benton has sentenced a former church pastor in Hamilton County to 21 months’ imprisonment for obtaining COVID-19 funds from the SBA by fraudulently representing to the SBA that the funds would be used for his church.
58-year-old Terry L. Hall of McLeansboro pleaded guilty to two counts of wire fraud and three counts of making false statements. Following imprisonment, he will serve two years of supervised release. Hall was ordered to pay $199,900 plus the accrued interest back to the Small Business Administration.
“The vast majority of pastors across southern Illinois answered the pandemic with selfless service,” said U.S. Attorney Steven D. Weinhoeft. “Terry Hall chose a different path: he requested federal relief on behalf of his congregation, then used nearly $200,000 for purely personal expenses. Conduct that far from the calling of ministry demands accountability, and accountability arrived in the form of a 21-month federal prison sentence.”
Enacted in March 2020, the Coronavirus Aid, Relief, and Economic Security Act provided emergency financial assistance to Americans suffering from impacts of the pandemic.
Under the CARES Act and administered by the SBA, the Economic Injury Disaster Loan program provided low-interest funding to small businesses, renters, and homeowners. As appropriated, EIDL funds could be used for payroll, sick leave, production costs, and other general business expenses.
According to the indictment, Hall was the lead pastor of a religious congregation in McLeansboro. As pastor, Hall applied for economic relief on behalf of the church and received two EIDL disbursements totaling approximately $199,900 in 2020, which were deposited into his personal bank account. To ensure he received the loan, Hall created fake documents, contacted elected representatives, and intimidated fellow church members.
Hall admitted to using the EIDL funds to pay off his mortgage, the construction of a pole barn, various travel and other personal expenses like clothing, gas, and food. The church did not receive any assistance to alleviate the economic hardships during the pandemic.
The FBI Springfield Field Office led the investigation, and Assistant U.S. Attorney Kathleen Howard prosecuted the case.
