A federal grand jury has indicted a Texas man accused of defrauding victims of $2.2 million through “church flipping” and Christian concert investment schemes.
Richard Garcia preaching at Gracia Church / Video screenshot @Richard R Garcia APDT
Richard Reinaldo Garcia, 53, faces one count of wire fraud conspiracy, two counts of wire fraud, and one count of aggravated identity theft after his indictment June 2 in the Northern District of Texas.
Garcia’s alleged fraudulent activities took place between 2021 and 2026 using faith-based entities, including Gracia Church, Ministerio Gracia, and A Pesar de Todo, according to FBI Special Agent Megan Woodruff. According to his YouTube account, Garcia is a pastor at Gracia Church and head of A Pesar de Todo.
“The defendant allegedly took advantage of his victims’ faith by promising significant profits through investment opportunities but instead used their funds to selfishly enrich himself at their expense,” U.S. Attorney Ryan Raybould said in a statement.
Church flipping
One scheme involved inducing others to enter contracts in which Garcia falsely represented that he would use their funds to renovate — or “flip” — church properties that he claimed to own, preparing them for resale. Garcia promised “investors” varying returns on their money.
In one instance, two investors gave Garcia a check for $50,000 to flip a church property in Arlington, Texas. He deposited the funds into Gracia Church’s bank account.
He then allegedly told the investors their investment had grown by $55,000 — which he claimed to have “reinvested” in another project without their permission.
Garcia then allegedly took a $125,000 contribution from another investor for a church renovation project in Texarkana, telling that investor the church property had been sold and that he used the proceeds to “roll into” another project — again, without authorization.
That third investor later told investigators he learned Garcia’s documents were fraudulent and that Garcia never owned the Texarkana church property.
Still another investor allegedly gave Garcia $168,000 for a church project in Lubbock, where Garcia again claimed to have rolled the investment into another project without permission.
Christian concerts
A second scheme involved soliciting investments to host Christian concerts that Garcia claimed would generate profits. According to the complaint, Garcia hosted only one concert and never repaid investors.
He allegedly took contributions of over $500,000 to stage Christian music concerts in the Dominican Republic and Colombia.
The complaint states that Garcia instructed victims to make contributions through a church donation portal.
When some investors asked for their money back, he allegedly sent them “lulling” payments to make the scheme appear legitimate.
In all, according to the complaint, more than 60 individuals in the United States and abroad invested approximately $2.2 million in Gracia Church projects or A Pesar de Todo. Prosecutors allege Garcia used the money for unrelated personal expenses, lulling payments, and personal enrichment.
Access to MinistryWatch content is free. However, we hope you will support our work with your prayers and financial gifts. To make a donation, click here.
What’s next
Garcia’s trial is currently set for Oct. 13. If convicted, he could face up to 20 years in federal prison for each count of wire fraud and wire fraud conspiracy, plus a mandatory sentence of two years in prison for aggravated identity theft.
What is affinity fraud?
The Securities and Exchange Commission classifies Garcia’s alleged crime as “affinity fraud” — a scheme that targets communities to which perpetrators claim to belong.
The Ohio Department of Commerce warns: “These scams exploit the trust and friendship that exist in the groups of people who have something in common. Victims of such scams often fail to notify authorities or pursue their legal remedies, but are more likely to try to work things out within the group.”
It gives the following tips to avoid affinity fraud:
- Be wary of investments that appear too closely tied to religious beliefs.
- Be cautious of a promoter who is capitalizing on a connection to a religious leader.
- Be on guard for a new member that pops up to offer a “surefire” investment idea.
- Don’t believe claims that religious-based investments are unregulated.
- Do your due diligence by checking out the promoter and the investment.
- Don’t allow the suspect to escape law enforcement scrutiny.
EDITOR’S NOTE: Why does MinistryWatch report on financial fraud in the church? We report on them because one in three churches will be victimized, according to the Center for the Study of Global Christianity. We also report on them because these crimes have real victims and cost taxpayers and other stakeholders billions of dollars every year. Even small crimes in small churches have huge consequences. We also report on them to remind our readers that they do not have to be victims. There are steps you can take to prevent financial waste, fraud, and abuse in your church or ministry. To find out more, click here.