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#ChurchToo Church Fraud

Brooklyn Pastor Pleads Guilty to Tax Evasion

Charges stem from Paul Mitchell’s admitted theft from church and daycare accounts.

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Paul Mitchell, 60, who led Changing Lives Christian Center in Brooklyn, pleaded guilty to charges of tax evasion, according to a press release by the U.S. Department of Justice.

Paul Mitchell / Photo via Changing Lives Christian Center

According to the DOJ, Mitchell was the founder of the church and daycare center in Brooklyn where he served as lead pastor and president, respectively.

“The defendant treated his organizations’ accounts as his own personal piggy bank, stealing millions of dollars and betraying the trust of his congregation and those dependent on the services provided to the community,” U.S. Attorney Joseph Nocella said in a statement, according to the New York Daily News.

Mitchell admitted to his theft, saying in his plea, “I made personal purchases with the entities’ resources. I acted willfully.”

Between 2015 and 2022, Mitchell used the church and daycare credit cards to make personal purchases that included clothing, diamond rings, and luxury watches. He also used the credit cards to pay life insurance premiums.

In addition, he wrote checks from the church and daycare accounts to pay his own bills and personal income tax.

Mitchell also withdrew large sums of cash from the church and daycare accounts and deposited the money in his own bank accounts. He did not report this stolen money on his personal income tax, thus leading to the tax evasion charge.

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The DOJ reported that Mitchell’s failure to report these funds on his income tax resulted in a loss of over $2.9 million in tax revenue for the Internal Revenue Service and over $300,000 of lost tax revenue to the State of New York.

At sentencing, Mitchell faces up to five years in prison and fines of up to $250,000. He may also be ordered to pay restitution.

Changing Lives Christian Church did not respond to a MinistryWatch inquiry about whether Mitchell would be removed from his leadership roles and what protections the church has put in place to prevent such financial theft from occurring in the future.

GuideStone recommends that churches and ministries implement a “segregation of duties” checklist in order to reduce opportunities for theft and fraud and also to detect errors. The segregation keeps one person from having too much control over the church or ministry finances.

Suggestions include having two signers for checks, having at least two people count tithes and be present through the deposit being made, limiting access for purchases, and having an annual independent audit conducted.

MAIN PHOTO: 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.

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Kim Roberts

Kim Roberts is an award-winning freelance writer who holds a Juris Doctorate with high honors from Baylor University and an undergraduate degree in government with highest honors from Angelo State University. She has three young adult children who were home schooled and is happily married to her husband of 30 years.

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