TX Charitable Foundation Treasurer Gets 7 Years for Wire Fraud

Thomas Calhoun Bain ordered to pay $1.7 million in restitution.

The treasurer of a church’s charitable foundation pleaded guilty to two counts of wire fraud. He was sentenced to more than seven years in prison last week, and ordered to pay restitution of over $1.7 million to various victims.

Thomas Calhoun Bain, a self-described stock trader, admitted that over the course of about six years when he had access to and authority over the charitable foundation’s bank accounts, he represented to the foundation that another entity (Entity B) engaged in gospel initiatives in keeping with the foundation’s mission.

The federal court documents did not name the church, charitable foundation, or Entity B; Bain lived in Dallas, Texas.

Because of Bain’s misrepresentations about Entity B, the foundation authorized 15 large monetary donations to it.

Bain then misled Entity B into believing it should transfer the funds to his account for distribution to various charities.

Once Bain received the money from Entity B, he used it to support his personal lifestyle, including a country club membership, domestic and international travel, a vacation rental in Aspen, and $5,000 per month in rent payments for his Highland Park home.

Through his misrepresentations, Bain fraudulently obtained $1.4 million from the charitable foundation, none of which was used to support gospel-based initiatives.

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Bain also admitted to defrauding investors from 2010 to 2022 through his company BainTrade. He represented himself as a “trader,” although he had no professional licenses, certification, training, or specific educational background in investing.

Bain claimed he was making capital investments on behalf of his clients, and falsely guaranteed an annual return of at least 8% on their investments. He further offered that he would split 50-50 between himself and his investors any investments that produced a yearly return of more than 8%. To further the fraud, Bain produced fake contracts and false account statements to encourage more investment.

Instead of real investments, Bain engaged in a Ponzi-type scheme, using new investor funds to make distribution payments to prior investors.

He also used these funds toward his lifestyle expenses to imitate the appearance of a wealthy and successful “trader.”

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.