Name: Pastor Kirbyjon Caldwell gets six years for fraud scheme involving worthless Chinese bonds
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Pastor Kirbyjon Caldwell gets six years for fraud scheme involving worthless Chinese bonds

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This is a carousel. Use Next and Previous buttons to navigateKirbyjon Caldwell, Houston megachurch pastor and former spiritual adviser to two U.S. presidents, was sentenced on Wednesday to six years in federal prison for his role in a scheme that defrauded more than two dozen people out of millions of dollars through the sale of worthless Chinese bonds.But it may be another year until the 67-year-old, who , enters the prison system because of the threats posed to his health by COVID-19.Caldwell was a spiritual adviser to presidents George W. Bush and Barack Obama. He grew Windsor Village United Methodist Church from roughly 25 members in the 1980s to more than 16,000 today — making it one of the country’s largest protestant congregations.NEWS IN YOUR INBOX:In 2018, he and another man, Shreveport-based investment adviser Gregory A. Smith, were charged by federal authorities for using their status and access to encourage 29 people to invest about $3.5 million in historical Chinese bonds between April 2013 and August 2014. Smith and is currently in prison.Smith and Caldwell, a Houston native with a degree from the Wharton School of Business, told investors they could see returns as high as 15 times their initial investment, according to the indictment.However, the bonds from the former Republic of China only existed prior to the 1949 communist takeover there. The Securities and Exchange Commission considers them “collectible memorabilia,” but they are no longer recognized by China’s government and have no investment value, according to court documents.Caldwell initially denied the allegations, butAt a Wednesday sentencing in Louisiana federal court, he apologized for causing “undeserved financial harm, emotional distress, emotional pain.”“They trusted me with their money, and I abused that trust,” Caldwell&nbsp;said in a roughly seven-minute statement. “I misled them, I profited at their expense, and for that I am very sorry. As a result of my actions, good people lost hard-earned money. Retirement funds were used, mortgages and other important bills went unpaid, and things that the victims wanted to do for their families and friends just went undone.”Before sentencing, Chief U.S. District Judge S. Maurice Hicks Jr. noted Caldwell’s history of community service and the more than $4 million he has since repaid to victims — which Hicks said was a rarity in most fraud cases.SUBSCRIBE TODAY:But Caldwell’s business acumen and stature in the community, Hicks continued, made the scheme particularly egregious.“He is not average in any manner, way, shape or form,” Hicks said, adding that Caldwell had a responsibility to confirm the value of the bonds before endorsing them. “Either he failed to do it, he didn’t want to do it or he turned his back on what was easily available to him to determine that these bonds were worthless.”Caldwell used his share of profits to open a personal line of credit, according to court records.He has since been defrocked by the United Methodist Church, though it was revealed in court on Wednesday that he has continued to serve in a paid position at Windsor while his wife serves as lead pastor.In a lengthy statement, Windsor officials praised Caldwell, their "visionary leader," for his contributions to the church and broader community.The church also noted that Caldwell voluntarily paid restitution to his victims prior to sentencing, which the church said was "virtually unheard of and extremely rare in these kinds of cases."Hicks said he received “numerous” statements in support of Caldwell prior to the hearing, as well as a roughly one-hour video testimonial.TRY THE APP:&nbsp;In a statement, Bishop Scott Jones, head of southeast Texas’ United Methodist group, said Caldwell “confessed his crimes and offered a sincere expression of remorse for his actions and the harm they caused as well as taking extraordinary steps toward repairing the damage.”Jones continued: “The court heard about these efforts and many additional factors, including the significant accomplishments over decades as a pastor and community leader, when determining Mr. Caldwell’s appropriate punishment for the confessed crimes.”U.S. prosecutors similarly noted Caldwell’s contributions in Houston, but said his legacy in Louisiana, home to most of the victims, “will be far different.”“Here, he is the man who swindled widows out of their annuities and couples out of their retirements,” one prosecutor said. “Here, he is the man who extolled the virtues of these wonderful investment opportunities while taking the money for himself” and others.Unanswered in the case, Judge Hicks continued, was the “age old question of why this ever occurred.”“That remains unanswered,” he said. “It remains untouched as an issue.”robert.downen@chron.com

This is a carousel. Use Next and Previous buttons to navigateKirbyjon Caldwell, Houston megachurch pastor and former spiritual adviser to two U.S. presidents, was sentenced on Wednesday to six years in federal prison for his role in a scheme that defrauded more than two dozen people out of millions of dollars through the sale of worthless Chinese bonds.But it may be another year until the 67-year-old, who , enters the prison system because of the threats posed to his health by COVID-19.Caldwell was a spiritual adviser to presidents George W. Bush and Barack Obama. He grew Windsor Village...

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Pastor Kirbyjon Caldwell gets six years for fraud scheme involving worthless Chinese bonds

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