Monterey resident, former pastor sentenced to prison for defrauding Clovis church congregants

CLOVIS, Calif. (KION) A Monterey resident was sentenced to seven years and three months in prison for defrauding a church congregation, according to the U.S. Attorney's Office.

At the time of the fraud, the U.S. Attorney's Office said the man, 74-year-old Sherman Smith, was the executive pastor at a church in Clovis.

According to court documents, Smoth got investors, some of whom were members of the church congregation, to give money to the church. He reportedly told them the money would be used to finance a real estate development project to benefit the church. The U.S. Attorney's Office said he asked for money from the pulpit, via email and in person to pay off the church's mortgage and fund the development.

He received money in the form of cash, checks and rolled-over retirement accounts, but officials say he used the money for personal expenses, operating a publishing business and investing in foreign ventures. In total, it is believed he defrauded investors of more than $2 million.

“Smith’s actions in this case went far beyond ‘misappropriation,’” said U.S. Attorney Scott. “In asking for church donations to support his scheme, he targeted widows for their deceased husband’s life insurance money; he asked for money to be withdrawn from retirements accounts; he damaged marriages and family relationships; he took away parents’ dreams of affording college for their children, and he destroyed lives. Today’s sentence is the second federal sentence for Smith, who previously served 37 months in prison for securities fraud that caused a loss of over $5 million with 38 different victims. Our office is committed to protecting the public from financial predators like Smith.”

Smith pleaded guilty to wire fraud in September. In addition to prison time, he has been ordered to pay $2,187,000 in restitution.

During the sentencing, U.S. District Judge Dale A. Drozd said, “Mr. Smith is a con-man and a thief.”