A FORMER BISHOP with an African-American Christian denomination pleaded guilty to wire fraud, mail fraud, and conspiracy charges related to a widespread scheme to seize control of church properties across California using false statements, forged documents, and deceptive tactics, federal prosecutors said.

Staccato Powell, 65, of Wake Forest, North Carolina, entered the plea in federal court. He was indicted alongside co-defendant Sheila Quintana in January 2022. Quintana pleaded guilty to conspiracy to commit wire and mail fraud in April.

According to the U.S. Attorney’s Office for the Northern District of California, Powell formed an entity called Western Episcopal District, Inc. — or WED Inc. — shortly after becoming bishop of the African Methodist Episcopal Zion Church’s Western Episcopal District in 2016. Powell served as the entity’s CEO, and Quintana served as CFO from 2017 to 2019.

Prosecutors said Powell instructed pastors in the district to sign over deeds of church properties — including buildings, lots, residences, and parking areas — to WED Inc. Powell then directed officers, including Quintana, to obtain loans using the church properties as collateral.

In response to lenders’ requests for authorization documents, Powell caused the creation of falsified resolutions that appeared to show church approval for the loans. Quintana prepared many of the forged documents at Powell’s direction, including falsified signatures and fabricated meeting minutes.

In his plea, Powell admitted to using this method to fraudulently secure millions of dollars in loans involving multiple church properties:

  • Kyles Temple in Vallejo: Powell used a false resolution to help secure funding for a $1.5 million episcopal residence, using Kyles Temple and another church property as collateral.
  • First AME Zion Church in San Jose: Powell and Quintana executed loans totaling $3.75 million despite church trustees voting against transferring property. Resolutions falsely claimed membership approval, and Powell admitted the church did not authorize the loans.
  • Greater Cooper AME Zion Church in Oakland: In 2018 and 2019, Powell directed Quintana to obtain and execute loans totaling $1.6 million using the property, without approval from the congregation.
  • University AME Zion Church in Palo Alto: Powell falsely claimed the church would be used as collateral for a $200,000 loan, but instead encumbered it with $3.9 million in unauthorized debt.
  • First AME Zion Church in Los Angeles: Powell claimed the congregation approved the property transfer, but documents contained forged signatures and false information. The fraudulent paperwork supported a $1.2 million loan.

Powell further admitted that in September and December 2019, WED Inc. borrowed an additional $5.15 million to pay off prior loans, using properties in California and Arizona as collateral.

While serving as bishop, Powell diverted loan funds for personal benefit, including the purchase of real estate for his children and paying off mortgage debt on his North Carolina home, authorities said.

In July 2020, Powell caused WED Inc. to file for bankruptcy, listing over $26 million in property assets — including 11 churches and his episcopal residence — and more than $12 million in liabilities.

Powell has agreed to pay restitution of no less than $3 million and up to $12,475,453, and to forfeit any claim or interest in AME Zion Church properties.

Currently free on bond, Powell is scheduled to be sentenced on Sept. 23. He faces up to 20 years in prison and a $250,000 fine for each count.