Show-Me State Times

ST. LOUIS – A Monroe County, Missouri church official was arrested Friday after being indicted for participating in a more than $1.2 million pandemic loan fraud scheme.

Kenneth C. Sparks III, 54, was arrested by the U.S. Marshals Service in Florida. A grand jury indicted Sparks on July 17 with one count of conspiracy to commit wire fraud, eight counts of wire fraud, and two counts of aggravated identity theft.

The indictment states that at the time of the allegations, Sparks worked as a visiting minister at Faith Walk Ministry, a church in Paris, Missouri. Harold G. Long served as the lead minister and chief executive officer of the church; Mya M. McClain was an administrative assistant; and Javonte D. Long was a member. Jeffrey C. Oboite lived in Maryland and operated businesses called Angel's Management Group LLC, Emerald Score LLC, and O&S Construction LLC.

Oboite and McClain were indicted on one count of conspiracy to commit wire fraud and seven counts of wire fraud each. Harold Long faces one count of conspiracy to commit wire fraud and two counts of wire fraud, while Javonte Long faces one count of conspiracy to commit wire fraud and one count of wire fraud.

According to the indictment, Oboite instructed Sparks and McClain on how to submit fraudulent applications for Paycheck Protection Program (PPP) loans. Both Oboite and Sparks submitted or caused fraudulent loan applications to be submitted in their own names, receiving at least $200,000 each. Among these loans was $147,900 from the Economic Injury Disaster Loan Program (EIDL), another Small Business Administration program aimed at aiding struggling business owners during the pandemic.

The conspirators also obtained over $1 million in PPP loans using others' names, according to the indictment. Sparks allegedly abused his position as a minister by gaining church members' trust and then obtaining their personal and financial information for loan applications made in their names. Harold Long assured church members that Sparks could be trusted with this information while Sparks claimed he was an "Apostle" whose decisions were unquestionable.

Sparks sometimes told church members that their personal information would be used either to fix credit scores or secure funding for the church. He directed McClain to create email addresses using parishioners' names and instructed them to open new accounts at a credit union while commissioning false tax documents.

Sparks and Oboite also directed McClain and Harold Long to submit fraudulent PPP loan applications for businesses purportedly owned by Long.

When suspicious credit union officials froze some parishioners’ accounts, Sparks and Oboite coached them on what lies to tell bank officials to release the funds.

The indictment alleges that Sparks benefited from hundreds of thousands of dollars from this scheme which he spent on luxury vehicles, clothing, and merchandise.

Charges set forth in an indictment are merely accusations; every defendant is presumed innocent unless proven guilty.

Wire fraud is punishable by up to 20 years in prison per count while each aggravated identity theft count carries a mandatory consecutive two-year prison sentence.

The U.S. Postal Inspection Service (USPIS) along with Internal Revenue Service Criminal Investigation (IRS CI) investigated this case with Assistant U.S Attorney Derek Wiseman prosecuting it.

“This arrest proves the U.S Postal Inspection Service’s commitment to stopping those who perpetrate mail fraud schemes,” said Acting Inspector in Charge John Jackman who leads USPIS St Louis Field Office.“ The Postal Inspection Service along with its law enforcement partners will continue aggressively pursuing such fraudsters driven by greed.”

“We all know pandemic relief loan programs were created for those whose businesses were negatively impacted by COVID-19," said IRS Criminal Investigation Special Agent Thomas F Murdock from St Louis Field Office." The American public is tired hearing about individuals enriching themselves through these programs & want assurance those responsible are being held accountable.”

Anyone with information about pandemic-related fraud should contact DOJ’s National Center for Disaster Fraud Hotline at 866-720-5721 or report via NCDF Web Complaint Form available online.

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