Pastor Dismuke sentenced to prison on fraud charges - Rockford, IL - Rockford Register Star

Pastor Dismuke sentenced to prison on fraud charges - Rockford, IL - Rockford Register Star:

'via Blog this'A former executive director of the Fountain of Life Improving the Community Academy and pastor of The Fountain of Life Church of God in Christ was sentenced today to 30 months in prison.

The sentencing comes six months after Kenneth R. Dismuke, 50, of Rockford was found guilty of four counts of bank fraud, three counts of bankruptcy fraud, and one count of mail fraud.

U.S. District Judge Frederick J. Kapala also sentenced Dismuke to three years of supervised release after Dismuke’s release from prison and ordered him to pay $160,000 in restitution to victims. Dismuke will report to prison May 21.

According to the indictment and evidence at trial, in December 2005, Dismuke obtained a $50,000 loan from Rockford Bank & Trust Company for the academy, purportedly to pay its ordinary operating expenses. However, Dismuke deposited the $50,000 into a certificate of deposit at JPMorgan Chase Bank to be used as collateral to obtain a $50,000 loan from JPMorgan Chase, falsely stating the source of the $50,000 was an Illinois state grant.

Dismuke also was convicted of utilizing U.S. mail to defraud the Illinois Department of Commerce and Economic Opportunity in connection with a grant. Dismuke obtained from the DCEO a $60,000 grant for the Academy to be used to pay for building improvements.

However, instead of using the grant money for the academy’s building improvements and authorized expenditures, Dismuke used the funds for academy loan payments, other church debt payments and payments to himself and three of his family members. Dismuke prepared and signed documents required by the DCEO, falsely stating that all grant funds had been used for approved costs.

Dismuke then submitted the documents by mail to the DCEO so the academy could avoid any sanctions such as being required to return the grant funds. Dismuke also was convicted of fraudulently concealing financial information in his own bankruptcy case.

The case was prosecuted by assistant U.S. attorneys Michael D. Love and Joseph C. Pedersen.