A Kansas man accused of defrauding Georgia churchgoers, including members of New Birth Missionary Baptist Church, during his “Building Wealth Tour” has been arrested on a federal indictment, the U.S. Attorney’s Office in Atlanta announced Tuesday.
Ephren Taylor II of Overland Park, Kan., at the time chief executive officer of City Capital Corp., is accused of defrauding investors of more than $5 million. Prosecutors named Wendy Connor, the former COO of City Capital, as a co-conspirator.
Christopher Bruno, Taylor’s attorney, said his client voluntarily surrendered to authorites in Kansas City on Tuesday after learning of the indictment. He is accused of conspiracy, mail and wire fraud and money laundering.
Bruno said Taylor pleaded not guilty after appearing before a judge and was released. He also said Taylor is eager to defend himself in court. His next appearance is before a federal judge in Atlanta on June 27, the attorney said.
Prosecutors said more than 80 investors in Georgia, including members of New Birth in Lithonia, lost at least $2 million during Taylor’s wealth management seminars, which allegedly targeted church congregations from at least April 2009 through October 2010.
New Birth, headed by Bishop Eddie Long, reportedly reached a confidential financial settlement earlier this year with a dozen former members who said Long encouraged them to invest money with Taylor despite being told the investor was running a capital deficit. The members said they lost more than $1 million.
“It has always been our prayer for a resolution to this matter in which many lost their investments,” New Birth said in a statement. “Our hearts go out to anyone who suffered losses, and we pray for healing.”
Taylor allegedly persuaded members to use retirement savings to purchase promissory notes bearing annual interest rates of 12 percent to 20 percent. The investors were told their funds would be used to purchase and support small businesses and to invest in “sweepstakes machines.”
“The investments he pitched proved to be worthless, along with his promises,” U.S. Attorney Sally Quillian Yates said Tuesday in announcing Taylor’s arrest.
Prosecutors said many victims transferred retirement savings to self-directed IRAs. Taylor had clients use specific trust companies, one in Ohio and another in New Mexico, but he actually controlled their IRA funds, prosecutors said.
Taylor allegedly used the money to pay salaries and commissions, and personal expenses, and to pay earlier investors, prosecutors said.
Prosecutors said Taylor falsely reported revenues and returns from the investments, and falsely claimed 20 percent of profits were donated to charity.
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