A federal indictment links leaders of the House of Prayer Christian Churches of America to multimillion-dollar fraud schemes that exploited service members and arrests at a $1.5 million West Lake home Wednesday.
The 41-page indictment, unsealed Wednesday, names FNU LNU, identity unknown, as church founder and “pastor” Rony Denis.
Denis is believed to have used the stolen identity since 1983. He resided at the West Lake mansion on Honors Way but had another home in Hinesville.
Other defendants include Anthony Oloans, Denis’ executive assistant, listed as owner on the West Lake deed. A third is Joseph T. Fryar, a church volunteer minister with homes in Hinesville and Martinez.
A grand jury for the Southern District of Georgia returned the indictment Sept. 5 in Augusta against Denis, Oloans, Fryar and five others. The indictment was sealed pending their arrests.
FBI agents, assisted by the Columbia County Sheriff’s Office, took Denis into custody at the West Lake home Wednesday. He is being held at the Jefferson County Jail.
The defendants face up to 30 years in prison and $1 million fines on bank fraud charges. Other charges include conspiracy to commit bank fraud, conspiracy to commit wire fraud, wire fraud and aiding and assisting in filing a false tax return.
Alleged real estate fraud
The indictment charges Denis, Oloans and Fryar as well as codefendants Dennis Nostrant, Gerard Robertson and David Reip with directing straw-buyer purchase of homes in Hinesville, near Fort Stewart.
The defendants instructed church members to sign loan documents citing false income, and forged powers of attorney were used to conceal the homes’ actual ownership.
Between 2018 and 2020, the defendants collected over $5.2 million in rent on the homes, depositing the money into accounts for Governor’s Management, LLC and Prudential Realty LLC, according to the indictment.
The proceeds were used to pay mortgages on Denis’ homes in Martinez and West Palm Beach, as well as the defendants’ credit card bills.
Alleged veterans benefits fraud
The church operated House of Prayer Bible Seminary in Hinesville, Fayetteville, N.C., Killeen, Texas, Tacoma, Wash. and Hephzibah, in a building near Fort Gordon’s Gate 5. FBI agents raided the facilities three years ago.
According to the indictment, Robertson obtained a Georgia religious exemption for the seminary. He and other defendants certified annually the church received no federal funds, despite receiving VA funds since 2013.
Additional defendants included Marcus Labat and Omar Garcia, both of Hinesville. The pair served as school “controller” and “registrar” as well as school certifying officials, the indictment said.
From 2013-2022, the church received more than $23.5 million in VA education benefits, which defendants used to enrich themselves, according to the indictment.
Allegations of control
According to the indictment, Denis directed church members to attend Bible seminaries and use military benefits for tuition. Oloans kept the identification documents of members, who were required to sign non-disclosure agreements. Dennis arranged members’ marriages and divorces.
Church members were required to attend gatherings daily and obtain permission to be absent. The church also kept a list of members called “Ex-HOPCC Traitors.”
Tax fraud
Denis is accused of aiding and assisting in the filing of false joint tax returns with his spouse, reporting income between $165,000 and $247,000 in 2018, 2019 and 2020. These filings were used to conceal additional proceeds from the rental income and VA funds, it said.
Large, complex investigation
A motion filed Wednesday in the case cites its complexity and need for ample time.
The investigation includes the review of more than 175 bank accounts, dozens of eyewitness interviews, the execution of search warrants in five locations across four states, the review of over 100 electronic devices and 80 boxes of documents and the issuance of 200 grand jury subpoenas.
Lead attorneys for the United States are Assistant U.S. Attorneys George J.C. Jacobs, III and Patricia Green Rhodes of the Augusta office. U.S. Attorney for the Southern District of Georgia is Margaret E. Heap.
