Seven House of Prayer Christian Churches of America suspects made initial court appearances Thursday as authorities seek out more victims in sweeping investigations of schemes to exploit veterans and defraud banks and the government. Thursday another church official was charged with sex abuse of a minor.
The defendants clad in orange jumpsuits, church members and supporters packed a small U.S. District Court courtroom in Augusta. U.S. Magistrate Judge Brian K. Epps granted a $50,000 bond with no cash down for five of the suspects, while church founder Rony Denis and assistant Anthony Oloans, have to wait for a bond hearing, Epps said.
Denis, which prosecutors say is a stolen identity, and seven others are charged with bank, wire and tax fraud in connection with schemes to bilk service members out of veterans benefits and fraudulently purchase real estate. Denis was arrested Wednesday at his $1.5 million estate in Martinez.
The U.S. Attorney’s Office for the Southern District of Georgia announced additional charges Thursday against another House of Prayer official. The five-count indictment accuses church pastor Bernadel Sexamant, 35, of Hinesville, of sex crimes involving a minor.
Church supporter caught with device
The fraud defendants’ initial appearance hearing took a strange turn Thursday when Assistant U.S. Attorney Patricia Rhodes asked to speak to the court about six individuals who were in the courtroom. Three of the individuals had taken seats where defendants’ defense attorneys typically sit.
After the group was given an oath to tell the truth, one man admitted he had a recording device that looked like a pen in his shirt pocket. Recording devices are strictly prohibited in the federal court. Another man denied they told court officials they were with a law firm, but instead were “staff” of the defendants.
U.S. Magistrate Brian K. Epps told the group they were lucky to be going home.
Rhodes went over the charges in the 26-count indictment, which details how defendants accomplished the crimes through extreme control and manipulation of those they enticed to join the church.
House of Prayer leaders forced members to live in certain houses or in certain cities, arranged their marriages and divorces and made them disassociate from friends and family members not involved with the church. Members were required to attend services seven days a week unless excused and report any rule-breakers.
Real estate, GI bill fraud
Rhodes described an elaborate scheme in which church officials made members pose as buyers or used their identities or powers of attorney to obtain loans, buy houses and obtain loan modifications, then required members to pay rent to live in the homes. Between 2018 and 2020, defendants collected some $5.2 million in rental payments.
The second, more lucrative scheme was using veterans’ education benefits to pay tuition at the House of Prayer Bible Seminaries. The scheme often exhausted members’ education benefits yet they rarely, if ever graduated, Rhodes said.
From 2011 to around 2021, the defendants claimed a religious exemption to operate as seminaries without state oversight if they agreed to accept no federal funding, despite receiving federal funds as early as 2013. Defendants certified annually the seminaries did not receive federal funds, and VA readily paid out tuition, housing stipends and other expenses, defrauding the VA of more than $23.5 million.
An eighth defendant charged in the fraud schemes, Omar Garcia, was arrested in Florida and not present for the Thursday hearing.
Agencies seek other House of Prayer victims
The U.S. Attorney’s Office announced Thursday that all news conferences had been canceled, which officials attributed to the Wednesday assassination of Charlie Kirk.
A planned news conference about charges against the church was not held, but FBI agents and other investigators gave an impromptu news conference outside the Augusta federal courthouse about the search for more victims.
FBI Special Agent in Charge Brian Ozden said the investigations’ next phase is seeking justice for those who were harmed by the church and asked victims to come forward.
The agencies know “individuals and families were manipulated, exploited and silenced by this organization,” Ozden said. “We want to let them know we see you and we’re here for you.”
Ozden asked anyone who had contact with House of Prayer Christian Churches of America or House of Prayer Bible Seminary who believes their personal information, benefits or finances were misused to please come forward.
They can report information to the FBI at fbi.gov/HOPCCVictims or call 800-CALL-FBI.
In addition, the agency is seeking additional victims of Sexamant, who may include minors, he said. Report it at FBI.gov/semexantHOPCC or call 800-CALL-FBI, he said.
Numerous agencies are involved in the investigation, including the Department of Veterans Affairs’ Office of Inspector General, the IRS, the Federal Housing Finance Authority, Army Criminal Investigations Division, the U.S. Postal Service investigations division and other federal, state and local agencies, Ozden said.
Katie O’Neill, special agent in charge of the VA Office of Inspector General said since 1944 the GI Bill has helped millions of veterans pursue educational goals and obtain skills to reintegrate into civilian life.
“House of Prayer operators exploited veterans and their families by accessing VA funds for their own enrichment,” she said.
