A pastor who swindled $3.5million in Covid relief money to fund his lavish lifestyle has been sentenced to 18 months in prison.
Rudolph Brooks, 48, pleaded guilty to wire fraud and money laundering last week after he exploited the pandemic-era Paycheck Protection Program (PPP).
Brooks was arrested in April 2021 for fraudulently obtaining PPP loans after submitting falsified documents for businesses under his control, the Justice Department said.
He secured $3.5million after inflating employee numbers and payroll expenses on his loan applications. He then used the funds on personal expenses including a 2018 Tesla Model 3, property in an affluent Maryland town, and lavish spending at restaurants, grocery stores and other retailers.
Brooks, founder and senior pastor at Kingdom Tabernacle of Restoration church, was also ordered to forfeit over $2million, the Tesla and the real estate he purchased with the fraudulently obtained funds, court records from his sentencing revealed.
The fraud was not tied to Brooks’ position at the church.
Rudolph Brooks, 48, pleaded guilty to wire fraud and money laundering after he exploited the Covid Paycheck Protection Program (PPP). Brooks, founder and senior pastor at Kingdom Tabernacle of Restoration church, was sentenced to 18 months in prison on Tuesday, August 27. He is pictured preaching during a service at the church
He secured $3.5million after inflating employee numbers and payroll expenses on his loan applications. He then used the funds on personal expenses including a 2018 Tesla Model 3, (stock image) property in the affluent town of Upper Marlboro, Maryland, and lavish spending at restaurants, grocery stores and other retailers
Brooks admitted using PPP loan proceeds for his personal benefit and on payments and purchases that were not permitted under the program, DOJ filings state.
In addition to using to funds to buy a residence, luxury vehicle and other lavish shopping expenses, Brooks also made cash withdrawals and transfers to other bank accounts under his control.
He pleaded guilty to charges of wire fraud and money laundering on August 27.
A judge ordered the pastor to serve 18 months in prison, followed by two years of supervised release, and mandated the forfeiture of several assets.
Brooks applied for the PPP loan under a Maryland based car dealership that he owns called Cars Direct in May 2020, court documents revealed.
He received $1.5million PPP loan, deposited directly into a Cars Direct bank account on which he was the sole signator, after submitting fake tax and payroll forms related to the dealership.
Brooks applied for the PPP loan under his Maryland based car dealership, Cars Direct, Kingdom Tabernacle (pictured) and a company called Madaro, LLC
Brooks received $1.5million PPP loan in May 2020, deposited directly into a Cars Direct bank account on which he was the sole signator, after submitting fake tax and payroll forms related to the dealership. He then transferred money from these Cars Direct accounts into his own personal accounts and used the funds on credit card bills
He fraudulently applied for two other PPP loans for $1.8million and $200,000. Those funds were deposited into accounts associated with Kingdom Tabernacle and Madaro, LLC, both of which he was the sole signator.
He then opened up a bank account under the name Payroll by BJM, in which he transferred $500,000 of the loan funds. He also opened up additional bank accounts using the Cars Direct name that he transferred loan funds into.
Brooks then transferred money from these Cars Direct accounts into his own personal accounts and used the funds on credit card bills, at restaurants, retail stores, grocery stores, automotive auctioneers and mortgage payments on his home.
His purchases included a $507,010 property in Upper Marlboro, Maryland, purchased under the name of Rudolph Brooks, and a 2018 Tesla Model 3, purchased for $60,407 in his son’s name. The vehicle was later registered in Maryland in Brooks’ own name.
Under the federal government’s PPP loan requirements, funds are to be used on payroll costs, mortgage interest, rent and utilities.
Brooks also allegedly tried to receive funds through the Economic Injury Disaster Loan (EIJD) program, court records state.
He applied for the loans through Cars Direct and Kingdom Tabernacle, but both applications were rejected by the Small Business Administration due to ‘unsatisfactory credit history’.
Brooks, pictured delivering a sermon, was ordered to serve 18 months in prison, followed by two years of supervised release. He also had to to forfeit over $2million, the Tesla and the real estate he purchased with the fraudulently obtained funds, court records from his sentencing revealed
The website and Facebook pages associated with Kingdom Tabernacle, were taken down shortly after his arrest, DailyMail.com previously revealed.
A cached version of the websites described Brooks as ‘a man after God’s own heart’ who has a ‘passion for God’s people.’
‘From an early age Pastor Brooks knew he had a calling for ministry,’ the site added. ‘People would receive their deliverance before the altar call because the Word of the Lord was so rich in his belly.’
At a previous church in Maryland, Brooks was the assistant pastor with oversight of the church’s finances, according to his biography on the now-deleted site.