Raleigh pastor pleads guilty to COVID-19 loan fraud scheme

Mitchell Summerfield, a pastor from Raleigh, North Carolina, has pleaded guilty to charges of conspiracy to commit bank fraud and wire fraud. The charges are related to a scheme where he fraudulently obtained over $400,000 in COVID-19 loan funds. At sentencing, Summerfield could face up to 30 years in prison, a fine of $1 million, and five years of supervised release. He will also be required to pay restitution.

Summerfield was the pastor at Word of God Fellowship Church and owned several entities including Winning Ways, KHS Investments, and Vision and Destiny. Between July 2020 and July 2021, he conspired with others to submit false applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) for these entities.

The PPP program was established by Congress in March 2020 under the CARES Act to support small businesses during the COVID-19 pandemic. These loans were guaranteed by the United States and forgivable if used for payroll or other qualified expenses. The EIDL program was expanded under the same act to assist businesses facing financial distress due to the pandemic. Both programs were administered by the U.S. Small Business Administration (SBA).

Summerfield submitted multiple fraudulent loan applications on behalf of his entities using false statements and fabricated IRS tax forms. As a result, he received more than $400,000 in funds which he used for unauthorized personal expenses.

The announcement was made by Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina after U.S. District Judge Terrence W. Boyle accepted Summerfield's plea. The Internal Revenue Service's Criminal Investigation unit investigated the case while Special Assistant U.S. Attorney Lisa K. Labresh prosecuted it.

For further details on this case, documents can be accessed through the website of the U.S. District Court for the Eastern District of North Carolina or PACER using Case No. 5:25-CR-22.