A former pastor from Hamilton County, Illinois, has been sentenced to 21 months in federal prison after pleading guilty to fraudulently obtaining COVID-19 relief funds intended for his church. Terry L. Hall, 58, of McLeansboro, admitted to two counts of wire fraud and three counts of making false statements. After serving his prison term, Hall will be under supervised release for two years and must repay $199,900 plus accrued interest to the Small Business Administration (SBA).
According to court documents, Hall applied for economic relief on behalf of his congregation but directed two Economic Injury Disaster Loan (EIDL) disbursements totaling nearly $200,000 into his personal bank account in 2020. He created fake documents and contacted elected officials while intimidating fellow church members to ensure he received the loan. The funds were used for personal expenses including mortgage payments, construction projects, travel, clothing, gas, and food. The church did not receive any financial assistance during the pandemic.
U.S. Attorney Steven D. Weinhoeft commented on the case: “The vast majority of pastors across southern Illinois answered the pandemic with selfless service,” said U.S. Attorney Steven D. Weinhoeft. “Terry Hall chose a different path: he requested federal relief on behalf of his congregation, then used nearly $200,000 for purely personal expenses. Conduct that far from the calling of ministry demands accountability, and accountability arrived in the form of a 21-month federal prison sentence.”
The CARES Act was passed in March 2020 to provide emergency financial help during the pandemic. Under this act and administered by the SBA, programs like EIDL offered low-interest funding for payroll and business expenses to small businesses and nonprofits affected by COVID-19.
Special Agent in Charge Christopher J. S. Johnson of the FBI Springfield Field Office stated: "FBI Springfield is committed to exposing those who abuse positions of trust in southern Illinois" said Special Agent in Charge of FBI Springfield Field Office, Christopher J. S. Johnson. "Our communities deserve honesty, and we remain steadfast in holding accountable anyone who violates that trust."
The FBI’s Springfield office led the investigation into Hall’s activities with prosecution by Assistant U.S. Attorney Kathleen Howard.
