Burlington Church Leader Admits To Millions In Tax Fraud: Feds

A year after vehemently denying his guilt while surrounded by robed church goers on the courthouse steps, the Burlington County man who leads the Israelite Church of God in Jesus Christ admitted to his role in a scheme that cost the church millions of dollars.

Jermaine Grant, 43, of Burlington Township, and Lincoln Warrington, 48, of Bergen County, pleaded guilty to Count One of the indictment against them, charging them with conspiring to defraud the United States, U.S Attorney Craig Carpenito announced on Wednesday.

Warrington is the church’s treasurer. He admitted that he and Grant worked together to divert millions of dollars that belonged to the church and its members to Grant for his personal use, Carpenito said.

For example, Grant and Warrington created a purported entertainment company that portrayed Grant as an industry mogul who made his money in the industry, according to documents filed in the case and statements made in court.

As a result, Grant was able to hide the fact that his lifestyle was supported entirely by the church and donations from its members, according to authorities.

It seemed to have worked when last year, 100 robed followers joined Grant in the courtroom as he pleaded not guilty to the charges, according to The Asbury Park Press. They cheered for Grant as he accused the federal government of targeting blacks and Hispanics, and that the grand jury process is rigged so that anyone can be charged.

"I'm not guilty," the man who describes himself as the “apostle and chief high priest of the church” told reporters at the time in response to questions about whether he wants to proceed to trial.

Ten months later, Grant and Warrington stood in court and admitted their guilt, according to authorities. They admitted that the money they stole was used to pay Grant’s personal expenses, including payments for rental real estate properties, vacations, high-end luxury items, and private school tuition for Grant’s minor children, authorities said.

Warrington helped Grant in his scheme to omit these benefits from his individual tax returns, resulting in the evasion of a substantial amount of tax due and owing to the United States, authorities said.

In total, Grant and Warrington admitted to concealing millions of dollars in income from the IRS, and failed to pay at least $250,000 in taxes.

As part of the plea deal, the church agreed to develop a plan to present to the federal government that will ensure the church will comply with federal income tax laws going forward. A preliminary version of the plan that satisfies the government must be presented at sentencing, currently scheduled for July 23.

The plan must include how certain cash and property seized by the federal government during execution of the search warrants in this case will be returned for the benefit of the church rather than any individual before it is returned, authorities said.

Grant and Warrington face a maximum potential penalty of five years in prison and a $250,000 fine. If accepted by the court, the plea agreement further provides that each defendant will be sentenced to a maximum of two years, six months in prison.