Pastor conned longtime friends, nonprofit out of more than $230,000, authorities allege
- Share via
A San Bernardino pastor and onetime city council candidate was arrested this week on suspicion that he swindled longtime friends and a nonprofit corporation tied to another church out of more than $230,000, according to federal authorities.
Terrance Owens Elliott, who was arrested Thursday, has been charged with 11 counts of wire fraud, according to the U.S. attorney’s office in Los Angeles. The 60-year-old Crestline resident has pleaded not guilty and is free on a $9,000 bond.
Elliott’s federal public defender did not immediately respond to a request for comment Saturday.
According to the indictment, from October 2019 to February 2023, Elliott — representing himself as working in the San Bernardino city government and being involved with the police department — defrauded several longtime friends.
Lisa Puente and Arthur Marquez were arrested last week and charged with mail fraud, unauthorized access devices and aggravated identity theft.
Elliott allegedly convinced one friend, identified only by her initials, M.C., to place inheritance money into a trust that he would establish and administer. He claimed that she would lose her Medicare and Social Security benefits if she received the inheritance directly, according to the indictment.
The trust, for which Elliott was co-trustee, provided that the money would be used for M.C.’s financial needs during her lifetime and for her funeral expenses, according to the indictment. Any remaining property would pass to M.C.’s three children upon her death.
When Elliott opened a bank account in the trust’s name, he allegedly listed only himself as a trustee and gave the bank a fraudulently modified copy of the trust agreement that listed him as having sole power to make payments from the account, according to the indictment.
Elliott allegedly wrote checks and made online transfers to a church — identified only as “Church A” — that weren’t permitted under the trust agreement. According to the indictment, he also used trust money to purchase postal money orders to pay the church’s rent.
Some of the money also allegedly went toward Elliott’s personal expenses, including repair of a Chevrolet truck, Nike sneakers, a piano, clothing and an extended warranty for a motorcycle.
The Justice Department has announced the arrest of Orange resident Joseph Sanberg, an anti-poverty activist and co-founder of Aspiration Partners Inc.
Elliott also allegedly gained access to M.C.’s account at a different bank and transferred around $27,164 worth of some of her monthly Social Security payments to the church, according to federal authorities.
When M.C.’s family asked Elliott about the trust account or for bank statements, he “lulled them into compliance by getting upset and telling them that everything was under control,” according to the indictment.
After M.C. died, Elliott allegedly tricked another individual — identified as W.H. — into paying a little more than $8,600 for funeral expenses, falsely claiming that he needed a judge’s authorization before money in the trust account could be released.
Elliott allegedly defrauded four victims, including M.C. and W.H., out of a little more than $150,200, according to the U.S. attorney’s office.
Inland Empire trio plead guilty in COVID-19 unemployment fraud cases using inmates’ names
Another alleged scheme began in June 2021, after authorities say Elliott advised W.H. on selling a house. After the home was sold, Elliott suggested that W.H.’s corporation lend M.C.’s trust $65,000, falsely claiming this would avoid capital gains tax from the sale, according to the indictment.
The indictment alleges Elliott prepared a loan contract between the corporation and the trust and told W.H. that he would transfer $65,000 from the corporation to the trust account and that the trust would repay it with 10% annual interest. He also allegedly convinced W.H. to give him several signed blank checks from the corporation’s bank account.
Elliott allegedly used one of the blank checks to make an unauthorized transfer of $16,000 to Church A, according to the indictment. Elliott allegedly transferred $49,000 to the trust, but never repaid any part of the $65,000 loan.
In another alleged scheme, which authorities say ran from September 2018 to June 2021, Elliott used his relationships with a church, identified only as Church B, and its board of directors to help manage litigation expenses and other costs involving them and an entity identified only as Nonprofit Corporation A.
According to the indictment, Elliott allegedly lied to the nonprofit and Church B’s board of directors that the nonprofit owed money to W.H.’s corporation for services related to a lawsuit against them. As a result, the nonprofit issued approximately 32 checks to the corporation, which Elliott allegedly later deposited in a bank account that he controlled.
Fifteen people, including a California Highway Patrol employee, were charged this month with participating in a scheme to defraud insurance companies.
Elliott allegedly defrauded the nonprofit out of around $23,300.
In total, authorities say Elliott’s schemes cost victims approximately $238,563.
The San Bernardino Sun reported that Elliott ran for a city council seat in 2022 — a bid that was not only unsuccessful, but brought to light criminal convictions and civil lawsuits against him.
If convicted, Elliott could face up to 20 years in federal prison for each count.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
