FORT SMITH (KFSM) — A former associate pastor at a Fort Smith church received two sentences on Wednesday (April 13) after being convicted of mail fraud and making a false tax return.
Thomas Edward James, 34, was sentenced to nine years for the mail fraud charge, with three years of supervised release. He also received a three-year sentence and one month supervised release for the false tax return. The sentences will run simultaneously.
He was also ordered to pay restitution in the amount of $524,203.46.
James, a former pastor of St. James Missionary Baptist Church, pleaded guilty in September 2015. He had admitted to filing false tax returns from 2008-2012 and owing the U.S. additional taxes totaling $205,566.46
He had he approached potential investors, a majority of whom were retired and members of St. James Missionary Baptist Church, with proposals to make investments through him. James then fraudulently induced investors to invest funds through false representations that their funds would be invested in a U.S. Treasury Bond, which were insured and guaranteed by the full faith and credit of the United States Government.
“James used his position as a pastor, a position of trust, to prey on investors and steal their hard earned money,” stated Tracey D. Montaño, Special Agent in Charge, IRS-Criminal Investigation. “This case should be a reminder, no matter the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are proud to work with our other law enforcement partners to bring this case to a successful resolution.
This case was investigated by The Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI) and Financial Crimes Task Force officers from the Fort Smith and Fayetteville Police Departments. Assistant United States Attorney Mark Webb prosecuted the case for the United States.