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Louisville Minister Sentenced for Defrauding the United States
Shiloh Baptist Church Minister Ordered to Pay $831,742.56 in Restitution

U.S. Attorney’s Office January 18, 2011
  • Western District of Kentucky (502) 582-5911

LOUISVILLE, KY—Reverend Henry M. Humphrey, a minister of Shiloh Baptist Church, was sentenced today in Louisville in United States District Court for conspiring to defraud the United States, soliciting kickbacks of federal funds, committing wire fraud, submitting a false writing to the United States Department of Housing and Urban Development (HUD), and conspiring to launder money, announced the U.S. Attorney’s Office for the Western District of Kentucky. Reverend Humphrey was sentenced to two years’ imprisonment and three years’ supervised release by United States District Judge Jennifer B. Coffman. Judge Coffman also ordered Reverend Humphrey to pay $831,742.56 in restitution, an amount to be restored to HUD, the agency victimized by Humphrey’s conduct.

Humphrey entered a guilty plea to 11 separate criminal charges in June 2010. In the plea agreement he admitted that, between February 25, 1998 through November 2005, he and other co-conspirators took federal grant money intended for the rehabilitation of the Maupin Building in Louisville’s Parkland neighborhood and conspired to cover up the diversion of funds. Approximately $1,825,000 in federal and other funds had been designated for the purchase, reconstruction and rehabilitation of the building, but other than construction of a new roof to the building and installation of an elevator, which were completed at a total cost of approximately $350,000, little additional construction and remodeling work was performed on or about and inside the now dilapidated building.

Acting as chief executive officer of Shiloh Baptist Community Renewal Center (SCRC), Humphrey directed Kevin Lamont Harris of Louisville, Kentucky, who served as bookkeeper, to illegally divert federal grant funds, submit a materially false report to justify expenditures, and execute a scheme to defraud by making wire transfers of HUD funds and issue checks diverting the funds from their intended use. Harris pleaded guilty in United States District Court to his part in this conspiracy in February 2010, but his guilty plea was withdrawn today in open court.

Co-conspirator Yvette Crayton Goodwin acting as consultant and grant writer for SCRC, pleaded guilty in September 2009, to charges of conspiring to defraud HUD, including diverting grant monies for her personal benefit and gain, and for the benefit and gain of other individuals and entities not legally entitled to the receipt of those funds. Goodwin is awaiting sentencing.

Michael P. Stephens, Acting Inspector General for the U.S. Department of Housing and Urban Development, Office of Inspector General stated, “HUD’s Office of Inspector General is committed to ensuring taxpayers’ dollars are put to good use and HUD programs are free from waste, fraud, and abuse. This joint enforcement effort by the U.S. Attorney’s Office, HUD’s Office of Inspector General, Federal Bureau of Investigation, and Internal Revenue Service Criminal Investigations has helped send a strong message that those who seek to unlawfully profit by defrauding programs within HUD will be vigorously prosecuted.”

In and around November 2005, Humphrey and other co-conspirators, met and created false and fraudulent invoices and documents to include in a report which was submitted to HUD. Humphrey signed the report which contained a fraudulent document created to give the false impression that he was entitled to compensation and to conceal the fact that he had been taking grant funds for personal use since 2001, including the use of HUD grant monies for gambling and payment of his personal credit card.

“We are pleased that the violators of this conspiracy to divert public funds from their intended use have been brought to justice. This investigation is another example of the success that can be achieved when IRS Criminal Investigation joins forces with our federal law enforcement partners to combat these complex financial crimes,” said Christopher R. Pikelis, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office.

The case was being prosecuted by Assistant United States Attorney Joshua Judd, Jim Lesousky, and Joseph Ansari. It was investigated by United States Department of Housing and Urban Development Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigations.

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