Brooklyn Church Pastor Pleads Guilty to Tax Evasion Scheme

Earlier today, in federal court in Brooklyn, Paul Mitchell, the lead pastor of a church and president of a daycare, pleaded guilty to a criminal information charging him with tax evasion. The proceeding was held before United States Chief Magistrate Judge Vera M. Scanlon. When sentenced, Mitchell faces a maximum penalty of five years in prison as well as restitution and monetary penalties.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Matthew R. Galeotti, Acting Assistant Attorney General of the Justice Department's Criminal Division, and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the guilty plea.

"The defendant treated his organizations' accounts as his own personal piggy bank, stealing millions of dollars and betraying the trust of his congregation and those dependent on the services provided to the community," stated United States Attorney Nocella. "Our Office will always be vigilant in protecting houses of worship from criminality that threatens the important work they do."

"Paul Mitchell was trusted by his parishioners to use their donations for good, not to fatten his wallet. His deceit was at many levels, as he also evaded paying millions in tax revenue that benefits the good of all Americans. With today's plea, Mitchell decided to take a step forward to right his wrongs, and will face justice for his actions," stated IRS-CI New York Special Agent in Charge Chavis.

As alleged in court filings, Mitchell was the founder of a church (Organization-1), and an educational daycare (Organization-2), both located in Brooklyn, New York. Mitchell served as the lead pastor at Organization-1 and the president of Organization-2. Between 2015 and 2022, Mitchell using credit cards for Organization-1 and Organization-2 to pay for his personal expenses, including men's clothing, jewelry, luxury accessories, and life insurance premiums. He also wrote checks from Organization-1's bank accounts to pay his own credit card bills; frequently withdrew large amounts of cash from bank accounts for Organization-1 and Organization-2; and transferred funds from those accounts into his own bank accounts. Mitchell failed to report his use of funds stolen from Organization-1 and Organization-2 as income on his personal income tax returns, thereby reducing his tax burden and evading the payment of personal income taxes. As a result of his conduct, Mitchell caused a tax loss of approximately $2,906,072 to the IRS and of approximately $316,699 to New York State between 2015 and 2022.

The government's case is being handled by Office's Public Integrity Section. Assistant United States Attorney Miranda Gonzalez and Trial Attorney Catriona M. Coppler of the Justice Department's Tax Section of the Criminal Division are in charge of the prosecution.

The Defendant:

PAUL MITCHELL
Age: 60
West Hempstead, New York

E.D.N.Y. Docket No. 25-CR-374 (NRM)