Ex-bishop pleads guilty to fraud involving millions in California church properties

CALIFORNIA – The U.S. Department of Justice (DOJ) announced that a former AME Zion church bishop pleaded guilty, July 15, to federal fraud and conspiracy charges for using deception and forged documents to seize control over church properties in California.

Staccato Powell, 65 of Wake Forest, North Carolina and Sheila Quintana were indicted in 2022. Quintana pleaded guilty to conspiracy in April 2025.

In 2016, soon after becoming bishop, Powell formed Western Episcopal District, Inc. (WED, Inc.) to represent the AME Zion Church’s Western District. Powell led WED, Inc. as CEO with Quintana serving as CFO from 2017 to 2019.

Powell instructed AME Zion pastors to transfer church property titles to WED, Inc., including the church building, parking lots, and residences used by the pastors.

Quintana and other WED, Inc. officers processed the grant deeds to transfer titles at Powell’s direction.

Defendants used church properties as collateral to obtain loans

Beginning in 2017, Powell directed Quintana and others to use church properties as collateral to obtain loans.

To satisfy lenders, Powell had documents created falsely showing church approval for WED, Inc.’s loan applications.

Powell directed the use of false church resolutions and had Quintana create and sign them using local church officer names.

Between 2017 and 2019, Powell and Quintana fraudulently used five AME Zion churches in California as collateral to secure millions in loans – often relying on forged or false resolutions, without approval of the congregations.

The churches involved include Kyles Temple in Vallejo, First AME Zion in San Jose, Greater Cooper in Oakland, University AME Zion in Palo Alto, and First AME Zion in Los Angeles, with total unauthorized loans exceeding $11 million.

Powell admitted directing $5.15 million in new loans using AME church properties to repay prior debts. He used some of the funds for personal expenses, including property for his children and his own mortgage.

Powell faces up to 20 years

In July 2020, Powell caused WED, Inc. to file for bankruptcy, claiming assets of 11 churches, a parsonage, and his official residence – worth over $26 million, and over $12 million in debt.

As part of his guilty plea, Powell agreed to pay between $3 million and $12.47 million in restitution and forfeit any claim to AME Zion church properties.

Powell is out on bond and will be sentenced September 23, 2025. He faces up to 20 years and a $250,000 fine per count, with sentencing based on federal guidelines.