A Raleigh pastor pleaded guilty this week to falsely obtaining thousands of dollars in COVID-19 loans for personal expenses.
According to the United States Department of Justice, 45-year-old Mitchell Summerfield of Raleigh pleaded guilty to conspiracy to commit bank fraud and wire fraud. Summerfield faces a maximum 30-year prison sentence, a $1 million fine and a five-year supervised release.
Summerfield was also required to pay restitution of an unspecified amount.
Summerfield was a pastor of the Word of God Fellowship Church in Raleigh and also owned several ventures, including Winning Ways, KHS Investments and Vision and Destiny.
According to documents and other information presented in court, Summerfield conspired with other people to submit false and fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster loans (EIDL) for those entities.
Congress created the PPP program in March 2020 to offer forgivable loans for small businesses to use to cover payroll and other qualified expenses during COVID lockdowns.
According to the Justice Department, Summerfield submitted several PPP and EIDL applications on behalf of Winning Ways, KHS Investments and Vision and Destiny, and made various false statements in the applications to encourage the SBA and lenders to approve and disburse the loan amounts.
The Justice Department also said that Summerfield provided fabricated IRS forms, including false income tax returns, resulting in him receiving more than $400,000 in loans, which they say he used for “unlawful” purposes, including paying for personal expenses.
WRAL News reached out to Word of God church and is waiting to hear back.
'Should shock the conscience of every American'
In 2022, a federal task force was created to investigate people who took money meant for struggling businesses to survive the pandemic. Michael Easley, the former U.S. Attorney for the Eastern District of North Carolina, was part of that task force.
"There is something that should shock the conscience in every American," Easley said "When you see somebody who's willing to take advantage of a moment of vulnerability for this country. COVID-19 brought this nation to its knees, and we had to fight very hard to get back up again."
According to Easley, his office alone was looking into 150 open cases of COVID-19 relief fraud when he left the office earlier in 2025.
Easley said many cases have started popping up years after the initial loans went out because it takes time to build a case and move them through the legal system. Easley added that we're likely to see even more cases in the next five years because they are still within the statute of limitations to bring these cases forward.
"10 years we have to bring them in," Easley said. "So, anybody who thinks that they haven't heard from the government and therefore nobody is going to catch them, they are dead wrong."
Easley said he believes one reason the fraud has been so problematic with the loans is because the crippling effect the COVID-19 pandemic had on businesses, leading to many safeguard preventing fraud being passed up.
"In hindsight, it would have been much wiser to have stops and checks and safeguards along the way," Easley said. "But when you do that, it could have drastically slowed down getting money in the hands of those who were struggling, who were laid off, businesses that were facing total upheaval as supply chains grinded to a halt.
Easley said that while government officials had to manage a delicate balance on safeguarding the American taxpayer's money and getting the money out quickly, there is one thing in place that made it easier to track fraud with the loans.
"In order to get the money, everybody who applied had to swear under oath, under penalty of perjury, that certain facts were true that they had a business, had a certain number of employees and that their revenues and payments to those employees met certain thresholds," Easley said. "If they lied, the federal government will find them."
Easley said it will take time to find everyone who misused or falsely obtained the loans, but the task force's work wont stop.
"When America was facing one of its greatest challenges in modern history, [you] better know that the federal government is going to do all it can to find every penny and get it back to the public purse," Easley said.
WRAL News reached out Daniel Bubar, the current U.S. Attorney for the Eastern District of North Carolina about how many cases they are investigating. His office said they would provide an update on the investigations on Friday.