The San Bernardino pastor and former city council candidate were arrested this week on suspicion of fraudulent nonprofits linked to longtime friends and a church worth more than $230,000, federal authorities say.
Terrance Owens Elliott, arrested Thursday, was charged with 11 count wire fraud, according to the US Lawyer’s Office in Los Angeles. The 60-year-old Crestline resident pleaded not guilty and is free on a $9,000 bond.
Elliott’s federal public defense attorney did not immediately respond to a request for comment Saturday.
According to the indictment, from October 2019 to February 2023, Elliott worked for the San Bernardino city government and scamned a longtime friend on behalf of himself as being involved in the police station.
Elliott is said to have convinced one friend identified only by her initials, the MC, to one friend identified as placing inheritance funds in the trust he establishes and manages. He allegedly lost Medicare and Social Security benefits if she receives succession directly, according to the indictment.
According to the charges, the trust that Elliott was a joint trust was a joint signal and therefore the money is subject to the use of the MC’s financial needs and funeral costs. The remaining property passes to the MC’s three children after her death.
When Elliot opened a bank account in the trust’s name, he was allegedly given the bank a fraudulently corrected copy of the trust agreement he listed as the sole authority to make payments from the account, pursuant to the charges.
Elliott is said to have written the check and has made an online transfer to a church that was identified only as “Church A” that was not permitted under the trust agreement. According to the indictment, he also used trust money to purchase postal mail bonds to pay church rent.
It is said that some of the money also came from Elliott’s personal expenses, including extended warranty on Chevrolet trucks, Nike sneakers, pianos, clothing and motorcycles.
Federal authorities say Elliott also gained access to the MC’s account at another bank, and has earned some of his monthly Social Security payments to the church worth around $27,164.
When the MC’s family asked Elliot about their trust account or bank statement, he “settled them into compliance by telling them they were all in control,” according to the indictment.
After MC passed away, Elliott allegedly deceived another individual (identified as WH) to pay just over $8,600 for funeral costs.
According to the US Lawyer’s Office, Elliott allegedly scams four victims, including MC and WH, starting at over $150,200.
Another allegation scheme began in June 2021 after authorities said Elliott advised WH on the sale of the house. According to the accusations, after the house was sold, Elliott proposed that WH companies erroneously lend the MC’s trust for $65,000 and avoid capital gains tax from the sale.
The indictment alleges that Elliott prepared a loan agreement between the company and the trust, and told WH that he would transfer $65,000 to the trust account, and that the trust would pay it back with 10% annual interest. He is also allegedly persuaded WH to give him some signed blank checks from the company’s bank account.
Elliott is said to use one of the blank checks to make a fraudulent transfer of $16,000 to Church A, according to the indictment. Elliott is said to have remitted $49,000 to the trust, but did not repay a portion of the $65,000 loan.
In another allegation scheme that was carried out between September 2018 and June 2021, Elliott used Church B and the identified church to help manage other expenses, as well as other entities identified only as nonprofit A, in order to manage legal costs and other expenses.
According to the indictment, Elliott allegedly paid the nonprofit and Church B’s board of directors to WH’s company for services related to the lawsuit against them. As a result, the nonprofit issued around 32 checks to businesses, but Elliot was said to have later deposited it into a bank account he controlled.
Elliott is allegedly scamming a nonprofit of about $23,300.
In total, authorities say the Elliott scheme costs victims around $238,563.
San Bernardino San reported that Elliott ran for a city council seat in 2022. This not only failed, but also led to mild criminal convictions and civil lawsuits against him.
If convicted, Elliott could handle up to 20 years in federal prison for each count.
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