An Arlington man has been indicted on federal wire fraud and identity theft charges in connection with an alleged scheme involving church-related investment ventures.
Richard Reinaldo Garcia, whom federal investigators say has ties to several North Texas churches, was indicted on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft.
Federal prosecutors allege that Garcia defrauded more than 50 victims in the United States and internationally. In a statement, United States Attorney for the Northern District of Texas Ryan Raybould said, “The defendant allegedly took advantage of his victims’ faith by promising significant profits through investment opportunities but instead used their funds to selfishly enrich himself at their expense.”
Prosecutors allege Garcia solicited funds for “church flipping” projects, Christian music concerts and other church programs, promising investors significant profits before using the money for personal and business expenses. According to court records, the alleged “church flipping” projects involved purchasing church properties, renovating them and reselling them for a profit.
Garcia controlled bank accounts associated with Ministerio Gracia, Iglesia Gracia de Texas, Gracia Church of Texas and Pesar de Todo LLC, according to prosecutors. Court records identify addresses tied to those entities in Arlington and Mansfield.
Prosecutors allege Garcia directed some victims to transfer money into those accounts and describe the payments as donations, even though prosecutors say the money was intended for investment agreements.
A criminal complaint filed earlier in the investigation provides additional detail about how investigators say the alleged scheme operated.
According to the complaint, Garcia allegedly persuaded investors to finance church renovation projects in Arlington, Texarkana and Lubbock, as well as Christian concerts in the Dominican Republic and Colombia.
The timeline below highlights key events described in court records.
The criminal complaint provides examples of individual investments investigators say victims made after being promised returns from church renovation projects and Christian concert ventures. Prosecutors allege those investments were part of a broader fraud scheme that ultimately involved more than $3.2 million from over 50 victims, according to prosecutors
Investigators allege some victims were told their investments had been rolled into new projects without their permission, while others were shown fraudulent contracts or property documents intended to persuade them to invest additional money.
The complaint also alleges Garcia made what investigators describe as “lulling payments,” small payments intended to reassure investors the ventures were legitimate and encourage additional investments.
The case is scheduled for trial Oct. 13 in Fort Worth.
If convicted, Garcia faces up to 20 years in federal prison on each wire fraud-related count and a mandatory consecutive two-year sentence on the aggravated identity theft charge.
The FBI is asking anyone who believes they may have been a victim of the alleged scheme to complete its Seeking Victims Questionnaire. The agency has published forms in both English and Spanish.