Pastor Kirbyjon Caldwell and a business partner, Gregory Smith, sold millions of dollars of worthless Chinese bonds, telling investors to “remain faithful and that they would receive their money,” according to documents obtained by ABC Houston station KTRK.
Prosecutors from the U.S. Attorney’s Office in the Western District of Louisiana announced the 13-count indictment Thursday.
Both men could face significant jail time and be forced to forfeit assets. Caldwell and Smith both face 20 years in prison for the conspiracy to commit wire fraud count and for the wire fraud counts, according to the prosecutor. They face 10 additional years in prison for the conspiracy to commit money laundering count and the money laundering counts.
Caldwell’s lawyer Dan Cogdell tweeted out a statement that said his client was “falsely accused” and “would be absolved.”
Miya Shay@ABC13MiyaJUST IN: “Pastor Kirbyjon Caldwell is a religious leader who has been falsely accused—“ statement from his lawyer. Full #abc13 coverage: https://abc13.co/2E604X0
Cogdell spoke to KTRK on Friday and said Caldwell believed the bonds were legitimate.
“I know Kirbyjon, the community knows him well. … He’s an icon in the Houston area and he’s 100 percent, absolutely innocent of these charges,” Cogdell said. “He absolutely believed these bonds were worth — in fact, he believed these bonds were worth more than he sold them for. He was the biggest investor in these bonds.”
The court documents state that Caldwell and Smith raised at least $3,488,500 from about 29 investors between April 2013 and August 2014.