Caldwell told KTRK in an exclusive interview on Friday, “Everyone who’s asked for their money back to date has received their money back. I’ve got evidence here that the bonds are legitimate.”
Cogdell said investors who have requested their money back have been refunded nearly $1 million.
They reportedly told would-be investors that the Chinese bonds “were safe, risk-free, worth tens, if not hundreds, of millions of dollars,” when really they were “mere collectible memorabilia with no investment value,” the complaint states.
Caldwell, 64, and Smith, 55, did not tell the investors that the funds they would be using their money for personal expenses, according to the court documents.
The prosecutors said that the defendants used the money that they solicited to buy vehicles, pay off credit card balances and mortgages, among other personal expenses.
“Although many investors did not understand the investment, they ultimately trusted Smith and took comfort in the fact that a high-profile pastor was offering the investment,” the complaint states.
When pressed by investors about how long it would take to see returns on their investments, the pair reportedly offered a range of excuses that included delays caused by the International Monetary Fund or World Bank and issues related to international currency exchanges, the filing states.
“I will beat these charges like a rented mule,” Cogdell said.
Caldwell’s presidential pal
Caldwell was known both within his community through his megachurch and in the national political sphere because of his ties to the former president.
Caldwell first got to know Bush when he was the governor of Texas and went on to participate in the 2000 Republican National Convention.
Though he said he was a political independent, Caldwell touted Bush’s work as governor, specifically noting Bush’s hiring of minorities and his belief in closing the gap of economic segregation.
“The governor’s plan will help ensure that this God-given rising economic tide will not only lift more boats but will repair the leaking boats as well,” Caldwell said during his RNC speech.
His ties to the Bush family continued through his presidential administration, starting when he offered the benediction at the 2001 inauguration and continuing to 2008 when he officiated Jenna Bush Hager‘s wedding at the family’s Crawford, Texas, ranch.
Editor’s note: An earlier version of this story misspelled Caldwell’s name. It has since been corrected.
Article Appeared @http://abcnews.go.com/US/megachurch-pastor-indicted-35-million-fraud/story?id=54117145