A Jamaican-born pastor who led a church and an educational daycare in Brooklyn has pleaded guilty in U.S. federal court to tax evasion after prosecutors said he diverted millions of dollars in organizational funds for personal use.
Paul Mitchell entered the guilty plea earlier Tuesday in federal court in Brooklyn, according to an announcement from the Justice Department. The plea was announced by Matthew R. Galeotti, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Joseph Nocella Jr., U.S. attorney for the Eastern District of New York; and Harry T. Chavis Jr., special agent in charge of IRS Criminal Investigation in New York.
According to court filings, Mitchell founded both the church and the daycare, where he served as lead pastor and president, respectively. Between 2015 and 2022, prosecutors said he used the organizations’ credit cards to pay for personal expenses, including men’s clothing, thousands of dollars in jewelry, luxury watches, and life insurance premiums. He also wrote checks from the church’s bank accounts to cover his personal credit card bills and his own income tax payments.
Prosecutors further alleged that Mitchell routinely withdrew large sums of cash from the church’s and daycare’s bank accounts and transferred those funds into his personal accounts. He failed to report the diverted money as income on his personal tax returns, significantly reducing his tax liability and allowing him to evade payment of taxes.
As a result of the scheme, Mitchell caused an estimated tax loss of approximately US$2.9 million to the Internal Revenue Service and about US$316,699 to New York State over the seven-year period, court documents state.
Mitchell faces a maximum sentence of five years in prison, along with restitution and fines of up to US$250,000. A federal district court judge will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being handled by the Justice Department’s Public Integrity Section and is being prosecuted by Assistant U.S. Attorney Miranda Gonzalez of the Eastern District of New York and Trial Attorney Catriona M. Coppler of the Justice Department’s Tax Section.
