Southern Illinois pastor headed to prison for pocketing Covid relief loans

The former pastor of a Hamilton County church has been sentenced to 21 months in federal prison after pleading guilty to fraudulently obtaining COVID-19 relief funds intended for his congregation.

Terry L. Hall, 58, of McLeansboro, was convicted on two counts of wire fraud and three counts of making false statements related to his application for Economic Injury Disaster Loan funds under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Prosecutors said Hall created false documents and misrepresented the intended use of the relief money, which is designed to help small businesses and organizations weather the financial impacts of the pandemic.

Court documents state that Hall applied for nearly $200,000 in federal aid using church information, but directed the disbursed funds to his personal bank account. Instead of assisting the church, Hall spent the money on personal expenses, including paying off his mortgage, building a pole barn, travel, and everyday purchases such as clothing, gas, and food.

After serving time in prison, Hall will complete an additional two years of supervised release. He has also been ordered to repay the Small Business Administration $199,900 plus accrued interest.

“The vast majority of pastors across southern Illinois answered the pandemic with selfless service,” U.S. Attorney Steven Weinhoeft said. “Terry Hall chose a different path: he requested federal relief on behalf of his congregation, then used nearly $200,000 for purely personal expenses. Conduct that far from the calling of ministry demands accountability, and accountability arrived in the form of a 21-month federal prison sentence.”

Investigators reported that Hall contacted elected officials and intimidated church members to help secure the loans. The case was investigated by the FBI Springfield Field Office and prosecuted by Assistant U.S. Attorney Kathleen Howard.