58-year-old Terry Hall, former pastor of Turning Point Church of God in McLeansboro reported Tuesday to Marion Federal Penitentiary to begin serving a sentence of up to 21 months for COVID-19 loan fraud. Hall was convicted of fraudulently obtaining over $199,000 in COVID-19 Economic Injury Disaster Loan (EIDL) funds by submitting false documents and intimidating church members. He forged paperwork and misled both the federal government and his own congregation, transferring loan funds into his personal bank account.
Funds were used for personal expenses, including his mortgage, travel, and building projects. Hall was also ordered to repay $210,103.62 to the U.S. Small Business Administration. Hall’s actions led to a significant rift within his church, with about half the congregation reportedly leaving after the scandal came to light. When investigated, Hall tried to downplay his actions, claiming the loans were for personal use as a 1099 contractor.
The Department of Justice reports that over 3,000 people nationwide have been charged with COVID-19 relief fraud, with typical sentences ranging from one to five years.