WREX.com – Rockford’s News LeaderLocal pastor charged with bank and bankruptcy fraud

Local pastor charged with bank and bankruptcy fraud

ROCKFORD (WREX) - The pastor of The Fountain of Life Church of God is indicted on federal fraud charges.

Kenneth Dismuke, 49, faces two counts of bank fraud, two counts of filing false loan applications, and three counts of bankruptcy fraud.

The indictment accuses Dismuke of fraudulently obtaining a $50,000 loan to pay operating expenses for the Fountain of Life Improving the Community Academy, which he was the executive director of and controlled the bank accounts for.

The indictment claims Dismuke instead used the loan as collateral to obtain another $50,000 loan for the church, and then claimed that money came from an Illinois State grant.

Then Dismuke is accused of making false statements when he filed for bankruptcy protection. He allegedly claimed the Academy did not owe him any money, when he knew it did and he intended to pay himself back with money from one of the fraudulently obtained loans mentioned above.

The indictment goes on to say Dismuke withdrew $10,500 from one of those loans and deposited it into a personal bank account three days after a bankruptcy court order discharged him from liabilities from his debts.

Dismuke faces up to 30 years in prison and a fine up to $1 million for each count of bank fraud if convicted. He also faces up to five years in prison and a fine up to $250,000 for each charge of bankruptcy fraud and filing false loan applications, as well as up to five years of supervised released following imprisonment and making any restitution ordered by the court.