A New York minister has agreed to repay $1.2 million in misspent donated funds that were supposed to be used for 9/11 and Hurricane Katrina relief.
Rev. Carl Keyes and his wife, Rev. Donna Keyes, signed an agreement on Wednesday to repay $1,231,105 to Glad Tidings Tabernacle— an Assemblies of God church that the Keyes family used to lead.
Glad Tidings was used to launder money the Keyes received for their relief charities, Urban Life Ministries and Aid for the World. The two nonprofit organizations received over $4.8 million to benefit Hurricane Katrina and 9/11 victims.
Investigators discovered that Rev. Carl Keyes diverted the funds to the church, then used the monies to buy a house in Stockton, New Jersey, a BMW, pay off a mortgage and credit card bills, and take vacations to Africa, California, Florida, and West Virginia.
The church's former executive director, Mark Costantin, agreed to pay back the remaining $482,000 he owes on $1.2 million in loans from Glad Tidings. Constantin used some of the funds to pay off his mortgage as well.
The fraudulent activities go back to at least 2008.
New York Attorney General Eric Schneiderman criticized the trio's actions.
"Carl and Donna Keyes and Mark Costantin abused the trust of their congregants and used Glad Tidings Tabernacle as their personal bank," Schneiderman told the Associated Press. He said it is illegal for church officers or nonprofit leaders to take loans from their organizations, "much less loans to finance personal expenses and lifestyle choices."
Three Glad Tidings' board members will pay $50,000 in penalties for failing to oversee the church's finances.
Maurice Heller, an attorney representing the Keyes and Costantin, told the Associated Press that the agreement with state attorneys does not admit his clients' guilt.
An Assembly of God organization will oversee Glad Tidings temporarily, and Donna Keyes will remain senior pastor of the church.
