KIRKLAND, Wash. — The pastor of Passion for Christ, a church in Kirkland, was arraigned Tuesday on an indictment for wire fraud and money laundering.
Cristian Popescu, 46, pleaded not guilty in connection with an alleged $13 million fraud scheme, according to a news release from the U.S. Attorney’s Office for the Western District of Washington.
Popescu lives in Bothell but is a citizen of Romania.
As early as 2015, Popescu claimed to own and operate Bellevue company Followone, Inc., according to the indictment. He claimed the company had an internet platform that was both a global marketplace and social network. He said users on the platform could buy and sell goods and services, including cars, real estate, health care, food, and travel.
However, Popescu’s company was a “web of non-functional screens,” the attorney’s office reported.
“Popescu used lies and deception to attract more than 30 investors,” officials stated. “Popescu’s lies included: that the company earned millions in revenue; that it was about to be listed on the Nasdaq stock exchange; and that the company had grown the value of shareholder investments.”
Pastor allegedly told church members God had chosen them to invest
Popescu used his role as a pastor to recruit investors from his church, telling them God had chosen them to invest in the company and that doing so would further the church’s mission, according to the indictment. Popescu told investors their investments would stay in Followone and that they could withdraw their money anytime.
Investors were required to sign nondisclosure agreements and use encrypted messaging services. When meeting with investors, Popescu reportedly made them turn off their phones and disable devices like Amazon’s Alexa.
Popescu even issued his own press releases with false and misleading representations about the success of his company, the attorney’s office noted.
“He falsely claimed to have hired leading software engineers from major companies,” officials stated. “He rented expensive office space in Bellevue and claimed to have twenty employees, when there were only three people working there.”
Popescu told his investors they could be on the board of Followone if they reached $1 million invested. He urged them to raid their retirement accounts, take out personal or home equity loans, and use their children’s college savings accounts, according to the indictment.
Pastor allegedly called investors demonically possessed when they sought refunds
Popescu reportedly used shell companies to make it appear as if Followone had business dealings with other companies.
“In fact, he was just using investor money to pay fake invoices and then used those payments to shell companies he controlled for his own benefit,” the attorney’s office stated. “Popescu lulled his investors by creating a website that claimed their investment had grown substantially in value. At one point, Popescu claimed Followone Inc had a value of $1.4 billion, when he knew it had little or no value.”
Followone was ultimately evicted from the expensive offices with an unpaid rent bill of more than $350,000. When investors asked for their money back, Popescu allegedly stalled, claiming repayment would interfere with the stock listing.
When investors pressed Popescu, he allegedly invoked his position in the church, became irate, and told investors they were demonically possessed.
Popescu faces 15 charges, with trial set for December
Popescu transferred funds directly to his bank account, his wife, and other family members, according to the indictment.
Popescu was charged with 10 counts of wire fraud in connection with the solicitation and payment of investments, and five counts of money laundering. One person invested nearly $1 million. Others invested nearly $600,000 and $500,000.
Popescu was released on electronic monitoring while awaiting trial, which is set for Dec. 21.
“These charges allege that a religious leader abused the trust of his fellow believers to steal millions of dollars for his own personal benefit,” W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office, stated. “Cristian Popescu defrauded dozens of his own church members through a series of elaborate lies, including promises of a future stock exchange listing and claims that the profits would benefit the community. The FBI and our partners will continue to follow the money to unravel these schemes and hold fraudsters accountable.”
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine, the attorney’s office noted. Money laundering is punishable by up to 10 years in prison and a $250,000 fine.
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