ASHEVILLE, N.C. (AP) — A father and son who belong to a secretive evangelical church in North Carolina pleaded guilty Friday to federal criminal charges in an unemployment benefits scheme that former congregants have said was part of a plan to keep money flowing into the church.
As part of an ongoing investigation into physical and emotional abuse at the Word of Faith Fellowship Church in Spindale, North Carolina, the Associated Press reported in September that authorities were looking into the unemployment dealings of congregants and their businesses.
Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, pleaded guilty to one count each of wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine. They were charged earlier in May. Both men are pictured on the Word of Faith Fellowship’s website under a section for pastors and ministers, though the church was not mentioned during the hearing.
Other than the men’s spouses, no church members attended Friday’s hearing in federal court in Asheville.
Jerry Gross owned the Foot & Ankle Center of the Carolinas in Forest City, North Carolina. His son worked there, managing business operations, including payroll and personnel decisions, according to court records.
As part of his plea deal, Jerry Gross agreed to cooperate with the government. The criminal investigation into Word of Faith is ongoing. Former church member John Huddle of Marion said on Friday he was interviewed several months ago by state criminal investigators and U.S. Department of Homeland Security agents. He said he was asked not to discuss the topic of his interview.
The U.S. attorney’s office said the Grosses’ scheme netted nearly $150,000 for which employees were not entitled from September 2009-March 2013. The two made it appear they had laid off employees, including themselves, making them eligible for unemployment benefits. But prosecutors said the workers remained on the job.
“The scheme enabled Foot & Ankle Center to survive the economic downturn during those years by creating a free labor force — one paid for by the government, not the business itself,” court records say.
Both men were released on $200,000 unsecured bonds. Jerry Gross was ordered to forfeit $43,036 that prosecutors said was obtained illegally, while his son agreed to forfeit $38,084, according to court documents. They surrendered their passports and were ordered to give up any guns they have. They also were instructed not to discuss the case.