Racketeering Pastor Found Guilty
CFO Sink’s Two-Year Investigation of Jenson Beach Pastor Rodney McGill and his Wife Shalonda Results in Guilty Verdicts
TALLAHASSEE—Florida CFO Alex Sink today announced the conviction of Jensen Beach Pastor Rodney McGill and his wife Shalonda, each on one count of Racketeering, four counts of Mortgage Fraud, and four counts of Grand Theft following a seven day jury trial in St. Lucie County Circuit Court. The guilty verdict resulted after an investigation by CFO Sink’s Division of Insurance Fraud and the Office of Financial Regulation showed that the McGills saddled investors with more than $1.15 million in mortgage loans by “flipping” of properties in Martin and St. Lucie Counties and then selling the homes using fraudulent loan applications. They face up to 170 years in prison.
"These individuals used their positions in the community to take advantage of people that trusted them," said CFO Alex Sink. "I am grateful for the hard work of our investigators- because now these criminals will have to pay the price for their crimes."
The McGills garnered clients through various programs including the Young Millionaire’s Group, Inc. (YMG); RSM Investment and Mortgage (RSM); and New Hope Outreach Center, Inc. (New Hope), all of which operated out of a facility located at 2110 Arch St. in Jensen Beach. Florida corporation documents identify Rodney McGill as president and Shalonda McGill as vice president of New Hope, which is incorporated as a non-profit church with the McGills listed as pastors.
The investigation found that Rodney McGill, as president of YMG, solicited listeners through a daily local radio program on WJFP Radio. He stated his purpose was to teach and mentor individuals on how to buy and sell real estate without any out-of-pocket expense, with the goal of earning $50,000 in 90 days. In July 2006, investigators said, Rodney McGill solicited listeners of the radio show to call in and qualify, based on their credit, to become one of his “Fab 5.” Callers were assured that they would learn McGill’s real estate investing “cash-out technique.”
The McGills purchased real estate in Martin and St. Lucie counties by preparing and submitting fraudulent loan applications, and then “flipped” the properties to the “Fab 5” for huge profits. Based on the fraudulent loan applications, four mortgages were obtained in excess of the property’s actual worth, and the McGills skimmed off the profits leaving three members of the “Fab 5” with more than $1.115 million in mortgage payments they were unable to make. All of the properties are either in or are facing foreclosure. The buyers all believed they were part of the “Fab 5” and were learning the McGill’s real estate investing techniques.
Many other Florida real estate transactions devised by the McGills remain under investigation, with additional charges anticipated. Anyone with new information is asked to contact Detective Ted Padich, (561) 837-5635, with the Division of Insurance Fraud, or Investigator Steve Brignola, (561) 837-5233, with the Office of Financial Regulation.
For more information or for assistance, log on to www.MyFloridaCFO.com or call our consumer helpline at 1-877-MY-FL-CFO.