Leader of House of Prayer church arrested in Georgia on charges of stealing millions in veterans' benefits

A Georgia man using the name Rony Denis was arrested this week after federal agents raided an 11,000-square-foot mansion and unsealed an indictment accusing him and seven co-defendants of a yearslong scheme to divert millions in veterans' education benefits and other funds to accounts controlled by a church he founded.

The indictment, filed by the U.S. Attorney's Office for the Southern District of Georgia and reviewed by media outlets, alleges Denis and leaders of the House of Prayer Christian Churches of America and its affiliated House of Prayer Bible Seminary recruited service members into seminary programs, directed them to use GI Bill and other Department of Veterans Affairs education benefits to pay tuition, and then funneled those payments to the church. Prosecutors contend the church received more than $3 million in education benefits for its Georgia locations and more than $23.5 million across five seminaries.

The indictment alleges the veterans who enrolled in the seminary often "rarely, if ever, graduate" from the House of Prayer Bible Seminary and that the funds paid for so-called expense reimbursements, "love offerings" to church leaders and other uses that personally benefited defendants. It says Denis and other leaders recruited military personnel using a technique the indictment calls "soul winning" and established church sites in approximately 10 to 12 locations in at least five states, placing them near military installations to ease recruitment and indoctrination.

Prosecutors also allege a long-running bank and real-estate fraud operation in which the church used "straw buyers" to obtain mortgages on properties, then converted those properties to rentals. The indictment includes an example from Aug. 18, 2008, in which a church member identified only as "J.E." purchased a Hinesville property for $115,000 despite being unemployed, contributing no down payment and never living in the home. Between 2018 and 2020, the indictment says the church collected more than $5.2 million in rent payments, funds that were allegedly used to pay mortgages on Denis' West Palm Beach home and to cover defendants' credit card bills.

The indictment further alleges that Denis, who prosecutors say stole another person's identity in 1983 and became a U.S. citizen in 2002 under that name, exercised "extreme control and manipulation" over church members. It says he at times arranged marriages and orchestrated divorces, publicly humiliated members for perceived conduct violations such as texting someone of the opposite gender or dressing "worldly and unbecoming," and discouraged contact between current members and former members, some of whom were placed on a list labeling them traitors.

Authorities say the church fraudulently obtained a religious exemption from Georgia regulators to operate two locations, an exemption that would have precluded the receipt of federal education benefits. Despite that exemption, the indictment alleges the seminary programs applied for and accepted VA and other federal education benefits, rendering them ineligible for those funds under applicable rules.

Denis and the seven co-defendants face counts that include conspiracy to obtain money and property from the VA by materially false and fraudulent pretenses, bank fraud, and tax-related charges. The U.S. Attorney's Office alleges that the group exploited military personnel and directed the routing of veterans' education funds into church-controlled accounts.

Federal agents executed the raid at the Columbia County mansion this week. The 11,000-square-foot home, which has seven bedrooms and eight bathrooms, was last listed on real-estate sites for about $1.96 million. Denis was arrested at the property, granted bond on Thursday and is scheduled to appear at a hearing next week.

Steve Sadow, identified in court filings as Denis' lead defense attorney, denied wrongdoing and told the Daily Mail that "Reverend Dennis is a charismatic religious leader whose congregation both loves and respects him. He is not guilty of the charges lodged against him and he will be acquitted by a jury when the case comes to trial." The indictment and related filings do not establish guilt; the defendants are presumed innocent until proven guilty in court.

The church's seminary locations named in the indictment include Hinesville and Hephzibah, Georgia; Fayetteville, North Carolina; Killeen, Texas; and Tacoma, Washington. Prosecutors say the largest congregation was in Hinesville, averaging some 200 to 300 attendees, while other sites had smaller memberships.

Accusations about the church's real-estate practices date back at least to 2017, according to the indictment, which lists multiple transactions involving purported straw buyers who executed loan documents containing false information to obtain mortgages. After acquiring properties, the church allegedly seized control, converted them to rentals and directed other members to occupy them and pay rent to church-controlled entities.

The case underscores continuing federal scrutiny of for-profit and religious educational programs that enroll veterans and otherwise rely on GI Bill and other federal education benefits. Prosecutors said they will pursue recovery of funds and further legal remedies as the case proceeds through the federal courts.