A San Bernardino pastor and anniversary city council candidate this week on suspicion that he had deceived long-time friends and a nonprofit company linked to another church that had more than $230,000, according to federal authorities.
Terrance Owens Elliott, arrested Thursday, is charged with 11 counts of wire fraud, according to the U.S. Attorney’s Office in Los Angeles. The 60-year-old Crestline resident pleaded guilty to the $9,000 bond.
Elliott's federal public defender did not immediately respond to Saturday's request for comment.
From October 2019 to February 2023, Elliott (who worked on behalf of himself at the San Bernardino City Government and worked in the police department) deceived several long-time friends, according to the indictment.
Elliott allegedly convinced a friend that only her abbreviation MC could place inheritance funds in the trust he would establish and manage. He claimed that if she received the inheritance right directly, she would lose her health insurance and social security benefits.
Elliott is a trust fund for co-trusts, but according to the indictment, the money will be spent on MC's financial needs and funeral expenses throughout her life, the indictment said. The remaining property will be transferred to MC's three children after MC's death.
According to the indictment, when Elliott opened a bank account under the name of a trust, he allegedly listed as a trustee and provided the bank with a copy of the fraudulently modified trust agreement that listed him as the sole right to pay from the account.
Elliott allegedly wrote the check and transferred it online to the church (determined only as “Church A”), which was permitted under the Trust Agreement. He also used trust funds to purchase postal rates to pay for church rent, according to the indictment.
Some of that money is also allegedly spent on Elliott’s personal expenses, including an extended warranty for repairing Chevrolet trucks, Nike sneakers, pianos, clothes and motorcycles.
Elliott also allegedly gained access to an MC account at another bank and transferred some of its monthly Social Security payments to the church, according to federal authorities.
According to the indictment, when the MC's family asked Elliott about Elliott's trust account or bank statement, he “by frustration, telling them everything is under control and getting them to comply.”
After Mike's death, Elliott allegedly deceived another person (determined as WH) to pay more than $8,600 in funeral fees, falsely claiming that he needed the judge's authorization before he could release the money in the trust account.
Elliott allegedly deceived four victims, including MC and WH, including $150,200, according to the U.S. Attorney’s Office.
Another alleged plan began in June 2021 after Elliott suggested that WH sell the home. Elliott suggested that after selling the home, he suggested that WH’s company lend MC $65,000, wrongly claiming that this would avoid capital gains taxes in the sale.
The indictment accused Elliott of preparing a loan contract between the company and the trust and told WH that he would transfer $65,000 from the company to the trust account and repay it at 10% annual interest. He also allegedly convinced WH to provide him with several signature blank checks for the company's bank account.
Elliott allegedly used one of the blank checks to transfer the unauthorized $16,000 to Church A, according to the indictment. Elliott allegedly transferred $49,000 to the trust fund, but never paid back any portion of the $65,000 loan.
In another so-called plan, authorities said that from September 2018 to June 2021, Elliott used his relationship with the church and was identified only as Church B and its board of directors to help manage litigation costs and other expenses involving them and entities identified only as nonprofit companies.
According to the indictment, Elliott allegedly lied to the board of directors of nonprofits and Church B, which owed WH companies funds to provide services related to litigation against them. As a result, the nonprofit sent about 32 checks to the company, which Elliott allegedly later deposited in a bank account he controlled.
Elliott allegedly deceived nonprofits for $23,300.
In total, Elliott's plan lost about $238,563.
The San Bernardino Sun reported that Elliott ran for the city council seat in 2022, which was not only unsuccessful, but also led to criminal convictions and civil lawsuits against him.
If convicted, Elliott can face every charge in federal prison for 20 years.
