Pastor and wife accused of taking $3.4 million from congregation for luxury purchases 'requested by God'
A pastor and his wife have been accused of running a multi-million dollar cryptocurrency scam because 'the Lord' told them to do so.
Eli and Kaitlyn Regalado, of Denver, US, are the founders of an online church that allegedly convinced worshippers to give them money for a so-called business opportunity.
From January 2022 to July 2023, members of Victorious Grace Church were said to have invested $3.4 million (£2.5 million) into a fake cryptocurrency, according to the Denver District Attorney’s Office.
The indictment states that they allegedly promised 'exorbitant returns on the investments', but 'only a small amount of the proceeds went to the business venture'.
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Investors were allegedly convinced into buying INDXcoin, a cryptocurrency created and marketed by the Regalados.
But instead, Denver District Attorney John Walsh has accused the husband and wife of spending 'at least $1.3 million on personal expenditures, including a home renovation that they have allegedly claimed 'the Lord' told them to do'.
At the end of it, INDXcoin was worthless and 'all of the investors lost all of their money'.
Eli and Kaitlyn have now been charged on 40 counts regarding the alleged scheme.
Walsh said: "These charges mark a major step forward in our work to hold the Regalados accountable for their alleged crimes and to bring a measure of justice to the victims.
"I want to thank the prosecutors and investigators in my office, and, particularly, the investigators with the Colorado Division of Securities and the Colorado Attorney General’s Office, whose outstanding work on the case resulted in this indictment."
Taking to his YouTube channel in July of last year, Eli admitted that he and his wife spent $1.3 million, in part, to remodel their house.
“Let’s talk about the 800-pound gorilla, the allegation that Kaitlyn and I spent $1.3 million. We did,” he said.
“I had to give $500,000 to the IRS for some tax debts, then the Lord said to start remodeling our house.”
In a follow-up clip, he added that he doesn't 'feel bad' for what happened.
“People trusted the Lord with their money. As we said, pray about it and then do what you want and they bought in,” the pastor said.
“It’s no different than Moses leading the Israelites out of the wilderness.
“So, no, I don’t feel bad, because I know what God is going to do. Now, does it look bad from a natural perspective?
“Of course it does, it looks like death. But that’s how God works.”
Anish Vij