Cupertino Man Convicted In Church Fraud Scheme: DOJ

CUPERTINO, CA — A federal jury convicted a 63-year-old Cupertino man of wire fraud and money laundering for a scheme involving defrauding a wealthy donor with money intended for a church, the U.S. Attorney's Office reported Tuesday.

Jonathan Chang, who served as an elder responsible for managing the finances of the Home of Christ 4 Christian Church in Saratoga, furthered his scheme by establishing charitable organizations with names similar to the church, federal prosecutors said. He then directed more than $6 million from the donor to his own organizations rather than to the HOC4. In addition, Chang embezzled approximately $900,000 from HOC4-related bank accounts in his scheme to defraud, they added.

The jury concluded that Chang solicited funds from the wealthy donor for the stated purpose of acquiring a new church house and missionary work. In response to Chang’s requests, the donor provided $2.25 million in one-time donations, a $3 million loan to acquire the new building and about $1.5 million total in monthly donations.

Chang did not use the funds as directed and authorized by the donor. Instead, he commonly used the funds for personal enrichment, the DOJ indicated. For example, Chang used the funds to buy a number of houses in the San Francisco Bay Area, luxury vehicles, 15 timeshare interests, commercial real estate investments, health insurance costs and athletic club dues.

Between 2004 and January 2016, Chang obtained a total of more than $7.5 million in funds from the donor and HOC4, prosecutors claimed.

A federal grand jury indicted Chang and his wife, Grace Chang, 60, on Feb. 4, 2016, charging each with conspiracy to commit wire or mail fraud, wire fraud and money laundering. The jury found Chang guilty of all the wire fraud and money laundering counts. The jury did not reach a verdict as to the two charged conspiracy counts, nor did the jury reach a verdict as to the counts filed against Grace Chang.

The Changs are scheduled to appear on Sept. 17 for a status conference.