A Kirkland church pastor was arraigned Tuesday on charges of money laundering and wire fraud in connection with a $13 million fraud scheme, according to the U.S. Department of Justice.
Cristian Popescu, pastor of the Christian congregation known as Passion for Christ, which has a church in Kirkland, pleaded not guilty Tuesday to the charges in U.S. District Court in Seattle.
Popescu, 46, purported to own and run a Bellevue company by the name of Followone Inc., which he claimed “had an internet platform that was both an online global marketplace and social network,” according to the release.
As part of that, he claimed that the platform’s users could sell and buy goods and services like real estate, healthcare, vehicles, food and travel, according to prosecutors, but “in fact, the platform was a web of non-functional screens and Popescu used lies and deception to attract more than 30 investors.”
Popescu at one point claimed that Followone Inc. reached a value of $1.4 billion and that it would be soon listed on a stock exchange. He also stated the company offered 6 million auto dealer listings.
“As Popescu knew, no cars were actually purchased or sold on the Followone website, and the website did not have the capacity to execute such transactions,” prosecutors wrote.
A trial is scheduled for Dec. 21 for Popescu, a citizen of Romania living in Bothell.
“As alleged in the indictment, this defendant created the mirage of a successful, valuable online marketplace and social media site in one,” acting U.S. Attorney Neil Floyd said in a news release. “Popescu lured investors from his church with fake marketing materials, websites, and expensive offices, and then took their money for his own luxuries and day trading, betraying them financially and faithfully.
A phone call and email sent to the Passion for Christ Church seeking comment, as well as an inquiry to the church’s Instagram account, were not returned.
The pastor has been charged with 10 counts of wire fraud related to the solicitation and payment of investments into the company, as well as five counts of money laundering related to the transfer of invested money into his personal bank account. One person gave close to $1 million in a single wire transfer, with other investments reaching $600,000, according to the charges.
Over time, Popescu transferred more than $4.5 million of Followone Inc. funds to accounts belonging to family members, as well as himself and his wife, according to the release. The pastor also paid himself more than $1 million in wages from Followone Inc. and paid his wife approximately $300,000, despite her not being an employee of the company.
On his LinkedIn page, Popescu wrote that he founded the company in January 2015 and “directed the development of the company’s technology, business model and long-term strategic plans.”
“My responsibilities include establishing the company’s overall vision, evaluating business opportunities, overseeing management, developing strategic partnerships and guiding the company’s continued expansion,” he added.
The company was ultimately evicted from its offices after owing more than $350,000 in rent. Popescu reportedly stalled when investors asked for their money back.
“When investors pressed Popescu for more information about Followone or expressed doubts about Popescu’s representations, Popescu invoked his position in the church, became irate, and told the investors they were demonically possessed,” according to federal prosecutors.
Popescu has been released on electronic monitoring while he awaits trial.
A federal magistrate judge found Popescu unable to afford an attorney and appointed him a public defender, Mukund Rathi, who didn’t respond to a call or email Wednesday evening seeking comment.
