A New Orleans-area pastor has been convicted on multiple federal fraud charges after prosecutors accused him of taking hundreds of thousands of dollars from churches he led and using the money for gambling, meals, travel, and personal expenses.
A federal jury last week found Dale Sanders, 56, guilty of more than two dozen charges following a five-day trial in which prosecutors presented evidence they said showed he misused church funds for his own benefit.
Sanders, who has served as pastor of both Second New Guide Missionary Baptist Church in Metairie and Fifth African Baptist Church in New Orleans since 2013, was accused of taking approximately $340,000 from church accounts through cash withdrawals, wire transfers, and purchases made with church financial accounts.
Jury Finds Pastor Misused Church Funds
The jury, presided over by U.S. District Judge Brandon S. Long, sided with federal prosecutors who argued that Sanders used money belonging to his congregations for unauthorized personal spending.
Prosecutors said Sanders withdrew cash and transferred money from bank accounts connected to the churches and used the funds for expenses that included casino gambling, hotel stays, meals, and other personal costs.
Sanders was convicted of:
- 15 counts of wire fraud
- 11 counts of access device fraud
- One count of obstructing a federal investigation
He was acquitted of one additional wire fraud charge.
Federal prosecutors argued that Sanders’ actions amounted to theft from the congregations and violated federal fraud laws.
Defense Argues Spending Was Authorized
Throughout the trial, Sanders maintained that the charges were based on a church dispute rather than criminal activity.
His attorney, Michael Magner, argued that Sanders had permission to use a church debit card through a “corporate resolution” reached with leaders at Second New Guide Missionary Baptist Church in 2018.
According to the defense, Sanders had agreed to stop receiving a regular salary while the church faced serious financial problems. In exchange, church leaders allowed him access to church funds through the debit card arrangement.
Magner said the church did not suffer financial harm and argued that Sanders was actually owed more than $200,000 in unpaid salary.
“We presented compelling evidence that the church sustained no loss and, in fact, owes Reverend Sanders well over $200,000 in back salary,” Magner said.
The defense also argued that leaders from Fifth African Baptist Church testified that they did not believe they had been defrauded and continued to support Sanders as their pastor.
Prosecutors Detailed Alleged Personal Spending
The government’s case focused on financial transactions prosecutors said showed Sanders using church money for personal expenses.
The charges involved transactions dating back to 2019 and included allegations such as:
- A $5,000 check from Fifth African Baptist Church that Sanders deposited
- A $1,172 purchase at a Hard Rock Hotel in Florida
- Approximately $1,300 spent at a Mississippi casino
- A $226 payment at a Kenner veterinarian
- Other purchases and withdrawals prosecutors said were unrelated to church business
Federal investigators said the spending occurred over several years while Sanders had control over church financial accounts.
Pastor Previously Called Case an Internal Church Matter
Before his indictment, Sanders posted a video message on Facebook addressing the accusations and defending himself to members of his congregation.
In the video, Sanders said he believed the situation was an internal church disagreement that should not have become a federal criminal case.
“I believe this involves an internal church matter that do not have anything to do with the public or the state,” Sanders said.
Sanders described his arrival at Second New Guide Missionary Baptist Church in 2013 as a time when the congregation was facing significant challenges, including financial problems and disagreements among church leaders.
He said the church had been dealing with issues such as unpaid bills, insurance problems, and what he considered unnecessary purchases.
Sanders specifically mentioned a $30,000 intercom system that he believed the church did not need.
Financial Dispute Led to Federal Investigation
According to Sanders, he agreed to give up his salary while helping stabilize the church’s finances. He said he later relied on the church debit card arrangement because he was no longer receiving regular pay.
“For more than four years, I received a salary of zero from the Second New Guide Missionary Baptist Church. During that time period, I suffered immensely,” Sanders said.
Sanders also blamed a former church finance official for escalating the dispute and bringing the matter to federal authorities.
The FBI investigated the case, and prosecutors from the U.S. Attorney’s Office handled the trial.
Attorney Plans Appeal
Following the conviction, Sanders’ attorney said the pastor respected the jury’s decision but disagreed with the outcome.
Magner said Sanders was surprised and disappointed by the verdict and plans to appeal the conviction.
He described Sanders as a respected religious leader who was admired by many members of his congregations.
Sentencing Scheduled for October
Each wire fraud charge carries a potential maximum sentence of up to 20 years in federal prison.
Judge Brandon S. Long scheduled Sanders’ sentencing hearing for October 13.
The case marks the conclusion of a federal investigation that began after a financial dispute within the church grew into a criminal prosecution involving allegations of misuse of hundreds of thousands of dollars in religious organization funds.
