Alleged cult leader, henchmen appear in court as feds look for more victims

AUGUSTA, Ga. (WRDW/WAGT) - An alleged cult leader had his first federal court appearance Thursday, a day after being arrested during a raid of his lavish Columbia County mansion.

The man known as Rony Denis is accused of conspiracy to commit bank fraud, conspiracy to commit wire fraud, and aiding and assisting in filing a false tax return.

The church he founded is known as the House of Prayer Christian Church, but critics claim it’s a cult meant to lure service members and veterans.

Authorities say the aim was to drain veterans’ federal financial benefits to enrich the church and its leaders with such luxuries as an 11,000-square-foot West Lake mansion Denis lived in – one of his three homes – and his use of a Rolls-Royce.

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FBI agents arrested House of Prayer founder Rony Denis at a Georgia mansion amid federal charges of veteran benefits fraud and financial crimes.

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Authorities on Thursday announced another indictment related to the House of Prayer, a day after the church leader and seven others were rounded up.

And the money isn’t the only thing Denis is accused of stealing. Authorities say he stole someone’s identity in 1983 – so his name isn’t really his.

The FBI isn’t sure what his real name is.

His four-hour first appearance Thursday in Augusta federal court ended on a bizarre note, with the judge calling six people up front where legal staff normally sits.

The judge asked them if they represented themselves as legal staff to the court to gain access to the courtroom.

They denied it, saying they only represented themselves as staff.

The judge then asked if they had a recording device – which is not allowed in federal court.

One of the men said yes and pulled out a pen with a hidden camera.

The judge warned them it reeked of dishonesty and scolded the group.

MORE FROM NEWS 12

House of Prayer: Coverage through the years

1. Raided Augusta church accused of stalling federal investigation
2. Church accused in multimillion-dollar VA fraud scheme
3. What former members say about FBI-raided church
4. Ga. agency pulls GI Bill funding for church that was raided
5. FBI raids Augusta church and 2 others: What we know

A federal indictment accuses Denis and seven other church leaders with financial crimes.

The charges include:

• Rony Denis, age unknown, of Martinez, Hinesville and West Palm Beach, Fla.: Charged with conspiracy to commit bank fraud, conspiracy to commit wire fraud, and aiding and assisting in filing a false tax return. Denis is being held in the Jefferson County jail for the U.S. Marshals Service and is supposed to be sent to Augusta on Thursday, according to the jail.
• Anthony Oloans, 54, of Hinesville: Charged with conspiracy to commit bank fraud and bank fraud.
• Joseph Fryar, 51, of Hinesville and Martinez: Charged with conspiracy to commit bank fraud and bank fraud.
• Dennis Nostrant, 55, of Hinesville: Charged with conspiracy to commit bank fraud and bank fraud.
• Gerard Robertson, 57, of Hinesville: Charged with conspiracy to commit bank fraud and conspiracy to commit wire fraud.
• David Reip, 52, of Hinesville; Charged with conspiracy to commit bank fraud and bank fraud.
• Marcus Labat, 42, of Hinesville: Charged with conspiracy to commit wire fraud and wire fraud.
• Omar Garcia, 40, of Palm Bay, Fla.: Charged with conspiracy to commit wire fraud and wire fraud.

All but Denis and his top person, Oloans, were granted bond Thursday in court.

Federal prosecutors want Denis and Oloans to remain in custody. A hearing next week will determine that.

Separately, a pastor with the church was indicted with child sex crimes, authorities said Thursday.

Bernadel Semexant, 35, of Hinesville and Savannah, is charged with enticement of a minor to engage in sexual activity, sexual abuse of a minor, transfer of obscene material to a minor, receipt of child pornography and possession of child pornography.

Also Thursday, federal officials said although the arrests were the culmination of years of investigation, they’re still looking for victims.

Those victims would mostly be the veterans authorities allege were targeted by the church, or they could be victims of sex crimes, authorities said.

In a gathering with the media, authorities with the FBI, Army and Department of Veterans Affairs all urged victims to step forward.

If you or a family member were victimized by key management personnel of HOPCC or have information relevant to this investigation, authorities ask that you fill out the form at forms.fbi.gov/victims/HOPCCVictims/

They also thanked other agencies for their help with Wednesday’s roundup of suspects, which took place in the Augusta and Hinesville areas as well as in Florida.

The Hinesville-based church has several locations across the U.S., mostly near military installations where they recruited service members to join, according to authorities.

This week’s developments come three years after multiple locations, including one at 2952 Old Tobacco Road in Augusta, were raided by the FBI, which seized boxes full of documents.

Although they have similar names, the House of Prayer has no relation to the United House of Prayer on Wrightsboro Road.

What are the allegations?

Authorities and critics say the church and its affiliate House of Prayer Bible Seminary specifically target military members and veterans in a scheme to get their benefits.

The indictment alleges Denis and the others named in the financial crimes indictment used their leadership positions to exert extreme control over congregants.

Authorities say church members were manipulated into turning over personal information, pressured into marriages and divorces arranged by church leaders, and forced to live in properties tied to the defendants that generated rental income.

Church leaders humiliated members for perceived rule violations, kept a list of former members who were labeled as “traitors” and restricted members’ contact with relatives who left the church, authorities said.

THE INDICTMENT:

Some veteran members were directed to enroll in the seminary with tuition to be paid through GI Bill benefits, authorities said. However, there was little to no instruction, authorities allege, and the veterans’ benefits were exhausted as the money was funneled into church-controlled accounts.

Authorities said defendants also recruited church members to serve as “straw buyers” of real estate, using VA loans, and the homes were leased out, bringing in more than $5.2 million in rental income between 2018 and 2020.

The church also committed fraud against the government, according to the indictment.

An exemption from the state of Georgia required that the seminary not receive federal funds, but it did receive millions in federal veteran benefits and lied about that, according to authorities.

The indictment also charges Denis with aiding in the preparation and filing of false income tax returns for 2018, 2019 and 2020. According to the indictment, he reported a total income of $165,601 in 2018, $155,408 in 2019, and $247,433 in 2020, despite knowing those figures were false.