Why judge decided not to grant bond to alleged cult leader

AUGUSTA, Ga. (WRDW/WAGT) - An alleged cult leader will stay behind bars until his trial on accusations of running a huge scam to rake in veterans’ benefits – and we learned the judge’s reasoning Monday.

The federal bond hearing for Rony Denis continued Friday after being cut short last week when he became ill.

Federal court records indicated Denis will remain in custody for now.

Denis was arrested a couple of weeks earlier during an FBI raid of his lavish Columbia County mansion.

He’s accused of conspiracy to commit bank fraud, conspiracy to commit wire fraud, and aiding and assisting in filing a false tax return.

Plus authorities say he stole his identity from someone else, too. They’re not sure what his real name is.

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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.

Court documents obtained Monday by News 12 show why a judge decided Denis shouldn’t be granted bond. The listed reasons included:

• Weight of evidence against the defendant is strong.
• Subject to lengthy period of incarceration if convicted
• Questionable legal status in the United States.
• Potentially subject to removal or deportation after serving any period of incarceration.
• Use of alias(es) or false documents.
• The defendant’s release poses serious danger to any person or the community.

READ THE DOCUMENT:

The church Denis 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.

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 of 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.

Separately, a pastor with the church was indicted and charged with child sex crimes.

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.

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.