New Orleans pastor admits defrauding his church of $900,000 to spend on cars and paying off credit cards

• A New Orleans pastor pleaded guilty to defrauding his church of almost $900,000 on Tuesday.
• Charles Southall III transferred money meant for his church into his personal accounts, per the DOJ.

A New Orleans pastor pleaded guilty on Tuesday to money laundering and admitted to defrauding donors of almost $900,000 meant to benefit his church, according to the Department of Justice.

Rev. Charles Southall III, the executive pastor of First Emanuel Baptist Church in New Orleans, diverted hundreds of thousands of dollars in funds to accounts under his personal control, prosecutors said.

In a Facebook Live prayer session he held after Tuesday's court appearance, Southall apologized to his congregation and claimed that he had not laundered money, but said he had pleaded guilty to "something that went against the banking laws."

Southall's attorney did not immediately respond to Insider's request for comment, made outside of working hours.

According to court documents seen by Insider, Southall solicited multiple major donations meant for the church then diverted them to a personal account.

One victim gave a tithe of $10,000, while another victim gave donations totaling $106,408.38 — which was meant for charity and to improve the church building, prosecutors said.

Southall pocketed another $150,000 from rent on church properties, as well as $537,805.51 from the proceeds of selling off several church properties, prosecutors said.

He also took in $85,351.97 from a school building project that never materialized, according to the DOJ. In 2013, his church secured funding for a school in Baton Rouge, and hired a consultant, named only as Person A in court documents, to help run the project.

Person A's payments went into an account jointly controlled with Southall, allowing him to use the money for himself, prosecutors said.

In total, Southall obtained $889,565.86 through the schemes, the DOJ estimated.

They alleged Southall used the money to pay credit-card bills, buy a $95,000 car, put a $10,764.11 down payment on another, and open a personal investment account with JP Morgan.

A court ordered him to forfeit a 2017 Mercedes Benz convertible and $100,000 on Saturday, documents seen by Insider show.

On Tuesday, Southall led a prayer session on Facebook live where he spoke about the court's decision, saying it had been a "very difficult" day but disputing the Justice Department's characterization of money laundering.

"It was not money laundering at all," he said. "It was something that went against the banking laws, that I plead to. Because they say it was illegal for me to move money from an account that I have, to an account that I have. That's what I plead to."

He continued, saying: "According to the law, I have made some missteps, and for that I am remorseful and very concerned. But I accepted the responsibility... that it was wrong. I did not think it was. But it went against federal banking laws."

Southall, who has led the church since 1989, faces a maximum prison sentence of 10 years and a fine of up to $250,000, as well as having to pay back the stolen sums to his victims and the church, the DOJ said.