Federal prosecutors have charged an Arlington pastor with orchestrating a scheme that allegedly defrauded more than 50 investors of over $3.2 million through church renovation projects, Christian concert ventures and other religious investment opportunities.
A federal grand jury indicted 53-year-old Richard Reinaldo Garcia, senior pastor of Garcia Church, on one count of conspiracy to commit wire fraud, two counts of wire fraud and one count of aggravated identity theft.
“The object of the conspiracy was for defendant Richard Reinaldo Garcia to defraud individual victims of their money and property so defendant Garcia, Co-Conspirator A, and others could enrich themselves through Relevant Entities,” the indictment alleges.
The indictment alleges Garcia operated the scheme from August 2021 through April 2025 using several church-related organizations, including "Ministerio Gracia," "Gracia Church of Texas" and "A Pesar de Todo, LLC."
According to the indictment, Garcia and an unnamed co-conspirator promised investors significant returns through what prosecutors described as "church flipping" projects, in which church properties would supposedly be renovated and sold for profit.
Prosecutors also allege they solicited investments for Christian music concerts in Colombia, claiming the events would generate revenue that would be shared with investors.
Instead, prosecutors allege Garcia used investor money for business operating costs, unrelated expenses and personal enrichment.
The indictment details several examples that prosecutors say illustrate the alleged scheme.
In one instance, two investors paid $50,000 to renovate and resell a church property in Arlington. Prosecutors allege Garcia later falsely told them the project had generated a 55% profit and that their money had been reinvested in another project without their authorization.
In two other alleged transactions, prosecutors say an investor transferred a combined $293,000 for church properties in Texarkana and Lubbock, but Garcia falsely claimed the properties had been purchased, renovated and sold for a profit when, according to the indictment, the money was never used for those projects.
Prosecutors also allege Garcia instructed at least one investor to characterize investment payments as charitable donations to one of his churches rather than as business investments.
Another instance alleges Garcia fraudulently raised money for a church related trip to Kenya.
“(Garcia) made fraudulent representations to solicit funds from victims, typically $2,000 per person, purportedly to pay for trips to Kenya, Africa where church programs related to the Relevant Entities would occur,” the indictment alleges. “When in reality, Garcia then and there well knew that defendant Garcia would cancel and or never book trips to Africa and the solicited funds would be used to pay for unrelated expenses.”
The indictment also alleges some investors were instructed to label transfers as church donations rather than investments.
Federal prosecutors say more than 50 victims in the United States and abroad collectively lost more than $3.2 million.
Garcia also faces an aggravated identity theft charge after prosecutors alleged he used another person's name and address without authorization on business formation documents filed with the Texas Secretary of State.
If convicted, Garcia faces up to 20 years in federal prison on each wire fraud-related charge.
The aggravated identity theft charge carries a mandatory two-year prison sentence that would generally be served consecutively.
Garcia was arrested May at DFW International Airport and was later released on bond following a preliminary hearing. Garcia is scheduled to stand trial in federal court Fort Worth on Oct. 13.
Emmanuel Rivas Valenzuela is KERA's breaking news reporter. Got a tip? Email Emmanuel at erivas@kera.org. KERA News is made possible through the generosity of our members.
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