Cupertino man convicted of embezzling over $7.5 million from church

SAN JOSE — A federal jury convicted a Cupertino man of embezzling more than $7.5 million from his church and a wealthy donor.

Jonathan Chang, 63, was found guilty last week on four federal counts of wire fraud and three charges of money laundering in a scheme to take money from a wealthy donor intended for the Home of Christ 4 Christian Church, according to federal prosecutors.

Chang faces up to 20 years in prison for each count, as well as fines of up to $250,000 for each violation and up to twice the amount of the laundered funds.

Chang, a church elder, raised money from the wealthy donor to buy a new church and move the congregation from San Jose to Saratoga, according to testimony in the four-week trial. Some of the money was also earmarked for missionary work. The donor gave a one-time, $2.25 million gift, a $3 million loan for the new church and $1.5 million in monthly donations. Chang funneled $6 million to his own organizations and accounts.

Between 2004 and 2016, Chang received more than $7.5 million from the donor and the Home of Christ 4 Christian Church, prosecutors said. Chang commonly used the money for personal purchases and expenses: several rental properties in the Bay Area, luxury vehicles, 15 timeshares, and to pay health insurance and athletic club fees.

Chang used the donor’s money to buy a Fremont home, then leased it back to one of the donor’s companies and collected rent on the property, according to prosecutors. Chang created several fraudulent entities to launder the money, forwarding funds to various accounts he controlled.

Chang and his wife, Grace Chang, 60, were charged in February 2016. The jury did not reach a verdict on charges against Grace Chang. It also failed to come to a verdict on two counts of conspiracy against Jonathan Chang.

In a statement, the church thanked prosecutors and said the theft was a painful experience. “God loves all the people of the world, but He will not tolerate sins,” the statement said. Any illicit gains, the statement said, “should be returned to the victims in this case.”

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