Former church treasurer free while awaiting trial

A former Lutheran church treasurer has been released on his own recognizance while he awaits trial in a scheme that authorities say defrauded his congregation of $1.75 million.

At a detention hearing last week, federal prosecutors argued that Gregory J. Olson was a flight risk, saying they thought he flew to Tokyo in July after he learned he was the target of an Internal Revenue Service investigation.

But on Tuesday, Olson's lawyers presented evidence that he was working in North Dakota at the time prosecutors said he went to Japan.

That was enough for U.S. Magistrate Judge George Foley Jr. to release Olson, who now lives in North Dakota, on his own recognizance. Prosecutors did not oppose his release.

Olson, 48, pleaded not guilty last week to one count of wire fraud and four counts of filing false tax returns in the church scheme. He faces a Dec. 3 trial before U.S. District Judge James Mahan.

His congregation, Calvary Lutheran Church, lost about two-thirds of its membership and had to give up its property under foreclosure proceedings in the aftermath of the scheme. The congregation also changed its name to Amazing Grace Lutheran Church

The indictment against Olson said the ex-treasurer carried out the scheme after persuading church members that money was needed for remodeling

From September 2006 to March 2008, Olson took out six mortgages on church property totaling $1.75 million, the indictment alleged. The money was wired to a bank account owned by his company, Ascent Holdings, which was doing business as Ascent Financial Corp.

Olson did not disclose to church officials that he owned the company, and he paid himself $442,500 from the loan proceeds, the indictment alleged.

He also is alleged to have solicited personal donations from church members.

Contact Jeff German at jgerman@reviewjournal.com or 702-380-8135.