Second Baptist Pastor and Deacon Ordered to Pay $500K in Lawsuit Over Unauthorized Construction Contract and Financial Misconduct

Pastor Joseph Stone and Head Deacon Terry Miller of Second Baptist Church in Starkville were held legally accountable in a five-year lawsuit, resulting in a $500,000 judgment against them. The Oktibbeha County Circuit Court jury found them responsible for negotiating a 2013 contract with TCM Construction without board approval and for withholding church offerings from the finance committee. The contract, intended for a new sanctuary, was never completed, with only preliminary work done by the time the project stalled in 2015.

The lawsuit, which spanned over a decade, created a significant rift within the congregation. Bennie Hairston, chairman of the board of trustees, expressed relief after the verdict, stating that the burden of the dispute had been lifted. He also recounted being threatened for fulfilling his duty as a trustee, emphasizing his commitment to the church’s well-being.

The jury determined that Stone and Miller breached their fiduciary duty by acting against the church’s best interests. Stone altered the contract to require only a single trustee’s signature, bypassing the board’s authority. He also concealed the lack of a valid loan and directed deacons to hold church offerings instead of passing them to the finance committee. Miller assisted in these actions, including making payments to TCM’s owner, Donald Crowther, despite the project’s lack of progress.

TCM’s owner, Crowther, pleaded guilty to fraud for submitting false invoices and is set to be sentenced in January. The church paid over $454,000 to Crowther for work that was never completed. The jury also found Stone responsible for unjust enrichment due to his role in diverting church funds.

The case highlights the importance of transparency and accountability in institutional leadership. The financial mismanagement and breach of trust underscore the need for clear governance and ethical stewardship, especially in organizations entrusted with community resources. Micah 6:8 calls for justice, mercy, and humility in service, principles that should guide all who hold positions of responsibility.

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