Texas Pastor and Wife Indicted for Felonies and Sued for Selling Church Property Out from Under Congregation

Pastor Randy Free and his wife Michelle have been indicted on six first degree felonies and are enjoined from engaging in any financial transactions related to the property or assets of Cedar Cross Country Church in Alvarado, Texas. The indictment, issued on September 21, charges them with property theft exceeding $300,000, money laundering, and theft of property against a non-profit corporation. They also face second degree felony charges of money laundering between $150,000 and $300,000, and a third degree felony of tampering with or fabricating physical evidence.

The legal action began with a lawsuit filed by members of the church’s board of elders, Byron Rayburne and John Hagan, on July 20 in the 413th District Court in Johnson County, Texas. The injunction, issued on August 23, was granted in response to the lawsuit, which alleges that the Frees took control of the church’s assets by making themselves the president and registered agent of Cedar Cross Country Church. They then established a separate non-profit corporation, Team Heritage International, to transfer the church’s assets and sell its property.

According to the plaintiffs’ petition, the Frees sold the church property for between $1 million and $1.5 million to MYR Real Estate Holdings in July. The petition claims that approximately $500,000 of the proceeds was used to purchase a house for the Frees in nearby Godley. The Frees informed the congregation about the sale on July 11, citing concerns about disappointment if the sale had not gone through. However, church members were reportedly shocked by the lack of transparency regarding the use of the sale proceeds.

Byron Rayburne, one of the elders, confirmed with the mortgage company that the mortgage had been paid off and with the church’s bank that no funds had been deposited in the church’s account after the sale. Church members were also able to track a series of deposits and transfers related to the transaction, including a check made out to the church that was cashed at a different bank, First National Bank of Burleson. Later, over $1 million in funds were moved to Prosperity Bank in Granbury.

The case raises concerns about financial integrity and accountability within religious organizations. The legal proceedings highlight the potential for misconduct claims and institutional failures, particularly in the management of non-profit religious corporations. The situation underscores the importance of transparency and governance in ensuring public trust and the proper stewardship of church assets.

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