Scamming church brings prison time

A phony land deal that cost an Omaha church $290,000 will mean prison time for a former church official.

Mark A. Mehner, 48, who lives in the Elkhorn area, pleaded guilty to federal wire fraud in connection with the defrauding of Zion Lutheran Church, 14205 Ida St., U.S. Attorney Joe Stecher said Tuesday. Mehner was set to go on trial in federal court on Monday.

Mehner, a former church president, approached the church's planning commission in 2004 about a land deal. He said he had been contacted by an anonymous member of the congregation who was willing to sell land to the church -- land valued at between $1.2 million and $2 million -- for only $250,000.

He told church leaders that the church then would be able to resell the land at fair market value for a large donation.

Instead, Mehner secured a loan for $250,075 from the Bank of Bennington on Oct. 27, 2004, for the purpose of buying the land. The money was delivered to Mehner in the form of a cashier's check.

The money didn't go toward a land purchase, however. A civil court case against Mehner revealed he had transferred the church's money to his business accounts and used it for his son's Creighton University tuition, Victoria's Secret purchases and several ATM withdrawals from casino locations. There was no anonymous donor.

Mehner’s attorney, Stu Dornan, said, "This agreement was reached in an effort to allow Mr. Mehner to move on. The resolution in this matter was in his best interest."

Mehner also had been charged with three other counts of mortgage fraud and check-kiting unrelated to the church case. Stecher said those charges were dismissed as part of his agreement.

Mehner will be sentenced in September to three years in prison as part of his plea, according to the U.S. Attorney's Office.

Mehner was ordered to repay the church $291,515.74 plus interest and legal fees as part of the civil suit. The church has yet to see any of that money, the church's pastor said Tuesday.

"The church has moved on," said the Rev. Thomas Schmitt, pastor of Zion Lutheran. "The wounds have healed over, and we are looking forward to brighter days to come. We'll leave it in the hands of the state and federal government." Zion has about 800 members.

Mehner still is facing state charges of theft by deception over $1,500 and perjury. He is set to go to trial on those charges in September. The federal charges were filed after the state filed charges.