ORLANDO, Fla. – A longtime convicted con man is back in federal custody following a News 6 investigation into a questionable church and legal firm he was running while on probation.
U.S. magistrate judge Thomas B. Smith ordered Michael Nelson to remain incarcerated at the Seminole County jail while the court determines whether he violated the terms of his supervised release.
If the judge later finds that Nelson violated his probation, he could be sent back to federal prison for at least two more years, court records suggest.
Last month, a News 6 investigation revealed Nelson was acting as the senior pastor of Global LGBT Life Church, an online ministry in which Nelson streamed nightly prayer services on YouTube and other video websites.
Nelson acknowledged he did not tell his probation officer about the church or his efforts to solicit tax-deductible donations.
Shortly before the church’s website appeared online in December 2016, Nelson served as the “chief litigation liaison and compliance officer” for Marsha Ward & Team Ombudsman, a Winter Park business described in advertisements as a “law firm”, News 6 revealed.
Nelson has spent more than 15 of the past 17 years in federal prison for bank fraud, mail fraud, wire fraud, computer fraud and aggravated identity theft, records show.
During a detention hearing Monday in a federal courtroom, Nelson’s probation officer testified that his office was unaware of Nelson’s church until News 6 began inquiring about it.
“We received an email from a Channel 6 reporter,” Julio Dominguez, a senior probation officer, told the judge. “I met with Mr. Nelson in January and there was no mention of the (church) website.”
Even though Nelson told his probation officer that he had raised no money for his ministry, Nelson could not explain why the church’s website and GoFundMe page claimed the church had collected more than $293,000, Dominguez said.
“He said there was a gentleman in South Africa who set up that website,” the probation officer testified.
Although the U.S. Office of Probation still has questions about Nelson’s church, Dominguez expressed greater concern about Nelson’s work at the legal firm, saying that Nelson has provided several untruthful statements about his involvement with the company.
“(Nelson) said he does not take payments (from clients),” Dominguez testified. “We recently discovered, based on bank records, he deposited funds into his personal accounts."
“The money was going directly to (Nelson), not a company bank account?” Assistant U.S. Attorney Kara Wick asked.
“Yes,” Dominguez replied.
Under the terms of Nelson’s probation, he is prohibited from holding a position of “fiduciary capacity,” court records show.
In addition, Nelson allegedly deposited a $4,000 “bonus payment” from the firm into his bank account without notifying his probation officer.
“This is important because he owes restitution,” Dominguez said.
Judges have ordered Nelson to reimburse his victims more than $1.5 million following fraud convictions in Florida, Illinois and California.
Nelson has never attended law school or passed a state bar exam, court records indicate. However, several former clients claim Nelson portrayed himself as a lawyer.
“He told me he was an attorney at Team Ombudsman,” Ella Reid said.
Reid hired Nelson to provide legal and business assistance to her small janitorial and construction cleaning company, she said.
Besides paying thousands of dollars for the firm’s services, Reid claims Nelson collected a nearly $10,000 credit card payment from one of her customers but never gave the money to Reid.
“He took advantage of me,” Reid said. “He’s a con artist. He’s conniving.”
During Nelson’s detention hearing, the probation officer made reference to another client who claims to have paid Nelson more than $50,000 thinking Nelson was a lawyer. The client’s son is incarcerated at the same Texas prison where Nelson was housed until early last year.
“They said they have not received any services from Mr. Nelson,” Dominguez told the judge.
The probation officer did not explain how he first learned about the so-called law firm, which was operating out of a rented office building in Winter Park.
However, in late October 2016, as Dominguez was attempting to interview a employee at the firm who handled payroll, the office was abruptly shut down and vacated.
“The property manager forwarded videos showing Nelson (and another employee) removing equipment and documents (over the weekend),” Dominguez said.
Even though the U.S. Office of Probation had questions about Nelson’s involvement with the firm in October, it is unclear why it did not seek to revoke Nelson’s probation until nearly five months later.
"It is the practice of the probation office not to comment on the supervision adjustment of individuals on federal supervision," Chief Probation Officer Joseph C. Collins said. "I'm sorry I can't provide additional information."
Reid believes News 6’s investigation into Nelson prompted authorities to look closer into his activities while on probation.
“News 6 stepped up, stepped in, and took care of this and brought Michael Nelson and all that he’s done up front for everybody to know about it,” Reid said.