LONDON, Ky. — A southeastern Kentucky pastor pleaded guilty Thursday to making false statements in a federal bankruptcy case after prosecutors said he used a $200,000 COVID-19 disaster loan to buy himself a mobile home, then tried to wipe out the debt while hiding more than $100,000 in remaining funds.
Ray Dean Jr., a Barbourville-area pastor, waived indictment and admitted to a single federal felony count of false declaration in bankruptcy, according to court records. Judge Robert E. Wier accepted the plea during a November 13 hearing in U.S. District Court in London.
Prosecutors said Dean applied for an Economic Injury Disaster Loan — known as an EIDL — on April 13, 2021, claiming the money was needed as working capital for his small business during the pandemic. The Small Business Administration approved the application for the full $200,000, and Dean agreed in writing that the funds would be used only for legitimate business expenses.
Instead, according to his signed plea agreement, Dean moved the money into his church’s bank account, where he was an authorized user, and spent $92,000 of it on a 2021 Tru Grand mobile home for his personal use.
More than three years later, on June 20, 2024, Dean filed for Chapter 7 bankruptcy, publicly listing the $200,000 disaster loan as his only debt. Under penalty of perjury, he reported having just $105 in bank accounts and denied owning any real estate or similar property.
Both statements were false, prosecutors said. At the time he filed his bankruptcy schedules, Dean’s church account still held more than $100,000 in unused EIDL funds, and he had not disclosed the mobile home purchased with federal relief money. Investigators said he made the omissions “knowingly and fraudulently” to discharge the loan while keeping the assets for himself.
Dean, represented by London attorney Christy Love, agreed to pay restitution totaling $200,000 plus interest to the SBA. He also acknowledged he used the money in violation of the CARES Act restrictions and concealed material information from the bankruptcy court.
The charge — making a false declaration in a bankruptcy case — carries up to five years in prison and a $250,000 fine. Dean was released on bond and is scheduled to be sentenced March 6, 2026.