A Bismarck pastor who once aspired to lead his city as mayor is now at the centre of a major federal fraud case involving millions of dollars in pandemic relief and Medicaid funds.
Isaac Osei Afoakwa, 55, leader of Grace Action Chapel International in Bismarck, has been indicted on 12 serious charges, including wire fraud, aggravated identity theft, tax fraud, and making false statements to a health care program.
Federal prosecutors allege that Afoakwa siphoned off more than $1.6 million in COVID-19 relief loans intended to support struggling small businesses. According to court documents, he secured funds from around 34 Paycheck Protection Program (PPP) loans and eight Economic Injury Disaster Loans, but instead of supporting businesses, the money was allegedly funnelled into his personal accounts.
The loans established under the CARES Act to cushion small businesses during the pandemic, were meant to keep employees on payroll and help companies stay afloat. However, prosecutors say Afoakwa used them to enrich himself, with some of the businesses he claimed either non-existent or inactive.
Beyond the loan schemes, Afoakwa is also accused of filing false tax returns in 2020 and 2021. In those years, he reported minimal income around $17,700 and $16,500 respectively when, in reality, he allegedly pocketed hundreds of thousands of dollars from loan proceeds. The underreporting allowed him to claim undeserved tax refunds, when he actually owed substantial taxes.
The indictment further reveals that Afoakwa’s Bismarck-based business, Bismarck Transportation Services, fraudulently billed North Dakota Medicaid nearly $100,000 for non-emergency medical transport services that were never provided. In some instances, he is alleged to have claimed trips for patients who were in jail at the time and reported using larger, more expensive vehicles than were actually used.
In addition to his church activities, Afoakwa previously ran for Bismarck mayor in 2018 but was unsuccessful. Despite the mounting charges, he appeared defiant in a Facebook livestream to his congregation the day after his arrest on June 10.
“At the end of it all, God will vindicate us,” he said, urging his followers not to panic and to keep praying.
Afoakwa was released after his arrest and is expected to face trial beginning November 4 in Bismarck. If convicted, he could face decades in prison.
His case forms part of what the U.S. Department of Justice has described as the largest health care fraud takedown in the nation’s history, targeting hundreds of individuals suspected of exploiting relief programs designed to support vulnerable communities during the COVID-19 pandemic.
As of press time, neither Afoakwa nor representatives of Grace Action Chapel International had responded to requests for comment.
