PHILADELPHIA -- Georgia preacher Abraham Kennard promised thousands of small and struggling churches a lot -- way more than he could ever deliver.

According to the Associated Press, on Nov. 4, the Securities and Exchange Commission filed a lawsuit accusing Kennard of traveling the U.S. and promising mostly small, black churches that if they gave him a one-time fee of $3,000, he'd return them a $500,000 grant from a little-known charity backed by wealthy Christian businessmen and athletes.

His pyramid scheme has left many members shaking their heads.

The SEC believes as many as 2,000 churches and religious groups nationwide bought into the scheme, with some investing the maximum of $18,000 allowed. Only a few got anything in return.

Kennard is an ex-convict who served time for armed robbery. Investigators estimate that in a year, his company, Network International Investment Corp., took in $9 million from pastors in 41 states.

"Any money that was paid out to churches was simply other churches' money," SEC attorney Lawrence Parish said.

No criminal charges have been filed. A federal judge has frozen Kennard's assets.

Like other ministers, the Rev. Michael Jones of Philadelphia said he invested $3,000 after seeing dozens of other pastors in Pennsylvania do so first. Many of those were leaders of large congregations with impeccable reputations, Jones said.

"This was the buzz of the town," said Jones. "When I looked at the caliber of the people who were investing money, people you knew were high-integrity people, I sort of figured it had to be legitimate.

"And when I would ask common-sense questions, the response I got was, ‘This is about faith. God is giving us a gift.' "

The SEC said Kennard lived luxuriously on the proceeds, touring the country in rented private jets and wining and dining ministers to at restaurants and expensive hotels. Kennard also paid himself a $400,000 salary, according to his attorney.

"The guy, he could preach," said the Rev. Joe Mallory of Philadelphia. "But he had a gold tooth, and where I came from, down South, the only people who had gold teeth were playboys and pimps."

Kennard's Atlanta attorney, Mark Scott, said, "I don't believe his intention was to defraud anyone. I think he designed this program without the advice of counsel, without the benefit of financial consultants, and what has resulted is this financial nightmare."

Kennard and investigators agree that only about $300,000 of the cash remains and that the company has few assets to repay investors.