Former preacher Nicholas Rains of Canvas Church (now Vineyard Church) in Lenoir City has pleaded guilty to stealing over $250,000 from his congregation.

The case began when church members noticed Rains’ immoral behavior and misuse of funds, prompting leadership to ask him to step down. An internal review revealed significant fraud, leading the church to notify authorities in April 2023. The Tennessee Comptroller’s Office conducted a formal investigative audit, which showed that Rains had repeatedly used the church credit card and funds for personal expenses, including groceries, family vacations (such as a trip to Alaska), house payments, and expenditures for female companionship, despite being married with a family.

The Loudon County Grand Jury indicted him on theft charges. The congregation was divided in its response—some members, including relatives, favored forgiveness, while others demanded prosecution. Rains has since moved to another church in Roane County, where he continues to participate in ministry roles.

On Friday, May 29, he entered a guilty plea to Theft Over $250,000, a Class B felony. Under the agreement, he received an eight-year sentence: 120 days in Loudon County jail (to begin Sunday), followed by supervised probation. He must pay $100,000 in restitution to the church, plus court costs and fines. The church also placed a lien on his house, which is currently for sale, requiring repayment with interest within a year or upon sale.

The plea deal was a compromise, driven by the church’s divided opinions, the difficulty of itemizing mixed personal and church expenses in a trial, and the common lack of strong financial controls in small churches. Assistant District Attorney Bob Edwards and District Attorney General Russell Johnson worked with the Comptroller’s Office and defense attorney Brian Nichols to reach the resolution. The case serves as a cautionary tale about the limits of trust in church leadership and the importance of verification.