LENOIR CITY, TENNESSEE — Nicholas Rains pleaded guilty to theft of more than $250,000 from Canvas Church in Lenoir City, Tennessee, a Class B felony, and was sentenced in 2024 to 120 days in the Loudon County Jail and eight years of supervised probation. He was also ordered to pay $100,000 in restitution to the church, along with court fees and fines.

Rains used the church credit card for personal expenses, including groceries, a vacation to Alaska, and what a Tennessee Comptroller's Office audit described as “expenditures for female companionship.” Church leaders discovered the misuse during an internal audit and reported the findings to the District Attorney's office in August 2023. The DA’s office then requested an investigative audit from the Tennessee Comptroller’s Office to support criminal prosecution.

The case was presented to a Loudon County Grand Jury, which indicted Rains for theft over $250,000. Following discussions with church leaders, the District Attorney’s office offered Rains a plea deal. As part of the agreement, a lien was placed on Rains’ house, which will accrue interest and must be paid when the property is sold or within one year, whichever occurs first.

Rains was asked to step down as pastor of Canvas Church after congregation members became aware of his misconduct and misuse of funds. District Attorney General Russell Johnson said many Canvas Church members were forgiving toward Rains, while others expressed indignation and wanted him prosecuted.