DENVER -- Bishop Acen Phillips made his first appearance in court Wednesday morning in connection with an alleged scam involving life insurance policies.

Phillips walked into court along with his wife and a sizable group of supporters, including Alvertis Simmons.

7NEWS was first to report that the Colorado attorney general filed seven counts of theft and five counts of forgery against Phillips. The charges carry a maximum sentence of 81 years in prison and up to $5 million in fines.

When the attorney general filed charges in August, he did not arrest Phillips or require him to turn himself in. Phillips is accused of defrauding the AIG Insurance Company of more than $500,000.

Phillips did not comment going into court or on his way out. Inside the hearing, Phillips acknowledged he has read all the charges he faces.

In a somewhat surprising announcement, his attorney said the bishop is having trouble coming up with the necessary funding to pay for a private attorney.

Much of Wednesday's hearing was simply procedure. Phillips did not enter a plea. His next court appearance is Oct. 16, when Phillips is expected to inform the court about his legal counsel.

A 7NEWS Investigation uncovered a $100,000 life insurance policy on Shely Lowe, apparently purchased by Phillips, with $90,000 going to two of his churches.

Lowe was considered a person of interest in the Aarone Thompson homicide investigation but died in May 2006.

According to federal court documents filed in March, AIG claimed the head of the American Church United "falsified paperwork and then fraudulently claimed that non-members had been enrolled ACU members at the time of their death."

Phillips is the former head of the Mount Gilead Baptist Church in Denver and is currently head of New Birth Temple of Praise in central Denver