Milwaukee Sacred Heart congregation, fired executive trade claims in lawsuits

From its headquarters in Franklin, the development office for the Priests of the Sacred Heart raises $20 million a year to support a monastery there and priests working around the world. Some of those donations allegedly did not make it to the charitable end for which they were intended.
According to a civil lawsuit pending in Milwaukee County Circuit Court, a former executive director of the organization's fund-raising arm has "misappropriated significant sums of money" from the congregation for personal expenses, and now a self-insurance fund that covers the Priests of the Sacred Heart's losses wants the money back.
"One of the things that saddens me is the people who give believe they're supporting a much higher mission," said Cynthia Mack, a lawyer representing the Priests of the Sacred Heart. "It's unfortunate he took advantage of them."
The former executive, Patrick Thompson, 48, of Greenfield, denies any wrongdoing and has countersued the organization that employed him, his parents and siblings for years, contending that it breached his employment contract when it fired him in 2008 and owes him nearly $4 million.
Lawyers for the insurance fund, which is based in Illinois, declined to comment.
Mack said most of the congregation's losses were covered by the insurance fund, and described them only as "substantial." Thompson's attorney, Frank Terschan, said a letter from the insurance company to his client prior to the lawsuit mentioned a figure of about $567,000. He declined any other comment about the case.
Court records show that Thompson had parlayed his long service for the Priests of the Sacred Heart, and friendship with a former priest who ran it, into a well-paid position. According to his counterclaim, Thompson had been promised a salary and benefits package worth $180,000 a year, plus 30 days of paid vacation a year and $20,000 a year to pay for his children's tuition. Thompson's father and mother both worked for the Priests of the Sacred Heart, and he started there in 1976. He became executive director of the Development Office and Congregation in 1993. From then until his dismissal, he received only positive evaluations, he contends in court records.
According to Thompson's counterclaim, in 2003 the Provincial Treasurer, Father Brian McCullough, offered him a contract through 2026, with the generous salary and benefits, which Thompson accepted.
McCullough is no longer associated with the Priests of the Sacred Heart and is no longer a priest, said Mary Gorski, director of communications for the congregation. She said that his departure was not related to the claims against Thompson, and that the decision to leave the priesthood was a result of his "own vocational discernment."
McCullough could not be reached.
Mack, the attorney for the congregation, said Thompson raised the claim of what amounts to a lifetime employment contract only after the insurer sued, and apparently based it on some letters to him from McCullough.
About 50 people work at the development office of Priests of the Sacred Heart, Gorski said. It uses sophisticated direct-mailing operations and other outreach, including a Web site, to solicit donations from around the country. It also encourages backers to make bequests, set up trusts or gift annuities and other tax-structured ways to donate.
The money supports Sacred Heart School of Theology, which has about 100 seminarians, and 140 students overall, according to its Web site, which lists the school as the largest Catholic seminary in North America focusing on preparing men older than 30 for the Catholic priesthood. It also teaches English to the religious from other countries.
Priests of the Sacred Heart also is developing a 180-unit apartment building in Franklin for active and retired priests, employees and non-priests older than 55. The first phase of the project is expected to open later this year.
While the congregation is considered a religious charitable organization to which contributions are tax deductible, the development office that Thompson ran is organized as a Wisconsin non-stock corporation.
Gorski, the communications director, said about 83 cents of every dollar raised goes to supported activities, with the balance paying for continued fund raising.
Thompson's alleged financial improprieties came to light after new management came to the province in 2007and implemented new procedures for the development office to share financial information, Mack said. She said Thompson gave incomplete or inadequate responses, which led to his termination.
The office used an outside auditor, but it failed to see the problems, Mack said. After Thompson left, the province hired a different auditor, which found greater problems.
Terschan, Thompson's attorney, would not comment on any of the other allegations against his client and said Thompson also would not comment.
In a pleading filed this month, Mack argues that Thompson's counterclaim should be dismissed. The next hearing in the case is set for June 23.