Oklahoma Churches tighten financial controls to prevent further embezzlement.

FROM NEWSOK.COM


The Rev. Tish Malloy's congregation at the First United Methodist Church of Moore was stunned when it was discovered a trusted employee embezzled $140,000 from church coffers for lavish vacations, a new car and a service to pick up dog poop.

It was revealed last week that police are investigating an alleged embezzlement of $109,454 at St. John the Baptist Catholic Church in Edmond. Malloy prayed for its congregation, knowing church members' heartache after having been through a similar controversy three years ago.


“It's a betrayal,” Malloy said. “It was very painful for us, but our congregation pulled together, and we learned and grew from the experience.”

Police reported the theft from the Edmond church, 424 S Littler, could have begun as far back as January 2004. A church employee is suspected of stealing the money, although no arrests have been made.

Church parishioners were informed July 8 after Mass.

Seeking Justice

The Rev. Ray Ackerman told his congregation that in the tradition of Catholicism, they would be merciful, but at the time same time will seek justice, a longtime church member told The Oklahoman on Tuesday.

The decision to seek prosecution against someone suspected of embezzling from a church is not easy, but absolutely necessary, said Oklahoma City attorney Michael Joseph.

Joseph represents several churches of different denominations and nonprofit organizations that have fallen victim to employees who have stolen from them.

He said that in many instances, the governing bodies are concerned that reporting the crimes could hurt donations or grant opportunities when made public. There also may be a reluctance to call police because most churches are run with relatively small staffs and employees forge close friendships with church members and co-workers.

“A lot of times when an embezzler is caught, they beg for forgiveness and offer to repay what they've stolen,” Joseph said. “It causes a lot of anxiety when people have to consider turning someone into police for embezzling, but that's exactly what has to be done.”

Joseph said making payback arrangements with an embezzler can keep prosecutors from filing charges if the person doesn't keep up with their end of the deal. A jury could be persuaded to believe a repayment plan was for a loan, and not to compensate the church for theft, he said.

Joseph said embezzlers generally have no means to immediately pay back what they've stolen, because the money was spent on non-tangible items like vacations, gambling and frivolous shopping sprees.


Financial Accountability

Good accounting practices are the best protection against embezzlement, although many churches, including the Catholic Church, are far too relaxed in protecting themselves from theft, said Thomas Groome, a senior professor of theology and ministry at Boston College in Massachusetts.

Groome helped establish at Boston College one of the few masters programs in the country with an emphasis on church finance. He is a former priest who spent 13 years in the priesthood, beginning in the early 1970s.

“I have a friend that knows the inside workings of the Catholic church that says its lack of financial accountability will be the next big scandal that hits the church,” Groome said. “It all stems from poor oversight.”

Part of the reluctance to institute stronger financial controls for any church is the genuine belief that people are morally incapable of stealing from a church. Temptation and desperation can coerce even the best to steal, he said.

Embezzlement isn't any more frequent in churches as it is in private businesses, Groome said. And like for businesses, there is insurance coverage available to churches to cover theft.

The Sullivan Insurance Agency in Ardmore has written thousands of policies for churches since it was founded in 1946, owner Lena Sullivan said. She said churches can purchase embezzlement coverage for as little as $500 a year.

“Most of the time, they start out by saying they don't need it, until I start showing them newspaper articles where it's happened to other churches,” Sullivan said.

Surviving Embezzlement

Malloy said even though it was a painful process, the First United Methodist Church of Moore survived the embezzlement and since has flourished.

Their former accountant, Sonya Jo Ensey, 41, of Oklahoma City, was convicted. To stay out of prison, she makes monthly restitution payments to return what she stole.

Ensey was contacted through her attorney, but declined to speak with The Oklahoman.

Malloy said she kept church members informed about the criminal case throughout the proceedings, and none of their large donors backed out of commitments they made to the church.

Even though their financial practices were historically good, more safeguards were instituted, she said.

“It's our hope that others learn from our mistakes and the way we handled it,” Malloy said.