The latest report about embezzlement of Catholic Church funds comes from Waterbury, Connecticut, where a parish pastor is now being investigated for the embezzlement of nearly $1 billion of parish funds. The parishioners say they are in shock. But their shock could have been avoided if a functional, independent parish finance council, as required by canon law, had been in place at Sacred Heart–Sagrado Corazon. Dioceses across the United States are mandated by canon law to implement such finance councils. Information about Canon Law 537 can be easily found on many parish websites as well the website of the United States Council of Catholic Bishops. But the Archdiocese of Hartford provides no such information and Sacred Heart–Sagrado Corazon Parish also failed to submit annual reports. The Archdiocese of Hartford has itself not published a public annual report since the 1980s.
Voice of the Faithful has long advocated for transparent appointment and reporting from parish finance councils, including in the Hartford archdiocese. “We met with then-Archbishop Daniel Cronin in 2002-2003 and identified the lack of finance councils as a problem,” says Jayne O’Donnell from West Hartford. “We even offered to help him establish finance councils and pastoral councils in the parishes but he refused. Now the parishioners in Waterbury face major problems. It could have all been avoided. Parishes in the diocese—and in others as well—should be surveyed and then monitored by the diocese to ensure they are in compliance with canon law and providing independent reports to their parishioners.”
Sunday, June 27, 2010
Saturday, June 26, 2010
Former McLaughlin, South Dakota School business manager gets 2-1/2 years for embezzlement
A Sioux Falls man has been sentenced to 2 -1/2 years in federal prison for stealing more than $275,000 from the McLaughlin School District.
Jamie Lee Beisch, 34, reached a plea agreement in February in which he pleaded guilty to one count of theft from a public organization receiving federal funds. He was sentenced Monday in Aberdeen by U.S. District Court Judge Charles B. Kornmann.
Beisch, a former business manager for the McLaughlin School District, admitted stealing $277,368.51 in school funds between May 2007 and February 2009.
Beisch was also ordered to pay $284,771 in restitution to the school district, a figure that includes the embezzled funds and the school’s audit and travel expenses.
Also, a special assessment of $100 was imposed, and Beisch was ordered to serve a 3-year term of supervised release after he gets out of prison. There is no parole in the federal system.
Beisch must surrender to the U.S. Marshal or the designated Bureau of Prisons facility no later than July 7.
Jamie Lee Beisch, 34, reached a plea agreement in February in which he pleaded guilty to one count of theft from a public organization receiving federal funds. He was sentenced Monday in Aberdeen by U.S. District Court Judge Charles B. Kornmann.
Beisch, a former business manager for the McLaughlin School District, admitted stealing $277,368.51 in school funds between May 2007 and February 2009.
Beisch was also ordered to pay $284,771 in restitution to the school district, a figure that includes the embezzled funds and the school’s audit and travel expenses.
Also, a special assessment of $100 was imposed, and Beisch was ordered to serve a 3-year term of supervised release after he gets out of prison. There is no parole in the federal system.
Beisch must surrender to the U.S. Marshal or the designated Bureau of Prisons facility no later than July 7.
Friday, June 25, 2010
Joplin, Missouri woman accused of embezzling from church
The former director of a southwest Missouri day camp has been charged with embezzling church funds. Newton County authorities allege that 51-year-old Deborah L. Wills, of Joplin, embezzled more than $12,000 from Christ's Community United Methodist Church in Joplin between January 2007 and March of this year.
The Joplin Globe reports that a financial manager for the church discovered this year that $12,285 that had been posted in the church's accounting program had not been deposited in the church's bank account.
Wills was charged May 21. Her bond appearance is set for July 19.
The Joplin Globe reports that a financial manager for the church discovered this year that $12,285 that had been posted in the church's accounting program had not been deposited in the church's bank account.
Wills was charged May 21. Her bond appearance is set for July 19.
Wednesday, June 23, 2010
Cops: Bookkeeper stole 48K from church in Rhode Island
A North Providence man is facing serious charges after he allegedly embezzled tens of thousands of dollars from a local church.
Police arrested Edward Kincaid, 38, of North Providence Monday on three counts of felony embezzlement. Authorities said while serving as a bookkeeper at the Assembly of God Church on Lexington Avenue, he stole $48,000.
The church's pastor tells Eyewitness News that he is shocked and saddened by the news. Kincaid had worked at the church for 5 years, according to church officials.
Major Paul Martellini said he expects that additional charges will be filed. Kincaid faced a judge on Monday. He has been released on $10,000 personal recognizance.
Police are continuing to investigate.
Police arrested Edward Kincaid, 38, of North Providence Monday on three counts of felony embezzlement. Authorities said while serving as a bookkeeper at the Assembly of God Church on Lexington Avenue, he stole $48,000.
The church's pastor tells Eyewitness News that he is shocked and saddened by the news. Kincaid had worked at the church for 5 years, according to church officials.
Major Paul Martellini said he expects that additional charges will be filed. Kincaid faced a judge on Monday. He has been released on $10,000 personal recognizance.
Police are continuing to investigate.
Monday, June 21, 2010
Waterbury, Connecticut Priest Accused Of Taking $1 Million From Parish
A well-known Roman Catholic priest in Waterbury is accused of taking about $1 million from the Sacred Heart/Sagredo Corazon parish for his personal use over a seven-year period, depleting parish finances and sparking a criminal investigation.
Rev. Kevin J. Gray, 64, was placed on medical leave by Hartford Archbishop Henry J. Mansell on April 15 and has not been heard from since, said Rev. John P. Gatzak, director of communications for the Hartford Archdiocese. "We don't know where he is at this point,'' Gatzak said..
Many parishioners learned of the alleged theft for the first time at Saturday night Mass, and the collective reaction was anger, disbelief and sadness. Officials from the archdiocese plan to return to Sacred Heart today to discuss the matter with congregants after Sunday morning services.
"We take seriously the trust relationship we hold with our parish families,'' Gatzak said. "The erosion of trust is of greater concern than even the financial impact. Of course it is a huge sum of money, but the betrayal of trust is something we are very concerned about.''
Father Gray was a popular priest in Waterbury, having served in the city for 26 years, first at St. Margaret's and St. Cecilia's churches before arriving at Sacred Heart/Sagredo Corazon. "He was loved and respected by many,'' Gatzak said.
Gatzak would not say what Gray might have done with the money, though they believe he was acting alone. The priest had told people in the community he was gravely ill, Gatzak said.
"In recent years all of the archdiocese family, the parishioners of Sacred Heart/Sagredo Corazon, have been concerned about the health problems that Father Gray had reported he was experiencing …They were all very understanding and supportive in the midst of this apparent life-threatening illness … It is not certain that he has a life-threatening illness.''
Waterbury police could not be reached for comment Saturday night. But the archdiocese said it referred the matter to police on May 21 after it uncovered unauthorized payments of church funds during a routine review.
The archdiocese said it decided to go public with the matter this weekend because it was worried rumors would begin to develop. "We decided it was in the best interest of the parish family itself. They deserve to know the truth,'' Gatzak said. "We wanted to wait for the final results of the police investigation but felt it was it was best to speak with the parish now.''
The alleged theft began in January 2003, Gatzak said, but it only came to light during a recent review. The money was taken from parish savings accounts as well as funds earmarked for payment of debts, including insurance payments and the cathedraticum, an annual assessment paid by parishes to the archdiocese, he said.
The church requires each parish to have a parish financial council to work with the pastor on fiscal matters, but Sacred Heart/Sagredo Corazon did not have such a panel, Gatzak said. Pastors are also required to issue annual financial reports to the archdiocese, but Gray did not comply the archdiocese spokesman said. Both of those things helped trigger the financial review, which is done on a rotating basis at parishes throughout the archdiocese.
In 2009, the Connecticut legislature considered a bill that would have given greater oversight of parish finances to lay people within the church. Catholic leaders vigorously fought the measure, which was pulled before a public hearing was held.
Such a bill would have made no difference in this case, Gatzak said. "This was discovered not by the state, not by the police and not by parishioners,'' he said. "It was discovered by the archdiocese itself because of the controls it has in place. The archdiocese its certainly taking its fiduciary responsibilities very seriously.''
Still, Gatzak said the archdiocese will review its procedures to determine "how we can better improve what we do,'' he said.
In the meantime, the archdiocese will help Sacred Heart/Sagredo Corazon heal. It intends to help fund neglected repairs to the church building as well as working to rebuild parishioners faith.
"There are a lot of victims of this whole thing,'' Gatzak said. "We need to be an understanding and compassionate community of faith and let the police complete their report and seek justice but we can certainly pray for all of those involved, including Father Gray himself."
Rev. Kevin J. Gray, 64, was placed on medical leave by Hartford Archbishop Henry J. Mansell on April 15 and has not been heard from since, said Rev. John P. Gatzak, director of communications for the Hartford Archdiocese. "We don't know where he is at this point,'' Gatzak said..
Many parishioners learned of the alleged theft for the first time at Saturday night Mass, and the collective reaction was anger, disbelief and sadness. Officials from the archdiocese plan to return to Sacred Heart today to discuss the matter with congregants after Sunday morning services.
"We take seriously the trust relationship we hold with our parish families,'' Gatzak said. "The erosion of trust is of greater concern than even the financial impact. Of course it is a huge sum of money, but the betrayal of trust is something we are very concerned about.''
Father Gray was a popular priest in Waterbury, having served in the city for 26 years, first at St. Margaret's and St. Cecilia's churches before arriving at Sacred Heart/Sagredo Corazon. "He was loved and respected by many,'' Gatzak said.
Gatzak would not say what Gray might have done with the money, though they believe he was acting alone. The priest had told people in the community he was gravely ill, Gatzak said.
"In recent years all of the archdiocese family, the parishioners of Sacred Heart/Sagredo Corazon, have been concerned about the health problems that Father Gray had reported he was experiencing …They were all very understanding and supportive in the midst of this apparent life-threatening illness … It is not certain that he has a life-threatening illness.''
Waterbury police could not be reached for comment Saturday night. But the archdiocese said it referred the matter to police on May 21 after it uncovered unauthorized payments of church funds during a routine review.
The archdiocese said it decided to go public with the matter this weekend because it was worried rumors would begin to develop. "We decided it was in the best interest of the parish family itself. They deserve to know the truth,'' Gatzak said. "We wanted to wait for the final results of the police investigation but felt it was it was best to speak with the parish now.''
The alleged theft began in January 2003, Gatzak said, but it only came to light during a recent review. The money was taken from parish savings accounts as well as funds earmarked for payment of debts, including insurance payments and the cathedraticum, an annual assessment paid by parishes to the archdiocese, he said.
The church requires each parish to have a parish financial council to work with the pastor on fiscal matters, but Sacred Heart/Sagredo Corazon did not have such a panel, Gatzak said. Pastors are also required to issue annual financial reports to the archdiocese, but Gray did not comply the archdiocese spokesman said. Both of those things helped trigger the financial review, which is done on a rotating basis at parishes throughout the archdiocese.
In 2009, the Connecticut legislature considered a bill that would have given greater oversight of parish finances to lay people within the church. Catholic leaders vigorously fought the measure, which was pulled before a public hearing was held.
Such a bill would have made no difference in this case, Gatzak said. "This was discovered not by the state, not by the police and not by parishioners,'' he said. "It was discovered by the archdiocese itself because of the controls it has in place. The archdiocese its certainly taking its fiduciary responsibilities very seriously.''
Still, Gatzak said the archdiocese will review its procedures to determine "how we can better improve what we do,'' he said.
In the meantime, the archdiocese will help Sacred Heart/Sagredo Corazon heal. It intends to help fund neglected repairs to the church building as well as working to rebuild parishioners faith.
"There are a lot of victims of this whole thing,'' Gatzak said. "We need to be an understanding and compassionate community of faith and let the police complete their report and seek justice but we can certainly pray for all of those involved, including Father Gray himself."
Sunday, June 20, 2010
Florida State University Embezzlement scandal leads to management upheaval
Innovation Park is currently undergoing major management changes, after it was revealed that former bookkeeper and office manager Shanna Lewis had embezzled money from the park.
Authority Board Treasurer Bob Rackleff, newly appointed this past February, who is also chairman of the Leon County Board of Commissioners, attested that Lewis may have embezzled as much as half a million dollars in the last two years.
The park has an annual budget of $1.1 million, Rackleff said. Rackleff, like many, is at a loss to explain how the issue went undetected for so long.
“That’s the $64,000 question,” Rackleff said. “The only thing I can understand is everybody was just asleep at the switch […] In a word, it was complacency.”
Lewis developed a complex system for embezzling money. She deposited checks in her bank account at Florida Commerce Credit Union, which then sent the check to Wachovia—Innovation Park’s bank. Wachovia scanned the check and sent a bank statement with the scanned images.
“She would open up the bank statement and alter the images of the checks to be made out to various venders,” Rackleff said. “So you’d look at that and say, oh, here’s a $4,600 check to R&R Services, which had actually been a $4,600 check to Shanna Lewis.”
The only authority Lewis had to report to was the park’s Executive Director, Linda Nicholsen, who hired Lewis in November of 2001 without conducting a background check. Doing so would have revealed that, for the first four months Lewis was employed at Innovation Park, she was serving a six-month sentence for embezzling $180,000 from Herrell Roofing Company.
Authority board member Bill Hebrock, who represents the private sector on the board, said supervision over Lewis was absent, to the extent that “Ms. Nicholsen allowed the bookkeeper to take public financial records to her home, and Ms. Nicholsen did not maintain her own access and supervisory control over the bookkeeper’s in-office computer and financial records.”
Both board members had called for Nicholsen, who has been with the park since 1997, to step down from her position as executive director before she announced plans to retire in September, according to the Tallahassee Democrat. Nicholsen could not be reached for comment on this story.
On Lewis’ 2008 annual employee evaluation, found in public records, Nicholsen graded Lewis’ level of reliability and trustworthiness as “excellent,” writing, “Shanna keeps busy and is often pulled in many directions, but seldom needs supervision.”
Rackleff said that, because of the lack of leadership, Innovation Park has been performing far below potential. He called the park more of a “real estate operation” than a “research park operation,” and said the board has higher ambitions for Innovation Park.
“We have two factories out there, which are not research activities,” Rackleff said. “We’ve got some state offices out there that just barely count as research functions. Certainly, FSU and FAMU have written off Innovation Park.”
He said that the universities involved have had a diminishing interest in the park because of a perceived lack of vision for the park’s future.
It’s basically, ‘Let’s collect the rent and keep the grass mowed,’” Rackleff said.
Though he acknowledges that there are fascinating, important projects going on in the park, highlighting the National High Magnetic Field Laboratory, he expressed regret that these projects have not been developed more fully.
“There should have been dozens of spinoffs from that; spinoff businesses and laboratories that have not materialized yet,” Rackleff said. “And that really gets back to the leadership of the Innovation Park administration.”
Hebrock said that an “Inter-local Agreement” has been approved by the Leon County Commission and by the Innovation Park Board on Tuesday, June 1 “to have the very capable and professional financial, administrative and legal staff of Leon County to temporarily handle and restore to accuracy of Innovation Park’s financial records, administrative procedures, personnel procedures and legal concerns.”
This step was intended to reduce the park’s administrative expenses, according to Rackleff.
This is a temporary move until Sept. 30, at which point the board expects to have an executive director and more ideas on a long-term strategy. A search committee is currently looking for an executive director with, according to Rackleff, an understanding of scientific research and university research-related projects.
Another step the board has taken to create a system of checks and balances is to appoint the treasurer as the only person who can open bank statements.
Rackleff also said that he had talked with President Ammons of Florida A&M University and several senior members of Florida State University to assure them that the park will be going in a new direction.
“We are determined to have a stronger partnership with them, as well as TCC, so we can all benefit from fully realizing the goals of this research park,” Rackleff said.
Authority Board Treasurer Bob Rackleff, newly appointed this past February, who is also chairman of the Leon County Board of Commissioners, attested that Lewis may have embezzled as much as half a million dollars in the last two years.
The park has an annual budget of $1.1 million, Rackleff said. Rackleff, like many, is at a loss to explain how the issue went undetected for so long.
“That’s the $64,000 question,” Rackleff said. “The only thing I can understand is everybody was just asleep at the switch […] In a word, it was complacency.”
Lewis developed a complex system for embezzling money. She deposited checks in her bank account at Florida Commerce Credit Union, which then sent the check to Wachovia—Innovation Park’s bank. Wachovia scanned the check and sent a bank statement with the scanned images.
“She would open up the bank statement and alter the images of the checks to be made out to various venders,” Rackleff said. “So you’d look at that and say, oh, here’s a $4,600 check to R&R Services, which had actually been a $4,600 check to Shanna Lewis.”
The only authority Lewis had to report to was the park’s Executive Director, Linda Nicholsen, who hired Lewis in November of 2001 without conducting a background check. Doing so would have revealed that, for the first four months Lewis was employed at Innovation Park, she was serving a six-month sentence for embezzling $180,000 from Herrell Roofing Company.
Authority board member Bill Hebrock, who represents the private sector on the board, said supervision over Lewis was absent, to the extent that “Ms. Nicholsen allowed the bookkeeper to take public financial records to her home, and Ms. Nicholsen did not maintain her own access and supervisory control over the bookkeeper’s in-office computer and financial records.”
Both board members had called for Nicholsen, who has been with the park since 1997, to step down from her position as executive director before she announced plans to retire in September, according to the Tallahassee Democrat. Nicholsen could not be reached for comment on this story.
On Lewis’ 2008 annual employee evaluation, found in public records, Nicholsen graded Lewis’ level of reliability and trustworthiness as “excellent,” writing, “Shanna keeps busy and is often pulled in many directions, but seldom needs supervision.”
Rackleff said that, because of the lack of leadership, Innovation Park has been performing far below potential. He called the park more of a “real estate operation” than a “research park operation,” and said the board has higher ambitions for Innovation Park.
“We have two factories out there, which are not research activities,” Rackleff said. “We’ve got some state offices out there that just barely count as research functions. Certainly, FSU and FAMU have written off Innovation Park.”
He said that the universities involved have had a diminishing interest in the park because of a perceived lack of vision for the park’s future.
It’s basically, ‘Let’s collect the rent and keep the grass mowed,’” Rackleff said.
Though he acknowledges that there are fascinating, important projects going on in the park, highlighting the National High Magnetic Field Laboratory, he expressed regret that these projects have not been developed more fully.
“There should have been dozens of spinoffs from that; spinoff businesses and laboratories that have not materialized yet,” Rackleff said. “And that really gets back to the leadership of the Innovation Park administration.”
Hebrock said that an “Inter-local Agreement” has been approved by the Leon County Commission and by the Innovation Park Board on Tuesday, June 1 “to have the very capable and professional financial, administrative and legal staff of Leon County to temporarily handle and restore to accuracy of Innovation Park’s financial records, administrative procedures, personnel procedures and legal concerns.”
This step was intended to reduce the park’s administrative expenses, according to Rackleff.
This is a temporary move until Sept. 30, at which point the board expects to have an executive director and more ideas on a long-term strategy. A search committee is currently looking for an executive director with, according to Rackleff, an understanding of scientific research and university research-related projects.
Another step the board has taken to create a system of checks and balances is to appoint the treasurer as the only person who can open bank statements.
Rackleff also said that he had talked with President Ammons of Florida A&M University and several senior members of Florida State University to assure them that the park will be going in a new direction.
“We are determined to have a stronger partnership with them, as well as TCC, so we can all benefit from fully realizing the goals of this research park,” Rackleff said.
Friday, June 18, 2010
3 accused of embezzlement from parishes in Boston
Three people who counted collection money at two local Catholic churches who are charged with stealing from parish collections are currently awaiting their respective pre-trial conferences. Marjory O’Day, 58, of Braintree, and John Inferrere, 62, of Wayland, are scheduled for pre-trial conferences at Framingham District Court in late July, according to Maryanne Donnell, a clerk supervisor at the Framingham court. The two were arrested on June 7 by the Wayland Police Department for stealing from collections at St. Zepherin Parish in Wayland. They are charged with larceny and breaking and entering a depository.
Both are employees at the parish. O’Day is listed in the 2010 Boston Catholic Directory as the parish’s pastoral associate.
Although evidence at St. Zepherin’s indicates that O’Day and Inferrere were stealing from the same source, authorities believe the thefts were unrelated and the two were unaware of each other’s actions.
A similar situation recently occurred at a Tyngsboro parish.
Donna Rood, 47, of Tyngsboro, a former employee of St. Mary Magdalen Parish there, is scheduled for a pre-trial conference on June 30 at Middlesex Superior Court. She was recently arraigned June 11 on charges that she stole over $100,000 in cash from the church over several years.
“The parish and the archdiocese have been cooperating with local law enforcement throughout the investigation,” said Terry Donilon, a spokesman for the archdiocese. “The archdiocese, with its insurers, is continuing its review at the parish level to determine with more specificity the final amount that is suspected to have been stolen as well as recovery of collection funds.”
Theft allegations against Rood stem from May 2009. Bank records obtained by authorities revealed substantial deposits of cash income between 2005 and 2009 made just days after Masses.
“As sad and difficult as this matter has been for our parish, we pray for the former employee who is at the center of this investigation and facing serious legal consequences,” Donilon’s statement said.
Both are employees at the parish. O’Day is listed in the 2010 Boston Catholic Directory as the parish’s pastoral associate.
Although evidence at St. Zepherin’s indicates that O’Day and Inferrere were stealing from the same source, authorities believe the thefts were unrelated and the two were unaware of each other’s actions.
A similar situation recently occurred at a Tyngsboro parish.
Donna Rood, 47, of Tyngsboro, a former employee of St. Mary Magdalen Parish there, is scheduled for a pre-trial conference on June 30 at Middlesex Superior Court. She was recently arraigned June 11 on charges that she stole over $100,000 in cash from the church over several years.
“The parish and the archdiocese have been cooperating with local law enforcement throughout the investigation,” said Terry Donilon, a spokesman for the archdiocese. “The archdiocese, with its insurers, is continuing its review at the parish level to determine with more specificity the final amount that is suspected to have been stolen as well as recovery of collection funds.”
Theft allegations against Rood stem from May 2009. Bank records obtained by authorities revealed substantial deposits of cash income between 2005 and 2009 made just days after Masses.
“As sad and difficult as this matter has been for our parish, we pray for the former employee who is at the center of this investigation and facing serious legal consequences,” Donilon’s statement said.
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