The scheme was uncovered during an audit after Kreuper retired in 2018. Her husband said that in her final days, the couple talked extensively about the case. Court documents show that she also oversaw the St. James Convent Account, a savings account that funded the living expenses of the nuns who worked at the school. The 79-year-old former nun pleaded guilty to federal charges for stealing more than $800,000 from St. James Catholic School earlier this month. The schools, "have never asserted that either of [the teachers] fell short in any religious duty or adherence to the faith," he says. In 2012, the Supreme Court sought to answer that question, agreeing unanimously that a fourth-grade teacher who was commissioned as a minister could not sue over her firing by a Lutheran school. All rights reserved. The 80-year-old nun also was ordered to pay a total of. James School, before tapping the funds for personal use. Maryland man, 52, sues bar over ban cause he was old Missouri daughter secretly donates kidney to ailing dad. By Colin Groundwater June 9, 2021 Two summers ago, Sean Flynn reported a wild story for GQ about two very. His wife, he said, drove into their driveway "in tears bawling hysterically. Sister Mary Margaret Kreuper, the retired principal of St. James Catholic School in California, has been sentenced to one year and a day in prison on charges of money laundering and federal wire. Many parents were outraged with the initial decision not to press charges, with some remarking that if the nuns were lay people, they would certainly be in jail according to the presstelegram. Kreuper was principal at the school for 28 years. But they asserted that the courts should dismiss the cases because the teachers were essentially ministers, and thus were not protected under the federal employment laws. The DOJ noted that Kreuper had diverted the school funds to pay for expenses that the order [of nuns] would not have approved. Among the expenses Kreuper accrued were those from casinos and credit card charges. We use cookies to better understand website visitors, for advertising, and to offer you a better experience. Yes, a Nun Has Admitted to Embezzling $835,000 from a Catholic School Sister Mary Margaret Kreuper has been charged with wire fraud and money laundering for her role in a scheme to defraud a. Nuns should realize that just by living their lives and living the way they do and treating people the way they do, they affect children for the rest of their lives, the judge said, according to the Los Angeles Times. She's obviously not employable.". Two nuns who formerly worked at St. James Catholic School in Torrance, California, confessed to embezzling at least $500,000 from the school so that they could gamble it away at Las Vegas casinos, the Archdiocese of Los Angeles said at a meeting with parents and alumni on Monday. At Monday's argument, Stanford law professor Jeff Fisher, who is representing the teachers, will tell the justices that by the terms of the teachers' contracts and the school handbooks, these teachers were hired to teach academic subjects. 2023 Blaze Media LLC. As soon as she was confronted, she accepted full responsibility for what she had done and she has cooperated completely with law enforcement and the archdiocese, the statement said, adding that she has been suffering from a mental illness that clouded her judgment. They dont want you to see this Big Tech does its best to limit what news you see. Chief Justice John Roberts announced the opinion from the bench, noting that the teacher who brought the case was not a lay teacher. Despite the ongoing thefts, financial statements revealed the church continuing to operate in the black as the two sisters clandestinely plowed through church funds. She is expected to report to prison by June, Byrne said, and will be released in 2023. Sister Mary Margaret Kreuper, who worked as the school principal for 28 years, and Sister Lana Chang, a teacher at the school for 20 years, reportedly bilked the funds over a period of at least a . In June 2021, Mary Margaret Kreuper, a Catholic nun in the Los Angeles congregation of the Sisters of St. Joseph of Carondelet, entered into a plea agreement with the U.S. District Attorney's Office for the Central District of California, whereby she committed to pleading guilty to one count of wire fraud and one count of money laundering, and admitted taking part in a 10-year scheme to defraud St. James' Catholic School, an elementary school in Torrance, California, where she had served as principal for 28 years, to the amount of $835,000. She betrayed the trust of people in the community, the parents, students, the archdiocese and the sisters. For years, St. James parents were told that the school was cash-strapped and unable to upgrade textbooks that were 20 years old, fund field trips or simply install an awning for the outdoor lunch area. "As soon as she was confronted she accepted full responsibility for what she had done and she has cooperated completely with law enforcement and the Archdiocese,the pair said in a joint statement. In total, across a period of 10 years, Kreuper siphoned $835,339 from the school's accounts. The archdiocese of Los Angeles said in statement that the community of faith at St James was shocked and saddened by these actions and expressed gratitude to local and federal law enforcement agencies for their work in the investigation of this matter. A NUN is set to plead guilty to embezzling more than $830,000 from the Catholic elementary school she ran to bankroll her gambling habit, prosecutors say. The tuition checks and funds sent to St. James Catholic School between 2008 and 2018 that were stolen by Kreuper equaled the tuition of 14 different students per year, prosecutors said. She doesn't have any money. ", "Just as teaching science out of a fifth-grade textbook doesn't make them scientists, teaching religion for 40 minutes a day out of a workbook doesn't make them ministers," he says. Sister Mary Margaret Kreuper, 79, was charged Tuesday with wire fraud and money laundering for ripping off St. James Catholic School for a period of 10 years ending in September 2018, according to . But. "Millions of people across the country who never thought or understood themselves to be leaders of the faith" would now "magically have no employment protections," he says. The nun took frequent gambling trips to Las Vegas and holidays to Lake Tahoe and other locations in southern California, according to Poonam Kumar, the assistant US attorney. Kreuper signed the plea agreement, which Snopes has obtained and which can be read in full here, on June 2, 2021. Similar articles were published by the Los Angeles Times, KTLA, and Unilad.co.uk. Parents said the two nuns were big on moral. The exception extends to religiously affiliated institutions when they fire employees who serve in a religious capacity akin to that of a minister. Michael Meyers, the pastor at St. James Church. Kreuper as the schools principal, handled all tuition payments, with the sister depositing checks into a separate account that she and Chang had access to. The vow leads a nun to imitate Jesus, who for our sake became poor, although he was rich. The two holy women were eventually caught out after a recent audit. She was so hurt that they could be doing this to her.". "I have sinned," Sister Mary told a US . In her plea agreement, Sister Mary Margaret confirmed that the stolen money was used for credit card charges and large gambling expenses incurred at casinos. the U.S. attorneys office said. Investigators described a system in which Kreuper handled all checks made out to the school for tuition and fees before handing them over to bookkeeping staff for processing. This was a manifestation of greed, Kumar said, adding that the nun had abused the trust of the community. Indeed, he observes, they would be exempt not just from anti-discrimination laws, but also laws that protect individuals from retaliation when they report misbehavior to authorities, and laws imposing wage and hour regulations. The judge settled on a prison sentence of one year and a day and also ordered Kreuper to pay back the money she had stolen from the school. However, the church chose not to press charges against the two nuns. You can be proud of that, he said. Kreuper admitted embezzling about $835,000 (616,000) in donations, tuition and fee money between 2008 and 2018. It was only after she vacated her position that school officials unearthed her fraudulent scheme. I have sinned, I have broken the law and I have no excuses, Kreuper told the judge during her hearing, according to the Los Angeles Times. In June 2021, Sister Mary Margaret Kreuper admitted to embezzling $835,000 from the Catholic school where she served as principal for 28 years. According to prosecutors, Kreuper admitted that she falsified monthly and annual reports to the school administration to cover up her fraudulent conduct and lulled St James School and the administration into believing that the schools finances were being properly accounted for and its financial assets properly safeguarded, which, in turn, allowed defendant Kreuper to maintain her access and control of the schools finances and accounts and, thus, continue operating the fraudulent scheme.. When the fraudulent behavior first came to light, the order was deeply disappointed and offered to repay the lost funds only believed to be $500,000 at the time. The schools denied that Morrissey-Berru and Biel were fired for discriminatory reasons. As principal of St. James Catholic School, she oversaw the money the school received to pay for tuition and fees as well as charitable donations. "Requiring a church to accept or retain an unwanted minister or punishing a church for failing to do so intrudes upon more than a mere employment decision," Roberts said. A now-retired nun has pleaded guilty to stealing more than $800,000 from the St. James Catholic School in Torrance, California, from 2008 to 2018, the last decade of her 28-year tenure as principal of the institution. The principal allegedly withheld some of the checks and deposited them into the other account, endorsing the back with a stamp that read, St. Police will still present the case to the Los Angeles County District Attorneys Office, NBC reported. })(); Adriana Kuch attackers identified on social media in planned attack, St Louis execution shooting of homeless man: arrest made, Karen calls cops on black men shovelling snow for free outsider her home, Idaho murder suspect had multiple photos of female victim on phone, Torrance Catholic school nuns steal $500K for gambling habit- church resists charges. Mary Margaret Kreuper, 80, of Los Angeles, was sentenced to a year in prison and ordered to pay $825,338 in restitution. var znscr = document.getElementsByTagName('script')[0]; It is "telling," in these cases, he says, that the "teachers did not even have to be Catholic to have these jobs.". Months after Kreuper admitted to stealing hundreds of thousands of dollars, the 80-year-old was sentenced on Monday to a year and a day in federal prison. "She doesn't have anywhere to go," he said. If Kreuper has no prior criminal history, under federal sentencing guidelines the sentencing range should be between 41 and 57 months (between around three-and-a-half and five years), though the court will have the final say in her punishment. Were those functions to be considered ministerial, Fisher says, the results would be dire. The St. James Catholic Church school in Torrance, California, on February 7, 2022. As principal of St. James Catholic School in Torrance, California, she certainly did but while also embezzling more than $835,000 in funds to support her secretive gambling habit. It involves two fifth-grade teachers at Catholic schools in California. The fraud was discovered after an internal investigation at the end of the same year. Sister Mary Margaret Kreuper, 80, was sentenced on Monday to 12 months and one day in federal prison by U.S. District Judge Otis D. Wright II and ordered to pay $825,338 in restitution to the St. James Catholic School in Torrance, California . She would endorse the checks with a stamp saying St. Since 2014, The Marshall Project has been curating some of the best criminal justice reporting from around the web. Jon Jones Reacts To Islam Makhachev Declaring Himself The Best Fighter In The World, Shavkat Rakhmonov Reacts To ESPN/UFC Commentator Laura Sanko Thirsting Over Him In Viral Video, Jon Jones First Shirtless Pic At Heavyweight Before UFC 285 Goes Viral, Ja Morants Lawyer, Agent Threaten Legal Recourse For Defamatory Report From The Washington Post, Another Glitch In The Matrix Has Occurred As A Bird Is Filmed Motionless In Mid-Air, Bengals Exec Sends Harsh Wake-Up Call To Teams Sniffing Around Tee Higgins. A now-retired nun has pleaded guilty to stealing more than $800,000 from the St. James Catholic School in Torrance, California, from 2008 to 2018, the last decade of her 28-year tenure as principal of the institution.Sister Kreuper who took a vow of poverty confessed to using the . Her husband, Darryl Biel, remembers that day vividly. My actions were in violation of my vows, my commandments, the law and, above all, the sacred trust that so many had placed in me. The two would skim money off of the top through separate school bank accounts and then head out to Vegas and put it into the casinos. Mary Margaret Kreuper of Los Angeles was sentenced to one year and a day in prison after pleading guilty in July 2021 to one count of wire fraud and one count of money laundering, according. Officials made the discovery in June after performing a routine audit following Kreupers retirement. A retired nun has admitted to embezzling $835,000 over 10 years from a Catholic school in California to fund her gambling habit, according to federal prosecutors. Five of the nine justices hearing Monday's case attended Catholic secondary schools, and several of them have sent their children to parochial schools as well. But as the archdiocese was completing its audit, it noticed something was off with the funding. The embezzlement helped to fuel her gambling habit. The money she stole was used to pay off credit card charges and "large gambling expenses incurred at casinos", the US attorney's office said. Local 10 Newsreported Sister Mary Margaret Kreuper and Sister Lana Chang of St.James Catholic School(both retiring earlier this year) using money from the schools funds to live a life of luxury over the last ten years. She admitted to taking a total of $835,000 in donations from the elementary school, and faces up to 40 years in federal prison. The nuns order says the woman are cooperating and intend to pay all of the money back in full. All they needed to do was get through the school year. Kumar said the nuns instruction to the auditors sparked suspicion, and they reported the incident to Msgr. In December of that year, fraud allegations emerged against her and another nun, Sister Lana Chang, who had taught at the school. As a Catholic nun, Sister Mary Margaret Kreuper had taken a vow of poverty. She is looking forward to getting on with life and will get treatment for her gambling addiction, he said. The first teacher, Agnes Morrissey-Berru, claimed her employment contract was not renewed after 16 years service because of illegal age discrimination. On. Dan Mac Guill is a former writer for Snopes. The rich uncle was the parents of the St. James students., The school monsignor has since sent out a letter in which the nuns asked that i convey to you the deep remorse they each feel for their actions and ask for your forgiveness and prayers.. A federal appeals court ruled against the schools, which appealed to the U.S. Supreme Court. The embezzlement helped to fuel her gambling habit. For more information about our use of cookies, our collection, use, and disclosure of personal information generally, and any rights you may have to access, delete, or opt out of the sale of your personal information, please view our Privacy Policy. znscr.parentNode.insertBefore(zergnet, znscr); (Photo by PATRICK T. FALLON/AFP via Getty Images). (deployads = window.deployads || []).push({}); (function() { His . We do know they had a pattern of going to casinos, and the reality is, they used the account as their personal account, an attorney told parents and alumni at Mondays meeting. Sister Mary Margaret Kreuper was sentenced to a year and a day in federal prison, months after she admitted to stealing hundreds of thousands of dollars from St. James Catholic School in Torrance . For decades, lower courts have recognized an exception to the nation's employment laws for ministers. According to prosecutors, Kreuper had stolen whats estimated to have been the tuition for 14 students at the K-8 school in funds that were intended to further the students education, not fund [Kreupers] lifestyle., When confronted, the defendant admitted to stealing the money, Kumar said. The Rev. While claiming to live financially destitute like Jesus Christ is probably blasphemous, using the old Im poor, but my uncle is rich line and getting away with it speaks to Sister Mary Margarets impressive poker face. Mark Byrne, Kreupers attorney, told The Post his client had accepted the judges one-year prison sentence, even if they were pushing for probation. The sisters later confessed to using the funds for themselves. Her embezzlement activities took place from about 2008-2018. On Monday night, the Archdiocese of Los Angeles told parents and alumni at a meeting that Sisters Mary Margaret Kreuper and Lana Chang, described as best friends, took around $500,000 from St . I have sinned, Ive broken the law and I have no excuses, Kreuper said at the sentencing over Zoom. (RELATED: Nuns Allegedly Stole Catholic School Funds For Years: Report). Image Via Scott Varley/Digital First Media/ Torrance Daily Breeze via Getty Images. Sister Mary Margaret Kreuper, 80, who took a vow of poverty, begged a judge to show her mercy and spare her prison, saying: "I have sinned, I've broken the law and I have no excuses." She called her crimes a "violation of my vows, my commandments, the law and, above all, the sacred trust that so many had placed in me". A Los Angeles nun recently pleaded guilty to embezzling more than $800,000. She spent the next 59 years of her life dedicated to the church, they said. His findings unraveled the entire scheme and, eventually, federal charges were levied against Sister Mary Margaret. Mary Margaret Kreuper, 80, of Los Angeles, pleaded guilty in July to federal wire fraud and money laundering charges. The Archdiocese appears to have now changed course-with ABC Newsreporting a criminal case may now be in the works following deepening investigations. Sister Mary Margaret Kreuper, 79,of Los Angeles, was charged with one count of wire fraud and one count of money laundering on Tuesday for defraudingSt. James Catholic Schoolover a period of 10 years. She is set to be arraigned in court on July 1. BroBible is the #1 place on the internet for the very best content from the worlds of sports, culture, gear, high tech, and more. Kreuper as the school's principal, handled all tuition payments, with the sister depositing checks into a separate . Also implicated in the scheme was Lana Chang, who worked as a teacher at St. James before becoming vice principal. (RNS) Recently Sister Mary Margaret Kreuper, a Catholic nun who stole $835,000 from a Catholic elementary school in Torrance, California, was sent to prison for a year and ordered to pay the . She was the principal and had been colluding with longtime teacher Sister Lana Chang on the operation, per the Daily Breeze. Mary Margaret Kreuper was so close to getting away with it. Ultimately, "they are not people we understand to be spiritual leaders of the church.". During the time period this was happening, she had no idea this was happening. Is A Hot Dog A Sandwich? One article quoted a church accountant as ball-parking the amount at $500,000. She was also entrusted with overseeing the St. James Covenant Account, a savings account that funded the living expenses of the nuns who worked at the school, the indictment against her states. Sister Mary Margaret Kreuper had taken a vow of poverty. Ultimately, he argues, the schools consider the teachers to be performing an important religious function, and therefore, they can be fired for any reason because they are not subject to the nation's fair employment laws. She must give up the right to control or benefit from personal property and commits herself to live interdependently within a community. Investigators determined the money went to accounts the school didnt know about, Kumar said. Of course, at 79, the likelihood that Sister Mary Margaret will see any jail time is relatively slim. The school soon had a change of heart following pushback. In June 2021, several local, national, and international news outlets reported that a nun in California had admitted, and was preparing to plead guilty to, embezzling $835,000 from the Catholic school she ran for three decades. When this was going on, she was not nearly as old. She then used some of the funds to pay for "large gambling expenses incurred at casinos and certain credit card charges.. The Greatest Food Debates Of All Time, Answered Pineapple On Pizza? Those reports were accurate, and we are issuing a rating of "True.". Kobe Bryant's widow awarded nearly $29m after police shared photos of helicopter crash, Doctors recommend end-of-life decision for Saving Private Ryan actor Tom Sizemore, Ramon Escobar: Serial murderer suspected of killing prison inmate. Kristen Biel would return to teaching elsewhere while fighting her case in court, but in June 2019, she died. "She's 80. The church body in the case commissions teachers as ministers, but does not ordain them. By that math, Sister Mary Margaret was only 66 when the behavior began. The sisters, described as best friends, both retired earlier this year. In the process, Kreuper falsified monthly and annual reports to the St. James administration to cover up her fraudulent conduct and lulled St. James School and the Administration into believing that the schools finances were being properly accounted for and its financial assets properly safeguarded, which, in turn, allowed defendant Kreuper to maintain her access and control of the schools finances and accounts and, thus, continue operating the fraudulent scheme, according to court documents. She claimed that she was fired after she told her superior, Sister Mary Margaret Kreuper, that she had been diagnosed with breast cancer. 2022 Blaze Media LLC. Sister Mary Margaret Kreuper used tuition fees and donations to a California Catholic school to subsidize her casino expenses. Around the same time, a St. James parent asked question at a school meeting about an old tuition check that had an endorsement on the back of check that did not line up with the schools primary account, the prosecutor said. When first confronted by the Archdiocese of Los Angeles, Sister Mary Margaret Kreuper blamed the gender pay gap and said she deserved a raise because "priests get paid better than nuns". Monday's case, however, does not involve trained and ordained ministers of the faith. This time the question is whether lay teachers at parochial schools are exempt from the nation's fair employment laws. The now-retired nun (I didnt know nuns could retire) admitted to stealing about $835,000 in donations, tuition and fees. News of the indiscretions led to the archdiocese and the church announcing they wouldnt file criminal charges against the nuns after apologizing for their actions. 66 is still a fairly competent age. Sister Mary Margaret Kreuper, 79, of Los Angeles, was charged with one count of wire fraud and one count of money laundering on Tuesday for defrauding St. James Catholic School over a period of 10 years. There is another, and rather rich, twist to one of the cases before the court Monday. To do was get through the school & # x27 ; s principal, handled tuition... Plea agreement, which Snopes has obtained and which can be read in.... In July to federal charges for stealing more than $ 800,000 from St. James Catholic school earlier this month reported! Following Kreupers retirement nuns were Big on moral ( function ( ) { his card charges said, that! To stealing about $ 835,000 in donations, tuition and fee money between 2008 and 2018 couple talked about... May now be in the community the amount at $ 500,000 they are not people we to! Unraveled the entire scheme and, eventually, federal charges for stealing more than 800,000! 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