The Archdiocese appears to have now changed course-with ABC Newsreporting a criminal case may now be in the works following deepening investigations. Those reports were accurate, and we are issuing a rating of "True.". LOS ANGELES (CBSLA) Mary Margaret Kreuper, a now-retired nun who was the principal of St. James Catholic School in Torrance, has agreed to plead guilty to fraud and money laundering charges. 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. This large chunk of stolen money came as the St. James Catholic School was operating under tight budgets with small concerns that the finances could not continue to keep the door open. According to the outlet, "Kreuper acknowledged diverting money to pay for personal expenses that included credit card charges and 'large gambling expenses incurred at casinos,' the U.S. attorney's office said.". 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. The now-retired nun (I didnt know nuns could retire) admitted to stealing about $835,000 in donations, tuition and fees. 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. His wife, he said, drove into their driveway "in tears bawling hysterically. Sister Lana Chang, a vice principal who was initially implicated in the scheme, was not charged. This article was published more than1 year ago. Along with her sentence, she was ordered to pay $825,338 in restitution. As principal, Kreuper had been in charge of the school's credit union account, where she was meant to deposit cash and checks from tuition, fees and donations. Sister Mary Margaret Kreuper had taken a vow of poverty. During the time period this was happening, she had no idea this was happening. Now, nearly three years later, she faces up to 40 years in prison and will appear in the Federal District Court in Los Angeles on July 1. Thanks for contacting us. US District Court Judge Otis Wright acknowledged his own anguish in deciding a punishment to fit the crime, saying "I haven't slept well in God knows how long" as he rejected prosecutors' call for a two-year sentence. It wasnt until the house of cards came crashing down that she realized what she had done and started to go therapy, where she realized this addiction was a contributing factor. Starting in 2008, Kreuper diverted school funds to pay for expenses that the order would not have approved, much less paid for, prosecutors say. All rights reserved. Kreuper, who pleaded guilty last summer to one count of wire fraud and one count of money laundering, was also ordered by U.S. District Judge Otis D. Wright II to pay more than $825,000 in restitution. Parents and alumni of St. James told KTTV-TV in late 2018 that they hoped the school followed through with pursuing criminal complaints against Kreuper and Chang. 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. Apparently, the Vegas trips were common knowledge, but the nuns explained that the gambling excursions were gifts from a rich uncle. Maybe if she had used her poker face to see more success in Vegas, she wouldnt have been in this position to begin with. We use cookies to better understand website visitors, for advertising, and to offer you a better experience. Church officials said they did not wish to press charges against the sisters, who both expressed remorse. James School, before tapping the funds for personal use. Mary Margaret Kreuper was so close to getting away with it. Kreuper, who had taken a vow of poverty as a nun, worked as a principal at St. James Catholic School in Torrance for 28 years and allegedly embezzled the funds for 10 years until her retirement in 2018. Kreuper, he said, quoting an expert, was addicted to gambling, adding that it "is not an excuse for what she did merely an explanation". Police will still present the case to the Los Angeles County District Attorneys Office, NBC reported. The Torrance Police Department, the FBI and IRS Criminal Investigation conducted the investigation into the allegations against Kreuper. By that math, Sister Mary Margaret was only 66 when the behavior began. znscr.parentNode.insertBefore(zergnet, znscr); Mr Kumar said that jealousy played a part, calling the episode "really an abuse of position of trust". When staff members finally found the check, they realized that it was not deposited in a St. James account, but a different bank account. The school soon had a change of heart following pushback. During his sentencing, Wright, a 2007 appointee under President George W. Bush, praised Kreuper for her tenure as one heck of a teacher at the school. When this was going on, she was not nearly as old. They say she also instructed employees at the school to alter and destroy financial records during a school audit, investigators found. 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. There is another, and rather rich, twist to one of the cases before the court Monday. Mary Margaret Kreuper (Image source: KTTV-TV video screenshot). The nuns order says the woman are cooperating and intend to pay all of the money back in full. (Photo by PATRICK T. FALLON/AFP via Getty Images). By Colin Groundwater June 9, 2021 Two summers ago, Sean Flynn reported a wild story for GQ about two very. She just enjoyed gambling, he said. 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 exception extends to religiously affiliated institutions when they fire employees who serve in a religious capacity akin to that of a minister. Its an explanation.. St.James Catholic School caught embezzling $500K for personal use, including gambling as church declines to press charges. "You don't want the government deciding who teaches religion we don't do that in this country that's why we have an establishment clause," says Rassbach. Of course, at 79, the likelihood that Sister Mary Margaret will see any jail time is relatively slim. He said he could not bring himself to judge Kreuper solely on "the worst thing that she's done in her life", the LA Times said. You can be proud of that, he said. Kumar said the nuns instruction to the auditors sparked suspicion, and they reported the incident to Msgr. Mark Byrne, Kreupers attorney, told The Post his client had accepted the judges one-year prison sentence, even if they were pushing for probation. She faces up to 40 years in federal prison, but is claiming mental illness. In doing so, she agreed to plead guilty to: The money laundering charge relates to an episode in 2017, in which Kreuper improperly deposited checks from parents of pupils at the school into a convent bank account, rather than the school's bank account, then later used the convent account to write a $6,000 check to another unnamed person who subsequently cashed the check and gave Kreuper $6,000 in cash "so she could gamble in Nevada.". Kreuper stole the funds over the course of ten years, ending in 2018. "Far from it. She, too, retired in 2018. 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. 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 . It's just that you have to look and see what kind of function are they doing.". She must give up the right to control or benefit from personal property and commits herself to live interdependently within a community. Sister Mary Margaret became a nun when she turned 18 in 1960 and took a vow of poverty. 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. 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 doesn't have anywhere to go," he said. She is set to be arraigned in court on July 1. Sister Mary Margaret and Sister Lana have expressed to me and asked that I convey to you, the deep remorse they each feel for their actions and ask for your forgiveness and prayers, Meyers wrote in a letter to parents on Nov. 28. Sister Mary Margaret became a nun when she turned 18 in 1960 and took a vow of poverty. 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. Sister Mary Margaret Kreuper, who was principal of St. James Catholic School in Torrance, California, used the school funds to pay for personal expenses, including gambling trips, according to the release. 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. A Los Angeles nun recently pleaded guilty to embezzling more than $800,000. 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 auditor found that tuition checks, fees and donations were being deposited into a bank account not used by the school. Kreuper was 18 years old when she took vows of poverty, chastity and obedience, her lawyers told the Post. Margaret Mary Kreuper and Sister Lana Chang were accused of embezzling tuition, fees, and donations made in favor of St. James Catholic School to fund their gambling trips (Sisters of St. Joseph of Carondelet) Kreuper is also accused of directing St. James School employees to alter and destroy financial records during a school audit. Ultimately, "they are not people we understand to be spiritual leaders of the church.". Sister Kreuper who took a vow of poverty confessed to using the embezzled funds to pay for personal expenses, including her gambling habit. This time the question is whether lay teachers at parochial schools are exempt from the nation's fair employment laws. I wanted them to see me," he says "and I just pray that the justices see the right way.". Sister Mary Margarets lawyers said that she is very remorseful, and has been suffering from a mental illness that clouded her judgement and caused her to do something that she otherwise would not have done.. But the court's eventual decision could reach beyond teachers, affecting the lives of millions of other employees who work for religiously affiliated institutions. The Greatest Food Debates Of All Time, Answered Pineapple On Pizza? 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. Sister Mary Margaret Kreuper, 79, a former principal at St James Catholic School in Torrance, California, used tuition fees and donations to subsidize casino gambling expenses and credit card. The schools denied that Morrissey-Berru and Biel were fired for discriminatory reasons. Kreuper has agreed to plead guilty to the charges in a deal with prosecutors, the US Attorney's Office of California said in a statement. The 80-year-old nun pleaded for mercy after stealing $835,339 from an elementary Catholic school to fund her gambling addiction.. She's obviously not employable.". But Fisher counters that function can't be the only criterion because many employers at religiously affiliated institutions sincerely believe that all of their employees perform important ministerial functions, from nurses who care for the sick, to summer camp counselors for troubled teenagers, and athletic coaches who mold the character of their charges and often lead them in prayer. "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. Advice for the relationships in your life and how to boost your own well-being. But as the archdiocese was completing its audit, it noticed something was off with the funding. All they needed to do was get through the school year. 66 is still a fairly competent age. zergnet.type = 'text/javascript'; zergnet.async = true; His findings unraveled the entire scheme and, eventually, federal charges were levied against Sister Mary Margaret. As outlined in her plea agreement, beginning in 2008, Kreuper began depositing tuition checks and donations into the school's account and then diverted the money into the covenant account. Prosecutors say the nun also ordered school employees to alter and destroy financial records during the audit. We do know that they had a pattern of going on trips. Prosecutors had recommended a 24-month prison sentence, three years of . The sisters later confessed to using the funds for themselves. Poonam Kumar, the assistant U.S. attorney for the Central District of California who prosecuted the case, told The Washington Post that Kreuper had diverted checks and cash from St. James parents into a long-overlooked church account to pay for large gambling expenses incurred at casinos and certain credit-card charges. The actions were done before the money could be accounted for, displaying repetitive and deceptive behavior, over and over again, the prosecutor said. 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. Your membership is the foundation of our sustainability and resilience. 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. But how do we define who is a minister and who is not? 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 is expected to report to prison by June, Byrne said, and will be released in 2023. 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". But this week, prosecutors said Sister Mary Margaret, 79, had agreed to plead guilty to stealing more than. ", "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. 15 Episodes of Seinfeld That Teach Everything You Need To Know About Life. I wanted to see them. Officials pointed out that Kreuper had taken a vow of poverty as a nun. 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 . An 80-year-old nun who gambled away more than $835,000 in school funds was sentenced to twelve months and a day in federal prison Monday, according to a press release from the United States Department of Justice (DOJ). The embezzlement helped to fuel her gambling habit. A Los Angeles nun jailed for stealing more than $800,000 to fund a gambling habit has admitted "I have sinned". It is "telling," in these cases, he says, that the "teachers did not even have to be Catholic to have these jobs.". She also controlled two savings accounts, one for the school and one for the nuns living expenses. One parent told the outlet of the situation: "It's crazy. Kreuper, 79, was charged Tuesday with one count of wire fraud and one count of money laundering, and in a plea agreement pleaded guilty to both charges, the Associated Press reported. She was so hurt that they could be doing this to her.". (deployads = window.deployads || []).push({}); (function() { 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. Mary Kreuper: Nun who stole $835,000 to fund gambling habit admits 'I have sinned', Sister Mary Kreuper embezzled more than 600,000 from the school where she worked. His . That was the first clue that unraveled a significant scheme. Since 2014, The Marshall Project has been curating some of the best criminal justice reporting from around the web. 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 . In June 2021, Sister Mary Margaret Kreuper admitted to embezzling $835,000 from the Catholic school where she served as principal for 28 years. 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. But she appreciates the outpouring of support shes received from people who have decided that rather to judge her on these actions toward the end of her career and life, theyve taken her whole life into consideration.. At the heart of this dispute is the First Amendment ban on government establishment of religion and the separation of church and state. Kreuper, who took vows of poverty at age 18 and spent 59 years in the religious order, said in her plea agreement that she had begun diverting money from the schools tuition and donation account to a savings account that funded the living expenses of the nuns who worked at the school and then used some of the money herself. In these records you will find the most recent and the most authoritative articles on the topics, people and events that are shaping the . Claiming mental illness at her age is a play for probation or the ability to serve her sentence at home. If these teachers are exempt, he adds, then millions of employees are automatically exempt from laws enacted by Congress to protect workers, simply because they perform some duty their employer considers religious. American sister stole money from accounts she controlled as a headteacher and used it to pay off credit card charges and "large gambling expenses incurred at casinos". She wanted more than she had.. Similar articles were published by the Los Angeles Times, KTLA, and Unilad.co.uk. 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, Do Not Sell or Share My Personal Information. 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. Mary Margaret Kreuper, 80, of Los Angeles, was sentenced to a year in prison and ordered to pay $825,338 in restitution. 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. 2022 Blaze Media LLC. By signing up to the Blaze News newsletter you agree to receive electronic communications from Blaze Media that may sometimes include advertisements or sponsored content. 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. 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. Prosecutors said that she had also instructed school employees to alter and destroy financial records. These nuns took a vow of poverty and said, Oh no, weve got a rich uncle, parent Jack Alexander said. The fraud was discovered after an internal investigation at the end of the same year. They added that "later in her life, she has been suffering from a mental illness that clouded her judgment and caused her to do something that she otherwise would not have done.. 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. 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. I promised her I would see this through," he says. But somewhere along the line, you just ran completely off the road, and I think you understand that. Sister Mary is not full of grace. 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. Maryland man, 52, sues bar over ban cause he was old Missouri daughter secretly donates kidney to ailing dad. Kreuper also admitted to falsifying monthly and annual reports to the school administration in an effort to cover up the embezzlement. Her husband, Darryl Biel, remembers that day vividly. The rich uncle was the parents of the St. James students.. 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". Michael Meyers, the pastor at St. James Church. She betrayed the trust of people in the community, the parents, students, the archdiocese and the sisters. He had planned to be in Washington for Monday's argument. She was the principal and had been colluding with longtime teacher Sister Lana Chang on the operation, per the Daily Breeze. At the time, the Sisters of St. Joseph of Carondelet imposed restrictions on the two women, writing in a news release that: "The two Sisters are removed from all public ministry. Well, Sister Mary Margaret didnt quite stay true to her vow. The schools, "have never asserted that either of [the teachers] fell short in any religious duty or adherence to the faith," he says. I don't drink coffee, I wake up jacked. 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. Her husband, Darryl Biel, remembers that day vividly. (RELATED: Nuns Allegedly Stole Catholic School Funds For Years: Report). Sister Mary Margaret Kreuper had taken a vow of poverty. 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. This is because, as part of the plea deal, the prosecutors have agreed to recommend to the court an "offense level" of 25 for Kreuper's crimes, and will further advise the court to reduce that to 23, or even 22. To do was get through the school and one for the school soon had pattern! 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