Kreuper falsified monthly and annual reports to cover up her crime and asked school employees to alter and destroy financial records during an audit. I was wrong, and Im profoundly sorry for the pain and suffering Ive caused so many people., Despite her vow of poverty, nun stole more than $835,000 from a Catholic school, prosecutors said. Mary Margaret Kreuper, 80, of Los Angeles, pleaded guilty in July to federal wire fraud and money laundering charges. 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 this was going on, she was not nearly as old. 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. During the time period this was happening, she had no idea this was happening. (RELATED: Nuns Allegedly Stole Catholic School Funds For Years: Report). She is expected to report to prison by June, Byrne said, and will be released in 2023. It's very disturbing. She faces up to 40 years in federal prison, but is claiming mental illness. Rassbach will tell the Supreme Court that not everyone who works at a religious school or institution is exempt from these laws. Copyright 2008-2023 BroBible. Thanks for contacting us. 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On June 9, for example, Fox News reported that: A retired Los Angeles nun will plead guilty to embezzling $835,000 from the elementary school where she worked in order to cover her gambling habits and other personal expenses, officials said this week. At the sentencing hearing, those who spoke were split on their feelings toward the nun and what she had done. This article was published more than1 year ago. 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. 66 is still a fairly competent age. 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. 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. An old unused bank account was the giveaway. To know that she had been taking money from my parents and my peers parents the whole time I was there is extremely shocking, and it sways me away from the Catholic Church, Garunkstis said. Kreuper was principal at the school for 28 years. 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). At least I hope you do.. 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. In June 2021, Sister Mary Margaret Kreuper admitted to embezzling $835,000 from the Catholic school where she served as principal for 28 years. 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 . Sister Mary Margaret Kreuper A curated collection of links The Record What are records? The St. James Catholic Church school in Torrance, California, on February 7, 2022. The rich uncle was the parents of the St. James students.. Let us pray for our school families and for Sister Mary Margaret and Sister Lana, the letter added. Bank records show Sister Mary Margaret Kreuper and Sister Lana Chang had been embezzling funds from St. James Catholic School in Torrance for at least a decade, the Press-Telegram reported. Instead of sitting in the Supreme Court chamber, though, Biel, like the rest of us, will be at home listening. Maybe if she had used her poker face to see more success in Vegas, she wouldnt have been in this position to begin with. She spent the next 59 years of her life dedicated to the church, they said. The fraud was discovered after an internal investigation at the end of the same year. St.James Catholic School caught embezzling $500K for personal use, including gambling as church declines to press charges. 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. Also implicated in the scheme was Lana Chang, who worked as a teacher at St. James before becoming vice principal. G7 summit - Biden brings 1.2m Cadillac The Beast but will it fit down Cornwalls tiny country lanes. 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. She doesn't have any money. The two holy women were eventually caught out after a recent audit. It involves two fifth-grade teachers at Catholic schools in California. A federal appeals court ruled against the schools, which appealed to the U.S. Supreme Court. It's just that you have to look and see what kind of function are they doing.". She claimed that the salary differential between nuns and priests meant she was owed this money, which is inconsistent with the vow of poverty she took.. Her husband, Darryl Biel, remembers that day vividly. 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. 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". Trust shouldnt be broken like that., Others, such as Kevin Kearns, whose son had gone to the school, said the nun had put the students and parents above everything else., The church tells us to forgive those who have trespassed against us, Kearns said. His wife, he said, drove into their driveway "in tears bawling hysterically. 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. 5 Sister Mary Margaret Kreuper, 79, of Los Angeles, was charged with one count of wire fraud and one count of money laundering Credit: KCAL 9 5 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. Because the funds were to be restored, the archdiocese decided not to press criminal charges. Sister Mary Margaret Kreuper and Sister Lana Chang were seen as two of the strictest nuns at St James Catholic School in Torrance, California. Chief Justice John Roberts announced the opinion from the bench, noting that the teacher who brought the case was not a lay teacher. A spokesperson for the order confirmed for Snopes that, as of June 9, 2021, Kreuper was still a member of the Los Angeles congregation, but the restrictions against her remained in place, and she was no longer involved in any public ministry. The Rev. Pic: St James Catholic School. Kumar said the nuns instruction to the auditors sparked suspicion, and they reported the incident to Msgr. The principal allegedly withheld some of the checks and deposited them into the other account, endorsing the back with a stamp that read, St. One parent told the outlet of the situation: "It's crazy. She just enjoyed gambling, he said. 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". In the audio, as well as in a previous Web version, of this story, we incorrectly say the fourth-grade teacher in a 2012 case was ordained as a minister. Parents said the two nuns were big on moral. "Far from it. The second suit was brought by Kristen Biel against St. James School in Torrance. Kreuper did not recognize she had a gambling problem until she was accused of embezzling more than $835,000 from the school, Byrne said. "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. 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.". She must give up the right to control or benefit from personal property and commits herself to live interdependently within a community. Church officials said they did not wish to press charges against the sisters, who both expressed remorse. Earlier in June, the former principal of St. James School was charged with wire fraud and money laundering. His findings unraveled the entire scheme and, eventually, federal charges were levied against Sister Mary Margaret. Sister Mary Margaret Kreuper had taken a vow of poverty. "These teachers taught the Catholic faith to these kids more than the parish priest," putting them squarely within the so-called ministerial exception, he says. They say she also instructed employees at the school to alter and destroy financial records during a school audit, investigators found. 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. They have been removed from their residence, placed in a religious house under the supervision of community leadership, and their freedom of movement is confined.". 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. znscr.parentNode.insertBefore(zergnet, znscr); She, too, retired in 2018. 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. Kreuper, he said, quoting an expert, was addicted to gambling, adding that it "is not an excuse for what she did merely an explanation". Prosecutors had recommended a 24-month prison sentence, three years of . 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. (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 . Kreuper became principal at St. James Catholic School in 1990, a position she held for 28 years until her retirement in September 2018. Along with her sentence, she was ordered to pay $825,338 in restitution. We use cookies to better understand website visitors, for advertising, and to offer you a better experience. That was the first clue that unraveled a significant scheme. However, the church chose not to press charges against the two nuns. 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 . The two announced their retirement at the same time and were on their way out in 2018. She really didnt stay true to it at all, actually. The account was opened in 1997 but had not been used in years, until Sister Mary Margaret started diverting checks into the forgotten account. A Los Angeles nun recently pleaded guilty to embezzling more than $800,000. He argued that while the money she stole might have affected the schools funding, her actions didnt decrease the quality of education students received at St. James. ", "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. But somewhere along the line, you just ran completely off the road, and I think you understand that. For decades, lower courts have recognized an exception to the nation's employment laws for ministers. In total, across a period of 10 years, Kreuper siphoned $835,339 from the school's accounts. The sisters, described as best friends, both retired earlier this year. "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. The embezzlement helped to fuel her gambling habit. 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. Starting in 2008, Kreuper diverted school funds to pay for expenses that the order would not have approved, much less paid for, prosecutors say. 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.". Kreuper was 18 years old when she took vows of poverty, chastity and obedience, her lawyers told the Post. Each of the counts carries a maximum sentence of 40 years behind bars. 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. 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. Rather, he said, she is religiously trained and a commissioned minister of the church. Kreuper is due in court on 1 July and faces up to 40 years in federal prison. By Megan Carpentier. "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. Those reports were accurate, and we are issuing a rating of "True.". The 80-year-old nun pleaded for mercy after stealing $835,339 from an elementary Catholic school to fund her gambling addiction.. Officials made the discovery in June after performing a routine audit following Kreupers retirement. Shes very, very remorseful and very ashamed, he said. 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We do know that they had a pattern of going on trips, we do know they had a pattern of going to casinos, and the reality is, they used the account as their personal account, Marge Graf, an attorney representing St. James, told a group of parents at a meeting in 2018. Its an explanation.. 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. The Archdiocese appears to have now changed course-with ABC Newsreporting a criminal case may now be in the works following deepening investigations. All they needed to do was get through the school year. 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. 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. Well, Sister Mary Margaret didnt quite stay true to her vow. Her husband said that in her final days, the couple talked extensively about the case. 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. She was the principal and had been colluding with longtime teacher Sister Lana Chang on the operation, per the Daily Breeze. 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. The Torrancepair used the money for vacations and gambling at the casino while telling parents that the school was on a tight budget. One article quoted a church accountant as ball-parking the amount at $500,000. 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. Sister Mary Margaret Kreuper used tuition fees and donations to a California Catholic school to subsidize her casino expenses. In a statement to the Washinton Post her attorneys, Mark A. Byrne and Daniel V. Nixon, said she is very remorseful and sorry for any harm she has caused.. Kreuper also admitted to falsifying monthly and annual reports to the school administration in an effort to cover up the embezzlement. 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". 2023 Blaze Media LLC. At least, thats where they caught her. Advice for the relationships in your life and how to boost your own well-being. 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 turns out that at the time Kristen Biel learned she had breast cancer, Kreuper, the school principal who fired her, was embezzling large amounts of money to go on gambling sprees in Las Vegas. Sister Lana Chang, a vice principal who was initially implicated in the scheme, was not charged. A spokesperson with St. James did not immediately respond to a request for comment Tuesday. 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. Her embezzlement activities took place from about 2008-2018. Snopes and the Snopes.com logo are registered service marks of Snopes.com. Prosecutors say the nun also ordered school employees to alter and destroy financial records during the audit. The first teacher, Agnes Morrissey-Berru, claimed her employment contract was not renewed after 16 years service because of illegal age discrimination. 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. The school soon had a change of heart following pushback. 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". A recent audit toward the nun and what she had no idea this happening... After 16 years service because of illegal age discrimination laws for ministers sister mary margaret kreuper! 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