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 embezzlement helped to fuel her gambling habit. A spokesperson with St. James did not immediately respond to a request for comment Tuesday. Instead, the school's principal, Sister Mary Margaret Kreuper, 79, was stealing the money and using it to bankroll her gambling habit, federal prosecutors said, violating her vow of poverty. I, for one, absolutely love this move. 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. These nuns took a vow of poverty and said, Oh no, weve got a rich uncle, parent Jack Alexander said. Of course, at 79, the likelihood that Sister Mary Margaret will see any jail time is relatively slim. 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 . The Archdiocese appears to have now changed course-with ABC Newsreporting a criminal case may now be in the works following deepening investigations. There is another, and rather rich, twist to one of the cases before the court Monday. Sister Kreuper who took a vow of poverty confessed to using the embezzled funds to pay for personal expenses, including 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. Cyclist falls to her death after drawbridge opens while shes on it, Trump tells Joe Rogan to stop apologizing for Spotify controversies, Frozen out of GoFundMe, Canadian protest convoy raises millions on Christian sit. She also controlled two savings accounts, one for the school and one for the nuns living expenses. (Photo by PATRICK T. FALLON/AFP via Getty Images). One parent told the outlet of the situation: "It's crazy. 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. 2023 Blaze Media LLC. 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". "I wanted to face them. 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. 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 payments, the authorities said. Claiming mental illness at her age is a play for probation or the ability to serve her sentence at home. For the second time in as many weeks, the U.S. Supreme Court is tackling a major religion case. The Greatest Food Debates Of All Time, Answered Pineapple On Pizza? Kreuper became principal at St. James Catholic School in 1990, a position she held for 28 years until her retirement in September 2018. It involves two fifth-grade teachers at Catholic schools in California. Ultimately, "they are not people we understand to be spiritual leaders of the church.". 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.". 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. By Megan Carpentier. 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. They dont want you to see this Big Tech does its best to limit what news you see. Kreuper admitted embezzling about $835,000 (616,000) in donations, tuition and fee money between 2008 and 2018. Starting in 2008, Kreuper diverted school funds to pay for expenses that the order would not have approved, much less paid for, prosecutors say. But Fisher notes that the schools in these cases do not claim any religious reason for firing the teachers. The Rev. 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. 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. Each of the counts carries a maximum sentence of 40 years behind bars. 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. 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. An old unused bank account was the giveaway. "The Gambling Nuns" saga is unlikely to come up at the Supreme Court, but it certainly is on Darryl Biel's mind. The embezzlement helped to fuel her gambling habit. 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. For decades, lower courts have recognized an exception to the nation's employment laws for ministers. The school soon had a change of heart following pushback. Since 2014, The Marshall Project has been curating some of the best criminal justice reporting from around the web. Make sure you see our stories daily directly to your inbox. That was the first clue that unraveled a significant scheme. They and their Order pray that you have not lost trust or faith in the educators and administrators of the school. 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.. Sister Mary Margaret Kreuper, who was principal of St. James Catholic School in Torrance, California, used the school funds to . 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. James School, before tapping the funds for personal use. Wright acknowledged in court that while he struggled to judge Kreuper, a decorated principal, on the worst thing that shes done in her life, the impact nuns have on young people in leading by example is crucial and the nuns actions gambled away that guiding principle. She was the principal and had been colluding with longtime teacher Sister Lana Chang on the operation, per the Daily Breeze. G7 summit - Biden brings 1.2m Cadillac The Beast but will it fit down Cornwalls tiny country lanes. Meyers reported it to the Archdiocese of Los Angeles, who hired their own auditor. The nuns order says the woman are cooperating and intend to pay all of the money back in full. 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. 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. Prosecutors had recommended a 24-month prison sentence, three years of . I promised her I would see this through," he says. This was a manifestation of greed, Kumar said, adding that the nun had abused the trust of the community. Michael Meyers, the pastor at St. James Church. All they needed to do was get through the school year. Sister Mary Margaret Kreuper and Sister Lana Chang were seen as two of the strictest nuns at St James Catholic School in Torrance, California. 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. But as the archdiocese was completing its audit, it noticed something was off with the funding. But. Let us pray for our school families and for Sister Mary Margaret and Sister Lana, the letter added. 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.. We do know that they had a pattern of going on trips. The fraud was discovered after an internal investigation at the end of the same year. 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. She really didnt stay true to it at all, actually. "She doesn't have anywhere to go," he said. Get the news that matters most delivered directly to your inbox. (Shutterstock) LOS ANGELES, CA The retired principal of a Catholic . Kreuper belongs to the order of the Sisters of St. Joseph of Carondelet. Sister Mary Margaret Kreuper had taken a vow of poverty. At the sentencing hearing, those who spoke were split on their feelings toward the nun and what she had done. Mary Margaret Kreuper, 80, of Los Angeles, pleaded guilty in July to federal wire fraud and money laundering charges. 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. However, around the same time, a family at the school asked for an old check they had written to St. James. On. The Torrance Police Department, the FBI and IRS Criminal Investigation conducted the investigation into the allegations against Kreuper. 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". Sister Mary Margaret Kreuper A curated collection of links The Record What are records? Parents said the two nuns were big on moral. 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 . 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. James Convent, not St. The purpose is to protect leaders of the faith, and their religions, from interference by the government. We use cookies to better understand website visitors, for advertising, and to offer you a better experience. "I have sinned," Sister Mary told a 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. When she announced she was retiring in September 2018, the archdiocese conducted a financial review for the incoming principal. In a statement to The Washington Post, Kreupers lawyers said she is very remorseful and sorry for any harm she has caused. Your membership is the foundation of our sustainability and resilience. Also implicated in the scheme was Lana Chang, who worked as a teacher at St. James before becoming vice principal. 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. 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 spent the next 59 years of her life dedicated to the church, they said. Those reports were accurate, and we are issuing a rating of "True.". 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.". "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. 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. 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 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". 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. Its an explanation.. She claimed that she was fired after she told her superior, Sister Mary Margaret Kreuper, that she had been diagnosed with breast cancer. 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. var znscr = document.getElementsByTagName('script')[0]; 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. znscr.parentNode.insertBefore(zergnet, znscr); Although, formally speaking, Kreuper could face a punishment of up to 40 years in prison, it's unlikely she will receive such a long sentence. I wanted them to see me," he says "and I just pray that the justices see the right way.". Investigators determined the money went to accounts the school didnt know about, Kumar said. When Sister Mary Margaret Kreuper was 18 years old, she vowed to dedicate her life to the education of children and helping those in need. She became principal at St. James Catholic School, about 20 miles outside downtown Los Angeles, in 1990. But when it came to the vow of poverty, the Southern California nun struggled to maintain her promise to the Catholic Church because of a gambling addiction that was out of control for a decade. At the heart of this dispute is the First Amendment ban on government establishment of religion and the separation of church and state. Well, Sister Mary Margaret didnt quite stay true to her vow. Mary Margaret Kreuper was so close to getting away with it. Police will still present the case to the Los Angeles County District Attorneys Office, NBC reported. 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. Mary Margaret Kreuper was so close to getting away with it. 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 Mr Kumar said that jealousy played a part, calling the episode "really an abuse of position of trust". 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. Nun who stole $835K from school to fund gambling habit is going to prison: I have sinned, Carolyn Hax: Boyfriends visits leave single mom with no time for herself, Miss Manners: What to do when a fellow diner was rude to server. 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. Sister Mary Margaret Kreuper, 79, was charged with one count of wire fraud and one count of money laundering after she admitted to investigators that she embezzled hundreds of thousands of. 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.. 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. The principal allegedly withheld some of the checks and deposited them into the other account, endorsing the back with a stamp that read, St. 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. 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 . Because the funds were to be restored, the archdiocese decided not to press criminal charges. As a Catholic nun, Sister Mary Margaret Kreuper had taken a vow of poverty. Kreuper is due in court on 1 July and faces up to 40 years in federal prison. Recap: Court Weighs Whether Religious Schools Can Fire Lay Workers, Listen Live: Supreme Court Arguments Schedule, Top 5 Moments From The Supreme Court's 1st Week Of Livestreaming Arguments, Fervor Vs Compromise At Supreme Court Birth Control Arguments, Supreme Court Arguments A Tech Success, But Format Strangles Usual Give-And-Take, Supreme Court Considers Anti-Prostitution Pledge In HIV/AIDS Funding Case. 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 first teacher, Agnes Morrissey-Berru, claimed her employment contract was not renewed after 16 years service because of illegal age discrimination. She admitted to taking a total of $835,000 in donations from the elementary school, and faces up to 40 years in federal prison. Mary Margaret Kreuper, 79, was charged with one count of wire fraud and one count of money laundering on Tuesday and has agreed to a plea deal, according to a release from the U.S. attorneys office for the Central District of California. 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. In June 2021, Sister Mary Margaret Kreuper admitted to embezzling $835,000 from the Catholic school where she served as principal for 28 years. A federal appeals court ruled against the schools, which appealed to the U.S. Supreme Court. 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. She wanted more than she had.. She just enjoyed gambling, he said. Kreuper falsified monthly and annual reports to cover up her crime and asked school employees to alter and destroy financial records during an audit. The exception extends to religiously affiliated institutions when they fire employees who serve in a religious capacity akin to that of a minister. The scheme was uncovered during an audit after Kreuper retired in 2018. The sisters later confessed to using the funds for themselves. 2022 Blaze Media LLC. We use cookies to better understand website visitors, for advertising, and to offer you a better experience. 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. When staff members finally found the check, they realized that it was not deposited in a St. James account, but a different bank account. But, Fisher counters, that "this isn't something you measure with a stopwatch." But this week, prosecutors said Sister Mary Margaret, 79, had agreed to plead guilty to stealing more than. Church officials said they did not wish to press charges against the sisters, who both expressed remorse. It's just that you have to look and see what kind of function are they doing.". Sister Mary Margaret and Sister Lana were both Sisters of St. Joseph of Carondelet. She is looking forward to getting on with life and will get treatment for her gambling addiction, he said. Despite the ongoing thefts, financial statements revealed the church continuing to operate in the black as the two sisters clandestinely plowed through church funds. Sister Mary Margaret Kreuper had taken a vow of poverty. As headteacher at St James Catholic School, which she ran for 28 years, she "controlled accounts at a credit union, including a savings account for the school and one established to pay the living expenses of the nuns employed by the school", prosecutors said. 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.. The Sisters of St. Joseph of Carondelet confirm that today the judge of the United States District Court for the Central District of California in Los Angeles has sentenced our Sister Mary Margaret Kreuper, CSJ to one year and one day in federal prison followed by two years' supervised release. I have sinned, Ive broken the law and I have no excuses, Kreuper said at the sentencing over Zoom. Advice for the relationships in your life and how to boost your own well-being. All rights reserved. One article quoted a church accountant as ball-parking the amount at $500,000. Sister Mary Margaret Kreuper used tuition fees and donations to a California Catholic school to subsidize her casino expenses. James School.. Kreuper as the school's principal, handled all tuition payments, with the sister depositing checks into a separate . 66 is still a fairly competent age. 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). Sister Mary is not full of grace. Snopes and the Snopes.com logo are registered service marks of Snopes.com. James Convent instead of St. 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. 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. 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. Kreuper signed the plea agreement, which Snopes has obtained and which can be read in full here, on June 2, 2021. 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. A Los Angeles nun recently pleaded guilty to embezzling more than $800,000. The 80-year-old nun also was ordered to pay a total of. Sister Mary Margaret was making bank (very illegally) through laundering and threw everyone off of the scent by reminding them of her vow of poverty. "She's 80. 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. Kreuper pleaded guilty last July. After much public outcry to pursue legal action, the archdiocese hired a former FBI agent to investigate the two nuns. 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. 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.. 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. California, used the school to better understand website visitors, for advertising, and are. I promised her i would see this through, '' he said service! 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