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. 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. His findings unraveled the entire scheme and, eventually, federal charges were levied against Sister Mary Margaret. Officials made the discovery in June after performing a routine audit following Kreupers retirement. She would endorse the checks with a stamp saying St. Mr Kumar said that jealousy played a part, calling the episode "really an abuse of position of trust". 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. "She's 80. 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. St.James Catholic School caught embezzling $500K for personal use, including gambling as church declines to press charges. 2020 THE SUN, US, INC. ALL RIGHTS RESERVED | TERMS OF USE | PRIVACY | YOUR AD CHOICES | SITEMAP, Sister Mary Margaret Kreuper, 79,of Los Angeles, was charged with one count of wire fraud and one count of money laundering, She defrauded St. James Catholic Schoolover a period of 10 years, 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, Also implicated in the scheme was Lana Chang, who worked as a teacher at St. James before becoming vice principal, Nun, 79, STOLE $835,000 from Catholic school over 10 years to fund her gambling trips, Teenage boy shot friend, 15, in face with his grandad's shotgun after 'being repeatedly humiliated and bullied by him', Apple pie could be CANCELED after writer links treat to genocide and cultural appropriation, Meghan Markle and Prince Harry have 'done nothing but seek publicity' since leaving UK, former Palace aide claims, Woman, 21, records terrifying moment Uber driver relentlessly pesters her for sex despite her telling him 'no', Inside Bidens 30million G7 ring of steel with warships, The Beast & 400 Secret Service agents watching his every move, Murder probe scuppered after alligator makes off with dead body found floating in river, JBSA Lackland put on lockdown after shooting outside Air Force base in San Antonio. Her attorney said Kreuper will be on supervised release for two years once her prison sentence is complete. Investigators determined the money went to accounts the school didnt know about, Kumar said. She faces up to 40 years in federal prison, but is claiming mental illness. Each of the counts carries a maximum sentence of 40 years behind bars. As a Catholic nun, 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. 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. 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. BroBible is the #1 place on the internet for the very best content from the worlds of sports, culture, gear, high tech, and more. Mark Byrne, Kreupers attorney, told The Post his client had accepted the judges one-year prison sentence, even if they were pushing for probation. 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 . 2022 Blaze Media LLC. She then used some of the funds to pay for "large gambling expenses incurred at casinos and certain credit card charges.. 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. (Photo by PATRICK T. FALLON/AFP via Getty Images). The schools, "have never asserted that either of [the teachers] fell short in any religious duty or adherence to the faith," he says. 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. This was a manifestation of greed, Kumar said, adding that the nun had abused the trust of the community. Kreuper as the school's principal, handled all tuition payments, with the sister depositing checks into a separate . 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. 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.. Kreuper also admitted to falsifying monthly and annual reports to the school administration in an effort to cover up the embezzlement. Snopes and the Snopes.com logo are registered service marks of Snopes.com. She is expected to report to prison by June, Byrne said, and will be released in 2023. Jaclyn Peiser contributed to this report. 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. By Megan Carpentier. One parent told the outlet of the situation: "It's crazy. But the court's eventual decision could reach beyond teachers, affecting the lives of millions of other employees who work for religiously affiliated institutions. At the sentencing hearing, those who spoke were split on their feelings toward the nun and what she had done. Along with her sentence, she was ordered to pay $825,338 in restitution. But, Fisher counters, that "this isn't something you measure with a stopwatch." 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. She's obviously not employable.". 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". Kumar said the nuns instruction to the auditors sparked suspicion, and they reported the incident to Msgr. This article was published more than1 year ago. 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. In December of that year, fraud allegations emerged against her and another nun, Sister Lana Chang, who had taught at the school. Those reports were accurate, and we are issuing a rating of "True.". The judges sentencing came as detractors and supporters showed up over Zoom to testify against or pledge their support for Kreuper, who had been a nun for 62 years. The two holy women were eventually caught out after a recent audit. 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. Similar articles were published by the Los Angeles Times, KTLA, and Unilad.co.uk. His wife, he said, drove into their driveway "in tears bawling hysterically. It involves two fifth-grade teachers at Catholic schools in California. 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. Copyright 2008-2023 BroBible. The embezzlement helped to fuel her gambling habit. Your membership is the foundation of our sustainability and resilience. Kreuper stole the funds over the course of ten years, ending in 2018. 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 doesn't have any money. "Far from it. 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. 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. 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