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	Grace Cash May Be Frozen; Diocese Heading to Court By Brian Newsome The Gazette [Colorado] March 30, 2007 http://www.gazette.com/onset?id=20704&template=article.html The Episcopal Diocese of Colorado is trying to freeze Grace Church and St. Stephen's Parish funds and is pursuing legal action against church leaders who voted to break away from the denomination. Parishioners who want to remain Episcopalian learned about the developments in a meeting with Colorado Bishop Robert O'Neill and the diocese attorney Wednesday night at Colorado College. Reporters were not allowed at the meeting, but numerous parishioners Thursday confirmed the announcements. Alan Crippen, a parishioner and spokesman for the breakaway church, said church funds did not appear frozen as of Thursday afternoon. The diocese declined comment Thursday. The meeting with the bishop came hours after church members learned of diocesan accusations against the church's longtime rector, the Rev. Donald Armstrong. The Colorado diocese suspended Armstrong during a months-long investigation into what the diocese says is his theft of hundreds of thousands of dollars and other financial crimes. No criminal complaint has been filed, and if one is, it will have to be investigated by a special prosecutor because 4th Judicial District Attorney John Newsome is a former member of the Grace vestry. Grace's vestry, or board of directors, voted Monday to break away from the Episcopal Church and associate with a more conservative Anglican church based in Africa, saying Episcopalians have gone too far astray from the greater Anglican Communion on moral and Scriptural issues, particularly with views accepting homosexuality. They also reaffirmed Armstrong as their rector, saying he was wrongfully suspended and the financial investigation was an attack on his conservative stances. Armstrong denies wrongdoing. During his meeting with parishioners, O'Neill announced plans to reorganize the church until issues with Armstrong and the vestry can be resolved. Grace's the Rev. Michael O'Donnell and the Rev. Sally Zeigler will take temporary leadership roles, and a new vestry will be elected that will include the one vestry member who didn't favor the split. A bank account is being established so parishioners can make contributions that will be protected from the breakaway group. Newsome, who was a member of the church's governing board for three years, resigned two weeks ago over concerns that his public office could potentially be affected by allegations against Armstrong. "My first and foremost duty is to the people of this community as the elected district attorney," he said in an e-mail response to questions. If police decide to investigate Armstrong and the case reaches the district attorney's office, Newsome said he would call in a special prosecutor because of his long relationship with Armstrong as priest and friend. Newsome said he was aware of no financial irregularities during his time on the vestry and said it would be up to the diocese or community members to report the accusations to police. The problems at Grace have created a quagmire about proper titles, property rights and even where to go to church Sunday. The bishop and parishioners who've remained aligned with the Episcopal Church say Armstrong and the breakaway vestry are "former members" who are squatting on church property. Armstrong and the vestry say their leadership and the church haven't changed, except that it now answers to the Convocation of Anglicans in North America, a U.S.-based branch of the Church of Nigeria. Orders from the Colorado diocese are irrelevant, they say, because they are not an Episcopalian church. Both claim the same name. Sunday, the Episcopalian parish will meet at 1 p.m. in Shove Chapel at CC. The Anglican converts will meet for the usual three morning services at the downtown church building. CONTACT THE WRITER: 636-0198 or bnewsome@gazette.com
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