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  Moynihan Investigation Reveals Priest Stole Church Money

By Ken Borsuk
Greenwich Post
March 10, 2008

http://www.acorn-online.com/news/publish/greenwich/30284.shtml

The results of two financial reviews of St. Michael the Archangel have found that former pastor Michael Moynihan stole almost half a million dollars from the church during his service. According to the Diocese of Bridgeport he "engaged in a pattern of self-dealing, deceit and submitting falsified and misleading documents to the substantial detriment of our Parish."

The diocese reviewed more than $2 million in expenses and found that more than $400,000 could not be documented as a legitimate church expense. A summary of the findings released by the diocese say Father Moynihan made large payments to his personal credit cards, cash or to himself and that he submitted falsified and misleading documents in an effort to justify the expenditures. This includes the allegation that the signature of a former judge was forged onto a document.

Father Moynihan had been pastor at St. Michael's from 1992 until his resignation in Dec. 2006 when a diocese audit showed he had opened up two "off the books" accounts while managing church finances despite having denied they existed. In February, Father Moynihan lost his ability to serve as a priest after the diocese learned he was engaged in a relationship with another man, which the diocese had ordered him to end. Father Moynihan has reportedly been sharing an apartment in New York City with Michael Fawcett, a former child's choir director at the church.

The report has now been turned over to the U.S. Attorney's Office and criminal charges are possible. A representative from that office offered no comment. The matter is now in the hand of the authorities and the decision is theirs whether to proceed. There is also the possibility of a civil action, perhaps even by the diocese to recoup the lost money, but that possibility was termed as "speculative" by diocese officials.

Jack Schmeltzer, who was identified by the diocese as Father Moynihan's attorney, did not return phone calls from Greenwich Post looking for comment.

At a press conference last Friday, Bishop William Lori called the findings "sad and very disappointing."

"As a bishop I love my priests, but I cannot help but feel a measure of anger and outrage about this," Bishop Lori said. "At the same time, I recognize that how I feel about this is not the last word. The most important thing for a bishop and a priest is to serve God's people. My concern first and foremost is for the people of St. Michael's and for their well being."

In conversations with diocese officials and the investigators, Father Moynihan reportedly admitted to nothing. Bishop Lori said Father Moynihan attributed the problems to his own poor bookkeeping. Bishop Lori said it was "fair to say" Father Moynihan had belatedly recognized the accounts should not have been off the books. Information was first given about the report's findings in Aug. 2007 to Father Moynihan and his attorneys so the revelations.

After the initial report was complete last fall, the diocese hired a second firm, known as a forensic firm, to do another investigation into the details. Joseph Quinn, a member of the diocese's audit committee, said there were "troubling" questions in the first report that needed more explanation, so the second firm was hired.

Tim Joyce, another member of the committee, said that Father Moynihan attempted to explain where the money went and that it was used for legitimate purposes. However, the explanation didn't appear to cut any ice with the diocese.

"The report speaks for itself," Mr. Joyce said. Money from the church was allegedly used for credit cards, dinners, transportation and gifts to institutions and individuals.

Mr. Joyce later added, "The initial explanation given by [Father Moynihan] was that this was all a result of sloppy bookkeeping and I can substantiate everything. We always had a rooting interest in seeing him just do that. We all hoped he could do it and when he retained counsel we saw it as a positive step. We thought maybe the counsel would work with him and help him demonstrate these were all legitimate expenditures."

Bishop Lori said that when Father Moynihan resigned last year he pledged to make a contribution to repaying the money and that the diocese expects him to "honor" that pledge.

A year ago, shortly after Father Moynihan's resignation, both Bishop Lori and diocese chief financial officer Norm Walker told the Post there was no indication of fraud and that the money had been used for legitimate expenses. Both men disagreed with that characterization last Friday and Bishop Lori said at that time he was "hopeful Father Moynihan would provide legitimate, authentic explanations for the expenditures" and that over the course of the investigation he was "given every opportunity to do so."

Bishop Lori said he was saddened for the parish. Msgr. Peter Cullen, who succeeded Father Moynihan at St. Michael's, spoke at the press conference and said he was very proud to be pastor of the congregation.

"The people are wonderful people and I sense a community that wants to move forward," Msgr. Cullen said. "There is certainly sadness and disappointment and a whole variety of feelings over the past year. But we have had some marvelous advances in our organization. I feel the parish is in a good spot to move on. That doesn't mean there weren't tears shed, but the fact is the community is proud to be part of St. Michael's Catholic community."

Bishop Lori said he was "so glad the community has a pastor the caliber of Msgr. Cullen" and praised the church leadership for all its work.

The diocese has implemented new financial procedures within the past year including annual reviews of all parishes, a new Internet-based accounting system linking each parish to the diocese, new rules and regulations and new avenues of communication for people to bring concerns about financial management.

According to Bishop Lori, 10 other dioceses are now copying those procedures for their own use.

"If we were a little behind the curve, now we're, I'd say, rather ahead of the curve," Bishop Lori said. "People can be very confident when they give money to their parishes that it's used for the mission of the parish."

Bishop Lori said he didn't want this episode to cast doubt on the "great work of great priests all over Fairfield County" and said that what happened with Father Moynihan and former priest Michael Fay at St. John Parish in Darien who took money to pay for a lavish lifestyle for himself and a male lover, were isolated incidents and not any kind of pattern of behavior.

"We've had two instances but our 87 parishes were reviewed over the past year and while there were recommendations to improve parish finances we have found the pastors and their finance counsels doing their job with great integrity," Bishop Lori said, adding the two instances were "anomalies."

Father Fay pleaded guilty to one count of interstate transportation of money obtained by fraud and faces up to 10 years in prison and up to $250,000 in fines. He will also be required to pay the money back to the parish.

Contact: kborsuk@greenwich-post.com

 
 

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