Insurer for Lansing Diocese Files Suit against Okemos Priest Accused of Embezzlement
By Beth LeBlanc
A priest accused of embezzling more than $5 million from his Okemos parish is now the subject of a civil lawsuit lodged by the insurance company for the Catholic Diocese of Lansing. The insurance provider claims to have paid out roughly $2.5 million to the diocese so far to cover its losses. To protect the assets that will cover those losses, the agency convinced a judge Wednesday to place the Rev. Jonathan Wehrle’s sprawling estate into receivership. “While this suit is pending, nobody wants to see the property go to waste or be damaged before the property can be forfeited,” said Randy Marmor, lawyer for The Princeton Excess and Surplus Lines Insurance Corporation. Wehrle, the founding pastor of St. Martha Parish in Okemos, was charged in May with embezzling millions from his parish to pay for home construction, maintenance and purchases. In November, he was bound over to circuit court on six counts of embezzlement of $100,000 or more. His lawyer has argued Wehrle had family money and an agreement with a bishop who passed away regarding use of church money for a rectory. The priest's roughly 11,000-square-foot home in Williamston was appraised at $1.28 million in 2012, when construction was only half-finished, according to court records. In its 10-page complaint filed in mid-March, Princeton puts the most recent tally of embezzled funds at $5.3 million and provides a detailed listing of the bills, items and services Wehrle allegedly paid for with parish money. Among the expenses are: $3,081,456 from 1991 to 2017 used to build, furnish, and maintain personal residences $451,082 from 1995 to 2012 used on mortgage payments for personal residences $368,446 from 1991 to 2017 used to pay phone, internet and utility bills for personal residences $272,095 from 1991 to 2017 to pay property taxes on personal residences $213,433 from 1998 to 2016 to purchase, install and maintain pipe organs in his home $174,608 from 1991 to 2017 to pay for personal property insurance, auto insurance and life insurance $169,512 from 2010 to 2017 to pay for housework services at his home provided by his daughter-in-law $134,448 from 1995 to 2016 to pay for landscaping at his personal residences $62,302 from 1991 to 2017 to pay for farming expenses at his home $54,906 from 1991 to 2017 to pay for stained glass windows at his home $45,700 from 2000 to 2010 to install and maintain an indoor swimming pool at his home $48,479 from 1992 to 2017 to pay medical bills, moving costs and tuition bills for his two adopted sons A November receipt indicates Princeton had paid the diocese at least $850,000 by the end of 2017, but Marmor said the total now is closer to $2.5 million. Princeton filed its lawsuit March 15 after learning that Wehrle wasn’t paying taxes on his home at 1400 Noble Road and that his homeowner’s insurance had lapsed, Marmor said. With many of Wehrle’s bank accounts and annuities seized by state police, the agency also thought it unlikely Wehrle would be able to manage maintenance of the property, Marmor said. According to the lawsuit, Farm Bureau Insurance notified Wehrle in January that it would not renew his homeowner's insurance because he was a “poor moral risk” and “financially irresponsible.” “The term ‘moral’ means not just the presence of virtue, but also poor financial condition that could be motivation for a loss,” a Feb. 5 email from Farm Bureau Insurance to Wehrle read. Wehrle’s lawyer Lawrence Nolan objected to the appointment of a receiver, but suggested three possibilities if the judge ruled a receiver necessary. One of those suggestions was appointing the lawyer who manages the Jonathan W. Wehrle Trust. Instead, Judge William Collette appointed Byron P. Gallagher receiver for the property at a hearing Wednesday. “In this case, the receiver is simply asked to take possession and control to insure the property is properly maintained, the taxes are paid, the insurance is purchased,” Marmor said. “If Fr. Wehrle prevails it’s still his property and he’s benefiting from that as much as anybody. If Princeton prevails then the property is preserved and can be used to offset the loss.” Marmor said Princeton is fronting the money for the receiver and any tax, insurance or maintenance expenses. Diocesan spokesman Michael Diebold said he could not comment on details of the civil lawsuit. "But I can assure you that any money that is recovered will be going to the parish," Diebold said. "The allegation is that these are parish assets.” Marmor said Wehrle is able to live in the home while it's under receivership until or unless a judge orders otherwise. Princeton’s suit was filed a couple weeks after the Ingham County Prosecutor’s Office filed a similar motion in Ingham County District Court, acting on the same concerns regarding the property’s unpaid taxes and lapsed insurance. Assistant Prosecutor Andrew Stevens said the state would withdraw its request in light of Collette’s ruling. State police have already seized more than $1 million in U.S. currency from Wehrle, and prosecutors in July filed notice that the 1400 Noble Road home could be forfeited pending the outcome of Wehrle's trial. Court records indicate Wehrle is scheduled to go to trial in April, but Stevens said the trial likely won’t take place until summer. Contact reporter Beth LeBlanc at 517-377-1167 or eleblanc@gannett.com. Follow her on Twitter @LSJBethLeBlanc.
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