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Michigan Priest Accused of $5M Embezzlement Sued by Diocese Insurer

Insurance Journal
April 3, 2018

https://www.insurancejournal.com/news/midwest/2018/04/03/485159.htm

A Michigan priest accused of embezzling more than $5 million now faces a civil lawsuit filed by the insurance company for the Catholic Diocese of Lansing.

Rev. Jonathan Wehrle is charged with six counts of embezzling $100,000 or more from St. Martha Church in Okemos, east of Lansing. The charges allege Wehrle used the money to pay for home construction, maintenance and other personal purchases.

The Lansing State Journal reports that a judge approved the Princeton Excess and Surplus Lines Insurance Corp.’s request to place Wehrle’s more than $1 million estate into receivership. The insurance provider says it’s paid out about $2.5 million to the diocese to cover its losses so far.

Princeton’s attorney Randy Marmor says they want to protect the property from damage before it can be forfeited while the lawsuit is pending.

Wherle spent about $100,000 on an indoor swimming pool and stained glass windows for his six-bedroom, 12-bathroom home, according to the insurer’s lawsuit.

In addition to the $45,000 indoor pool and nearly $55,000 in stained glass windows, Wehrle spent more than $134,000 on landscaping at his 10-acre (4-hectare) estate in Williamston and other properties, according to the lawsuit.

The home, which has 10 fireplaces and three barns, was appraised at $1.28 million in 2012, when construction was only halfway complete, according to court records.

Police said bills for work on the property matched checks written from St. Martha.

Wehrle’s defense attorney, Lawrence Nolan, said the pastor had family money and an agreement with a bishop, now deceased, to use parish funds for a private residence.

Assistant prosecutor Andrew Stevens has said that Wehrle, who founded St. Martha in 1988, had “maintained pretty autonomous control” for nearly 30 years.

Princeton Excess also sued Wehrle this month after learning he wasn’t paying property taxes and that his homeowner’s insurance had lapsed, according to attorney Randy Marmor.

“While this suit is pending, nobody wants to see the property go to waste or be damaged before the property can be forfeited,” said Marmor.

He said the receiver will ensure that the taxes are paid and that the property is properly maintained and insured.

A diocese spokesman, Michael Diebold, declined to comment on the latest 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.”

Wehrle’s is scheduled to stand trial in April, but an assistant prosecutor said the trial likely won’t take place until the summer.

 

 

 

 

 




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