The Archdiocese of Saint Paul and Minneapolis was informed today that a former lay employee was formally charged with seven counts of theft by swindle. In January, after accounting staff identified irregularities related to documentation of certain credit card transactions, the Archdiocese conducted a preliminary investigation into the matter and placed the individual in question on administrative leave. As additional evidence was uncovered, an independent committee was appointed to oversee the investigation, the individual in question was dismissed, and all information was immediately turned over to law enforcement.

To affirm the statement made by the Archdiocese on March 7, 2012, this matter will not affect the Archdiocese’s ability to meet its financial obligations or other responsibilities, including those to parishes, schools and employees. The Archdiocese shared the results of an independent forensic audit with insurers who confirmed that insurance will cover substantially all of the loss, which was determined to total approximately $770,000 over eight years. In addition, the independent forensic audit resulted in recommendations for internal control enhancements that have been implemented.

As the criminal case against the former employee moves forward, the Archdiocese will continue to work with the police and prosecution authorities. Because of the ongoing prosecution of the case, we are not able to provide further comment at this time.