Sister Mary Margaret Kreuper, of Los Angeles, was sentenced Monday to one year and one day for fraud and money laundering charges. }); This is not an excuse for what she did, he said. pg.acq.push(function() { At the prosecutors request, the judge later lowered the amount by $10,000 to account for what she has already repaid. Assistant US Attorney Poonam Kumar told The New York Post that Kreuper even asked parents to donate more money in addition to their $6,000 annual fees. [emailprotected]. An indictment was unsealed today charging Terren S. Peizer, the CEO and Chairman of the Board of Directors of Ontrak Inc., a Henderson, Nevada-based publicly traded health care company, for A Carson man who was a central figure in an international fraud and money-laundering network that targeted $25 million through a variety of frauds including romance scams and elder A former executive at cinema subscription service MoviePass Inc. has been arrested on a federal grand jury indictment alleging he embezzled approximately $260,000 from MoviePass parent company to repay money Central District of California Share sensitive information only on official, secure websites. The Sisters of St. Joseph of Carondelet confirm that today the judge of the United States District Court for the Central District of California in Los Angeles has sentenced our Sister Mary Margaret Kreuper, CSJ to one year and one day in federal prison followed by two years' supervised release. According to legal documents, Kreuper embezzled money from the school over a period of 10 years ending in September 2018. Mary Margaret Kreuper, 80, of Los Angeles, was also ordered to pay $825,338 in restitution, according to the U.S. Attorney's Office. Poonam Kumar told the judge. The Sisters of St. Joseph both desire and intend to make complete restitution to St. James School. A .gov website belongs to an official government organization in the United States. To know that she had been taking money from my parents and my peers parents the whole time I was there is extremely shocking, and it sways me away from the Catholic Church, she said. Create your free profile and get access to exclusive content. Kreuper had pleaded guilty in July to one count each of wire fraud and money laundering. In a series of deeply personal remarks from the bench, Wright, 77, a Marine veteran and former deputy sheriff who has served as a federal judge for 15 years, said he owed where I am today in large part to a nun who inspired him early in life. In the plea agreement, she admitted to having used the diverted funds to pay for expenses that the order would not have approved, much less paid for, including large gambling expenses incurred at casinos and certain credit card charges. Kreuper also admitted that she falsified monthly and annual reports to the school administration to cover up her fraudulent conduct. In a letter addressed to parents and parishioners, he wrote, "Sister Mary Margaret and Sister Lana have expressed to me and asked that I convey to you, the deep remorse they each feel for their actions and ask for your forgiveness and prayers. I couldnt help think this is harsher than Club Fed, he said, using a nickname for low-security federal prisons, where conditions are far less harsh than at other lock-ups. embezzling about a half-million dollars in tuition, fees and donations. Defense attorneys said Kreuper became a nun when she was 18 years old, and for the next 59 years "dedicated her life to helping others and educating children in Archdiocesan schools. A bookkeeper who knew about the nuns' scheme voluntarily took a leave of absence during the investigation, Michael Meyers, the churchs monsignor, said during the meeting, according to the Press-Telegram. Sisters Mary Margaret Kreuper and Lana Chang, who belong to the Sisters of St. Joseph of Carondelet, are suspected of embezzling a "substantial" amount of money from a Catholic school in. After charges were filed, her attorneys issued a statement saying Sister Mary Margaret suffered "from mental illness that clouded her judgment and caused her to do something that she otherwise would not have done. } Mary Margaret Kreuper, a retired nun who served as principal of a Catholic elementary school in Torrance, California, for 28 years, agreed on Tuesday to plead guilty to fraud and money laundering. "She became a nun when she was 18 years old, and for the next 59 years she dedicated her life to helping others and educating children in Archdiocesan schools," he stated. But it doesnt mean hes a criminal, Rain check! READ ALSO | 2 nuns accused of embezzling 'substantial' amount from Catholic school in Torrance. Federal authorities charged 79-year-old Mary Margaret Kreuper with one count of wire fraud and one count of money laundering for her role in the scheme while principal of St. James Catholic School . "Unfortunately, later in her life she has been suffering from a mental illness that clouded her judgment and caused her to do something that she otherwise would not have done. Police will, however, still follow the case and present their findings to the Los Angeles County District Attorney's Office. 'I have sinned, I've broken the law and I . hitType: 'event', Sister Mary Margaret, 77, was a pillar of the community who spent 29 years as the principal of St. James Catholic School. We pray that in time those impacted will find healing and the seeds of forgiveness. window.adsContainer = {"positionAfterTitle":{"code":"Article_Desktop_300x250_Middle5_Rel_Newrev","isOrganicUserAd":true,"max_width":336,"max_height":280},"position2":{"code":"Article_Desktop_300x250_After_Title_Rel_Newrev","max_width":336,"max_height":280},"position3":{"code":"Article_Desktop_300x250_Below_Next_Rel_Newrev","max_width":300,"max_height":250},"position4":{"code":"Article_Desktop_300x250_Middle_Rel_Newrev","max_width":300,"max_height":250},"position5":{"code":"Article_Desktop_300x250_Middle1_Rel_Newrev","max_width":300,"max_height":250},"position6":{"code":"Article_Desktop_300x250_Middle2_Rel_Newrev","max_width":336,"max_height":280},"position7":{"code":"Article_Desktop_300x250_Middle3_Rel_Newrev","max_width":300,"max_height":250},"position8":{"code":"Article_Desktop_300x250_Middle4_Rel_Newrev","max_width":300,"max_height":250},"position9":{"code":"Article_Desktop_300x250_Middle5_Rel_Newrev","max_width":336,"max_height":280},"position10":{"code":"Article_Desktop_300x250_Middle6_Rel_Newrev","max_width":336,"max_height":280},"position11":{"code":"Article_Desktop_300x250_Middle7_Rel_Newrev","max_width":336,"max_height":280},"position12":{"code":"Article_Desktop_300x250_Middle8_Rel_Newrev","max_width":336,"max_height":280},"position13":{"code":"Article_Desktop_300x250_Middle9_Rel_Newrev","max_width":336,"max_height":280},"position14":{"code":"Article_Desktop_300x250_Middle10_Rel_Newrev","max_width":336,"max_height":280},"position15":{"code":"Article_Desktop_300x250_Middle11_Rel_Newrev","max_width":336,"max_height":280},"position16":{"code":"Article_Desktop_300x250_Middle12_Rel_Newrev","max_width":336,"max_height":280},"positionTop":{"code":"Article_Desktop_970x250_Header_Rel","isOrganicUserAd":false,"max_width":970,"max_height":250},"positionBottom":{"code":"Article_Desktop_Sidebar_Bottom_Rel_Newrev","isOrganicUserAd":true,"max_width":300,"max_height":600},"positionBottomRight":{"code":"Article_Desktop_300x250_After_Title_Rel_Newrev","isOrganicUserAd":true,"max_width":336,"max_height":280}} She pleaded guilty last July to one count . Prosecutors also said that Kreuper directed St. James School staff to alter and destroy financial records during an audit, and caused total losses of $835,339. These also include her gambling trips, revealed federal prosecutors. Mary Margaret Kreuper was the principal of the elementary school for 28 years. "They were just such staunch defenders of moral fortitude, they were really tough on the kids," she said. As a Catholic nun, Sister Mary Margaret Kreuper had taken a vow of poverty. A lock ( hitType: 'event', }); She was the principal of St. James Catholic School in Torrance for 28 years. A federal judge sentenced Sister Mary Margaret Kreuper, a nun and former Catholic school principal, to a year in prison for embezzling more than $835,000 from the school she ran to fund a more secular lifestyle including gambling trips. In conjunction with the criminal information, prosecutors filed a plea . Documents state, Kreuper lulled St. James School and the Administration into believing that the schools finances were being properly accounted for and its financial assets properly safeguarded, which, in turn, allowed defendant Kreuper to maintain her access and control of the schools finances and accounts and, thus, continue operating the fraudulent scheme.. Copyright 2023 by City News Service, Inc. All Rights Reserved. Until this last spring, Kreuper was the principal of St. James Catholic School in Torrance and Chang was its vice . I have sinned, Kreuper said during a Monday teleconference, according to The New York Daily News. let gads_event; Link your TV provider to stream full episodes and live TV. }); The family of Joseph includes many more than just the sisters. Kreuper was sentenced to one year in prison Monday and told to pay back the money. However, the nun started diverting the money into secret accounts in 2008 to fund her gambling habits and personal credit card charges. Sister Mary took responsibility for her actions by pleading guilty. In private letters to Wright and remarks at the video hearing, some former St. James students asked him to put the nun behind bars. The judge said he was grappling with the possibility that conditions at the convent might be worse than prison. An official website of the United States government. The systems that were set up were dividing people, so nobody knew what was happening, he said at the meeting. Kreuper is also accused of directing St. James School employees to alter and destroy financial records during a school audit. Kreuper controlled accounts at a credit union, including a savings account for the school and one established to pay the . 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Mary Margaret Kreuper, 79, is seen in this undated photo. Nuns should realize that just by living their lives and living the way they do and treating people the way they do, they affect children for the rest of their lives, said Wright, who fell silent and covered his face in his hands for a long pause during his pronouncement of the sentence. IE 11 is not supported. Kreuper controlled accounts at a credit union, including a savings account for the school and one established to pay the living expenses of nuns -- who had taken a vow of poverty -- employed by the school, prosecutors said. hitType: 'event', Mary Margaret Kreuper, 80, of Los Angeles, pleaded guilty in July to federal wire fraud and money laundering charges. Kreuper's crimes occurred during her role as the school's principal, a position from which she retired in 2018. eventCategory: event.slot.getSlotElementId(), She took advantage of her position as principal at the school, where she was responsible for its income, which consisted of tuition fees and charitable donations. Mary Margaret Kreuper, 80, of the Arlington Heights neighborhood in Los Angeles, was sentenced by United States District Judge Otis D. Wright II, who also ordered her to pay $825,338 in restitution. Despite her nun's vow of poverty . The church was made aware of the scheme around June when it began a routine audit in response to Kreupers retiring. }); Mary Margaret Kreuper was so close to getting away with it. She pleaded guilty toone count of wire fraud and one count of money laundering in July 2021, according to prosecutors, as part of a plea deal. Your login session has expired. I apologize for the public scandal, the embarrassment and the financial burden that I have placed on the sisters in my religious community, the Archdiocese of Los Angeles, St. James School, the parishioners, parents and students who placed their trust in me.. Create a free profile to get unlimited access to exclusive videos, breaking news, sweepstakes, and more! On screen in one of the Zoom windows were five fellow nuns from her order, the Sisters of St. Joseph of Carondelet. Sisters Mary Margaret Kreuper and Lana Chang, who worked at St. James Catholic School in Torrance, allegedly embezzled half a million dollars and used it for trips and gambling. Kreuper was principal at the school for 29 years. Church officials previously said they did not want to press criminal charges against the nuns. Wright also said that as someone who had been educated by nuns, "unlike most cases, this one will be a struggle.". U.S. District Judge Otis D. Wright II said that Kreuper was one heck of a teacher but she ran completely off the road in her life. ", Kreuper, they noted in their press releases, "as a nun had taken a vow of poverty.". I havent slept well in God knows how long, Wright told a Zoom hearing audience, rejecting prosecutors call for a two-year term and saying he could not bring himself to judge Kreuper solely on the worst thing that shes done in her life.. hitType: 'event', By Megan Carpentier The St. James Catholic Church school in Torrance, California, on February 7, 2022. The embezzlement helped to fuel her gambling habit. },false) Kreuper controlled accounts at a credit union, including a savings account for the school and one established to pay the living expenses of the nuns employed by the school. 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