Religious charity CEO stole $247K and paid for repairs to his home and car, feds say
The former chief executive officer of a religious charity is heading to prison after authorities say he stole over $247,000 from the Michigan-based organization — and then used that money to fund personal trips, home and car repairs, new clothing and more.
John R. Lynch, 57, of Grosse Pointe Park, was sentenced to a year in prison and six months at a halfway house after pleading guilty to wire fraud charges in connection to embezzling from the Holy Cross organization, federal officials say. He is also ordered to pay the full $247,867.75 in restitution.
“John Lynch stole from Holy Cross Services,” the organization said in a statement to McClatchy News on Feb. 16. “For nearly 75 years, the Holy Cross team has worked hard to help children, adults, and families who have been hurt. We know what recovery looks like, because we see it every day in the resilient communities we serve. Holy Cross is stronger today, having built the safeguards that prevent future abuses of power.
“We are grateful for the closure brought from today’s sentencing,” the organization continued. “Now, we look onward, continuing the critical mission of helping our communities heal and thrive.”
The defense attorneys representing Lynch did not immediately respond to a request for comment from McClatchy News.
Lynch was first hired as the chief financial officer of Holy Cross in 2012, according to court documents. He was promoted to CEO in January 2015 and received an annual salary of about $200,000.
Authorities say he stole $211,330.91 from Holy Cross checking accounts between November 2014 and October 2016, in addition to stealing $36,536.84 from the organization’s corporate credit card between September 2014 and February 2017.
Some of the embezzled funds were used for paying down his personal mortgage loan, a new roof on his home, car repairs, a donation to a high school football fundraiser, lodging at a Florida resort, airline travel, dining and new clothing, according to court documents.
Lynch is also accused of directing Holy Cross funds to a consulting company and security firm “in which he had a personal and direct financial interest.”
“This pervasive self-dealing, while not necessarily criminal, enabled defendant to enrich himself and reflected the corrupt manner in which he carried out his responsibilities as Holy Cross’s CFO and CEO,” officials said.
Court records say Lynch was fired by the organization’s board of directors in April 2017 as a result of federal prosecution.
Holy Cross Services describes itself as a “human service agency whose mission is to bring hope, promote change, and help people live free, healthy, and productive lives.” Some of its services include housing services for the homeless, substance abuse help, mental health support and adoption assistance.
This story was originally published February 16, 2022 at 5:12 PM with the headline "Religious charity CEO stole $247K and paid for repairs to his home and car, feds say."