A former religious nonprofit CEO for a charity serving the poor and homeless stole more than $240,000. The stolen money bankrolled everything from shopping sprees and vacations at resorts to a new roof on his home, prosecutors said Thursday.
Religious Nonprofit CEO Stole From the Holy Cross Organization
Accused of stealing from the federally funded Holy Cross organization is John Lynch, 56. He is accused of stealing from the federally funding Holy Cross organization in Clinton from 2014-17. This is basing on a 28-page complaint that is unsealing in federal court.
Paid $200,000 a year, Lynch spent the stolen money to pay for car repairs. Then install a new roof and moreover make mortgage and credit card payments. This is according to the government. In fact, he also spent the money on paying his consultant company. This was security services at the Samaritan Center. It was secretly controlling through a relative, prosecutors said.
Profit Sharing
Fourteen checks totaling $39,150 to a relative from 2014-15, Lynch had issued to them. He said the money was “profit-sharing” from Holy Cross. He also suggested they in fact split the cash, prosecutors said.
For no reason, in all, Lynch’s (relative) received $39,150 in Holy Cross funds. Then he went and kicked back $21.895.50 of that to Lynch,” an FBI agent wrote in an affidavit filed in court.
Religious Nonprofit CEO Appeared in Court
Moreover, a handcuffed and thrown-together Lynch made a quick appearance in federal court. In front of the U.S. Magistrate Judge Curtis Ivy, he said he understood the charges against him. In fact, Lynch is charging with mail. As well as wire fraud. They are both punishable by up to 20 years in federal prison. Stealing money from an organization that and receives federal funds, is a 10-year felony. Then, he got a court-appointed lawyer, Benton Martin, and was releasing on a $10,000 unsecuring bond. However, Martin did not comment.
Hiding Embezzlement
However, prosecutors are saying Lynch is trying to hide the embezzlement. Lynch submitted fake invoices and by paying companies to set up companies. Moreover, he said were handling by a relative. But, in fact, they were controlling by Lynch, according to the government.
As Lynch’s tenure as a chief financial officer and chief executive for the nonprofit, the criminal allegations span that time. The nonprofit was known previously as Boysville of Michigan. Holy Cross provideses welfare services to disadvantaged kids, adolescents, and the homeless in south and mid-Michigan.
