Church Fraud Investigations and Fraud Prevention Programs
Church fraud is an unfortunate reality in many religious organizations today. Church donations and other monies intended to fund church programs may be siphoned off through fraud or embezzlement by a trusted bookkeeper or even church leaders. “Affinity fraud,” which occurs when trusting members of a group are defrauded by other members of the same group, is also a risk in a church setting.
When church fraud is suspected or uncovered, Cendrowski Corporate Advisors is available to respond immediately with a team of skilled certified fraud examiners who understand the need for a fast, confidential church fraud investigation.
Authors of Fraud Deterrence Handbook
Founding Partner Harry Cendrowski, CPA ABV CFF CFE CVA CFD CFFA, is the lead author of The Handbook of Fraud Deterrence (Wiley, 2006). The CCA team of fraud professionals, including a former FBI agent, is highly experienced in fraud investigations. Equally important, they understand the sensitive and confidential nature of church fraud investigations.
As Chair of the Michigan-based Madonna University Foundation Board with responsibility for a multi-million capital campaign, Mr. Cendrowski brings a distinctive blend of business resources and community commitment to every fraud investigation.
Reasons Why Church Fraud Occurs
Unlike a business, religious organizations are frequently not subject to the rigorous system of financial checks and balances found in professionally managed entities. A trusted bookkeeper, a church leader, or even a church member acting in a voluntary capacity may have significant responsibility for the handling of church donations, bank deposits, check writing, payroll and other financial responsibilities.
Oversight by a church finance committee, also staffed by volunteers, may not provide the level of authority or skills needed for effective church fraud prevention.
Examples of Church Fraud
Unfortunately, examples of church fraud are readily available. Recent examples appear below.
- Two former priests of St. Vincent Ferrer Catholic Church in Delray Beach, Florida were sentenced to jail in 2009 after stealing as much as $8.6 million from church funds, including Sunday collection baskets, over many years.
- Two church executives from the Baptist Foundation of Arizona were sentenced to jail in 2006 for their roles in fraudulently conducting a real estate Ponzi scheme involving 11,000 victims who collectively lost $585 million.
- The bookkeeper for St. Maurice Catholic Church in Dania Beach, Florida pled guilty in 2007 to fraud involving counterfeit checks. The bookkeeper conspired with another church employee to forge and alter payroll and other checks in excess of $800,000.
- In Los Angeles, U.S. prosecutors charged the grand rabbi of a Brooklyn-based Orthodox Jewish group, seven other people and five charities with a scheme to evade taxes through use of phony donations, according to an August 3, 2009 news report by Bloomberg News.
- In 2006, the former chief financial and legal officer of the Cleveland Ohio Catholic Diocese was charged for his role in a kickback scheme that reportedly enriched him by $785,000.
- A parish in Cedar Rapids, Iowa came under scrutiny in regard to the administration of a scrip or gift card, and an employee was charged with theft of about $60,000. A scrip program involves sales of gift cards for supermarket purchases.
Contact Harry Cendrowski if your church or religious organization needs a fraud investigation or fraud prevention program.