Former St. Theo.’s bookkeeper charged with theft of $200K

Published 10:54 am Tuesday, April 5, 2016

A former bookkeeper at St. Theodore Catholic Church is accused of swindling almost $200,000 from the the church and St. Theodore Catholic School.

Ryan Mae McFarland, 37, of Austin has been charged in Freeborn County District Court with nine felony counts of theft by swindle.

The stolen money had been given to the church and school from the Diocese of Winona, parish members of the church, and families with children attending the school through offerings, donations and fees, according to court documents.

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Court records allege the misappropriation took place from Aug. 30, 2013, through Feb. 3, 2015, though there is some question that it could have started as early as 2012.

The church was alerted to the alleged theft in an audit, and police began investigating the claims in March 2015. McFarland was reportedly terminated as bookkeeper after the audit.

McFarland administered payroll and benefits for all of the church employees; oversaw the health insurance, flex and pension benefits for all parish and school personnel; and counted contributions for the church. In addition, she kept the books for the church and the school and sent financial reports to the Winona Diocese on a monthly basis.

According to court files, McFarland reportedly misappropriated the following from the church:

• About $56,000 in payroll payment deposits

• About $82,000 in non-payroll payment deposits

• About $13,000 to pay off a personal judgment

• About $4,000 for payments related to health insurance

• About $17,000 for paid time off

In addition to these funds, McFarland reportedly misappropriated the following from the school:

• About $4,900 from the St. Theodore school payroll

• About $23,000 in non-payroll deposits from the school

All of the funds were reportedly deposited from the church and school’s accounts at Home Federal Savings Bank into two accounts at Accentra Credit Union.

Court records state police served subpoenas on Accentra Credit Union regarding the deposits and disbursements made from the accounts. They found that the dates and amounts of money for transfers received into McFarland’s two accounts matched the transfers of money out of the funds kept by St. Theodore church and school.

According to Freeborn County District Court records online, McFarland will be represented in the case by Austin lawyer Daniel Donnelly. A message to Donnelly’s office was not returned as of press time.

The Rev. Russell Scepaniak, who began leading the church in July, said the parish is relieved the investigation is concluded and they are hopeful of some resolution with the case.

Charges were filed March 9, and McFarland is first slated to appear in court at 1:30 p.m. April 28.