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Nun Leaves None, Gambles Away $835,000 of School Funds!

Sister Mary Margaret Kreuper pleaded guilty to embezzling $835,000 from the Catholic elementary school where she was the principal for 28 years.


Kreuper was principal at St. James Catholic School in Los Angeles and was responsible for the money the school received for tuition and fees and charitable donations. She controlled accounts at a credit union, including a savings account for the school, and one used to pay the living expenses of the nuns employed by the school.


In a plea agreement Kreuper admitted to diverting funds from the convent account, “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.”


To cover up the fraud Kreuper falsified monthly and annual reports she made for the administration and directed school employees to alter and destroy financial records during a school audit.


She faces up to 20 years in prison, restitution to the IRS and the school, and must say 835,000 Hail Mary’s.

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