Archdiocese now seeking criminal charges against nuns accused of embezzling as much as $500,000 from Torrance Catholic school

Under mounting pressure and a national media glare, the Archdiocese of Los Angeles now plans to support criminal charges against two longtime nuns accused of embezzling as much as $500,000 from St. James Catholic School in Torrance.

The reversal comes amid a “deeper” investigation into the alleged actions of Sister Mary Margaret Kreuper and Sister Lana Chang, archdiocese spokeswoman Adrian Alarcon said on Monday.

Auditors are still working to determine just how much money was misappropriated, she said, and the internal investigation could take weeks to complete. The nuns allegedly took the funds and perhaps spent some of it on trips and casinos, officials tied to the school told parents last week.

The alleged scheme, going back at least 10 years, surfaced after Kreuper and Chang retired from the small, K-8 school about six months ago, the officials said. After red flags were raised, the archdiocese launched an internal investigation and the nuns later admitted to wrongdoing and expressed remorse. The nuns could not be reached for comment.

A week ago, archdiocese officials told a gathering of parents and alumni that they would not seek charges against the nuns because the nuns’ order, the Sisters of St. Joseph of Carondelet, agreed to impose “severe sanctions” on them and pay the school full restitution.

Law enforcement still could have proceeded to consider charges, but it would have been more difficult without help.

But Torrance Sgt. Ronald Harris said officials from the archdiocese met with detectives on Thursday and said they now want the case prosecuted.

The request came just after details of the allegations surfaced in a Southern California News Group story. Many parents had been outraged that prosecution wasn’t being fully sought.

“They indicated they were desirous of pressing charges, so we’re moving forward as soon as we formally meet with them again,” Harris said of the archdiocese officials.

Law enforcement has yet to say whether charges are forthcoming.

It’s unclear whether the restitution agreement with the order remains on the table.

In the days since the apparent scandal came to light, current and past school parents say they have been going through years of bank records. They are trying to locate checks that were deposited into an account that officials tied to the school said the nuns used as a “personal account,” but it appears there is confusion on how exactly to identify them.

Debby Rhilinger, whose family moved to Colorado in 2015 after putting five children through St. James, said she has identified $45,000 in tuition checks deposited into the suspicious account.

That only represents seven years of available checks, she said. Church officials helped her figure out how to identify the checks, she said.

“We are completely devastated and feel very betrayed,” Rhilinger said.

Payments were credited but the money siphoned, officials said, a loss of income not noticed because the school was financially stable.

Rhilinger said her family was especially close with Kreuper, the school’s longtime principal, often volunteering for fundraisers. Chang taught eighth grade and served as vice principal in recent years.

“It really hit even harder that (Kreuper) did it to us, because of everything we gave her,” Rhilinger said. “I cried, I was shaking. It’s really affected us. We’ve not been sleeping.”

St. James parents have also been grappling with how to explain the controversy, and the hypocrisy of the nuns’ alleged crimes, to their children.

“Sister Lana preached to those eighth-graders every day that there are consequences to your actions,” Rhilinger said.

Other parents have said that it is Kreuper’s turn to “walk the line,” referring to a form of punishment she was known to impose on students, making them walk along a line outdoors while their peers played during recess.

Jack Alexander of Redondo Beach said he has met recently with detectives with his bank records.

The archdiocese’s reversal did not surprise him, he said.

“From the moment I heard about this … it seemed like this was nothing more than a cover-up and they didn’t want the truth to come out,” Alexander said. “It’s not up to the church to decide. It was wrong. It’s a crime that needs to be prosecuted.”