St. James Catholic School parents’ bank records could help investigation into nuns’ alleged embezzlement

Parents of students at St. James Catholic School — past and present — have visited the Torrance Police Department in recent days to hand over bank records for an investigation into alleged embezzlement by two longtime nuns.

On Tuesday and Thursday, the Police Department increased staffing to process years of bank records for tuition, fees and other payments. The information will help detectives determine just how much money was allegedly misappropriated by Sister Mary Margaret Kreuper, the school’s former principal of three decades, and Sister Lana Chang, who taught eighth-grade and served as vice principal in recent years.

Both nuns retired about six months ago, around the same time an old check, a phone tip and an audit of the school’s finances triggered an internal investigation by the Archdioceses of Los Angeles.

Officials told parents earlier this month that the investigation uncovered an apparent embezzlement scheme in which Kreuper diverted tuition checks into a “long forgotten” bank account that she and Chang allegedly used for personal expenses, possibly including travel and casino trips.

Though the Archdiocese initially said it would not pursue criminal charges against the nuns, officials met with Torrance police last week indicating they now want prosecution, said Sgt. Ronald Harris. Kreuper and Chang admitted to wrongdoing and have since been removed from ministry by their order, the Sisters of St. Joseph of Carondelet, and placed under “canonical sanctions,” officials told parents.

Harris said parents can drop off their bank records at the police station any time, but no additional dates with extra staffing are planned. He did not disclose how many parents have visited the Torrance police headquarters next to City Hall.

On Tuesday night, at least a dozen were seen coming and going from the station, some carrying large envelopes. Many declined to speak with reporters gathered outside. Others who did not want to share their names out of fear of retaliation said they were asked about their experiences at the school and anything that raised eyebrows.

Jack Alexander, of Redondo Beach, who put three children through St. James until 2016, was among those who turned out Tuesday. He said detectives are asking parents about letters they received from the school over the years requesting donations, as well as fundraising events, such as raffles, bake sales and Texas hold ’em tournaments.

Although auditors hired by the archdiocese told parents that Kreuper and Chang used one account for personal gain, Alexander said it appears detectives are looking into numerous accounts.

“They’re trying to collect as many checks so they can verify which accounts were legitimate and not,” he said.