Former Archbishop Ryan president indicted on charges
of theft, forgery
By NADIA MARIA SMITH
CS&T Staff Writer
PHILADELPHIA — The Philadelphia District Attorney’s office
has indicted Franciscan Father Charles Newman, former president of Archbishop
Ryan High School, on four felony charges of theft and forgery.
During his July 2002 to November 2003 tenure, Father Newman, not a priest
of the Archdiocese of Philadelphia, has been accused of stealing nearly
$332,000 and two grand pianos from Archbishop Ryan High School in Northeast
Philadelphia and over $552,000 from his own religious order, the Franciscan
Order of Friar Minors from the Assumption B.V.M. Province.
It is also reported that some of the misappropriated funds were given
by Father Newman to an Archbishop Ryan student he had allegedly sexually
abused.
The Grand Jury’s report was announced during a Dec. 20, 2007 press
conference at the office of the District Attorney, Lynne Abraham, although
the Archdiocese began investigating Father Newman’s misconduct
in November 2003 when suspicions of misappropriated funds were first
raised.
At that time Father Newman was removed from his position and told not
to return to the school. Simultaneously, archdiocesan representatives
were sent to Archbishop Ryan High School to change the locks on the
doors, cabinets and other items containing financial records and documents,
as well as the removal of his name from all bank accounts.
The Archdiocese immediately began a more detailed investigation, which
uncovered sufficient evidence to prompt a forensic audit by PricewaterhouseCoopers,
external auditors for the Archdiocese, on Nov. 24, 2003.
“The fraudulent use of funds was a betrayal of trust within the
Archbishop Ryan community,” read a statement by the Archdiocese.
“However, the greater tragedy was the sexual abuse of a minor
which was discovered by the Archdiocese during the financial audits.”
The Archdiocese promptly reported the suspected fraud and the possible
sexual abuse of a minor to the Philadelphia District Attorney’s
Office on Dec. 12, 2003, so that any potential criminal charges could
be investigated.
It was discovered and later confirmed by the D.A.’s office that
not only did Father Newman allegedly steal large amounts of money, but
that some of the money was given to a former Ryan student that the priest
had groomed during the student’s freshman and sophomore year and
then began sexually abusing in his junior year.
According to the Grand Jury’s report, Father Newman introduced
the student to “illegal, addictive narcotics, which he shared
with him on the occasion in which he was sexually abused.”
The Grand Jury findings also noted that the student removed himself
from the abusive situation after graduation, but that Father Newman
continued to supply him with cash for his drug addiction.
The student died of a drug overdose last year, and the statute of limitation
by which Father Newman may have been indicted on sexual abuse charges
had already expired.
“We have determined according to the Grand Jury report that Father
Newman while he was the president of Archbishop Ryan High School, instead
of living a life of poverty, chastity and obedience, lived a lifestyle
of sexual debauchery and lechery, lying, stealing, deception —
a life filled with drugs and alcohol and the sexual abuse of young men,”
said District Attorney Lynne Abraham during the press conference.
Father Newman served within the Archdiocese of Philadelphia through
an agreement with the Franciscan Friars’ Assumption B.V.M. Province
to staff Archbishop Ryan High School since its founding in 1966.
He served as a religion teacher for 13 years and as principal for nine
years before taking his post as president. He also served as the treasurer
and sole manager of the finances for the St. Pius X Franciscan Friary,
where he lived with his community.
Upon Father Newman’s removal by the Archdiocese from Archbishop
Ryan in 2003, the provincial, or head, of his order was immediately
notified.
Father Newman admitted to his misconduct but did not give details about
how much money he stole or what he did with it.
He was sent to St. John Vianney Center in Downingtown for treatment
of his mental health and later sent to Pulaski, Wisc., the order’s
retirement home. He has been living there under supervision and is still
a member of the order with restrictions to his ministry.
He cannot appear as a Franciscan in public, he cannot identify himself
as a Franciscan and he cannot perform any priestly ministry in public.
When he leaves the Friary he must secure the permission of his guardian
and state where he is going and when he will return, signing in and
out.
“Since the learning of these allegations, the Province has barred
Charles Newman from any setting where he might have contact with minors,”
stated a press release by his order. “These charges are serious
and very troubling. The Province has cooperated fully with the authorities
regarding this matter ... The Province pledges to do everything in its
power to protect children.”
The order has also repaid the Archdiocese for the money that Father
Newman allegedly stole.
CS&T staff writer Nadia Maria Smith can be reached at npozo@adphila.org
or (215) 965-4614.
Investigation
prompts changes
The Philadelphia Grand Jury’s report on Franciscan Father Charles
Newman was the culmination of independent investigations by the Archdiocese
of Philadelphia and the Philadelphia District Attorney’s Office.
The investigations were first initiated by the Archdiocese beginning
in November 2003.
According to the presentment issued by the investigating Grand Jury
on Dec. 20, 2007, Father Newman was charged with the theft and misappropriation
of a total of $331,916 in Archdiocesan funds while he was president
of Archbishop Ryan High School (July 2002-November 2003).
After the announcement of the indictment by the District Attorney’s
office, several media reported that the defendant is accused of stealing
$900,000 or more from the Archdiocese. That was incorrect.
In addition to the alleged theft and unauthorized disbursement of archdiocesan
money, Father Newman was charged with stealing $552,280 in money belonging
to his religious order, the Order of Franciscan Friars Assumption B.V.M.
Province, which is not a part of the Archdiocese.
Upon completion of a forensic audit, the Archdiocese in 2004 entered
into an agreement with the Franciscan Friars for full restoration of
funds to the Archdiocese for Father Newman’s alleged actions totaling
$488,631 in three annual installments. The reimbursement covered the
$331,916 missing from Archbishop Ryan High School as determined by the
audit, as well as the cost of the Pricewater-houseCoopers investigation
initiated by the Archdiocese.
Following the investigation and based upon a thorough financial review
by independent, outside auditors commissioned by the Archdiocese, accounting
procedures have been strengthened in all 20 archdiocesan high schools.
Some of the key changes include the following:
• Mandating the establishment of an advisory board with a finance
committee comprised of volunteer professionals at each school.
• The hiring of a certified accountant by the Archdiocese to replace
the bookkeeper at each school. Each accountant is a degreed professional
with experience in accounting rules.
• The hiring of two senior accountants by the Archdiocese in its
Educational Financial Services office to help supervise all accountants
and to enforce policies at the schools. The two senior accountants will
report to Educational Financial Services, not the school presidents.
• The strengthening and reinforcement of existing policies regarding
the disbursement of funds. Included among the changes are the centralization
of disbursements such as religious salary payments; reinforcement of
the rule requiring approval of checks over $5,000; strengthened policies
regarding the reimbursement of business expenses; and tighter rules
on bank accounts.