Sophie Carson
Milwaukee social services agency Catholic Charities said it has fired employees who allegedly stole at least $1.7 million in a years-long scheme.
The Very Rev. David Reith, who leads Milwaukee's Catholic Charities as vicar, made the announcement Monday morning in an email.
Certain employees "engaged in unauthorized use of funds for their and others' personal benefit," Reith wrote. Internal investigations indicate that four employees were involved: two of them were working for Catholic Charities at the time the scheme was discovered, and two were former employees.
The nonprofit runs several programs, including adoption services, adult day services, counseling, case management, and refugee and immigration support. The employees were not affiliated with a specific program but were administrative staff members.
Reith said the scheme took place over several years but the employees "became bolder" in recent years. Final totals are not yet determined, but Catholic Charities leaders estimate $1.7 million was stolen in fiscal years 2023 and 2024, when "the fraud was most active."
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Law enforcement officers are currently investigating the case, and no criminal charges had been filed as of Monday. And Catholic Charities' board of trustees has commissioned several independent investigations since the scheme was discovered around late spring or early summer.
"These investigations determined that no current employees were involved or aware of the fraud," Reith wrote.
Catholic Charities said it made several changes after discovering the alleged scheme:
- Hired an interim finance leader with a background in nonprofits and internal controls;
- Conducted an internal control assessment, "resulting in substantial improvements;"
- Changed auditing firms.
Programs were not affected by the financial loss, and a similar number of clients were served over the last two years, Reith said.
Catholic Charities leaders were not available for comment Monday.
"While we are far from the first to experience a violation like this, it nevertheless has been difficult to process given we serve the poorest of the poor," Reith said in the email. "We are heartbroken that this happened and to have to share this news with you."
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