GROSSE POINTE PARK, Mich. – A Grosse Pointe Park resident is behind bars after allegedly stealing funds from a religious charity. John R. Lynch, 56, was arrested today in connection with a federal criminal complaint charging him with obtaining by fraud, embezzling, and unlawfully converting to his own use the funds of the Holy Cross organization, a large charitable organization based in Clinton, Michigan.
According to the complaint affidavit, Lynch used Holy Cross funds to pay for repairs to his own cars, install a new roof on his house, pay down his personal mortgage balance, and make payments on a personal American Express account. He also used Holy Cross funds to pay his own consulting company and to pay another company hired to provide security services at the Samaritan Center, a company ostensibly controlled by a relative but actually controlled by him.
The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless. The organization receives federal funds under the National School Lunch Program and the School Breakfast Program, as well as under Title IV-E of the Social Security Act, which pays for foster care and provides adoption assistance and guardianship assistance.
Lynch, who served as the CEO of Holy Cross from January 2015, allegedly used his corporate American Express card to pay for goods and services of a personal nature. The complaint affidavit states that Lynch attempted to justify some of these payments with bogus invoices.
The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation is being conducted by the Federal Bureau of Investigation.
Charged in the criminal complaint is John R. Lynch. The complaint affidavit states that Lynch used Holy Cross funds to pay for personal expenses, including car repairs, a new roof on his house, and mortgage payments. The complaint charges Lynch with wire fraud, mail fraud, and embezzling and stealing funds under the care, custody, and control of an organization receiving federal funds.
The complaint affidavit also relates that Lynch used Holy Cross funds to pay his own consulting company and to pay another company hired to provide security services at the Samaritan Center. The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless.
The case is ongoing, and no further information is available at this time. The Federal Bureau of Investigation is conducting the investigation, and the case is being prosecuted by Assistant United States Attorney Stephen Hiyama.
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Key Facts
- State: Michigan
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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