John R. Lynch, Wire Fraud, Michigan 2022

Grosse Pointe Park Man Used Charity Funds for Personal Expenses, Pleads Guilty to Wire Fraud

A Grosse Pointe Park resident, John R. Lynch, 56, pleaded guilty today to one count of wire fraud in connection with a scheme to defraud and steal funds from the Holy Cross organization, a large religious charity based in Clinton, Michigan, that receives federal funds, announced Acting United States Attorney Saima S. Mohsin.

Joining in the announcement was Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.

Pleading guilty before U.S. District Judge Bernard Friedman was John R. Lynch, 56.

According to court records, in March 2012 Lynch became the CFO of the Holy Cross organization, and in January 2015 he became its CEO. 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.

Lynch attempted to justify some of these payments with bogus invoices. In addition, Lynch used his corporate Holy Cross American Express card to pay for goods and services of a personal nature.

Holy Cross received federal funds under the National School Lunch Program and the School Breakfast Program. It also received federal funds under Title IV-E of the Social Security Act, which pays for foster care and provides adoption assistance and guardianship assistance.

The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation was conducted by the Federal Bureau of Investigation.

A sentencing date has been set for January 18, 2022, at 1:30 pm.

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