MOORHEAD, Minn. (KFGO-AM) - Prosecutors have reached a plea agreement with a Wolverton, Minn. man accused of embezzling $700,000 from the ELCA's Northwestern Minnesota Synod.
The agreement calls for Robert Larson to serve four years in prison and to pay back the stolen money.
“That’s an upward departure from Minnesota sentencing guidelines” according to Assistant Clay County Attorney Heidi Davies. “We came to that agreement based on the amount of money that was stolen, his abuse of a position of trust, as well as the long period of time that the theft took place over.”
The plea agreement also says Larson’s wife will not be prosecuted.
Larson was a bookkeeper for the synod. He stole the money by forging checks made out to himself and his wife.
Much of the money was used to remodel Larson's home. The house has been put up for sale to help pay for the restitution.

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http://nwmnsynod.org/crime-insurance-coverage-update/

Crime Insurance Coverage Update

Posted: 
Filed Under: News
Dear Brothers and Sisters in Christ:
I am pleased to announce, on behalf of the synod executive committee, that the Northwestern Minnesota Synod has received a total of $590,012.72 from the crime insurance coveragethat the synod has through the Evangelical Lutheran Church in America. An initial payment of $50,000 was received last May, and $540,012.72 was received in November while I was visiting our companion synod in India.
This means that the synod has received from its insurers 77.5% of the funds believed to have been misappropriated from the synod by the former synod bookkeeper, Robert D. Larson. This is a significant payment of funds by the synod’s insurers to partially cover the dollars that were misappropriated by Mr. Larson between September 1, 2004 and January 2, 2012 (the day his employment was terminated).
With regard to the $590,012.72 that has been received, the synod executive committee has decided:
  1. To make a payment in the amount of $259,951.68 to the ELCA Hunger Appeal before the end of this month. This represents the amount of funds that were given by congregations of the synod for the ELCA Hunger Appeal during fiscal years 2009, 2010 and 2011 but were not properly remitted by Mr. Larson to the ELCA Hunger Appeal.
  2. To retain the remaining $330,061.04 in a synod restricted fund, pending discovery of other ways in which the misappropriation of funds harmed synod and/or ELCA churchwide ministries. This will include a close examination of financial records for the ELCA Hunger Appeal during the fiscal years 2004 through 2008. (Note: $250,000 of this $330,061.04 will be invested immediately in the ELCA Mission Investment Fund so that these dollars can be put back to work on behalf of the congregations and ministries of our church.)
This settlement reflects the full amount of funds which, according to the forensic audit, were misappropriated from the synod and paid to (or on behalf of) Mr. Larson. The remaining 22.5% ($170,632.09), while allegedly misappropriated from the synod by Mr. Larson and transferred to Rural Life Outreach, cannot be demonstrated to have directly benefited Mr. Larson, based on the forensic audit. (Note: Rural Life Outreach was dissolved last May. At that time the organization basically had no remaining financial assets. Rural Life Outreach did not carry crime insurance coverage.)
The synod intends to seek restoration of the remaining $170,632.09. At this point the synod executive committee plans to
  • Monitor the progress of criminal charges (still pending) against Mr. Larson in the hope that a legal judgment will be made against him that will lead to the complete restoration of all misappropriated funds; and
  • Reserve the right to sue Mr. Larson for any misappropriated funds that have yet to be recovered, following conclusion of the criminal proceedings against him.
In the meantime, members of the synod support staff in collaboration with our bookkeeper at Fiebiger, Swanson, West & Co. will continue to identify specific ways that the misappropriation of funds harmed ministries of the Northwestern Minnesota Synod and the Evangelical Lutheran Church in America.
Although at times this painstaking work seems akin to hunting for a needle in a haystack, we believe we will be able to discover additional effects of the misappropriation of funds by Mr. Larson.
Although receipt of this significant insurance settlement does not mean that we have concluded our response to the misappropriation of synod funds by Mr. Larson, it is a significant milestone in our journey toward such a conclusion. As we conclude nearly a year of investigation of and response to this embezzlement (not to mention the rebuilding of our synod financial operation), I want to express gratitude to the partners who have made it possible for us to reach this milestone:
  • The members of our synod staff who late last December discovered and reported evidence that an embezzlement had been taking place;
  • Members of the synod staff, synod council and synod executive committee who have given me wise advice and unfailing support;
  • The forensic audit team at Eide Bailly;
  • The Moorhead police department;
  • The ELCA Churchwide organization which provides the crime coverage insurance for our synod and the other 64 synods of the ELCA;
  • Members of the ELCA Office of the Secretary staff who have advised us throughout this experience;
  • Members of the synod staff and Fiebiger, Swanson, West & Co who continue to explore specific ways the embezzlement diminished our ministries;
  • You, the people of our synod, who have continued to offer yourselves, your trust, your prayers and your financial support for the mission and ministry of our Evangelical Lutheran Church in America and our synod.
God bless these holy days of wonder and joy as we celebrate again the coming of Immanuel—God With Us.
In Christ,
Bishop Lawrence R. Wohlrabe

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Synod Council updated on Embezzlement

Posted: 
Filed Under: News
Members of the NW MN Synod Council (the synod’s board of directors) met on February 4th at North Buffalo Lutheran Church, rural Moorhead. They spent considerable time learning about and discussing the situation involving embezzlement of synod funds by former synod bookkeeper Robert Larson, whose position on the synod staff was terminated on January 2, 2012. The disclosure letter regarding the embezzlement that was mailed to all congregations on January 6, 2012 is now posted on the synod website.
Bishop Wohlrabe introduced the discussion by reporting that the synod appears to have ended the 2011 fiscal year “in the black,” with mission support giving having exceeded the anticipated budgetary amount by nearly $50,000. These are “unofficial” figures at this point, though a final report will be available for the synod assembly, May 11-12, 2012.
Synod council members heard an update on the forensic audit from two staff persons, Brett Johnson and Alex Schroeder, both of Eide Bailly LLP, Fargo. Johnson gave some indication of the size and scope of the embezzlement, though specific dollar amounts cannot be released until the forensic audit is completed. Bishop Wohlrabe also updated the synod council members about the status of criminal charges against Mr. Larson and progress in making a claim for recovery of funds with the synod’s insurers. He stated that the new financial operation—involving a bookkeeper “out-sourced” with Fiebiger, Swanson, West & Co—is coming together very well.
Council members discussed several steps to help people of the synod understand the synod’s financial situation and enhance trust among synod and congregational leaders, including:
  • Setting aside up to 40 minutes of “committee of the whole” discussion time to discuss the embezzlement situation during synod assembly;
  • Having the bishop and/or members of the synod pastoral staff visit all ten conferences prior to synod assembly; and
  • Establishing a new synod Audit Committee to monitor the synod’s financial policies and procedures.
In other matters, members of the synod council
  • Appointed Dr. Paul Dovre to 3-year term on the Board of Directors of Lutheran Social Service of Minnesota;
  • Voted to divide all worship offerings at synod assembly between the synod’s seminarian scholarship fund and Lutheran World Relief;
  • Passed two continuing resolutions to the synod’s constitution, bylaws and continuing resolutions pertaining to changes in the process for electing a synod bishop; and
  • Forwarded a resolution from the ELCA Malaria Campaign team to the synod’s Committee on Reference and Counsel.
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http://www.thelutheran.org/article/article.cfm?article_id=11308

God's Work - Our Sticky Fingers

Another embezzler charged

Robert D. Larson, 61, a former bookkeeper for the Northwestern Minnesota Synod, was charged with felony theft and check forgery inClay County [Minn.] District Court March 1. Larson was terminated in January 2012 after he confessed to embezzling synod funds from 2004 to 2011. Synod staff discovered the embezzlement in December 2011, and a forensic audit established that Larson took $760,000 from the synod, said Bishop Lawrence Wohlrabe. The synod received a payment of more than $590,000 (what could be verified that Larson pocketed for himself) from insurance provided for synods through the ELCA. Larson's predecessor, Rosemarie Johnk, was terminated in May 2004 for using the synod's credit to make nearly $24,000 in unauthorized purchases.
$500,000+ given by WELS to St. Peter in Freedom, WI to buy it, even more loaned to remodel and fumigate it.
Fortunately the nameplate was removable.
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GJ - If people knew how many millions were wasted by their synods and stolen by their volunteers and staffers, they would not give a dime.
The worse the crimes, the more likely they will be covered up and forgotten, with a handy promotion or transfer. But if someone talks about the truth, the same cover-up artists will stomp him into the ground.