PCUSA, presbytery seek to put diversion of $770,000 in presbytery funds in best light
By John H. Adams, The Layman Online, January 24, 2005
A Denver prosecutor is considering bringing charges against the former treasurer of the Presbytery of Denver, who has admitted that he diverted more than three-quarters of a million dollars from the presbytery to “invest in” a construction company that he works for.
Gary Campbell, the former part-time presbytery treasurer, resigned in July after an audit disclosed that he had withdrawn $777,000 in presbytery money. Presbytery officials did not say why it had taken from July until last week to disclose that the money was missing.
The Associated Press quoted Campbell, 50, as saying he was sorry for causing any “heartache. I’m not trying to defer blame, for sure – because there is blame,” he said. “But I trust God knows what I did and knows what my intent was.”
Campbell told the Denver Post that the incident had been “blown out of proportion.” He said nothing fraudulent took place and that the construction company intends to pay back the presbytery with interest.
He said he used the presbytery money as part of an investment opportunity to gain a higher rate of return. “There was no personal gain,” he said. “The presbytery was going to come out way ahead.”
Presbytery officials said Campbell was not authorized to make any investments.
Facing the growing tension of financial shortfalls and the decisions by some congregations to withhold per-capita payments that supported higher governing bodies, both the denomination’s Presbyterian News Service and the presbytery, through a news release, tried to cast the disclosure in the best light.
The PCUSA News Service began its account of the situation by saying, “According to Denver Presbytery stated clerk Janet Schlenker, no church programs will be affected by the $410,000 that is missing from the presbytery’s coffers.” Several paragraphs later, the writer acknowledged that the former treasurer, Campbell, actually withdrew $777,000 in presbytery money, but had repaid part of it.
A news release by the presbytery said Campbell made an “unauthorized removal of $460,000.” But the presbytery later acknowledged that Campbell had withdrawn the full $777,000 over a 17-month period, but said he repaid $317,000 during that time frame.
Furthermore, the presbytery news release said, the presbytery received another payment of $50,000 later, reducing the total of uncollected money to $410,000.
“In an effort not to exaggerate or misrepresent the amount that was actually missing, the [Presbytery] Council chose to report the actual amount that was removed,” the presbytery’s news release said. “In the course of the interview the reporter asked if more had been removed during the time frame in question and we openly and honestly answered his question. It is also important to note that our bank statement received last week reported a $50,000 direct deposit to our account December 31, 2004. The amount of money missing from the Presbytery’s reserve account is now $410,000. As we stated previously, we intend to take every reasonable avenue to have all the money returned.”
At the advice of its lawyers, the presbytery said it did not name Campbell or the company that received church funds in its news release.
When later contacted by reporters, Campbell confirmed his identity as the former treasurer and said he works in accounting for Littleton-based River’s Edge Woodworking, also identified as RWI Inc. Campbell was paid $500 a month to work for the presbytery.
Meanwhile, the documents in the case have been turned over to the Denver district attorney’s office, which is looking into potential fraud.
Asked whether he had done anything wrong, Campbell said it was wrong that it took longer than expected for the company to repay the debt.
Said Andy Browne, moderator-elect of the Denver Presbytery: “The presbytery is fortunate to have substantial assets. This is certainly not going to be a crippling event.”