A Metro Detroit charity CEO is facing federal charges for allegedly fleecing his employer and using the money for a wide variety of personal expenses.
The 26-page complaint details at least $70,000 worth of spending from a charity that serves some of the poorest children in the state.
Holy Cross Children’s Services and its other charity organizations house foster children and help the needy in many ways. An internal audit turned up the CEO’s spending habits.
John Lynch has been officially charged with wire and mail fraud and theft from an organization that receives federal funds.
He is accused of using the money on various personal things. He allegedly spent $12,500 to put a new roof on his house and spent $7,363 with the company charge card. He allegedly made late fee payments to his mortgage company for a total of $7,194.
The document also outlines $2,683 spent to repair his car and $39,150 on a bogus security contract with his brother-in-law. Around $21,895 was returned to himself as a kickback. He is also accused of spending $7,290 on vacations to Mackinac Island, Florida, on clothing and expensive meals.
His employment with the agency ended in April 2017. He had been in that role for two years.
In 2019, Boysville of Michigan became Holy Cross Services.
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Read a full statement from Holy Cross Services below:
Holy Cross Services was made aware today by the FBI that an arrest and criminal charges had been brought against HCS’s former CEO/CFO, John Lynch. His employment with HCS ended in April 2017, in connection with the events described below.
In 2017, Holy Cross Services’ management discovered financial irregularities indicative of possible embezzlement activity. As a result, HCS initiated an audit which was performed by an outside accounting firm. Holy Cross also immediately notified its insurance carriers and asserted a claim. HCS also reported the matter to appropriate law enforcement agencies (including the FBI). An amicable resolution was reached with HCS’s insurance carriers quite some time ago. During the last several years, HCS has worked closely with the FBI with respect to the matter.
We want to assure all our donors, stakeholders, clients and partners, that Holy Cross fully cooperated throughout the investigation, and that the organization has implemented best practices and safeguards to prevent this from ever happening again.
HCS cannot comment any further due to the pending criminal charges.
Correction:
In the United States Attorney’s Office press announcement released today, it stated that Holy Cross is under the auspices of the Archdiocese. A clarification is important. Holy Cross was established in 1948, when Boysville of Michigan was incorporated under the auspices of the Roman Catholic Archdiocese of Detroit. In 2019, Boysville of Michigan became Holy Cross Services - an independent, non-profit organization, not under the auspices of any Diocese.
Kassie Kretzschmar, Chief Marketing & Communications Officer of Holy Cross Services