D.A. to investigate hundreds of thousands of dollars misappropriated at Catholic School

District Attorney Jaime Esparza tells ABC-7 his office will investigate the misappropriation of funds at St. Joseph Catholic School.

The D.A’s office, with the assistance of the El Paso Police Department, will determine whether to press criminal charges against two retired administrators accused of using school money for personal expenses.

An audit and investigation found Brother Edwin Gallagher and Brother Richard Fish allegedly stole more than $800,000 from the private school in Central El Paso.

For 25 years, Gallagher was the school’s principal and Fish its assistant principal. Both retired last June.

The diocese said it took several factors things into account when deciding not to press charges against them, like the fact that the two immediately admitted to it when it was discovered.

“What we can see, is that this was definitely money spent living beyond the means of those who took a vow of poverty,” Catholic Diocese of El Paso Spokeswoman Liz O’Hara said.

Three separate investigations found the elementary school’s former principal and assistant principal took money out of the school bank account for personal expenses for at least seven years.

“This was money that was coming out of the school’s general fund. So this could’ve been used for anything in the school, anything the school needed to teacher’s salaries,” O’Hara said.

The two are not employees of the diocese but members of a catholic religious order based in Ohio, “Brothers of the Poor of St. Francis.” The diocese agreed not to reveal what the money was used for, so it could get the money back from the order.

“The first installment of a little more than $200,000 dollars, will start on June the 30th, so here in a few weeks, and they have until may the 31st, of 2017 to repay the money,” O’Hara said.

Meanwhile, mixed reaction from parents like Joe Marez who says he doesn’t believe the allegations.

“It’s unbelievable, but if there is any money missing, look at the church, that’s where the money went,” Marez said.

Former student, Ryan Norris, says he hopes the church will be more transparent.

“They expect us to confess to them, in confession, well this is confession, so let us know what they were spending the money on,” Norris said.

The Diocese of El Paso said it will not press any charges against Brother Edwin Gallagher and Brother Richard Fish and since they’re not diocese employees, will not seek any other punishment.

ABC-7 reached out to The Order for comment. It did not reply.