Former Catholic Charities Head Accused of Embezzling

The former director of Catholic Charities of Orange County has been charged with embezzling more than $40,000 from the diocesan organization, Assistant Dist. Atty. Maurice L. Evans said Thursday, and a warrant was issued for his arrest.

Allen Andrew Simmons, 38, of Orange, is being sought for embezzling the money from Catholic Charities--a nonprofit corporation which is partially funded by United Way of Orange County--between January and July of 1986, Evans said. Officials said Simmons, known as Brother Andrew, represented himself as a member of a religious order that the Catholic Church has not yet recognized.

According to Auxiliary Bishop John T. Steinbock of the Diocese of Orange, a confidential memo was circulated throughout the diocese in late January explaining that Simmons had been “relieved of his responsibilities” with Catholic Charities, and that he was under investigation “concerning the use of funds.”

Simmons, listed in the 1986 directory of the county diocese as “Brother Allen Andrew,” could not be reached for comment.

Evans said that, although Simmons “represented himself as a member of the Franciscan Brothers of Mary, Queen of Peace, our investigation has determined that that is not a recognized order.”

Sister Kristan Schlichte, the current director of Catholic Charities, confirmed that information regarding the $43,000 loss was turned over to the district attorney’s office but declined to comment on the details of the case on the advice of the diocese’s attorney. However, Schlichte said, “we’re very anxious for this affair to be put to rest.” She said that the handling of funds is “a moral issue.”

Schlichte and Bishop Norman F. McFarland, who was installed Tuesday as the bishop of the diocese, agreed that the matter had to be taken to law enforcement authorities. “If we hadn’t wanted to” make the matter public, Schlichte said, “we wouldn’t have pressed charges.”

Said McFarland: “You don’t cover up something like this.”

McFarland, who supervised the first public audit of the Diocese of San Francisco while serving as auxiliary bishop there in the 1970s, was later assigned to the Diocese of Reno-Las Vegas, which was $4 million in debt, in order to bring that diocese back to financial stability.

“You don’t fool around” in dealing with allegations of financial impropriety, he said. “These are the public’s funds.”

However, McFarland, who serves as president of Catholic Charities, said that he felt his coming to the Diocese of Orange from Nevada was not related to the missing funds, since the appointment to Orange County was already made when he was informed of the situation by Steinbock. McFarland, who was still in Reno at the time, said he concurred in the recommendation that the district attorney’s office be notified.

Assistant Dist. Atty. Evans emphasized that the diocese had contacted him and “requested that our office conduct an investigation. They have been totally cooperative with us.”

Catholic Charities distributes its funds to other church organizations, including Catholic Social Services, Christian Service Agency and Immigration, Catholic Youth Organization, and Resettlement and Citizenship Services for undocumented workers, as well as providing low-income housing and residential care for children with developmental disabilities.

Catholic Charities of Orange County’s budget for 1986 budget was $2,342,417, according to Schlichte. Approximately 20% of those funds, $461,000, came from United Way of Orange County.

In a statement read to The Times Thursday, Merritt L. Johnson, president of United Way of Orange County, said the organization “supports the action taken by Catholic Charities’ volunteer leaders and staff to investigate the alleged financial wrongdoing by their former director, Brother Allen Andrew, through the district attorney’s office. The agency has acted responsibly with regard to the situation by contacting their insurance company and confirming that they (Catholic Charities) are covered for any financial losses.”

Orange County United Way officials reported a $2.5 million shortfall in their 1986 fund-raising drive, attributed in part to negative publicity generated by a controversy involving loans by the Los Angeles United Way to five of its employees. As a result, agencies receiving funds from the Orange County United Way, including Catholic Charities, were told to expect 10.5% less in the first six months of 1987.