wfn.org | Synod of South Atlantic Uncovers Embezzlement

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8-July-1998 
98228 
    Synod of South Atlantic Uncovers Embezzlement 
 
    by Jerry L. Van Marter 
 
LOUISVILLE, Ky.-The Jacksonville, Fla.-based Synod of South Atlantic has 
uncovered an embezzlement scheme involving its longtime bookkeeper, Adelita 
Magpusao.  She has been charged by Jacksonville prosecutors with embezzling 
at least $81,000. 
 
    According to synod executive the Rev. John Bartholomew, the 
embezzlement was discovered in mid-June, while the recent General Assembly, 
was in session by his administrative assistant, Jackie Davis.  She became 
suspicious, Bartholomew told the Presbyterian News Service in a July 8 
interview, when an uncashed check was returned to the synod by an 
unfamiliar vendor.  The check had Davis' forged signature on it. 
 
    The check turned out to be a payment on a credit card held by Magpusao, 
who has been the synod's bookkeeper for 10 years.  Due to recent 
downsizing, her position was reduced from full to part time in January of 
this year. 
 
    Subsequent examinations by synod officials and a forensic auditing firm 
have turned up a number of other forged checks on which Magpusao apparently 
used signature stamps from the synod office. 
 
    "The irony is that two weeks before we discovered the problem we 
received a clean 1997 audit," Bartholomew said. 
 
    He said the embezzled money appears to have been almost exclusively 
"pass through" funds - donations to specific projects that Magpusao 
diverted for her personal use.  "Because these were special gifts, the 
recipients didn't know the money was coming so they didn't miss it," 
Bartholomew said, explaining why it took some time to discover the 
embezzlement. 
 
    Once the embezzlement was uncovered, Bartholomew added, "we took 
decisive steps to clean up the mess."  The synod is working with its 
insurer, the auditors and its bank to recover the stolen money.  The bank 
shares some responsibility, he said, "because the rubber-stamped signatures 
on the checks were blatantly fraudulent." 
 
    Bartholomew praised donors, recipients and the synod's presbyteries 
"for their gracious response to all this."  He said no harsh criticism has 
been leveled and that the presbyteries have been very cooperative "even 
though, as the treasury receiving sites, this will mean some extra work for 
them." 
 
    As the case moves through the court system, Bartholomew said, the synod 
has asked the forensic auditors to determine exactly how much money 
Magpusao stole, whose money it was and where it should go, and to recommend 
additional financial safeguards to ensure such an embezzlement cannot 
happen again. 

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