The Bishop of Colorado said that contrary to statements made by the vestry of a Colorado Springs parish, the diocese has provided “substantial detail and documentation” regarding the allegations of fraud and theft against the parish's rector, the Rev. Don Armstrong.

“That the vestry has chosen to ‘leave’ The Episcopal Church on the day that the Diocesan Review Committee issued its presentment calls into question the motivation for making such a decision,” stated the Rt. Rev. Robert O’Neill in a March 27 letter to members of Grace and St. Stephen’s Church. “That the vestry decided to restore Father Armstrong to a position of leadership – particularly in light of the allegations against him – and has justified that decision on the basis of safeguarding the Church’s moral integrity defies comprehension."

The presentment, which is the ecclesiastical equivalent of a civil court indictment, was issued after the disciplinary review committee received the report of the church attorney’s year-long investigation. Fr. Armstrong has been under an inhibition from priestly ministry issued by Bishop O’Neill in late December. The investigation covers financial transactions over the past 10 years and included reviewing six volumes of documents, evaluating the report of the forensic accounting firm, and conducting around 45 interviews, Bishop O’Neill stated.

According to Bishop O’Neill, among the charges pending against Fr. Armstrong are:

• theft from Grace Church of $392,409.93 in unauthorized payments for educational and personal expenses for Fr. Armstrong’s family;

• tax fraud involving $548,097.27 in non-salary income and benefits not reported to the IRS;

• unlawful loans to Fr. Armstrong amounting to $122,479.16;

• improper use of clergy discretionary funds in the amount of $136,354.78;

• causing Grace Church to record “false or fraudulent” accounting entries.

Fr. Armstrong denies any wrongdoing and said he has provided the diocese with documentation to prove his innocence. In a statement provided to The Living Church he noted that every accusation in the report by the church attorney “contains a footnote that admits a lack of crucial and decisive information.”

Given the serious nature of the allegations against Fr. Armstrong, Bishop O’Neill asked members of the congregation to consider whether in voting to leave The Episcopal Church and restore Fr. Armstrong to the pulpit the vestry had committed an “irresponsible breach” of its fiduciary duty and the congregation’s trust.

“My primary pastoral concern is for those of you remaining loyal to Grace and St. Stephen’s,” Bishop O’Neill wrote, “those who do not want to be part of a Nigerian Church; those from whom Grace and St. Stephen’s is a spiritual home; those who have marked significant life events there; those who have forged deep relationships in the parish community; and those who have given generously for the mission and ministry of the parish.

"You can expect to hear from me this week regarding the next steps that will be taken to provide for worship this Sunday and for new pastoral leadership for the parish in the short term and until such time as the parish is restored to its property.”

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