Irish priests suspected of $8m embezzlement charge

Two Irish priests allegedly embezzled more than $8 million from their church and spent hundreds of thousands of dollars on propoerty…

Two Irish priests allegedly embezzled more than $8 million from their church and spent hundreds of thousands of dollars on propoerty, travel, rare coins and girlfriends, police in Florida said today.

The retired priests were accused of skimming cash from collection plates and bequests to the St Vincent Ferrer Catholic Church in Delray Beach, Florida, over a period of years and channeling the money into secret "slush funds" they used to pay personal bills.

Former St Vincent pastor John Skehan (79) - originally from Co Kilkenny - was arrested before he boarded a flight for Ireland on a charge of grand theft of $100,000 and was being held in the Palm Beach County jail.

A warrant was issued for the arrest of Fr Francis Guinan (63) - originally from Co Offaly - on the same charge. He was on a cruise in Australia but had contacted the police, the Palm Beach Post reported.

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"We believe that our investigation has shown that the two allegedly have misappropriated more than $8 million and have used it for personal use or for other purchases," said Paige Patterson-Hughes, a spokeswoman for the Florida Department of Law Enforcement.

"Some of the things we believe were allegedly purchased included real estate, coins and travel," she said.

According to a police affidavit, Monsignor Skehan invested heavily in rare coins, once buying $275,000 worth in a single day. He owned a cottage and a pub in Ireland , a penthouse condo worth $455,000 in Singer Island, Florida, and another condo in Delray Beach.

The thefts took took place over a period of years when Msgr Skehan served as St Vincent parish priest and continued when Fr Guinan took over as pastor three years ago, police said.

"These guys lived the life they told everyone else not to live, and they lived it on everyone else's dime," Delray Beach police spokesman Jeff Messer told the newspaper.

The Diocese of Palm Beach said it started investigating allegations of missing funds around April of 2005, about a month before police launched their own probe following an anonymous tip.

"Credible evidence also prompted me to initiate a canonical process for Father Guinan's removal as pastor," Bishop Gerald Barbarito said in a written statement. "During this process he volunteered to resign and retire."

A forensic accounting firm hired by the Diocese found that $8,690,593 was misappropriated during the tenures of Msgr Skehan and Fr Guinan, the police affidavit said.

It said a female bookkeeper at a Palm Beach County church with whom Guinan allegedly had an "intimate" relationship received $47,000 from the slush funds in 2004.

A witness cited in the document characterized Guinan as a "gambler and heavy drinker."

"She recalled Guinan taking vacations to Las Vegas and the Bahamas ... she began to wonder how Guinan could afford to live what she called a lavish lifestyle on a priest's salary." the affidavit said.

A witness told police Skehan paid a "girlfriend" under the table and paid off a car loan for her with money from the church.