80-year-old nun who embezzled $835,000 from California school sentenced to year in prison

A nun and former principal of a Torrance Catholic school was sentenced to one year in prison on Monday, Feb. 7, after pleading guilty to embezzling approximately $835,000 from the K-8 campus to pay for personal expenses such as gambling trips.

Mary Margaret Kreuper, 80, of Los Angeles, admitted to stealing the funds while she was principal at St. James Catholic School from 2008 to 2018. In July, she pleaded guilty to one count each of wire fraud and money laundering.

U.S. District Court Judge Otis D. Wright II sentenced Kreuper to one year in federal prison and to fully pay the school back. She has paid back $10,000 and is expected to continuing paying back what she can, even if that is only $20 a month after she is released.

“I have sinned, I’ve broken the law and I have no excuses,” Kreuper said via teleconference from a convent. “My actions were in violation of my vows, my commandments, the law and, above all, the sacred trust that so many had placed in me. I was wrong and I’m profoundly sorry for the pain and suffering I’ve caused so many people.”

Kreuper was responsible for funds the kindergarten-through-eighth-grade school received for tuition and fees, in addition to donations.

In addition to the embezzling funds, the former principal also directed employees to alter and destroy financial records during a school audit, Assistant U.S. Attorney Poonam Kumar said.

The prosecutor argued for a heavier sentence of two years in prison, considering the amount of money stolen, the scheme’s time span and the attempts to destroy evidence.

“That is an outpouring of greed,” Kumar said. “She abused the trust of this community.”

During sentencing in downtown Los Angeles, Wright said he took into consideration Kreuper’s age, lack of prior criminal history and her 60-plus years as a nun.

But, he said, “I am sure that this horrible example will affect these kids. … You just ran completely off the road.”

In an earlier interview with authorities, Wright said, Kreuper told investigators that one factor in taking the money was that she felt there was a disparity in pay between private and public schools. The judge asked Kreuper how she could believe that, considering she was a nun and “basically signed on to be poor.”

“What I perceived as an injustice was rationale for my sin,” Kreuper said, “and I know that I was wrong.”

Kreuper’s defense attorney said she suffered from a gambling addiction. Wright also ordered Kreuper to receive counseling for the addiction.

Dozens of people – in church leadership, school coworkers, parents and former students – signed letters for the sentencing. A majority of them were in favor of Kreuper receiving a lighter sentence, Judge Wright said.

After reviewing the letters, Wright said Kreuper has likely impacted thousands of children’s lives in positive ways and helped them to achieve success. Kreuper wiped away tears at the judge’s comment.

Several people spoke during the hearing, including some parents of students who said they felt betrayed Kreuper pocketed their tuition money, and others who said they forgave her.

One former student said the whole experience has shaken her, violated her trust and played a role in her no longer being a part of the Catholic church.