According to police records obtained by the Easton Star-Democrat, Ms Swartz's alleged defalcations were first discovered in November 2004, when an unauthorized payroll check written by Ms Swartz to herself in December 2003 for $1,345 came to light.

Ms Swartz explained that she had given herself an advance on her pay, but subsequently forgot to make good on the advance. Further examinations by an auditor engaged by the diocese in January 2005 indicated Ms. Swartz had been using diocesan accounts and credit cards for her private use. The $9,000 in purchases made between 2001 and 2004 was listed as "other support services" in the diocese's financial statements. Confronted by the audit, Ms Swartz resigned and offered to make full restitution.

Further investigations revealed that the signature of the diocesan treasurer had been forged. While the diocese's records indicated payments totaling more than $65,000 were being made to vendors such as the "Domestic and Foreign Mission Society" and "Church Pension Fund Group Insurance Services," the actual payee on the check was "Gail Swartz."

A further $72,000 in payments was allegedly co-mingled between bona fide diocesan creditors and Ms. Swartz's personal purchases. The total theft has yet to be determined. After consultation with the standing committee, Bishop Shand turned the m atter over to the police in early May.

"Because this is a continuing investigation" Bishop Shand wrote, "I am restrained from providing you any additional information at this time or commenting on events."

He asked the diocese, however, for "your prayers for all those whose lives have been pressured and disrupted by these events"

END