Former Winnipeg church administrator pleads guilty to embezzling $400K

A former employee of a Parish of Saint Bernadette on Cottonwood Road in Winnipeg has admitted to embezzling hundreds of thousands of dollars from the church.

Richard Frechette, head financial administrator for the Archdiocese of St. Boniface, said Leo McCaughan took about $404,000 from St. Bernadette's during his time as an employee.

• Church administrator embezzled $400K, Winnipeg police say

In January, McCaughan was charged with theft, fraud and falsification of documents. On Tuesday, he pleaded guilty.

"It's bittersweet because it's a complex situation. There's mixed feelings," Frechette said, adding parishioners who worked with McCaughan were deeply hurt by the theft.

"People are being more careful now how the funds are being administered going forward, but it's been a traumatic experience for everyone involved."

McCaughan managed finances for the church between 2009 and 2015.

Manitoba's director of criminal property and forfeiture launched a civil suit to claw back the money after members of the church noticed financial inconsistencies during a routine audit in 2015.

"The province has done a wonderful job," Frechette said. "They've been involved in this right from the beginning."

Frechette said McCaughan spent church money on a house and vehicle, among other investments, which have since been seized.

McCaughan has "fully co-operated" with the investigation since he was arrested, Frechette said, adding he recently paid back about $320,000 and plans to return the remainder of the money.

"I really didn't think we would be able to recover as much as we have," Frechette said. "We're very grateful."

Frechette added that he hopes McCaughan "finds his way."   

"We wish him a recovery," Frechette said.