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As told on the uncharitable podcast The Holy Rollers (listen below) Mary Margaret Kreuper dedicated 27 years to St James Catholic Elementary School as a principal. Providing education rooted in catholic values from kindergarten to the 8th-grade level. Sister Chang served for 20 years as Vice Principal. 

Together the pair announced their decision to retire in 2018. In a newsletter, the church heralded Kreupers retirement and urged parishioners to “take time and thank her for her generous service” 

However, when the Archdiocese conducted a financial review in preparation for the new principle, it appeared the numbers just weren’t adding up. 

A substantial amount of School funds had been misappropriated for what appeared to be personal use starting from 2008. 

The school processed the tuition fees by dividing and depositing them into several accounts, including a savings account and one established to pay for the living expenses of the nuns employed by the school. But a closer look showed the money had been siphoned out of the accounts.

Further red flags began to surface when Kreuper herself instructed school administrators to destroy and alter financial records, prompting Colleagues to report their suspicions to Pastor Michael Mayers of St James Church. 

Around the same time, a parent asked in the school meeting about an old tuition check that had an endorsement on the back that did not line up with the school's primary account.

When confronted, the nuns could no longer hold their poker faces.

With the cards laid out, they found that Kreuper had diverted the school funds amounting to $835, 339 from the school's long-overlooked Kova account to pay for expenses such as round trips to Vegas and Lake Tahoe casinos.

As the school's bookkeeper, Margaret oversaw the school's monthly and annual reports to the school administration.

Her fake reports tricked the school into believing that the finances were being properly accounted for and its financial assets safeguarded, which in turn allowed Kreuper to maintain her access and control over the accounts. 

According to Courthouse News, when checks made out to the school were taken, Kreuper would deposit them into a convert bank account. A month later, she would withdraw a cheque and deposit it in a separate account belonging to another person, who would then cash the cheque and return the money to Kreuper.

To justify her actions, Kreuper claimed that the money was owed to her, highlighting that the gender pay gap between priests and nuns is substantial. 

But later acknowledged her wrongdoings and promised to cooperate in the ongoing probe and planned to make full restitution to financially aid the damage that she had caused.

At the beginning of the investigation, the Archdiocese declared the church had no intentions to pursue criminal proceedings against the Sisters, and planned to address the situation internally. 

However, 2 weeks later this changed and the church went forward to press charges.

Both sisters were removed from their residence and placed in a religious house under the supervision of the Church for the next three and a half years, restricted from leaving the premises without permission or a chaperone.

On June 8th, 2021. Federal prosecutors filed charges against Kreuper, who agreed to plead guilty to money laundering and wire fraud charges. 

Sister Chang, although initially implicated in the scheme, was not prosecuted. When questioned why, the US Attorney's Office said that only Kreuper was to be charged in the case and that the government considered the investigation closed.

On February 7th, 2022, Sister Mary Margaret Kreuper was sentenced to one year and one day in prison. 

Federal Judge Otis D Wright rejected the proposed two years from the prosecutors but acknowledged that he needed to set an example that. regardless of whatever status a person holds within a community, wrongdoings committed by any individual would still need to be punished.

Wright also ordered the sister to repay the full $835,339 in restitution to St James, but lowered the amount by $10, 000. To account for what had already been repaid. 

Accepting her fate, Kreuper promised to fall more closely in Christ's footsteps and spend the rest of her days trying to make amends.