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	Church Leader Rebuts Financial Allegations Casper Star Tribune April 16, 2007 http://www.casperstartribune.net/news/regional/b9971ab7c3fceae9872572be00211786.txt Colorado Springs, Colo. (AP) — The leader of a breakaway Episcopal parish defended himself against allegations of financial misconduct Saturday, as a theological think tank that he oversees said it was distancing itself from him. The Episcopal Diocese of Colorado moved in December to suspend the Rev. Donald Armstrong from Grace Church and St. Stephen's Parish over the allegations. Last month, Armstrong returned after the church vestry voted to leave the Episcopal Church, saying they were upset over the liberal theological direction of the national church, including its stance on gay relationships. The diocese has not recognized the split, and not all church members support it. About 200 of the church's 800 regular attendees worship at a different chapel. The congregation was to vote on the vestry's decision May 20. After Armstrong discussed the theft allegations with congregants Saturday, the diocese released a statement saying Armstrong's presentation didn't "constitute a legitimate response to the serious charges of financial misconduct pending against him." The diocese alleges, among other things, that Armstrong took more than $392,000 from a trust designated to fund scholarships to pay for college expenses of his children. Armstrong said the funds were authorized by the church's wardens. He said the Anglican Communion Institute, funded by Grace Church and St. Stephen's Parish, provided scholarships and grants for continuing education for clergy. He said ACI was the mechanism through which the church paid for his children's college educations. On Saturday, the institute, whose day-to-day operations were overseen by Armstrong, said it was dissolving its relationship with Grace so that questions involving Armstrong could be resolved "without interference." Armstrong said that while Grace's general budget is approved by the church vestry, day-to-day expenses are handled by the rector, treasurer and church wardens. He also denied allegations that he failed to report some of his income to the IRS.
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