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	Audit Declares Pastor Innocent By Jean Torkelson Rocky Mountain News October 23, 2007 http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_5729525,00.html The Rev. Don Armstrong was found innocent today of misusing funds at Grace Church and St. Stephens, according to an independent audit arranged by the parish. Forensic auditor Robert Johnson's findings refuted allegations that were first raised by the Episcopal Diocese of Colorado. The diocese began investigating Armstrong in 2006 and found that Armstrong had engaged in fraud and theft of more than $500,000 in parish money over the past 10 years. This summer, a diocesan panel, aided by the firm of Denver attorney Hal Haddon, used its fraud and theft findings to launch a separate criminal investigation by the financial crimes unit of the Colorado Springs Police Department. That investigation is continuing. "We fully expect that Robert Johnson's report will put that (criminal) issue to bed quickly," said Alan Crippen, who is Armstrong's spokesman. Johnson is certified as a public accountant, a fraud examiner and a valuation analyst, according to his office. Crippen said he hasn't any ties to the parish. According to Johnson's audit, the Grace Church vestry hadn't been properly advised by church auditors on regulatory issues and "certain accounting functions." The audit blamed much of the financial problems on an incompetent bookkeeper who was later fired. It found that Armstrong relied for his own decisionmaking on professional tax preparers as well as the church treasurer and vestry members. In its own statement, the Episcopal Diocese reiterated its findings of fraud and theft and said, in part, "Bishop Robert O'Neill today expressed his confidence that the criminal justice system will respond appropriately." Once regarded as one of the diocese's most prominent priests, Armstrong resigned from the Episcopal Church in March after years of battling with O'Neill over doctrinal issues and the future of the Episcopal Church. Nationally, more than 30 conservative parishes, clergy and lay members have broken away because of the church's departure from traditional teachings on marriage, sexuality and scripture. Armstrong and loyal members have staked a claim to the historic Grace Church parish and currently occupy it. They are fighting in court with the diocese over who owns the property. The diocese claims Armstrong's true motivation for leaving the Episcopal Church was his financial malfeasance. Armstrong claims he is being persecuted for his conservative views. Included in the news release is a statement by Armstrong which expresses relief for Johnson's findings but also says, "For the suffering, embarrassment, and division my own missteps and faulty decisions have caused those committed to my own priestly pastoral care, I humbly apologize."
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