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	Former Synod Officer Accused of Funds Theft By Matthew Kemeny The Patriot-News March 14, 2008 http://www.pennlive.com/news/patriotnews/index.ssf?/base/news/1205459706116330.xml&coll=1 Since 1991, leaders of the Lower Susquehanna Synod of the Evangelical Lutheran Church in America had assumed that millions in endowment money was going to missionary work overseas and to pastors in need of financial assistance. Barry R. Herr, the synod's treasurer for 28 years, was responsible for making sure it did. Instead, Herr funneled more than $1 million into a bogus bank account, transferred it to his personal account and used it to buy classic cars, police and church officials said. On Thursday, Herr, 61, was charged with one count of theft, accused of stealing $1,004,732 from the 261-congregation Lower Paxton Twp.-based synod over 16 years. The Lancaster man was also charged with 36 counts of criminal use of a communication facility, involving electronic transfers of funds. He was arraigned and released on his own recognizance, police said. "This is an extremely sad time and a very sad event," Bishop B. Penrose Hoover said during a news conference with police and church leaders. A phone message left for Herr was not immediately returned. It was not known if he had obtained legal counsel. Church officials became suspicious of Herr about a year ago, when an internal audit showed he used church funds to pay for gas and insurance for his personal vehicle, said the Rev. Thomas McKee, synod secretary. Shortly thereafter, Herr was put on administrative leave. In July, the Synod Council voted unanimously to fire Herr, saying it had lost confidence in his competence and judgment, McKee said. A month later, a private accounting company was hired to provide interim financial management and audit the endowment funds. The audit revealed that three checks payable to the ELCA endowment distribution totaling $325,000 were never received by that churchwide organization, McKee said. A police investigation was launched in September. Dauphin County Detective Mark Brumaghim interviewed synod staff, bank employees and former bishops concerning Herr's accounting practices. He also seized Herr's computer. Brumaghim said he discovered in December that Herr had opened an account in 1985 named the Cardinal Investment Fund and had been depositing and withdrawing endowment money into the account. The account was closed in October. In February, investigators searched Herr's home and seized hundreds of financial documents. Further investigation revealed Herr had taken more than $1 million from the church since 1991, police said. Authorities believe Herr used the money to buy classic cars dating from the late 1960s to the 1990s, Lower Paxton Twp. police Lt. Dave Hogentogler said. Herr resold some of the cars, Hogentogler said. Hogentogler said Herr has been cooperative but would not say if he admitted to the charges. The synod's annual general compliance audits do not cover appropriation of endowment money, church leaders said. After the investigation began, the synod adopted new policies that include a requirement of more than one signature on endowment fund checks, check requests, deposits and journal entries. A new treasurer will be elected in June at the Synod Assembly. Through the course of the investigation, the synod spent more than $100,000 on legal fees, forensic audits and accounting services, church officials said. The ELCA, the country's largest Lutheran denomination, is the third-largest religious group in the four-county Harrisburg area, behind Roman Catholics and United Methodists. Matthew Kemeny: 255-8271 or mkemeny@patriot-news.com
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