Priest Found Guilty in Angel Fund Embezzlement

Detroit Free Press
October 7, 2014

http://www.freep.com/story/news/local/2014/10/07/catholic-priest-denies-theft-inmate-relationship/16865705/

The Rev. Timothy Kane takes the stand Tuesday during his trial in Wayne County Circuit Court. Kane, a Catholic priest, is accused of stealing money from the Angel Fund charity.

The jury didn't believe the man of God.

The Rev. Timothy Kane, a Catholic priest who ministered at Detroit parishes and once was a prison chaplain, took the stand Tuesday to deny he stole money from the Angel Fund charity for the poor and testified confusion caused by diabetes made him sign a confession to police after his February arrest.

But after deliberated little more than an hour Tuesday, a jury of eight men and four women found the 58-year-old priest guilty on six counts related to stealing from the Angel Fund.

The verdict against Kane was returned about 3:15 p.m. before Wayne County Circuit Judge Bruce Morrow. Kane's sentencing will be on Dec. 12.

Since his arrest on Feb. 6, 2014, on the theft charges, Kane has not been allowed to dress as a priest, such as by wearing a priest's clerical collar. He took the stand Tuesday wearing a suit and tie.

The fraud involved a sum between $1,000 and $20,000, according to the charges, which also included charges related to conspiracy and preparing and submitting fraudulent documents.

Kane was offered a plea deal before the trial started, but declined. Kane was charged with the following felonies: conspiracy to operate a criminal enterprise, using a computer to commit a crime, both up to 20 years in prison; uttering and publishing, and conspiracy to commit uttering and publishing, both up to 14 years; embezzlement between $1,000 and $20,000, and conspiracy to embezzle between $1,000 and $20,000, both 10-year felonies

Money for the Angel Fund was provided by an anonymous donor. The fund was available to priests in Detroit, Hamtramck and Highland Park to deal with requests from needy people, such as paying a heating bill or a prescription. The anonymous donor has given $17 million for the fund since 2005. It was discontinued earlier this year after Kane's arrest, although Catholic officials said the fraud did not cause the fund's demise.

Kane declined comment. His attorney, Steven Scharg, said they would discuss an appeal.

Ned McGrath, director of communications for the Archdiocese of Detroit said of the verdict: "It's disheartening that money was stolen from the Angel Fund, but even more so that a member of our own clergy betrayed our trust and the intent of the fund. We are praying for healing for the community and for all those involved."

"It's unfortunate that there's really not a winner. My client is a priest who maintained his innocence throughout the trial," said Scharg. "The Angel Fund is out of service and people who need it most are without the help they need."

Taking the stand in his own defense, Kane testified Tuesday that he did not steal money from the Angel Fund charity, and that diabetic low blood sugar caused him to be confused and wrongly sign a confession he gave police.

Kane, 58, also denied having a "relationship," described in the police statement as sexual, with a prison inmate whom prosecutors contend was Kane's partner in establishing a scheme to make fraudulent requests for charity money from the Angel Fund. Kane also testified that he received no kickbacks from people who received Angel Fund grants.

"Did you ever receive anything fraudulently from the Angel Fund?" attorney Scharg asked Tuesday.

Replied Kane: "No," adding later, "I didn't misappropriate funds."

Asked by Scharg if he ever used Angel Fund money for his own purposes, Kane replied "No."

After he was arrested Feb. 6 at the rectory of St. Gregory Catholic Church in northwest Detroit, Kane was questioned by Detective Cory Williams, an investigator for the Wayne County Prosecutor's Office. Kane's multipage statement about the arrest, which was written down by Williams and signed on every page by Kane, was read to the Wayne County Circuit Court jury last week.

Wayne County Assistant Prosecutor Patrick Coletta showed Kane his statement to Williams, in which the detective wrote down that Kane allegedly admitted to participating in a scheme with a prison inmate and others to submit false requests for monies from the Angel Fund.

"He made it up out of something," Kane said under oath about what the investigator wrote on the police statement. "I didn't come up with a plan."

Kane said he used an insulin pump to control his diabetes and hadn't eaten in several hours when he answered investigators' questions. Kane said signs of low blood sugar are confusion, blurry vision and an inability to concentrate, and that impacted his responses that day of the arrest. Kane testified that because of the confusion, "I was not able to stop the interview."

But Coletta pressed him, noting that Kane had the presence of mind at the time to make a correction on the police statement, before Kane signed it.

Kane said he received no kickbacks from requests made to the Angel Fund.

The prosecution contends that Kane allegedly embezzled from the Angel Fund to please a onetime prison inmate, Fonsha Reid, whom Kane met while working as a prison chaplain. The police statement read to the jury last week contained an admission by Kane that he had a sexual relationship with Reid. Kane answered "no" Tuesday when Coletta asked him if such a relationship existed.

Coletta showed Kane a birthday greeting the priest had sent inmate Reid, in which Kane is on a beach bare-chested and the greeting reads, "Happy birthday to my best friend."

"I've sent inmates pictures," said Kane.

After Kane's testimony, the defense rested.