Let’s get something basic out of the way: John R. Lynch is no holy man. He may have been associated with the Holy Cross religious organization, but it was simply a platform for his theft. Had he the same opportunity while working for a healthcare company or insurance organization, he most probably would have taken it.
John R. Lynch of Grosse Pointe, Michigan, was recently arrested for his part in concocting a scheme to defraud a charitable organization that has its headquarters in Clinton, Michigan. As the charity accepts government funds, Acting United States Attorney Saima S. Mohsin and the FBI have charged him with fraud and embezzlement in “diverting” the funds from the charity to his own use.
Flawed CFO
The scandal dates back to March 2012 when the Michigan-based Holy Cross charity named him as CFO and continuing in his duties, he was promoted to CEO in January 2015.
Under the auspices of the Roman Catholic Archdiocese of Detroit, the Holy Cross Religious organization has been in existence since 1948. According to the Department of Justice:
“The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless. Holy Cross services are provided mostly to individuals in Southeast and Mid-Michigan.”
The organization also runs the Samaritan Center, which was established to provide services such as medical care and employment to among the most indigent in the City of Detroit.
The purpose of the charity is noble. Detroit has had a brutal time with the economy for many decades. Holy Cross Religious organization has at least provided a supplemental safety net to people who have been crushed by systemic poverty.
The organization receives funding through the National School Lunch Program and the School Breakfast Program as well as Social Security Act funding for foster care, adoption assistance and other childcare services.
“My Money”
Somehow, somewhere along the line, Lynch saw an opportunity to disregard the plight of the impoverished and to line his own pockets. The charity’s money became his money. The complaint affidavit summarized his activities as follows:
“When he was Holy Cross’s CEO, Lynch used Holy Cross funds to pay for repairs to his own cars, install a new roof on his house, pay down his personal mortgage balance, and make payments on a personal American Express account.”
Lynch is also an entrepreneur of sorts and he came up with a consulting company scheme. The company “provided services” to Holy Cross. What he never revealed was that the consulting company was himself. He paid himself through fake billing under another name.
The complaint affidavit also relates that Lynch used his corporate Holy Cross Religious Organization American Express card to pay for goods and services that were strictly personal and had nothing to do with the charity. How he thought no one would ever notice was a mystery.
According to the Detroit Free Press, April 8, 2021:
“[Lynch who] lives in a $700,000, six-bedroom home stole $240,000 from poor and homeless people and spent it on trips to Florida resorts, shopping sprees, Lululemon athletic wear and a new roof on his house, according to a criminal complaint unsealed Thursday in federal court.”
If he had an ethical compass, he had lost his way years ago. He stole and partied while those he served starved and faced crushing hopelessness.
How Does This Happen?
I doubt if Lynch had much oversite at all. Had there been a regular and ethical paper trail of every expense and grant money utilized, this fraud most probably would not have happened. Over the years he seized an opportunity and ran with it. No one was looking over his shoulder, and he was fine with that. He was free to both administer to, and then steal from, the same program.
The need that John Lynch had was for money. He was successful in his own right. He lived well and wanted to live better. The Holy Cross charity became his personal piggy bank. He spent tens of thousands on his nice Tudor house at the same time the homeless who relied on the services they provided, received reduced funds and services.
We are in an age of division, anger and intense introspection. We are all asked (directly or indirectly) about our ethics. When people hear hot button terms such as privilege, sides are immediately drawn up, but that is exactly who John Lynch represents. A man of privilege not accountable to the people he served. He convinced himself, rationalized if you will, he was smarter than everyone else. It is not a matter of privilege in this case, but rationalization. He felt he could rationalize his unethical behavior. He could not. He will soon suffer the consequences.
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