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Can It Bear Scrutiny?

Merced Parishioners Question Dismissed Priest's Financial Stewardship

BY STEPHEN FRANKINI

Following the ousting of former Merced pastor, Jean Michael Lastiri of St. Patrick's Church, for posting on the internet alleged solicitations for homosexual sex in various parts of the world, parishioners are asking the question: who has been paying for his travel expenditures? The search for the answer to that question led to further questions about parish finances and the lack of parish financial accountability.

In the June 11 St. Patrick's bulletin, Father Lastiri stated, "we want to be as transparent as possible.... We are at YOUR service, as stewards of your money and resources." But is St. Patrick's as open and transparent as possible? Has it been fully accountable to parishioners? A logical place to turn for answers to these questions would of course be the parish finance council.

I spoke with insurance salesman, Pete Fluetsch (pronounced "Fletch"), chairman of the finance committee at St. Patrick's. Prompted by a letter from a parishioner who was concerned about whence Lastiri's travel funds came, Fluetsch started to investigate -- requesting to see the parish checkbooks. (St. Patrick's, according to Fluetsch, does not have a ledger.) A reluctant Father Coyle, the temporary administrator, allowed Fluetsch to see the books shortly before a finance council meeting. But Coyle wouldn't allow Fluetsch to take notes and only allowed him a brief period of time to examine the checkbooks. Despite these obstacles, however, Fluetsch said he noticed some irregularities.

Looking through the building account checkbook, Fluetsch said he noticed a check written for $10,000 for a $25,000 sculpture -- an expenditure that Fluetsch said was not approved by the finance council. Expenditures over $10,000 require council approval.

According to Pete Fluetsch, however, the finance council at St. Patrick's simply "rubber stamped" whatever Father Lastiri wanted. In spite of his busy travel schedule, the finance council was the one meeting, according to Fluetsch, that Lastiri never missed.

Fluetsch then said he looked through the checkbook for the improvement account, in which was recorded a check for $5,000 written by Father Lastiri to himself, dated July 20, 2004 (after his departure from the parish). Fluetsch was told that Lastiri had claimed it was a loan. Another check for $5,000 was made out to Lastiri's mother for the purchase of a car for herself. Another check for $2,000 was recorded in the checkbook as "Lastiri personal tax," which may be a violation of a law prohibiting the use of non-profit funds for private expenses. Fluetsch looked a little further in the improvement account checkbook to find checks written to two automotive companies.

Fluetsch said he sought explanations for these seeming irregularities later that evening at the parish finance meeting. When Fluetsch (who said he has been on the finance council for 15 years) denied the committee had ever approved the sculpture, other members countered that the council had been talking about the purchase of the sculpture for months. Fluetsch asked why the check for the sculpture was dated eight days before the last finance meeting? According to Fluetsch, Jean Smith, the paid parish office administrator and committee member, brought out the checkbook, and all witnessed that Fluetsch was right. Fluetsch commented to me, "the really big part is that Father spent a lot of money on the building account, and [in] the building account are pledges to pay off the building, not to buy sculptures."

Fluetsch nevertheless continued his investigation, looking into money that was willed to the parish from the "Luz Estate." According to Fluetsch, an office worker at the church told him she had deposited two checks from the estate, one for $50,000 and the other for $104,000. Jean Smith concurred with this information. Fluetsch then went to the executor of the estate, who told him there were three checks: $50,000, $101,000, and $104,000. Why the inconsistency? Fluetsch asked to take a look at the pledge report that is updated by Walter Szymusiak, the parish accountant. The report indicated a check for $101,000 but not the $50,000 and the $104,000. Fluetsch would not speculate to me on the reason for the inconsistencies.

At this point, parish employees were instructed not to give any more information to Fluetsch regarding parish finances without first consulting Father Coyle.

Concerned that he might be blamed for improprieties if financial scandals surface at St. Patrick's, Fluetsch detailed his concerns in a letter to Fresno's bishop John Steinbock, who put Gary Bethke, the diocesan finance officer, to work auditing the checkbooks. When I called Jean Smith regarding the apparent financial improprieties, she told me that she was instructed by the diocese to direct all calls concerning St. Patrick's finances to Bethke, who, she said, would be happy to talk to me. I tried to contact Bethke, but the person answering the phone simply informed me that Bethke has many other parishes than just St. Patrick's to worry about and that Jean Smith was wrong to direct me to Bethke. "Shame on Jean Smith," were his exact words.

To get an idea of how the parish spends its money, Fluetsch showed me the parish budget from July 1 to December 31, 2003 (a six-month period). From the many entries in the budget (for meals, utilities, gas, health and life insurance, auto repairs, newspaper, postage, computer supplies/repairs) it looks like the $1,250 monthly salary priests receive in the Fresno diocese is pure spending money as opposed to an emolument for living expenses.

One interesting entry in the budget, "Hospitality/Priests Residence," was for $19,895.02, which Fluetsch believes is inordinate. Fluetsch also mentioned in his letter to the bishop, that this year an average of $3,000 a month is spent on hospitality and $1,200 a month on travel. He also listed that a $23,800 refund from the city of Merced went back into the operating account rather than the building fund from which it had come.

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