LOUISVILLE — The Presbyterian Church (U.S.A.) has fired its associate director for finance and accounting, Judy Golliher, after discovering that she has embezzled at least $102,000 from the church.
The theft has been reported to the Jefferson County Commonwealth Attorney’s office and criminal prosecution is being considered.
Golliher, who was named the denomination’s corporate treasurer in February 2006, has been an associate director since October. 2005 — making her the PC(USA)’s second-ranking financial officer. Before that, she served for a year, from October 2004 to October 2005, as interim controller. A Presbyterian News Service story from the time of her hiring said she had “more than 20 years experience in banking and real estate development.”
According to a PC(USA) news release, the embezzlement from the PC(USA)’s general operating fund was discovered through the normal reconciling of bank statements. Apparently, the thefts took place from at least late 2005 through May 2006 and at least $102,000 was taken, although further investigation may reveal more losses.
“Earlier thefts were covered through a system of false transactions and journal entries, orchestrated by the treasurer,” the news release states. “The recent entries had not been covered before they were detected.”
The news release states that when confronted, Golliher admitted the embezzlement and has offered to make restitution. Insurance could also cover the losses.
Barry Creech, a PC(USA) spokesman, said he did not know what Golliher did with the money.
The news release states that a background check was conducted before Golliher was hired — including a check for a criminal record and of her credit history — and “the background checks yielded no information that would suggest that the former treasurer was an employment risk.”
This is at least the second time in recent years that the PC(USA)’s financial offices have been stained by difficulty.
In 2004, the PC(USA) fired its former controller, Nagy Tawfik, saying that he had tampered with a bidding process. Tawfik filed a lawsuit, alleging defamation, wrongful termination, and discrimination based on national origin.
And in June, the Courier-Journal newspaper in Louisville reported that Tawfik announced that the denomination had paid him $390,000 to settle the suit.
Eric Graninger, a lawyer for the PC(USA), said in an interview that the denomination did reach a settlement with Tawfik and paid for it through the church’s commercial and self-insurance fund.
Graninger said the settlement totaled $350,000. Of that, $140,000 went to pay fees and expenses for Tawfik’s legal representation, he said. The balance, or $210,000, went into a structured settlement that creates an annuity — giving Tawfik just over $2,000 a month for 120 months. Because the annuity fund will earn interest, the total amount Tawfik will receive will be about $250,000, Graninger said.
Graninger said the settlement also included a statement that the parties agreed it was “a compromise of a doubtful and disputed claim,” and that in paying it, the PC(USA) was not admitting liability — in fact, the church continues to deny its liability in the lawsuit.
