Springs police looking into possible embezzlement at Grace Chruch

Colorado Springs police are investigating a complaint that funds were embezzled from Grace Church and St. Stephen’s, which broke from the Episcopal Diocese of Colorado in March.

Police wouldn’t elaborate today on the investigation, saying only that the complaint was filed July 16 by the Denver-based diocese.

The Rev. Don Armstrong, who was convicted by an ecclesiastical court this week of stealing $400,000 from the church, was described by police detective Michael Flynn as a “person of interest” in the embezzlement investigation.

Armstrong has been embroiled in a bitter feud with the diocese, which had suspended him last year while investigating allegations of financial improprieties.

That feud spilled over into an ongoing national debate this spring when Armstrong and a majority of the vestry board left the diocese to join the more conservative Convocation of Anglicans in North America. The parish had been at odds with the national Episcopal Church’s stance on such issues as the ordination of gay clergy.

A forensic auditor testified in the ecclesiastical trial that Armstrong used parish money for phone bills, car repairs and parking tickets, and diverted money from a church trust for students to pay for his son’s and daughter’s college education.

The church court conviction carries no legal weight. While Armstrong can be defrocked by the Episcopal diocese, he is already a priest in good standing with the CANA church.

The breakaway church is still operating in its downtown location and is fighting the diocese in court over ownership of the building at 601 N. Tejon St., Colorado Springs’ oldest Episcopal church.

Armstrong did not attend the recent trial or cooperate with the investigation. Alan Crippen, spokesman for Armstrong and his followers, called it a “joke” and said Armstrong will cooperate with the police investigation.

“We’re looking for a fair and just venue to see that the good name of our rector is exonerated,” Crippen said today. “We welcome this investigation and intend to fully cooperate with it. We have great confidence in the legal system of Colorado.”

Diocese spokeswoman Beckett Stokes declined to discuss what had been turned over to police.

Police have not interviewed Armstrong, Flynn said, adding that it’s too soon to say how long the investigation will take.

“This could go on for quite some time. There’s a lot to look at,” Flynn said.

If police determine there is probable cause that a crime was committed, the 4th Judicial District Attorney’s Office will recuse itself, said DA’s spokeswoman Denise Minish.

District Attorney John Newsome is a member of the church, so he would ask the 10th Judicial District Attorney’s Office in Pueblo to appoint a prosecutor, Minish said.