c. 1995 Religion News Service

(RNS)-The former treasurer of the Episcopal Church admitted Wednesday to a federal court in Newark, N.J., that she embezzled more than $1.5 million from the church and evaded income taxes on part of the stolen money.

Ellen F. Cooke, 52, who served as the church’s top financial officer from 1986 to 1995, pleaded guilty to one count of interstate transfer of stolen money and one count of tax evasion.

She faces a maximum sentence of 10 years in prison and a $250,000 fine on the first count, and 5 years and a $250,000 fine on the second count. Prosecutors and attorneys for Cooke have agreed as part of her plea arrangement that she should serve between 31 and 46 months in prison. But Cooke’s final sentence will be up to Judge Maryanne Trump Barry. Sentencing is scheduled for April 29.

Cooke, who earned $125,000 annually, resigned as treasurer of the 2.5 million-member denomination last January, and in May church officials accused her of embezzling about $2.2 million in church funds.

According to a statement from the U.S. Attorney’s office in Newark, Cooke admitted to Barry that she had abused her position as treasurer since 1990. Cooke said she stole Episcopal Church funds by depositing checks written on church bank accounts into her personal bank accounts and by using church money to pay for personal credit card bills and for private schools her children attended. She also acknowledged that she charged personal expenses on her Episcopal Church American Express credit card.

The U.S. Attorney’s office said Cooke told the judge that in May 1994 she oversaw the transfer of $76,464 from a church operating account in Washington, D.C., to her personal Merrill Lynch account in New Jersey.

Cooke also admitted that she filed a false 1993 tax return by not reporting more than $146,000 in taxes owed. She said in court that she reported a 1993 income of $178,192 when she actually had an income of more than $489,000.

In a statement addressed to the church, Presiding Bishop Edmond Browning said he was”enormously relieved that we have reached this almost final stage in the process that began Feb. 7, 1995, when the first signs of financial irregularity came to light. …”I personally have faced the difficult fact that this was ultimately my responsibility,”he said.”We together have faced both the practical and the spiritual implications of such a massive betrayal.” Browning added that church officials”looked carefully at how it happened and took steps such that it can never happen again.” During the half-hour hearing, Cooke told the judge repeatedly that she understands her actions were wrong, but that a mental condition prevents her from recalling her behavior.”I just can’t say for sure that I knew at the time that I knew what I was doing was wrong, and I accept responsibility,”Cooke said, according to the Associated Press.

Prosecutors plan to have their own psychiatrist make a determination about Cooke’s mental state.

Jim Thrall, a church spokesman, declined to comment on the role Cooke’s mental condition may have played in her actions.”We are not in a position to assess that one way or another,”he said.”We’re not psychiatrists and we can’t judge.” Cooke has previously said that her actions were the result of a”breakdown”caused by”pain, abuse and powerlessness”she felt as one of the denomination’s highest-ranking women.

The Episcopal Church recovered about $300,000 of the embezzled money by selling a home Cooke owned in Montclair, N.J., and has recovered an additional $1 million through an insurance policy.

Thrall said the church hopes to recover more money through the sale of a farm in Virginia, which Cooke and her husband, the Rev. Nicholas T. Cooke III, owned.”We would hope there would be further restitution,”he said.

Thrall could not estimate the total loss for the church.”If we’re really fortunate, all of it would be returned,”he said.

Thrall said more specific details about the amount of money lost by the church may be presented at the time of Cooke’s sentencing. He said the $2.2 million figure the church used in its allegations was based on an audit by Coopers & Lybrand.

Nicholas Cooke resigned in May from the priesthood, saying he needed to concentrate his time on his family. He most recently served as rector of St. John’s Episcopal Church in McLean, Va.

Assistant U.S. Attorney Robert L. Ernst would not comment on whether Nicholas Cooke is being investigated.

Browning said the Episcopal Church has filed a civil suit against the Cookes.

MJP END