The U.S. Attorney’s Office says Kreuper worked as the school’s principal for 28 years and was responsible for the money received to pay for tuition, fees, and charitable donations. Kreuper also reportedly controlled the accounts at a credit union.
According to the U.S. Attorney’s Office, Kreuper "diverted school funds into the St. James Convent Account and the St. James Savings Account and then used the diverted funds 'to pay for expenses that the order would not have approved, much less paid for, including large gambling expenses incurred at casinos and certain credit card charges.'"
Kreuper reportedly covered up the incident with falsified reports to make it appear as though the school’s finances were being properly accounted for. According to the U.S. Attorney’s Office, during a school audit, Kreuper told employees from St. James School to change and destroy financial records.
According to the U.S. Attorney’s Office, prosecutors said in a sentencing memorandum, "On an annualized basis (approximately $83,000 per year), [Kreuper] stole the equivalent of the tuition of 14 different students per year. These funds were intended to further the students’ education, not fund [Kreuper’s] lifestyle."
The Attorney’s Office’s statement went on, "In their letters [to the court], several students and parents commented on how the school was lacking in resources… Another parent discussed [in a letter to the court] how [Kreuper] said there was no money for an awning at school and no money for field trips."
Kreuper was reportedly sentenced to 12 months and one day in federal prison and ordered to pay $825,338 in restitution.