Gross financial mismanagement and out-of-control spending at the Greek Orthodox Archdiocese of America has culminated in an unprecedented financial crisis at the century-old institution headquartered in New York City.
Although largely insulated by a close cadre of supporters, the gross mismanagement has come during the tenure of Archbishop Demetrios and an expansive network of employees and volunteer committees that were largely appointed— and some say— protected, by the Archbishop for years.
An email from Michael Psaros, treasurer of the Archdiocese, that was shared with dozens of members of the Archdiocesan Council outlines millions of dollars of deficits and an institution with an annual budget of almost $30 million that “lacked even the most basic internal controls with respect to expenditures, vendor and travel management, and other basic matters of basic corporate governance.”
What’s worse— and possibly illegal— is the fact that “to fund the deficit over the past two years, segregated/restricted accounts were invaded,” according to Mr. Psaros.
In lay terms, this means that funds that were raised and allocated for a specific purpose were tapped to run administrative expenses, like the Archbishop’s travels and other costs unrelated with the original donor intent.
An anonymous source familiar with one of the specific funds that was “invaded,” confirmed to The Pappas Post that approximately $3.8 million that was raised for the rebuilding of the St. Nicholas Shrine at Ground Zero was transferred to Archdiocese accounts to pay bills unrelated to St. Nicholas.
This raises profound questions amongst donors and faithful about how (or if) the money will be replenished, who authorized such nefarious actions, and under whose authority such activities were allowed to take place.
The Archdiocese has already fired 30 employees and has ceased publishing its newspaper, The Orthodox Observer.
In his unofficial email to fellow council members, Psaros calls the cash-flow problem at the Archdiocese “acute.”
But no official communication about the crisis has come from the Archdiocese or Archbishop Demetrios, under whose watch all of this has transpired.
Mr. Psaros’ email came after a strongly-worded email from Lazaros Kircos, a member of the Archdiocese Council from Detroit who said “It is inconceivable to me that there is this much turmoil at the Archdiocese; that the chief administrative officer resigned or was forced to resign; that “bankruptcy” is rumored; and with all that, there has been no official communication to our governing body, the Archdiocesan Council.”
“The impact of these events is devastating to our Church and worsens each passing day, Kircos told Psaros in his plea for more information, adding that “We council members cannot help our Church if we have no information.”
The Greek Orthodox Archdiocese of America is a loose overseer of affairs of the church in America, which is broken up into the independent Metropolises of Boston, New Jersey, Pittsburgh, Atlanta, Chicago, Detroit, Denver and San Francisco.
Although each Metropolis is an independent entity that governs its own administrative affairs, the Archdiocese is in place to manage national ministries like Greek education, youth and young adult activities and projects like Ionian Village.
The Archdiocese also has under its immediate administration more than 60 parishes in the New York metropolitan area called the “Direct Archdiocesan District.”
The Archdiocese, headquartered in New York City’s Upper East Side on E 79th Street, has often been accused of lavish spending, including first class travel, excess staff and even defrocked priests remaining on the payroll.
The Greek language newspaper The National Herald has been, for years, a watchdog over church affairs and first broke the story of the financial crisis back in June but went largely ignored or evaded by the Archdiocese.
29 comments
GOD HELP ALL OF US GREEK ORTHODOX ✝️✝️✝️
PLEASE RETURN FATHER NICHOLAS KASTANAS TO HIS CHURCH, SAINT ATHANASIUS THE GREAT GREEK ORTHODOX CHURCH, ARLINGTON, MASSACHUSETTS ✝️✝️✝️
As a financial professional, and devout orthodox believer, I’m concerned and very disappointed in the severe lack of controls in such a proud, historied organization that preaches honesty and integrity, yet cannot manage staff and processes within its own leadership organization. Financial controls are a basic requirement in every organization where monetary transactions, donations and accounting resides. This situation requires immediate action and full court press to ensure we do not further deplete our already rapid decline in church attendance and faith. Sadly, the world at large is becoming more dangerous and corrupt each day. We owe our faithful Orthodox believers honesty and a full accounting of the facts before we give the diminishing faithful another excuse to turn to other churches; or possibly lose their belief entirely. Swift, honest action is needed. Full responsibility and accountability for those who have stolen and misused our donations and betrayed our trust. Stealing from the church is more than a sin. Stealing is a crime that must be prosecuted in order to ensure it doesn’t continue. Transferring a problem doesn’t eradicate its actions.
This is not the first time the Archdiocese has misappropriated funds. It happened in 1999 when they were collecting funds from US church parishes for earthquake relief in Greece. Instead they used the funds to pay salaries in the Archdiocese.
This idea that the Archbishop knew nothing any laity or clergy happen with out his total control is a joke.
To further show the hypocracy the clergy Comptroller who is supposed to alert of financial issues is promoted to CFO and everyone else gets sandbagged .
Time for the Archbishop to set up and take heat.
How sad that humanity, even within the supposedly, most sacred institution, has allowed greed to overcome piety.
Not the first time that I have heard such a story and a cover-up.
I read about a& mentioned to some of the other parishioners but nothing else was said until now, what a crying shame for all of us who have contributed to the new church.
There is a lot of money missing and no answers, and someone should be accountable for this. Something like this is unacceptable from supposed educated and holy people. I know that some times the truth hurts , and if you are not able to handle the truth get out and let somebody that can count do this important job. Simple 1+? makes 3 mil. ? Do the math.
The Primate and Spiritual leader of the Greek Orthodox Church of America, Archbishop Demetrios as well as our bishops and priests – need to humble themselves and be forthright with the faithful and loving stewards of Jesus Christ and His Holy Church. We need “men” who are filled with the Holy Spirit shepherding Gods people – not deceivers, liars and actors.
Does the Greek Orthodox Church really need to have its headquarters located in one of the most expensive places in Manhattan? Secondly one would think that everyone who needs to live close to there has to have a huge salary just to survive and work in the area. Very disappointing but not surprised. Great work Greg!!
*everyone who works there
FYI … In today’s edition of The National Herald, a article by Theodore Kalmoukos, states 20 or more parishes throughout the country intend to either cut back or stop paying their assessment to the Archdiocese. We can only hope by doing this, it will send a strong message to both the Archdiocese and to the Metropolises, that the laity has had enough of their inept ways. They seem to forget, it is not their money they so carelessly spend. They are required to be good stewards of the money entrusted to them from the laity. It’s ever so sad to see the Archdiocesan Council has been just as inept, as the Hierarchy have been. It’s time to stand up, once and for all, and to demand transparency and accountability. If need be, criminal action should be taken. This three ring circus has gone on for way too long. Drain the swamp!
Since I am not a subscriber, I do not have access to the entire article. Please see below.
https://www.thenationalherald.com/177187/parishes-intend-stop-paying-archdiocese/
A second article just posted by The National Herald. “Bartholomew Urgently Calls Upon Demetrios to Explain Archdiocese Finances.” Once again, since I am not a subscriber, I cannot access the entire article. Please see below.
https://www.thenationalherald.com/177232/bartholomew-urgently-calls-upon-demetrios-explain-archdiocese-finances/
I am a subscriber and I cannot access the article (s). In addition, the comment function on all the locked articles has be disabled. In the past, even if you were not a subscriber, you were able to leave a comment. Not the case anymore..
Bartholomew is going to get an ear full of lies and fabrications just like the rest of us.
I read the Pappas Post on a daily basis and was wondering whethe their may be a possibilty of adding “Church” to the list of categories. It is just a thought. Thank you.
The problem is Greeks will do whatever it takes to manipulate the system to satisfy their wallets. Look at Greece. The whole country is in a financial crisis. Anyone in their right mind would think they would get their act together after years of a financial crisis.
News flash. Not all Greeks are thieves! You’ve stated in your comments that Greeks will do whatever it takes to manipulate the system to satisfy their wallets. You get good and bad amognst all populations and ethnicities. Greece’s Financial problems started over 50yrs ago, the current situation is a result of that. Most countries in the Mediterranean and the Balkans have the same financial problems as Greece so you may as well you call all of them thieves and put them in the same basket as Greece and the Greeks. To paint all Greeks with the same brush is wrong. I’m a child of Greek immigrants. My Father worked 2 jobs, 6 days a week for over 30yrs. My parents have never done anything illegal, they have never stolen anything from anyone or any organisation, have never claimed any form of welfare even if they were entitled to it or a pension/s from back home in Greece. Our family and Greek friends are the same they’re all good, honest people and law abiding citizens. My parents are two of the most honest and genuine people I know. My siblings and I have all worked since finishing high school and have never ripped off the system or done anything illegal or stolen a cent from anyone. We were raised in the Orthodox Faith and raised to be God fearing, decent, hard working, honest human beings with strong values and a moral compass and we’re Greek. Given your critique on Greeks I’m sure you’re shocked that we exist. This is why I find your comments about Greeks basically being thieves at any given opportunity which is what you pretty much stated (you just used different wording) offensive, insulting and untrue.
Yes the swamp needs to be drained and the guilty parties/criminals need to be prosecuted and punished accordingly, you won’t get any argument from me in regards to this/that matter, just don’t generalise and don’t demonise a whole country and it’s people for the actions of those parish individuals.
A Proud and Honest Greek Orthodox! ☦
Regards
Παναγιώτα
Your Grace? More like disgrace.
Our archdiocese is in prime real estate as well as the St Nicholas shrine. Insurance post-911 surely should have covered some, if not most, expenses yet such large amounts of money raised to support its rebuilding.
Even Philoptochos, whose name by definition is to benefit the poor, has given too much money to the project.
I guess it was just too tempting to dip into the big golden pot to support the lavish NYC lifestyles.
Metropolitans visit our parishes and expect (and receive) rock-star or presidential accommodations.
No shock that this has happened, it’s just a damn shame.
Ντροπή σας !
Bravo to Pappas post-keep up the good work!
The Greek Church is nothing more than another “racket” along w Congress, NFL, NCAA, Olympics & so on. We who donate must demand accountability & justice. Civil & criminal action must follow before parishioners with any common sense donate another nickel.
Parishes have a duty to God & their parish to refuse to “kick up” any further fees to this bunch of either gross incompetents or just criminal thieves who shamelessly conceal their sins behind the word of God. There is a special place in hell for these charlatans.
Again, we donors to our local churches must demand a stop to any further “kick ups” until the Archdiocese has been exterminated of these greedy rats.
What can these Archdiocese crooks do: ask God to turn his back on us?
God is watching & he expects us to honor him by doing the right thing.
I am deeply saddened to learn that those we trust the most have betrayed that trust without conscience. While a minimal amount of excess is unavoidable in NYC, one of the most expensive cities in the world, it is unconscionable that such great financial overindulgence should have continued for so many years without proper accounting practices and accountability. While we love our religion and its teachings, many of us have been very aware in some of our own communities and churches and the deplorable lack of fiscal responsibilities. I find it particularly disturbing that the average faithful Greek churchgoer and donor has no platform on which to exercise the right of free speech financial and other matters of the church and the edicts decided upon by the Patriarchate – with input from the council and
laity. I speak particularly of not being able to be “stephanosied” by a non member of our religion, the fact that we are prohibited from having eulogies performed by a friend or family member, rather than the priest, the fact that we do not welcome gays and gay couples into our churches, and the list goes on. Certainly, we are all proud that Archbishop Iakovos had the courage to march next to Dr. Martin Luther King in Selma, against the slings and arrows of many who wrote hate letters, and made terrible threats against the life of the Archbishop for taking such a noble stand of integrity. Why didn’t this continue?
This latest and ongoing revelation of dishonesty at the highest level touches many of us where we breathe. Let us pray and hope that it can be resolved so that we can once again have faith in our most holy church and Patriarchate.
Amen to your comments. Archbishop Iakovos, who bravely marched with Dr. Martin Luther Kind Jr. in Selma, will always be on the right side of history. My children, who grew up in the church and are now adults, no longer attend church because issues of social justice and real-life moral questions (like gender equity/identity, sacraments for those who died because of suicide, or chose cremation) are dismissed or met with scorn when brought up or debated within the context of the Greek Orthodox Church. In the meantime, church “leaders” have allowed for the current crisis to germinate, grow, and now, explode. Our church is being tested, and being on the right side of history regarding the current crisis will take moral courage and a more compassionate and comprehensive view of those seeking answers. Aside from cleaning up the financial mess, questions around some of these difficult moral questions must be addressed, examined, and reevaluated. After all, many Orthodox faithful were not in agreement with integration in 1964 and beyond. Times should not change the moral essence of our Orthodox faith, but should define our beliefs and faith to what is truly more more Christ-centered. The financial crisis we face today is a symptom of moral weakness, the inability/unwillingness to address some of these tough questions, and the lack of courage to make necessary changes.
As a member of the Orthodox Church in America (OCA) throughout “The Troubles,” I read of the financial problems in the Greek Orthodox Archdiocese (GOA) with sorrow. I and others in the OCA had hopes that the other Orthodox jurisdictions in America had learned from the sad experience of the OCA. The OCA suffered with very similar financial misfeasance and malfeasance. Let us pray for the hierarchs of the Greek archdiocese, that they come to see the errors of their ways, and repent. May we also pray who learn of the scandal, that their faith remains strong.
What, the pedophile protector archbishop is shown to be incompetent and the pedophile protector patriarch is confronting his incompetency? The hypocrisy could not be more thick and consistent with this sick and cultic church.
Incompetency, corruption, cover up and scandal in Gods only true church and salvation the GOA? You’ve seen nothing yet. This church cannot attract and retain enough millennial’s and X’ers within itself and outside of itself to sustain itself in the future. Give it another 15 years and this church will be a archaic museum of Hellenism, Greek ethnocentric culture, old word power and control dictatorial dead religion and irrelevancy to all but its self centered self.
Not to worry the +Gerasimos save his diocese strategy and plan along with the cult leader ephraim are the solutions!!! Systemic corruption of hierarchy and cultism of monasticism are the solution.
It’s far worse than this.
Most of the problems arise from the fact that we don’t have the freedom to take care of our church affairs in this country, but we are told and governed from afar (Istanbul), an institution which claims to be (the patriarch) the leader of 300.000.000 Orthodox, a big lie and misleading joke! The patriarchate is comprised of a number of old clerics who live luxuriously in Istanbul, thanks to the money they get from Greece and other countries, notably the USA. Not to many people realize how the Orthodox Church is organized for the benefit of the few in “Poli” and to the detriment of the faithful. Very sad!
DO we need the Archiocese To many Bishopes we have more Bishopes than preiests
I just don’t understand why Archibishop Demetrius doesn’t come out say the truth and try to change the structure of our church by.Hiw can they be missing all this money ,how restricted funds where used for operational expenses ?? Where is all the money they collected for the fires in Greece a few years ago ,they only deliver some bibles to the suffering Greeks after they collected 3-4 millions from all of the Greek churches .What is the purpose of the philoptohos ,helping the poor or helping clergy leaving a more luxurious life ? The young couples are leaving our church and nobody is wondering why we can’t keep our kids in our church .What is going to happen to the Greek church in the USA when most of priests don’t speak Greek and in more severe cases aren’t Greek at all and they only care about a paycheck . Archibishop Demetrios and the patriarch are so far removed from the churches and are either simply lying or being lyied by their metropolitans and can’t see the problem about empty churches ,only old people attending,empty sundry school classes and very small Greek schools not supported by the church or the priest .
I am greek now living in Bulgaria in Veliko Tarnovo but have visited USA and am know communities in NY, Chicago, and Buffalo.
There is much to say and comment on and a common theme of money which is OUR version of Catholic Sex scandal.
I recently read the Journals of the late Fr Alexander SCHMEMANN who saw all this and discussed so well Worth getting a copy from St Vladimir’s press as says all
Any body who thinks running with the zeitgeist of the age with a gender neutral coffee hour, will change matters, well I would suggest they look at the Catholic church and get out more.
We have to decide if we want an ethinic CLUB or the Church of Christ and by that i do not mean to deny either our language or food Not as simple as that but do we want a church or ethinic CLUB?
I am bound to say that often the only thing kept was the language while the pews and harmoniums, and musicical banality , clergy with three hair on their chins, and protestant mentality covered all with scholastic rules no one understands. Spirituality zilch, but that mirrors America does it not? And no I am not wanting a ‘old calander Fantasy land’ either. Monasticism is vital to the Church and its lack led to the pseudo westernization of our worship and life so that
Ascetism , fasting and spiritual struggle become alien to us and what has become a confused mix of custom abd western practical that says nothing to a young person or anyone looking for that life in Christ that the Church should be . , But again a cultic Monasticism is not helpful. For me the community within OCA . NEW SKETE, points the way forward for Orthodoxy and Monasticism in USA. Marvellous worship totally Orthodox. But developing in new way yet within tradition
Patrarchate.? A joke, just as Fr Alexander wrote about, a realm of Fantasy in dead world that Endogan will ensure ends. Ha, he may help the Church in that way.!! THE Patriarch, a amiable academiic sending out encyclicals meant for life on Mars. His bishops so i am told, living a secular well fed life as do yours. Would you know they are monks?? This more than anything else destroys the Church. The worldliness and comfortable bourgoise life of it’s leaders.
Indeed the issue of CONSTANTINOPE is a crisis for the entire Orthodox Church and as the Slav churches move into post communist times, a system decided by the turks in 16c is now defunct. The meeting in Crete last year was a charade showing this. The Silence in the face of the daily cascading moral and ethics and practical needs, hidden behind empty ecology noise meaning nothing, is a scandal.
We should keep in mind that at the Last Support Judas betrayed Christ so in the Church to the end of time.. I feel greek Orthodox in USA should get to know the persecution and total suffering of the Church in Russia and eastern Europe over the communist period and the quality of priest as the martyrdom Fr Alexander Men, as example of what the Church can be.
The greek chutch in USA is comfortable, bourgoise and lost. We could learn a lot from the west, not harmoniums, pews in rigid lines and 19c music that they west did far better and has now left behind. But in social involvement, reading out to our neighbour and making the liturgy a living experience, not in any superficial way that empty but in a Eucharistic Sacramental way
Here in Bulgaria the Church had had a difficult life, outlawed by CONSTANTINOPE from 1870 -1945 for the cheek of not wanting to be greek dominated and then severe communist attack from 1945-90
I find tremendous spiritual life rising especially led by young clergy. We have a wonderful Parish where worship is meaningful, in modern bulgarian, congregational singing, and kiss of peace exchanged with the people as we greet each other and a useful sermon addressed to real life. And a wonderful community spirit. You have turned the Church into a business, DEAD, MAY AS WELL BE ROTORY CLUB. I know this is so american. A greater danger than communism is the secularization of the Altar. This is the disease that is destroying yr church. This lack of Spirituality, any connection between the words of Christ and what they see, this is why they leaving Church in droves.
Facile solutions offered a COSY current zeitgeist will not save the Church or keep the young. Only a return to what the Church is meant to be.
I will come to the Greek Orthodox Church if the service in Canada Toronto is in English language.
We’re discouraged BC the Mass is mostly in Greek.
Men are set up by evolution to protect each other and March in tightly knit bands. They pay attention to each other’so opinions and disregard women. So this all that happened in this case. They absolved each other and went on. Except that no one trusts them with significant donations. Archons die and they leave their estates to other causes.