The Rev. Robert N. Smith, a former leader of Saint Francis Ministries (SFM) in Salina, Kansas, has pleaded guilty to a wire fraud scheme that defrauded the nonprofit organization of over $10 million. Smith, who led the organization from 2014 to 2020, entered his plea last Thursday before U.S. District Judge Toby Crouse, according to the Episcopal News Service (ENS).

Timeline of the Fraud and Legal Proceedings

Smith faces a potential sentence of up to 20 years in prison and a $250,000 fine, with a sentencing date set for July 15. The fraud scheme involved Smith authorizing payments for overinflated invoices from a company owned by William Byrd Whymark, a New York-based individual who was also indicted in the case.

In November 2022, a federal grand jury in Topeka indicted both Smith and Whymark for their alleged roles in the multiyear fraud. Smith faced 17 counts, including one count of conspiracy to commit wire fraud, 15 counts of wire fraud, and one count of money laundering. Whymark was charged with one count of conspiracy to commit wire fraud, 10 counts of wire fraud, and three counts of money laundering.

According to authorities, the scheme began in 2018 when Smith entered into an agreement with Whymark’s company. From there, Smith allegedly authorized multiple payments for fraudulent invoices, totaling more than $10 million. The SFM board reportedly became aware of the activity in 2020 and forced Smith to resign.

Disciplinary Actions and Church Response

Smith was initially suspended from his position in 2022 when the charges were first filed. However, the suspension was later lifted after an initial investigation failed to find evidence of wrongdoing. That changed in November 2022, when the indictment was announced, prompting Bishop Paula Clark of the Episcopal Diocese of Chicago to issue a statement.

Clark suspended Smith from all priestly and ministerial duties and ordered him to have no direct access to church funds. ‘The Episcopal Diocese of Chicago takes allegations of clergy misconduct very seriously and cooperates fully with legal authorities,’ ENS reported at the time.

Smith is also expected to face disciplinary action within the Episcopal Church, known as the Title IV process, which handles cases of clergy misconduct. This process could result in further sanctions or removal from the church’s rolls.

Whymark’s Plea and Upcoming Sentencing

William Byrd Whymark, who was indicted alongside Smith, pleaded guilty in November 2023 to two counts of money laundering. He faces a potential sentence of up to 10 years in prison and is set to be sentenced on April 30. His case is expected to provide additional details about the scope of the fraud scheme.

According to the indictment, Smith’s position at SFM allowed him to act as a gatekeeper for financial decisions, which he allegedly exploited to benefit Whymark’s company. The scheme, which spanned several years, involved the manipulation of invoices and the diversion of funds intended for support care programs.

Such cases are rare in the Episcopal Church, where clergy misconduct is typically addressed through internal disciplinary processes. However, this case has drawn significant attention due to the scale of the financial loss and the high-profile nature of the individuals involved.

The fraud has raised concerns about the oversight of financial operations in religious organizations, particularly those involved in social services. SFM, which provides support care and other support services, is now facing the challenge of rebuilding trust with donors and the community it serves.

The case also highlights the need for stronger internal controls and oversight in non-profit organizations, especially those handling large sums of public and private funding. Experts suggest that the incident could lead to reforms in how such organizations manage financial decisions and ensure accountability.