Colorado Springs preacher tossed out

Jean Torkelson, Rocky Mountain News

Published November 2, 2007 at midnight

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COLORADO SPRINGS - The Rev. Donald Armstrong, accused by the Colorado diocese of stealing nearly $400,000 from Grace Church and St. Stephen's Parish, has been defrocked.

Bishop Robert O'Neill announced Thursday that Armstrong is deposed as an Episcopal priest, in accordance with the sentence issued by the diocese's Ecclesiastical Court. It means he can no longer officiate in the Episcopal Church in the U.S.

"I'm not under Rob's authority; I've already left," Armstrong told the Rocky Mountain News on Thursday. "So it's sort of like being fired after you've already quit."

Armstrong said he is a priest in good standing in the Convocation of Anglicans in North America, an Anglican group for breakaway Episcopalians.

The defrocking caps several years of battles between the diocese and Armstrong, who insists he's being persecuted for his conservative views. Nationwide, in the last two years more than 30 parishes have left the Episcopal fold to protest its departure from traditional teachings on sexuality and scripture.

The historic Grace Church, which in calmer times counted a membership of about 2,000, is currently led by Armstrong. About 500 worshippers attend weekly, according to parish spokesman Alan Crippen.

Another 400 to 500 former members stayed loyal to the diocese, according to the diocese's communication director, Beckett Stokes. They have created a new congregation nearby.

The ultimate ownership of the parish is being battled in El Paso County District Court. The unanswered question is whether the property belongs to the Episcopal Diocese or should follow its parishioners into the Anglican organization.

Armstrong's defrocking is based on a church court investigation which ruled several months ago that Armstrong stole $392,410 from the church, underreported his income to the Internal Revenue Service, received illegal church loans totaling $122,479, and encumbered the church with deeds of trust totaling $2.5 million without approval from the bishop or the standing committee of the Colorado diocese.

The diocese turned over its findings to the financial crimes unit of the Colorado Springs Police Department, which agreed to conduct a criminal investigation. However, the case has been on hold while the unit investigated another, unrelated case, a police spokesman said. The unit is expected to resume work on the church case next week.

Armstrong's supporters fought back with an independent audit completed last month, which said he did nothing wrong. It laid the blame for the alleged money mismanagement on an incompetent bookkeeper and a string of bad advice.

The Gazette in Colorado Springs contributed to this report.

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