Former treasurer who emptied church finds self penniless

(Knoxville News Sentinel) - The church treasurer who stole $415,950 from the coffers of St. George Greek Orthodox Church says in court records he is now down to $20 in his pocket and a few thousand in assets and is facing a mountain of debt.

Constantine D. Christodoulou has filed for bankruptcy protection in U.S. Bankruptcy Court in Knoxville.

In it, he says doesn’t own a home, takes in $2,000 each month and doles out $1,917 from that pay. He says he owes $618,702 debts – $224,675 of which he owes St. George.

Attorney Lynn Tarpy is asking on Christodoulou’s behalf that he be allowed to keep his $8,277 in assets, most of which is stock in the travel agency he sold after was caught stealing from the church in February 2015.

Paying the price

Christodoulou pleaded guilty in Knox County Criminal Court in January 2016 with stealing under a half million from the church over five years while acting as treasurer.

He was ordered to repay the church, spend a year in jail and nine more on probation. He served his time and has repaid more than half of what he stole from the church, records showed.

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He cannot use bankruptcy to avoid paying the church. The law doesn’t allow it.

Christodoulou says in the petition he owes Maryville CBBC bank $312,000 and Discover $20,000 in addition to his restitution to the church.

Church forgave, state prosecuted

The thievery was discovered in February 2015, but it’s never been clear what Christodoulou did with the money. Prosecutors said they didn’t know. The Rev. Anthony Stratis informed church members through a letter that the former treasurer had been stealing from them for years.

Church officials did not report the theft to police until two months after the News Sentinel published a story on the embezzlement. Stratis had initially written in the letter that the church would not seek prosecution.

The theft left the church with less than $2,000 in its bank accounts, prompting church leaders to approve obtaining a $150,000 loan to stabilize finances.

The low cash balance also delayed a decision to install a fire alarm system that had been reviewed and approved by the church, Stratis said.

On the Eastern Orthodox Easter in April 2015 a passerby reported flames in the sanctuary. By then, flames already had damaged the ornate dome in the sanctuary and raced through the structure.

Knoxville fire investigators eventually settled upon candles used in the night service that ended early in the morning as the probable cause of the fire. Someone had tossed a candle in a trash can and didn't douse it in the tray of sand at the rear of the sanctuary, investigators said.

Christodolou's wife also has filed for bankruptcy.