Sioux Falls priest has embezzlement charge dismissed, court documents say
A Sioux Falls priest indicted on charges he embezzled thousands of dollars from a local parish had the charges dropped after a plea agreement was reached.
David Anthony Desmond was initially charged in 2020 by a Minnehaha County grand jury on one count of grand theft embezzlement for an unspecified amount between $5,000 to $100,000, a Class 4 felony, according to court documents.
On Oct. 17, he reached a plea agreement with the state where the grand theft charge was dismissed after he pled no contest to a new lesser charge of petty theft, according to court documents.
Desmond is currently listed as a reverend on the Catholic Diocese of Sioux Falls website.
A statement from the Catholic Diocese of Sioux Falls sent to parishioners after Desmond's initial charges stated he resigned his pastorate after “being confronted over his inattentiveness to pastoral responsibilities," according to prior reporting by the Argus Leader.
Desmond was placed on leave in July 2019. He has been supported financially by the diocese since, "in accord with Diocesan policy."
The diocese finance office conducted a review of financial records and discovered about $95,400 in “questionable parish disbursements,” according to prior reporting by the Argus Leader.
The irregularities included questionable bank disbursements and altered or duplicated receipts when submitting for reimbursements, according to the statement.
Notice sent to parishioners regarding Desmond
On Monday, parishioners of Saint Mary were sent a notice regarding Desmond's plea agreement. He entered a “no contest” plea to the court in response to the state’s amended complaint that he had committed theft by deception, a Class 1 Misdemeanor.
As part of the agreement, in exchange for the “no contest” plea, the court found a factual basis to declare Desmond guilty and required him to pay $8,414 in restitution and court costs, according to the notice.
Desmond’s misdemeanor criminal record that the court imposed in response to his plea will become sealed after 360 days, according to the notice.
St. Mary Parish has had $78,374.87 paid to it by Catholic Mutual, the insurer who provided the employee theft coverage. This payment is the result of the parish’s claim and after the insurer deemed there to have been “fraudulent payments” provided either to Desmond or for his benefit, according to the notice.
Desmond remains a priest on leave as established by his voluntary decision to take leave from public ministry, according to the notice.
Bishop Donald DeGrood will work with Desmond to clarify his status in the diocese. A discernment process over Desmond's possible future ministry as a priest will start now that his legal matters have been finalized, according to the notice.
This article originally appeared on Sioux Falls Argus Leader: Priest in Sioux Falls charged with embezzlement settles case
