The Rev. Don Armstrong, who seceded from The Episcopal Church this week amid a bitter fight with the bishop, defended himself Friday against allegations of financial wrongdoing.

"There is nothing about these allegations that cannot be reasonably understood when all, not just some, of the facts are available," Armstrong said in response to an investigation by the Episcopal Diocese of Colorado into parish finances.

"It is my own and the vestry's intention to share with the congregation all the facts, and we are confident that the operation of our church and my participation in parish decisions will be fully exonerated," Armstrong wrote in a letter to members of his Grace Church and St. Stephen's Parish in Colorado Springs.

The letter is the latest development in the battle between Armstrong and Bishop Rob O'Neill over the 2,000-member parish's decision to leave the American church and the future of its valuable property.

Beckett Stokes, spokeswoman for the diocese, said it was aware of Armstrong's letter but did not want to comment on it.

On Tuesday, O'Neill wrote to parishioners, outlining some of the allegations against Armstrong. The letter cited an investigation by a church attorney that alleged theft and misuse of hundreds of thousands of dollars of church funds during a 10-year period.

Armstrong said he was not able to comment or respond to the allegations earlier because of the equivalent of a gag order by the diocese. He had been under a three-month banishment from the parish while the diocese conducted its probe.

"I have not been afforded due process in any way," he wrote. "I have been treated as guilty until proven innocent."

He said he will provide a full report to the parish at an April 14 meeting.

In his letter, Armstrong rebuts the charges outlined by O'Neill. Among them:

• Allegation: Theft of $392,409 in unauthorized payments for educational and personal expenses for Armstrong's family.

Armstrong: "Much of the bishop's complaint has to do with scholarships granted to my children for college. This is a common practice in the church and our own system for doing this was patterned after other Episcopal churches of a similar size and budget to Grace Church."

• Allegation: Tax fraud involving $548,097 in nonsalary income and benefits not reported to the Internal Revenue Service and the Colorado Department of Revenue.

Armstrong: "I will share with the congregation at our meeting on April 14th, copies of my tax returns showing that I have always declared on my taxes the value of the church provided rectory, as well as any gifts or gratuities I might have received for doing a wedding or funeral."

• Allegation: The improper use of $136,354 in clergy discretionary funds.

Armstrong notes that in the past the fund has been used to pay for "parishioners' therapy, taking people out for coffee, having parishioners for dinner."

"We stopped a more general use of the discretionary fund some time ago and now use it only for the poor as . . . newer rules require."

• Allegation: False or fraudulent entries in the church's books and records.

Armstrong said that the church financial records are subject to an independent audit and that the church also provides an annual financial report to the congregation.

Armstrong also said the church has stopped granting pay advances for its staff after learning through the investigation that Colorado law apparently does not allow such advances or loans.

On Monday, Armstrong took back control of the church as the parish's governing board voted to secede from the national church. The parish then affiliated with the Convocation of Anglicans in North America, a network of conservative Anglican churches.

The diocese is threatening to sue him and the governing board if they don't relinquish control of Grace and St. Stephen's. However, Alan Crippen, Armstrong's spokesman, said that the parish, not the diocese, owns the property.

Armstrong says he is being persecuted for his stand against The Episcopal Church's support of openly gay bishops and same-sex blessings.

Crippen said that if the diocese decides to try Armstrong in ecclesiastical court, Armstrong would not appear.

"He is no longer under the ecclesiastical jurisdiction" of the diocese, Crippen said.

fongt@RockyMountainNews.com or 303-954-5489

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