Two nuns have admitted embezzling about $500,000 (£396,000) from the school where they worked and spending it at casinos in Las Vegas.
Sisters Mary Kreuper and Lana Chang are believed to have taken cheques meant for tuition, fees and donations, and paid them into a bank account separate from the one used by their school in Torrance, California.
A lawyer for St James Catholic School said the two women, who are best friends, had a "pattern of going on trips" and a "pattern of going to casinos", local media reported.
The scam, which is thought to have lasted at least a decade, was discovered after Kreuper, who was school principal for 29 years, retired earlier this year.
Chang, who taught at the school for 20 years, also retired earlier this year.
The school's pastor, Monsignor Michael Meyers, said in a letter to parents that a "substantial" amount of school funds had been taken for personal use.
The nuns' order said the amount of funds taken was about $500,000 (£396,000), AFP news agency reported.
No other school staff were implicated and police had been called, Monsignor Meyers said.
He added that the nuns felt "deep remorse" and asked for "your forgiveness and prayers".
"They pray that you have not lost trust or faith in the educators and administrators of the school," he said.
Monsignor Meyers said the school did not want to pursue criminal proceedings, while the Archdiocese of Los Angeles said it was not willing to let the matter drop and intended to "become a complaining party".
The sisters are cooperating with an investigation to assess just how much money was embezzled, Monsignor Meyers told parents.
He said in his letter: "I want to assure you that the investigation has disclosed that, notwithstanding this misappropriation, no student or programme at St. James has suffered any loss of educational resources, opportunities, or innovations.
"In sum, the education of your children has not and will not be affected by these events."
The nuns' order, the Sisters of St. Joseph of Carondelet, said its community was "saddened by this situation and regret any injury to our long relationship with the families of the school".
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"The sisters have confirmed the misappropriation of funds and have cooperated in the investigation," it said.
"The Sisters of St Joseph both desire and intend to make complete restitution to St James School."
Two nuns have admitted embezzling about $500,000 (£396,000) from the school where they worked and spending it at casinos in Las Vegas.
Sisters Mary Kreuper and Lana Chang are believed to have taken cheques meant for tuition, fees and donations, and paid them into a bank account separate from the one used by their school in Torrance, California.
A lawyer for St James Catholic School said the two women, who are best friends, had a "pattern of going on trips" and a "pattern of going to casinos", local media reported.
The scam, which is thought to have lasted at least a decade, was discovered after Kreuper, who was school principal for 29 years, retired earlier this year.
Chang, who taught at the school for 20 years, also retired earlier this year.
The school's pastor, Monsignor Michael Meyers, said in a letter to parents that a "substantial" amount of school funds had been taken for personal use.
The nuns' order said the amount of funds taken was about $500,000 (£396,000), AFP news agency reported.
No other school staff were implicated and police had been called, Monsignor Meyers said.
He added that the nuns felt "deep remorse" and asked for "your forgiveness and prayers".
"They pray that you have not lost trust or faith in the educators and administrators of the school," he said.
Monsignor Meyers said the school did not want to pursue criminal proceedings, while the Archdiocese of Los Angeles said it was not willing to let the matter drop and intended to "become a complaining party".
The sisters are cooperating with an investigation to assess just how much money was embezzled, Monsignor Meyers told parents.
He said in his letter: "I want to assure you that the investigation has disclosed that, notwithstanding this misappropriation, no student or programme at St. James has suffered any loss of educational resources, opportunities, or innovations.
"In sum, the education of your children has not and will not be affected by these events."
The nuns' order, the Sisters of St. Joseph of Carondelet, said its community was "saddened by this situation and regret any injury to our long relationship with the families of the school".
More from California
"The sisters have confirmed the misappropriation of funds and have cooperated in the investigation," it said.
"The Sisters of St Joseph both desire and intend to make complete restitution to St James School."
