A Nebraska Catholic priest who was brutally stabbed to death in his rectory on Sunday was previously convicted of embezzling $125,000 from his parishioners, it has been revealed.
Stephen Gutgsell was arrested in 2007 for stealing from his community in Omaha. He reached an agreement in the case in which he was sentenced to probation instead of 20 years in prison. He was also forced to pay $40,000 in restitution.
Years later, Gutgsell, 65, was violently attacked at the parsonage of St. John the Baptist in Fort Calhoun. He had called 911 to report a burglary just before he was found fatally injured.
Kierre L. Williams, 43, of Sioux County, Iowa, was subsequently arrested and charged with murder and using a weapon to commit a crime.
Police have not released a motive in this case.
Nebraska Catholic priest Stephen Gutgsell, who was stabbed to death in his rectory, had a troubled past, including an arrest for stealing $125,000
Gutgsell, 65, was taken to a hospital in Omaha on Sunday, where he died from his stab wounds, church officials said
The police will not say whether the men knew each other before the murder.
'He's not from the area. To our knowledge, he is not from Fort Calhoun or even Nebraska,” sheriff's officials said of Williams.
In 2007, Gutgsell was arrested and accused of stealing more than $125,000 from his Omaha parish over three years. The Pillar reports.
According to court records, the religious leader had racked up massive credit card debts that he had to cover through theft.
But few details are available about the crime, as Omaha police have declined to release several pages of “investigative material,” citing Nebraska statutes.
Reports from KETV at the time stated that Gutgsell resigned from St. Patrick's parish and was placed on administrative leave during the investigation.
He turned himself in to police in February 2007 after reaching a deal with prosecutors. According to his lawyer Jim Schaeffer, the priest was “ashamed of his behavior.”
Kierre L. Williams, 43, of Sioux County, Iowa, was arrested for killing Gutgsell during an invasion of the parsonage of St. John the Baptist Catholic Church
Before joining St. John the Baptist (pictured) at Fort Calhoun, Gutgsell oversaw a church in Omaha, where he stole from the congregation
The pastor racked up massive credit card debt, which he resorted to theft to pay for before parishioners became aware of the scheme and he was forced to resign from his position. Years later, he joined the church at Fort Calhoun (pictured), where he was stabbed to death
“He knows he was wrong and asks forgiveness from his parishioners and the church,” Schaeffer said.
Instead of receiving a 20-year prison sentence, Gutgsell was instead given five years' probation, 500 hours of community service, and sent to Canada for a residential treatment program for religious offenders.
He was also ordered to pay the Archdiocese of Omaha approximately $40,000 in restitution.
At the end of his probation in 2012, he still had nearly $13,000 owed, but he remained on good terms with the church.
The Archdiocese of Omaha told the court that the priest had “agreed to continue paying” the amount owed and that he had no objection to his probation ending.
In an online comment, a former parishioner named Joe Coliano claimed to have known Gutgsell before and after his arrest.
He described him as “a good priest who made some bad decisions in a weak moment 15 years ago,” but said he had taken responsibility, “received help” and remained in good standing with the diocese.
Earlier this year, Gutgsell's brother Fr. Michael Gutgsell reached a plea deal with prosecutors after he was accused of stealing nearly $200,000 from an elderly priest.
Gutgsell avoided a 20-year prison sentence and a $25,000 fine and was instead ordered to perform 500 hours of community service, pay $40,000 in restitution to the Archdiocese of Omaha and was placed on probation for five years.
Police have not yet released a motive for Sunday's killing in Fort Calhoun, Nebraska
Court documents state that Fr. Michael managed to steal the money after obtaining power of attorney for the 'vulnerable' Father. Ted Richling, whom he was accused of exploiting.
He was also accused of stealing at least $94,000 from St. Joseph Church in Springfield, Nebraska, where he served as a priest.
This charge was later dropped in March 2022 after he repaid the money.
In another bizarre twist, Fr. Michael then gave the money he stole to homeless man Michael Barrett, whom he met while he was a priest at Omaha Cathedral in 2013.
The pastor reportedly believed Barrett would pay him back, court documents show.
He was suspended pending charges and it is unclear when or if he will be reinstated.
Mike Fitzgerald, a parishioner at St. John the Baptist, said the regular 8:30 a.m. service at Gutgsell Church had been canceled. He told the Omaha World Herald: “Father Gutgsell has been here for 11 years and I thought he was a very holy man.
“He has done a lot for the community. He always made sure that the (church) bulletin contained everything we needed to know about what was happening in the church.'
