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The narrative of the 66 page “Final Report of the St. Tikhon’s Investigation Committee” really begins on page 18. The Committee starts with a description of the St. Tikhon's complex for anyone who is not familiar with the campus and land that covers two hundred acres in the rolling hills of  Eastern Pennsylvania.

“The St. Tikhon’ s complex”, the Report states, “ is located in the village of South Canaan, Pennsylvania, and includes lands of the monastery, seminary, and orphanage, as described in Section 4.1 of this report. The Monastery grounds include the St Tikhon’s Bookstore, the Metropolitan Theodosius Museum, the John Guzey Icon Repository, St Tikhon’s Cemetery (including the Mausoleum and the Pleasant View Cemetery which serves the parish in Uniondale) and St Tikhon’s Seminary Press. The seminary grounds include the seminary education buildings and the Metropolitan Leonty Dormitory. In addition, the Diocesan Center of the Diocese of Philadelphia Eastern Pennsylvania is located on orphanage property and is currently the residence for its bishop.”

Having defined St. Tikhon’s in physical terms, the Report describes St. Tikhon’s in legal terms.

“ At the time of our investigation, we found that four Pennsylvania corporations and one Pennsylvania limited liability company were comprised by the St. Tikhon’s complex:

Corporation No. 1 – The 1905 Nonprofit Corporation: St. Tikhon’s Greek Russian Orthodox Church.

Corporation No. 2 – St Tikhon Russian Orthodox Orphanage.

Corporation No. 3 – St Tikhon Theological Seminary.

Corporation No. 4 – St. Tikhon’s Orthodox Theological Seminary.

Corporation No. 5 – St. Tikhon’s Bookstore, LLC.”

The Report summarizes the overlapping legal entities in the following manner:

“The 1905 nonprofit corporation is established for broad purposes, encompassing the erection and maintenance of an orphanage and a monastery the worship of God in the Orthodox tradition, and the holding of real and personal property necessary for the erection, care and maintenance of all buildings necessary for such activities. The purposes of the other corporations are more limited – specifically to an orphanage or seminary. The monastery, bookstore, cemetery, mausoleum, Guzey Icon Repository, Metropolitan Theodosius Museum, and children’s summer camp, are all part of the 1905 nonprofit corporation, St. Tikhon’s Greek Russian Orthodox Church.”*

It then makes the 9 “Observations”, the most telling of which are #2 and #3:

“2. Metropolitan Herman, functioning and representing himself as the de-facto sole director of ‘St. Tikhon’s Monastery,’ violated the 1905 nonprofit corporation charter that states: the numbers of directors or trustees of said corporation is fixed at five, a majority of which shall be lay members .

3. As stated in Section 4.2 below, Metropolitan Herman took loans in names other than designated corporate entities, creating potential confusion regarding the entity responsible for loan payment.”

The Committee makes several recommendations to untangle the unnecessarily complex legal structures that have grown up over time. They write:

“ The 1967 Corporation No. 4, St. Tikhon’s Orthodox Theological Seminary, seems to have taken over the activities that may have been intended by the 1953 Corporation, St. Tikhon Theological Seminary. We believe that, subject to legal evaluation, Corporation No. 3, St. Tikhon Theological Seminary should be dissolved. “

and again:

We were told in interviews that this limited liability company was formed for the sole purpose of purchasing Noonan’s Wine Store, a local provider of altar wine that was going out of business. The sale was not consummated, and the purpose of this LLC is defunct.”

As a result, the Committee recommends:

“.....amending the 1905 nonprofit corporation charter to reflect that the entity is no longer referred to, or understood by any of the local populace, by its real name; and to correct the anomaly of the entity being referred to by a name that has never been formally approved (e.g., by the filing of an application to conduct activities in Pennsylvania under the name ‘St. Tikhon’s Orthodox Monastery’ or something similar). We further recommend amending the corporate purposes of the entity, and including an amending provision setting forth a reference to where the provisions must be kept (and by which they may be changed) that set forth the requirements and mechanics of identifying and voting for directors and, when vacancies occur, who they are to be replaced. In conjunction with these amendments, the charter should be amended in all respects consistent with modern, customary practice in Pennsylvania, as well as making clear which ecclesiastical activities of the entity are stavropegial in nature.”

If the Report seems deadly dull, the Reader has only to wait. The devil, as they say, is in the details. For example, immediately following the above is this startling bit of information:

“1. The two current mortgages against the monastery property (Parcel No.1) appear to be flawed in that they include the 7.3 acre orphanage property that the monastery did not own, and therefore could not mortgage.”


The Report continues:

“2. None of the properties of St. Tikhon’s Greek Russian Orthodox Church (Parcel Nos. 1 though 4) are deeded to the official corporate name. One is in the name of the Monastery, two in the name of Metropolitan Ireney, and one in the name of Metropolitan Leonty. In conjunction with amending the 1905 nonprofit corporation charter, we recommend the deeds of these properties be modified to the correct corporate name, through discussions with a licensed Pennsylvania real estate attorney.

3. It appears that since 1981, the fact was not taken into account that the orphanage property was separate from monastery property, under different governance, i.e., by the governing board of St. Tikhon Russian Orthodox Orphanage. In 1981, a Resolution was granted by the ‘Local Functioning Committee of the Executive Board of St. Tikhon’ s Russian Orthodox Children’s Home’ to allow the Diocese of Eastern Pennsylvania to build the Diocesan Center on orphanage property (see Appendix I). In this resolution, Primate Metropolitan Theodosius signed as Chairman of the Local Functioning Committee and Archpriest Daniel Donlick signed as Secretary of the Local Functioning Committee. Metropolitan Herman, then Bishop of Philadelphia and Eastern Pennsylvania, and Archpriest Rodion Kondratick , signed on behalf of the Diocese of Eastern Pennsylvania.

This 1981 Resolution identifies that the orphanage had ceased operation. It demonstrates that it was known that a board or committee needed to be constituted in order for the orphanage corporation to make decisions. It also demonstrates that Metropolitan Herman, as a signatory to the document, understood this process."

Boring stuff, right? But there is method in this madness, as the Committee is opening doors, one at a time, to see what lies behind them, in order to address the titles, deeds, mortgages on the complex - and in the process, lays bare what has long been hidden.

Behind Door #1

The first door they open concerns mortgages. The Report explains:

As of July, 2009 St. Tikhon’s Monastery had an outstanding loan debt in the amount of $1,525,537.94, paying approximately $13,000 per month in principal and interest on three loans. Some of these loans have been refinanced several times and date from September 2003. The loan to the Monastery for the Museum/Bookstore originally dates from September 2003. That loan was refinanced in June 2008, returning it to the original balance of $1,250,000. In Appendix J, we have provided a loan history below dating back to 1990. We cannot say that this is an exhaustive history and our data is not complete. This is information from the records that we were able to locate and examine.”

The Report then explains how +Herman was able to indebt the monastery over the years, by mortgaging lands, sometimes on land the monastery did not own, with no one the wiser to what he has doing:

“From our examination of the records and based on multiple interviews, it is clear that Metropolitan Herman had absolute control of the books and finances of the Seminary and Monastery, and that it was his practice to take out the loans when needed. We examined hundreds of documents in which he noted the date, amount and check number of loan payments. He was the sole signatory on loan documents. The borrowing resolution stating that Metropolitan Herman had the absolute authority to sign any and all documents necessary to obtain the monastery mortgage from the Honesdale National Bank in the amount of $1,250,000 on September 18, 2003, was faxed by then Protopresbyter Kondratick on September 23, 2003, five days after Metropolitan Herman signed the loan documents.”

Documents That Misdirect

The actual resolution, signed by Robert Kondratick as Chancellor of the OCA, is included in the Appendix K. It reads:

“ At the 13th All-American Council of the Orthodox Church in America, meeting in Orlando, Florida, on July 22, 2002, after due notice, Archbishop Herman Swaiko was elected as Archbishop of Washington, Metropolitan of All America and Canada, and Primate of the Orthodox Church in America.

As Metropolitan, be is a Trustee of all of the assets of the Orthodox Church in America, including but not limited to Saint Tillbon’s Orthodox Monastery, an institution of the Orthodox Church in America, located at South Canaan, Wayne County, Pennsylvania. Furthermore, in his capacity as Metropolitan of the Orthodox Church in America, Metropolitan Hennan Swaiko has the absolute authority to sign any and all documents necessary to obtain a mortgage from The Honesdale National Bank in the amount of $1,250,000.00 on behalf of Saint Tikhon’s Orthodox Monastery, an institution of the Orthodox Church in America, pursuant to the loan commitment from The Honesdale National Bank dated July 11,2003,with amendment to the commitment letter dated August 26, 2003.

Protopresbyter Robert S. Kondratick
Chancellor of the Orthodox Church in America.”

This resolution is clearly misleading. The Statute of the OCA lists the duties of the Metropolitan in Article IV, section 2:

The Metropolitan:

Consecrates and distributes the Holy Chrism;

Provides the diocesan bishops with the Holy Relics necessary for the consecration of Church altars and Holy Antimensia;

Convenes the All-American Council, presides over it, and promulgates its decisions;

Convenes and presides over the meetings of the Holy Synod and of the Metropolitan Council;

Issues pastoral letters addressed to the bishops, clergy, and laity of the Church;

Reports to the Council concerning the life of the Church;

Initiates action to fill vacancies in the office of diocesan bishop;

Gives advice to his brother bishops, and in cases of necessity, submits their cases to the Holy Synod;

Has the right of pastoral initiative and guidance, and when necessary the right of pastoral intervention, in all matters concerning the life of the Church within the framework of the holy canons;

Receives petitions for admission of clergy from other Orthodox Churches.

It says nothing about “absolute authority” to encumber Church property by mortgaging it unilaterally. That competency, and then by only by vote, is given to the Metropolitan Council alone by Statute, in Article V. section 4 which states that the Metropolitan Council:

Decides on the purchase, sale, or mortgaging of property of the Church, except in cases covered in Article X, Section 9: (concerning parish property)”.

The Report makes clear, however, that this misleading 2003 resolution was not the first resolution of questionable validity created by Robert Kondratick and Metropolitan Herman.

The Report continues:

“In 1996, a loan for $364,000 was taken out to finance the Mausoleum construction and for loan consolidation. The Certificate of Borrowing Resolution was signed by Metropolitan Herman and then Protopresbyter Kondratick25. Kondratick signed as the Secretary of the Corporation. Chancery records indicate that he was not the Secretary of the OCA at the time. The document also indicates that a ‘duly constituted meeting of the Board of Directors of the Corporation was held on April 18, 1996.’ We could not find any minutes or records that such a meeting ever took place.”

As a result, the Report concludes:

“1. We found that Metropolitan Herman was a meticulous record keeper. The detail of his record keeping illustrated he had firm grasp of a cascading system of one overlapping loan after another.

2. While it is generally assumed that the Monastery and Seminary incurred debt to finance the Museum/Bookstore, Metropolitan Leonty Dormitory, and Mausoleum, the number and amount of other loans was surprisingly large. We identified over 40 loans in an 18 year period.

3. The scope of our investigation did not allow us to trace the purpose and use of every loan. Various purposes included specific bookstore printing projects, major construction projects like the mausoleum and museum/bookstore, paying credit card debt, paying off previous loans, and providing working capital.

4. From what we were able to review, it appears in general that Metropolitan Herman engaged in a practice of getting a loan, and then getting a succeeding higher loan to pay off the preceding loan and increase the debt going forward. In this way, the debt of the monastery continually increased without being paid off 26. He left the monastery with a debt of over $1.5 million dollars and current monthly payments of over $13,000. For the $1.25 million loan, a balloon payment is due on September 14, 2014, at which time the principal balance will be approximately $1.1 million.”

Having established how the “cascading system” of mortgages was obtained, and by whom, on what authority or lack of same, the Report then details the actual mortgage situation of the St. Tikhon’s complex at this time:

Mortgaging the Future

“There are currently one mortgage on seminary property and two mortgages on monastery property.
The first instance27 we found where property was mortgaged was the 1990 seminary loan for $725,000 from the First National Bank of Jermyn for construction of the Metropolitan Leonty Dormitory. This loan mortgaged the seminary property (Parcel No. 5, see Section 4.1.2). This loan was paid off in 2003 by a loan from Community Bank and Trust for an amount not to exceed $400,000. The Community Bank and Trust loan was also secured by a mortgage on the seminary property. The balance in February 2009 was $177,691 and the mortgage still exists.

From the monastery loan history, it appears that Metropolitan Herman used existing certificates of deposit (CDs) as collateral when banks required it. As the loan amounts increased, it appears banks required a higher level of collateral, and Metropolitan Herman mortgaged property to secure the loans. The first time we found where Metropolitan Herman mortgaged monastery property was in October 1994 to secure a $63,576.39 loan from Lake Ariel Bank. Parcel No. 1 (see Section 4.1.2) of monastery property was mortgaged with the mortgagor as “St. Tikhon’s Monastery.” The loan documents were signed by Metropolitan Herman.

The Lake Ariel Bank mortgage was re-paid four months later with monies from a larger mortgage loan with Honesdale National Bank. This loan was in January 1995 for $165,000. Parcels No. 1 and No. 2 (see Section 4.1.2) of monastery land were mortgaged, and this time the mortgagor was ‘The Orthodox Church in America.’ The purpose of this loan was to pay off the Lake Ariel loan (approx. $65,000) and to renovate the Monastery Church (approx. $100,000).

The January 1995 Honesdale National Bank mortgage was satisfied in September 1996 by a loan from Community Bank and Trust. That loan in the amount of $364,000 repaid the 1995 Honesdale National Bank loan and provided funds to construct a Mausoleum. Parcel No. 1 (see Section 4.1.2) of monastery property was mortgaged with the mortgagor as “St. Tikhon’s Monastery”.

In September 2003, Metropolitan Herman obtained a construction loan from Honesdale National Bank for $1,250,000 in order to construct the museum/bookstore building (see Section 4.4). This loan created a second mortgage on Parcel No. 1 of monastery property. The mortgagor in this case was “St. Tikhon’s Orthodox Monastery, an Institution of the Orthodox Church in America.”

This “Bookstore” loan payment was adjusted in 2006. In June 17, 2008, additional amounts were borrowed, bringing the balance again up to $1,250,000. As part of the 2008 loan, the Community Bank and Trust mortgage of 1996 was satisfied.

An additional Honesdale National Bank loan for $152,000 was obtained on June 25, 2008 to pay off several loans, credit card debt, and to obtain working capital. This loan also mortgaged Parcel No. 1 of Monastery property, with the mortgagor as “St. Tikhon’s Orthodox Monastery, an Institution of the Orthodox Church in America.”

Thus, two mortgages for Parcel No. 1 of monastery land currently exist with Honesdale National Bank, the June 17, 2008 “Bookstore” loan, and the June 25, 2008 loan.”

The Report then makes several observations, of which we reprint the final three for the purposes of this news summary:

4. It appears that, on two occasions, once in 1996 for the Community Bank and Trust mortgage, and again in 2003 for the Honesdale National Bank ‘Bookstore’ mortgage, Metropolitan Herman, together with then Protopresbyter Kondratick, created documents that circumvented Metropolitan Council authority and gave the appearance to the banks that Archbishop Herman and Protopresbyter Kondratick in 1996, and Metropolitan Herman singularly in 2003, had authority to mortgage the monastery property. Both Metropolitan Herman and Kondratick knew, or should have known, of the provision of the OCA Statute.

5. We found a number of instances where misleading information was executed in conjunction with mortgage documents. The 1996 Certificate of Borrowing Resolution refers to “a duly constituted meeting of the Board of Directors of the Corporation held on April, 18, 1996.” There is no record of such a meeting. For both the June 17, 2008, and June 25, 2008, mortgage loans with Honesdale National Bank, Metropolitan Herman signed an Affidavit of Borrower under oath 29, stating:

I, the undersigned, Metropolitan Herman Swaiko, Trustee of St. Tikhon’s Orthodox Monastery, an Institution of the Orthodox Church in America, do hereby state under oath that at a duly called meeting of the governing authorities of St. Tikhon’s Orthodox Monastery, an Institution of the Orthodox Church in America, the following officer was duly elected: Metropolitan Herman Swaiko as Trustee and Head of the Church.

This gives the impressions that Metropolitan Herman was elected by governing authorities of St. Tikhon’s Monastery at a duly called meeting. In fact, Metropolitan Herman functioned as de-facto sole director for St. Tikhon’s Monastery. There are no records of such a meeting (30).

6. In our review, we noted that in a number of cases, the lending bank appeared to be represented by the same attorney in the loan transaction as was the monastery, the borrower. We found no written waiver by either the lending bank or the borrower of the apparent conflict of interest.

We also found the involved attorney’s opinion letter in which he opines as to certain factual matters pertaining, at least, to Metropolitan Herman’s authority in connection with the transaction.

We note that, during the period of time relevant to the committee’s investigation, there was no such entity as “St Tikhon’s Monastery,” in the State of Pennsylvania, nor any entity qualified to do business under such name. The lenders should have learned this through their attorneys. Had they learned this – or heeded it – they would have discovered the five person board provision and would have required a copy of the corporate resolutions by which the board approved of the loans.

The committee did not interview the involved attorney, but rather recommends that the Metropolitan Council Legal Committee review this area and take such action as may be appropriate.”

A Brief Pause

Let us repeat what Report has said: There are no records of meetings giving Metropolitan Herman authority to mortgage properties the monastery may or may not have even owned. There are multiple documents signed by him, and Robert Kondratick, however, affirming his authority to do so, appearing to circumvent the explicit provisions of the OCA Statute and the responsibilities given to the Metropolitan Council. As a result, the Monastery was indebted to the tune of $1.5 million, in a series of transactions where the same attorney often represented both the borrower and lender, during which none of the aforementioned problems were ever revealed.

But wait - there is more.

And now to Door #2

The Report moves from “Mortgages” to “Gifts and Endowments”.

“One possible question for this investigation was: Were all gifts and endowments used for the purposes given and intended? While not forensic accountants, we attempted to review this area. At the outset, we found there was no central source for receiving and recording gifts and endowments. Therefore, it was impossible to track the flow of funds.

In reviewing QuickBooks deposit information, we were able to determine that numerous small gifts and donations were deposited into bookstore and monastery checking accounts. We also noted that, from time to time, larger gifts were recorded as deposits in proper accounts. We specifically reviewed several large donations and found they were deposited into appropriate accounts. Once put into checking accounts, amounts were used for the work of the monastery or bookstore, as necessary.”

The Report then observes:

1. There was no system of recording all gifts, their purposes, and their uses. Such a system needs to be instituted and this area needs to be periodically audited.

2. We also found that often gifts were not specifically designated for “Monastery” or “Seminary.” In those cases, it seemed monies were used where the need was most imminent.

3. St. Tikhon’s receives many gifts and endowments. St. Tikhon’s is a worthy recipient that attracts generous donors. Because of this high donation activity, opportunities to divert monies were great because of the lack of a receipt and accounting system.

4. Given the caveat above, we did not find evidence of fraudulent activity with regard to diverting gifts and endowments.”

Well, two caveats, really. There was no system of accounting or receipting donations - and donations to the monastery/seminary appeared to be used wherever need was "imminent", not necessarily to the institution to which the donation was given.

Door #3: the Monastery Bookstore

“In Summer 2004, the new bookstore/museum building across from the seminary was completed at a cost of approximately $1 million. The bookstore was left with a loan of approximately $1,250,000 that included borrowing to pay off existing loans of approximately $250,000.

Our investigation did not discover any official minutes from the Seminary Board of Trustees or Monastery Brotherhood supporting or giving approval for this capital expenditure and the moving of the bookstore operation from the seminary to the monastery side of the road. Interviewees reported that this move cost the seminary one quarter of their income requiring them to locate new sources of funding. It was also reported that the move may have been the result of Fr. Michael Dahulich, Seminary Dean, putting up a „firewall” between seminary finances and Archdeacon Klimitchev. During his period as Dean, Fr. Michael was able to gain accreditation for St. Tikhon’s Seminary and keep the seminary solvent.

Several interviewees said that the idea to relocate the bookstore was Archdeacon Klimitchev’s, a claim that he denies. Former bookstore employees reported that the emphasis in bookstore operation after the move into the new building went from book sales as the main source of income to jewelry sales and other religious items from Russia.”

Who is Archdeacon Klimitchev?

Archdeacon Alexei Klimitchev, Metropolitan Herman’s former Archdeacon, is a Russian immigrant to the United States, who came to St. Tikhon’s at the invitation of Metropolitan Herman in the early 1990’s. He subsequently studied at the Seminary, married, and was ordained. Together with Martin Paluch, Metropolitan Herman’s long-time secretary, photographer and driver, with whom, as the Report will later discuss, the Metropolitan has long shared a house, Klimitchev quickly became a member of the Metropolitan’s “inner circle”.

Following his dismissal from the Monastery Bookstore in the aftermath of the Metropolitan’s resignation in September 2008, the Archdeacon was suspended from all priestly functions. He currently continues to reside in a home he built next to St. Tikhon’s, on land gifted to him by Metropolitan Herman. As the Report will detail, after the Monastery satellite store in Phildelphia was closed, Klimitchev and his wife purchased a building in nearby Honesdale PA and opened their own jewelry story.

Door #3, Continued

There follows a long chronology of events, decisions and payments that resulted in the construction of the new Monastery Bookstore. At the end of this chronology the Report observes:

“1. Metropolitan Herman acted unilaterally to construct the new bookstore/museum building, leaving the bookstore with a $1,250,000 debt that will burden the bookstore for years in the future.

2. On the other hand, the committee recognizes that Metropolitan Herman’s action provided the St. Tikhon’s complex with a high-class bookstore building that will be an asset for the St. Tikhon’s for years to come. Such building projects most always come with the burden of long term debt. However, the vision should have been weighed against the burden to the monastery.

3. In acquiring the bank loan, we found that Metropolitan Herman did not act in a straightforward manner, by making hand-changes on Franks’ Builders estimate, and representing it as originating from Franks Builders.

4. We did not find a basis or invoice for one $40,000 payment that Metropolitan Herman made to Franks’ Builders on November 19, 2003.

5. Interviewees reported that building and restoration projects were routinely given to Franks’ Builders without receiving competitive bids from other builders.”

I'll Take Door #4, Please

The Committee was not going to let the question of a suspiscious $40,000 payment fade away. They opened yet another door, now Door #4. This door, it turned out, led from South Canaan to Moscow.

The Report continues:

“In our investigation, we found a November 7, 2003 document marked Confidential in which Archimandrite Zacchaeus, rector of St. Catherine’s, the OCA representation Church in Moscow, responded to a request by Metropolitan Herman for information on bank wire transfers to Russia (34). Archimandrite Zacchaeus instructed Metropolitan Herman on how to make bank wire transfers to his hard currency account at Delta Bank in Moscow. According to Archimandrite Zacchaeus, St. Catherine’s was used to channel cash to Russia during the Metropolitan Theodosius, Metropolitan Herman, and Kondratick era.

On November 18, 2003, Metropolitan Herman instructed Mr. Luke Woodmansee of Honesdale National Bank to have a $50,000 construction loan draw deposited in the St. Tikhon’s Children’s Summer Camp account. On November 19, 2003, he instructed Mr. Woodmansee to wire $10,000 from St. Tikhon’s Children’s Summer Camp Account (construction loan) to the above hard currency account in Moscow (Note - that same day, a check was written to Ron Franks’ Builders for $40,000 from this same account, see section 4.4). He also instructed Mr. Woodmansee to wire an additional $30,000 from the Bookstore line of credit to the same hard currency account. A total of $40,000 was deposited into the Delta Bank in Moscow according to Archimandrite Zacchaeus.

On December 22, 2003 Natalia Soldatova, mother of Archdeacon Klimitchev, received $40,000.00 (less 1% $39,600.00) from Archimandrite Zacchaeus in Moscow. No explanation was given by Archimandrite Zacchaeus for this money transfer.

During our face to face interview, Metropolitan Herman could not provide an explanation on why money was borrowed from the bank and charged as a bookstore expense and why construction loan money was wired to Archdeacon Klimitchev’s mother in Russia. Later that day, Martin Paluch contacted the committee via telephone to report that Metropolitan Herman believed the money perhaps was sent as payment to Klimitchev’s father for work that had been done at the monastery several years earlier.

When questioned regarding this matter, Archdeacon Klimitchev stated that perhaps the money was used to purchase bells for the Monastery or his father’s woodcarving. However, we were not given, and could not find any documentation supporting these claims.”

The Report observes:

1. The money transferred to Russia is an example of Metropolitan Herman withdrawing $40,000 of bookstore money at his own request, with no approval or basis of record, and apparently using it for a purpose other than for the bookstore.

2. We were unable to find any documentation justifying this expense as a valid bookstore, monastery, or seminary expense.”

Haven’t We Been Through This Door Before?

With its reference to the “Kondratick era”, the Committee is clearly drawing a parallel between the activities at St. Tikhon’s and the scandal-ridden practices of the administration of the former OCA Chancellor. In that earlier scandal , untold sums of OCA funds were taken to Russia for unexplained and undocumented purposes. Tens of thousands in charity funds were misused for hotel and restuarant expenses in Russia as detailed on the infamous Moscow video.

In this instance, though, the monies went via Fr. Zaccheus to only one person - the mother of Archdeacon Kilimitchev - for undocumented ex post facto claims of unspecified work done years earlier by Klimitchev’s father.

Door #5: The Jacewicz House

But overlapping legal corporations, questionable mortgages, questionable resolutions, unquestioned authority, and unexplained payments to the Klimitchev family in Russia - not to mention the potential for undocumented gifts - still did not tell the whole story of how St. Tikhon’s was run by Metropolitan Herman, and for whose benefit. Others benefitted as well. The Committee opens yet another door. They write:

“Metropolitan Herman and Martin Paluch currently reside in a house that is located behind the Orphanage building at St. Tikhon’s.

The house was built in 2003-2004 for Anna Jacewicz Dziamba and Julia Jacewicz Fedorko (“the Jacewicz sisters”) according to an agreement executed on February 18, 2004, between the sisters and Metropolitan Herman, signing for St. Tikhon’s Orthodox Monastery (“the Jacewicz Agreement”)36. For the purpose of this report, the house will be called “the Jacewicz house.”

The Jacewicz sisters were elderly, in failing health, and residing in an assisted-living facility in Waymart. They had sold their Jersey City, New Jersey home. The Agreement provided that the Jacewicz sisters would deliver to St. Tikhon’s Monastery the net proceeds from the sale of their home, $338,059.16, in return for a newly-constructed home at St. Tikhon’s Monastery in which they could live until the end of their lives. The Jacewicz house was constructed and the sisters lived there. Metropolitan Herman and Martin Paluch arranged to have in-home caregivers from Russia care for the sisters. Julia Fedorko reposed on December 30, 2004, and Anna Dziamba reposed on February 15, 2005.

Through a review of documents, we found that the Jacewicz sisters had been generous donors to St. Tikhon’s, contributing significant sums even before the Jacewicz Agreement. The sisters’ wills left their remaining estates to St. Tikhon’s Monastery.

The Jacewicz Agreement was different, however, from other housing agreements at St. Tikhon’s Monastery. The Jacewicz Agreement states that “it is the desire of [the sisters] to make a provision that Metropolitan Herman and/or Martin Paluch shall have the right, for the term of their natural lives, to live in the home following the death of [the sisters].” Therefore, the Jacewicz Agreement contains the provision:

Upon the death of both [sisters] . . . the home itself and all fixtures, appliances, and tangible personal property contents contained therein, shall belong to St. Tikhon’s [Monastery], with the exception of the right of Metropolitan Herman and/or Martin Paluch to have the right to live in and use the home and the fixtures, furniture and appliances, for the term of their natural lives.

Therefore, Metropolitan Herman and Martin Paluch are living in the Jacewicz house, and arguably have the right to live in this house to the ends of their lives, as part of the Jacewicz Agreement by which St. Tikhon’s Monastery accepted a donation of $338,059.1637.”


The Report continues:

“1. We have described in Section 4.1.2 above, that the agreement was not executed properly because the Jacewicz house was not built on monastery property. Rather, it was constructed without approval on property belonging to St. Tikhon’s Russian Orthodox Orphanage.

2. Subsequently, we found that in September and October of 2008, when Metropolitan Herman retired and had to move from the Eastern PA Diocesan Center residence, he caused approximately $80,000 worth of renovations to be made to the Jacewicz house without any approval or acceptance process toward his own benefit. For payment, he contributed amounts from his personal funds to the St. Tikhon Monastery accounts, and then paid out the same amounts for renovation expenses, usually on the same day.”

In short, after Metropolitan Herman was forced to retire in disgrace as Primate of the OCA, in September 2008, he was left running St. Tikhon's. He quickly donated $80,000 of his own money to the monastery, and then as head of the monastery, had the monastery do $80,000 worth of renovations on the monastery house that he and Martin planned to move into, which he had improperly accepted from the donors, for his own benefit.

Metropolitan Herman Did Not Act Properly

The Report spells this out more clearly:

3. We believe that Metropolitan Herman did not act properly in accepting the donation from the Jacewicz Agreement because of his unilateral functioning as Director of the nonprofit St. Tikhon’s Monastery corporation and the self-benefiting provision of the donation. Because of the self-benefiting aspect of the agreement, Metropolitan Herman should have created a Board of Directors similar to the one described in the original 1905 Nonprofit Corporation charter (see Section 4.1) and then recused himself from the decision. Because of the self-benefiting aspects, acceptance of this donation may not have been in the best interests of the nonprofit corporation (see 15 Pa. C.S. §5712 and 15 Pa. C.S. §5715(d)).

4. For the same reasons as stated in No. 3 above, we similarly believe that Metropolitan Herman did not act properly in 2008 in unilaterally causing $80,000 of improvements to be made to the Jacewicz house to his own benefit.

5. The Jacewicz Agreement was not executed properly because the Jacewicz house was built on orphanage land without proper approval. We also note that, while the Jacewicz agreement allows Metropolitan Herman and Martin Paluch to live in and use the Jacewicz house, it does not specify this use is rent free. The lifetime use provision may not be binding upon the orphanage in the disposition of its property, and it may be possible for the monastery to collect rent from Metropolitan Herman and Martin Paluch during their tenancy in the Jacewicz house or an equivalent house.”

Door #6: The Philadelphia Bookstore

If door #4 led to Moscow, door #6 leads from South Canaan to North Philly and from there to Pittsburgh. The Report turns to the “business outreach venture “ of the St. Tikhon’s Bookstore that was begun in northeast Philadelphia in mid-2007. This business venture consisted of a satellite bookstore, Svetoch, and a jewelry store, Omega Designs, located in a strip shopping center (9327 Krewstown Road).

Originally proposed by Victor Grigoryev, a Russian living in the Philadelphia area, “Grigoryev believed a bookstore could be created in the Philadelphia area that could be profitable to St. Tikhon’s and serve as an Orthodox outreach to people in the Philadelphia area, especially Russian-speaking people living in northeast Philadelphia. Metropolitan Herman accepted the concept and directed Archdeacon Klimitchev, managing director of the Bookstore, to develop the project. Sometime after the original proposal, a decision was made to include a jewelry store as part of the project, considering that the jewelry store might draw additional people into the Bookstore. The idea for the jewelry store was Archdeacon Klimitchev’s. Metropolitan Herman, acting as the de-facto sole director for the nonprofit St. Tikhon’s Monastery corporation, made the decision to pursue the Philadelphia Bookstore unilaterally, and as the Report notes “did not develop any record of the basis for approval.”

The Report continues:

Similar to other areas for which Metropolitan Herman was ultimately responsible and for which Archdeacon Klimitchev was assigned to implement (see Section 4.10), we found a significant lack of the type of controls we would expect for a reasonable nonprofit organization.

For example, for such a business venture, we would have expected establishment of profitability goals and periodic measurement of performance against these goals, for both bookstore and jewelry store. We found no evidence of performance tracking.

Regarding inventory control, point of service computer systems with the ability to produce tracking data were used for both the bookstore and jewelry store. However, we saw no evidence of a program to track and replenish stock. Original Svetoch stock was transferred from St. Tikhon’s bookstore, but no system was provided to replenish stock. High cost jewelry items were purchased by Archdeacon Klimitchev with St. Tikhon’s Bookstore funds39, but we found no evidence of a system to track the disposition of these jewelry items for the benefit of the St. Tikhon’s Bookstore. At some point, Grigoryev was allowed to procure stock items for the Philadelphia store. We found no evidence of any controls regarding Grigoryev’s purchases or sales. It cannot be determined whether he purchased items from store income, or whether receipts from sales of these items were returned to store revenue. There was no system of accountability.”

No Cogent Records

“We could not verify that revenue from items sold reached St. Tikhon’s Bookstore accounts. Credit card sales from Svetoch were deposited directly into a St. Tikhon’s account. However, cash and check revenue were transferred in random fashion from Philadelphia to S. Canaan, with no records of cash and check transfer receipts.

When the Svetoch store was closed, no cogent record was kept of inventory returned to St. Tikhon’s Bookstore. Interviewees described the closing of the store as a chaotic process of items being thrown into boxes and Grigoryev withholding money he claimed to be owed for stock he purchased for the store.

Because of the lack of controls and accountability, we could not determine an accurate profit and loss statement for the Philadelphia store. We attempted to determine profits and losses using the available records with the following results:

Philadelphia Income from QuickBooks : $26,708.90
Philadelphia Income from Svetoch computer : $55,806.53
Philadelphia costs from QuickBooks: $228,276.5139”

The Report does not explain the discrepencies between the three sets of records, but interviews the primaries of the jewelry store, Archdeacon Klimitchev and Mr. Grigoreyev to determine how it happened. The Report describes what happened next:

“The Omega Designs jewelry store operated separately from the Svetoch bookstore. The jewelry store occupied approximately half of the space in the unit it shared jointly with Svetoch. Victor Grigoryev identified that the jewelry store required a very expensive security system, alarm system, and safe, that would not otherwise have been needed by an Orthodox bookstore. All these items were purchased with St. Tikhon’ s Bookstore money.

Archdeacon Klimitchev identified that there were separate point-of-service computers for Omega and Svetoch, but he claims the Omega computer was not used and that Omega stock was sold through the Svetoch computer. We asked how Omega revenue found its way to St. Tikhon’s accounts, and Archdeacon Klimitchev stated it was included in Svetoch revenue. However, we found no evidence of this 43.

Victor Grigoryev stated that an Omega bank account was opened for Omega revenue, but Archdeacon Klimitchev denied the existence of an Omega account.”

The Report then observes:

In his interview, Archdeacon Klimitchev was vague and referred to some jewelry items provided on consignment. He provided no explanation about any method to keep consignment items separate from bookstore items, or how consignment revenue was handled.”

But the story of the jewelry store does not end there. According to the Report:

“The Omega portion of the Philadelphia venture was closed in Summer 2008, prior to the November closure of Svetoch. Shortly afterward, Archdeacon Klimitchev and his wife opened the Omega Designs jewelry store in Honesdale, PA. Archdeacon Klimitchev was asked what inventory was taken from the Philadelphia operation to his Honesdale store, but he was not able to answer the question.

Subsequent to the closure of the Philadelphia store, Archdeacon Klimitchev returned some jewelry items to St. Tikhon’s, representing remaining stock paid for out of bookstore funds. We are not certain of the total content or value of returned items – one list indicates thirteen items valued at $12,744. This leaves at least $22,000 of unaccounted wholesale-priced jewelry and watches. We asked Archdeacon Klimitchev if he would provide us an accounting to show how revenue from jewelry and watch items purchased with bookstore money was either credited to the bookstore or returned to the bookstore. To date, he has not provided such an accounting.”

In summation of the Philadelphia store’s dismal failure, the Report makes several observations, of which #3- 7 are the most telling:

3. Metropolitan Herman, as the de-facto sole director of the St. Tikhon’s Monastery nonprofit corporation, acted improperly in that there is no documentation of the basis for approval of either the Philadelphia bookstore or jewelry store. Furthermore, he failed to cause the implementation of appropriate controls and accountability, resulting in the inability to explain an approximate $29,000 discrepancy between sales revenue and account deposits, and estimated losses to St. Tikhon’s bookstore of between $175,000 and $200,000, some of which would have been avoided with proper management.

4. Metropolitan Herman, as the de-facto sole director of the St. Tikhon’s Monastery nonprofit corporation, acted improperly in that he co-signed St. Tikhon Bookstore checks allowing Archdeacon Klimitchev to purchase at least $34,849.48 of jewelry and watches while not establishing any system of accountability that revenues from these items were returned to St. Tikhon’s Bookstore.

5. Archdeacon Klimitchev, directly responsible for the Philadelphia project, failed to implement appropriate controls and accountability, resulting in the inability to explain an approximate $29,000 discrepancy between sales revenue and revenue received.

6. We find conflicts between the statements of Archdeacon Klimitchev and others, and inconsistencies and omissions within Archdeacon Klimitchev’s statements. These facts,

(1) the opening of the Honesdale jewelry store close upon the closing of the Philadelphia store,

(2) the lack of accounting regarding which items were taken from Philadelphia to Honesdale, and

(3) the lack of an accounting for the jewelry and watches purchased with St. Tikhon’s Bookstore funds for sale by Omega Designs, aise the question of whether or not Archdeacon Klimitchev may have become personally enriched from the jewelry and watches he purchased with bookstore funds. This cannot be determined conclusively because of the lack of accountability and the shoddy record keeping systems for areas under Archdeacon Klimitchev’s control, and toleration of this failure in accountability and record keeping by Metropolitan Herman.

7. Archdeacon Klimitchev acted improperly to attempt to impede our investigation. We contacted jewelry companies to request invoices for jewelry that Archdeacon Klimitchev purchased with the St. Tikhon’s Bookstore American Express card. Archdeacon Klimitchev contacted one or more of these companies and attempted to prevent them from providing us with the requested information. (See the invoices we received in Appendix P.)"

Misleading the Church

But the Committee did not just find that Klimitchev attempted to impede the investigation. Someone attempted to mislead the Church at its most recent All-American Council in Pittsburgh in 2008. The Report continues:

In February 2008, the Holy Synod and Metropolitan Council requested that all stavropegial institutions submit financial reports for the upcoming November 2008 All-American Council (“AAC”). The St. Tikhon’s Bookstore financial reports were printed on July 11, 2008 (“the AAC bookstore reports”), and subsequently provided to AAC attendees. The report for 2007 indicated that the bookstore sustained a net loss of $94,335.92.

In reviewing the bookstore QuickBooks records for 2007, we discovered that the bookstore report to the AAC for 2007 did not include $145,896.27 of expenses for the Svetoch/Omega Jewelry Store operation in Philadelphia (see Section 4.7). The Svetoch/Omega expenses not listed in the AAC report were as follows:

Building expenses $5,556.92;

Liability Insurance $3,591.64;

Marketing & Advertising $9,365.40;

Payroll expenses $33,188.31;

Legal fees $800.00;

Projects – Svetoch $69,437.38;

Rent – Svetoch $18,484.74;

Utilities $5,471.88.

Interviewees reported that the Svetoch/Omega operation was received negatively by many members of the St. Tikhon’s community. One person reported that within one week of having it on the Diocesan website, he was ordered to remove it because of the negative impact it had received.”

So who provided the misleading financial report to the Council? The Report states:

“We attempted to determine who originated the bookstore financial report presented to the AAC. In an October 23, 2009 letter to His Grace Nikon, Archdeacon Klimitchev stated that he did not prepare a “false sanitized financial report, which was supposedly given to the Holy Synod and the All American Council.” His explanation was that he was released from bookstore responsibilities in October 2008. He suggests that Igumen Sergius prepared the AAC bookstore reports. However, Igumen Sergius stated he did not gain access to the bookstore software and financial records until late in November 2008, following the AAC. In Metropolitan Herman’s interview with the STIC, he claimed no knowledge of misleading AAC reports, and suggested we ask Archdeacon Klimitchev.”

So who was responsible? The Report concludes it was Archdeacon Klimitchev:

“1. Lacking any explanation for the omissions of Svetoch/Omega expenses in the 2007 bookstore report presented to the AAC, the committee regards this report as a possible attempt to cover up the Svetoch/Omega operation and to mislead the Orthodox Church in America.

2. While Archdeacon Klimitchev denied producing the misleading report, we believe he is the only one who had access to the financial information to prepare the report. His claim of being released from the bookstore in October 2008 is not relevant to the report that was produced on July 11, 2008.

3. Despite stating no knowledge of the misleading report, Metropolitan Herman was responsible, as de-facto sole director of the nonprofit corporation, for its financial reports. He knew or should have known the content of the report submitted in July 2008.”

Door #7: Olyphant PA

But this is not the end of doors that the Committee discovered when it started down the rabbit hole of the Monastery Bookstore.

In March 2006 a fire destroyed the interior of All Saints Church , and in St. Tikhon’s Bookstore, received the contract to restore the icons in December 2006. The Report then offers a two page chronology of the project, which is only now scheduled for completion at Pascha 2010.

In summing up what they found behind Door #7 the Report observes:

“1. Archdeacon Klimitchev failed to execute a written contract or scope of work with the iconographers, thereby leading to a situation where the responsibilities between the bookstore and iconographers became a matter of interpreting the “verbal agreement” between the parties.

2. According to the available information, Archdeacon Klimitchev failed to properly keep records of the project, its expenses, and other related materials, thereby rendering impossible an objective understanding of the project. To our knowledge, there was never a statement which summarized the project’s income and expenses.

3. In our interview with Bishop Tikhon on July 20, 2009, he stated that Archdeacon Klimitchev admitted to using $70,000 of proceeds from the Olyphant iconography project to fund the bookstore annex (Svetoch50), which possibly explains why several interviewees stated that this project was not “profitable” for the bookstore.

4. The parish council of All Saints Church in Olyphant repeatedly requested accountability and transparency from the bookstore, with little to no remedy from the same.

5. The lack of control and accountability for this project is a reflection of the poor business practices of the bookstore during Archdeacon Klimitchev’s tenure. It also reflects poorly on the oversight that ought to have been provided by Metropolitan Herman, in his capacity as de-facto sole director.”

The continuing problems with controls and documentation as evidenced in monastery mortgages and bookstore operations led the Committee to open the doors on both these topics as well.

The Report continues with Door #8

Metropolitan Herman’ s Role as De-facto Sole Director

Metropolitan Herman, as Abbot of St. Tikhon’s Monastery, functioned in the capacity of director of the nonprofit corporation (the Monastery). He functioned as a de-facto sole director, and occupied the officer positions of president, secretary and treasurer. His function as de-facto sole director deviated from PA nonprofit law.
We found that Metropolitan Herman did not create a written record of Board of Director meetings or decisions. For example, there is no record of the basis for major decisions. While acting as de-facto sole director, Metropolitan Herman executed loan documents and mortgaged monastery property, creating significant liabilities for the nonprofit corporation and liens on nonprofit property. He authorized the building of the million-dollar Bookstore/museum building, and the unsuccessful Philadelphia Bookstore venture. The committee could find no record of the decision-making process for these ventures or their basis.

In addition, we could find no record of annual financial statements showing assets and liabilities of the monastery and bookstore. These statements would be expected for any nonprofit corporation, and were required per their loan agreement with the Honesdale National Bank.

With regard to record keeping for minutes of directors meetings, Metropolitan Herman certified under oath on June 17, 2008, and on June 25, 2008, regarding “duly called meetings of the governing authorities of St. Tikhon’s Orthodox Monastery, an Institution of the Orthodox Church in America.” (See Appendix M.) The committee could find no evidence of meetings being duly called and no meeting minutes for said meetings. This certification under oath was part of the basis for obtaining loans for $1,250,000 and $152,000, respectively. When asked if there were records of these meetings, Metropolitan Herman stated there were no records, but the language was provided because “it is the language that was required for the loan.”

Door #8 is a Door to the Past

The Committee drew a distinct parallel between the management of the bookstore between 1990-1996, and 1998-2008, when Klimitichev was in control.


During this six-year period, eight loans were taken out totaling approximately $381,500 apparently for bookstore and other day to day operation. The stated purpose for the majority of the loans, however, was: a) line of credit; b) working capital; and c) business investment. Some of the transactions were for loan consolidation. Collateral was at times CD’s, or the loans were unsecured.

We believe that during this period, the bookstore was being managed well and some monies were spent for publishing books. One interviewee stated that they spent about $50,000 to $70,000 per year for publishing; and that bookstore sales were approximately $300,000 to $500,000 per year depending on the inventory. During this period, the bookstore’s primary source of income was from selling books. Several interviewees reported that the bookstore was always in the black, but some of that may have been due to borrowing. It should be noted that bookstore employees were not permitted to have a credit card for purchases. All bookstore expenses were paid by invoice and only Metropolitan Herman paid the bills.”

The last decade, however, tells a vastly different story.


In late 1997, Metropolitan Herman named Archdeacon Klimitchev as Managing Director of the Bookstore to replace Fr. Nicholas Wyslutsky. Interviewees reported that operationally things changed under Archdeacon Klimitchev’s tenure as manager. Specifically, credit cards were issued to Klimitchev and other employees. Credit cards expenses were not controlled. Having reviewed two years of monthly credit cards statements, it is not possible to track what may have been for personal use and what was for Bookstore operations. What is clear, however, is that neither Metropolitan Herman nor Archdeacon Klimitchev controlled expenses.

Also during this period, Monastery/Bookstore borrowing increased and the number of publications decreased. We found this odd in that during this period eleven loans are transacted in the amount of $470,973.00. These loans are for line of credit, working capital and business investment purposes. It does not appear that any of these loans were for construction purposes. Several interviewees also report that Metropolitan Herman is less “hands on” than in the past; and that Archdeacon Klimitchev is now in charge.”

Vertical Monopoly As Played by the Klimitchevs

It is at this point that Archdeacon Klimitchev and his wife become a main supplier of crosses and other religious medals to the bookstore. Our investigation identified that molds, wax, gold and other materials used in the manufacture of jewelry were purchased from suppliers and charged to the bookstore credit card. Crosses were manufactured in the Klimitchev home by both the Archdeacon and his wife, sometimes using materials paid for by the bookstore. These items were in turn sold to the bookstore, and it was reported that, on some occasions, some were then taken back by Archdeacon Klimitchev and resold on his Omega Designs internet site. We could not determine the extent of this practice nor the amount of money that was generated for Omega Designs due to the poor quality of record keeping.”

Out of Control

Interviewees reported being perplexed at this turn of events and speculated that Metropolitan Herman’s ministry and management ability might be being compromised by some type of health or other problem. Whatever the reason, the now ingrained habit of „living beyond one‘ means” and „habitual spending” increased, and “good stewardship” of bookstore resources continued to decrease.

Providing an expensive truck for Archdeacon Klimitchev’s personal use out of bookstore funds is but one example of irresponsible and out of control spending. We reviewed the QuickBooks accounting system for the St. Tikhon’s Bookstore that was used from December 2006 to the present. This system was maintained by Archdeacon Klimitchev until November 2008. During the period of Archdeacon Klimitchev’s control, we found multiple questionable entries and allocations. For example, from January through June 2007, credit card expenses are categorized correctly, by purchase. However, from July through November, credit card expenses are only grossly estimated, with no correlation to the proper categories for actual expenses. Another example, in one case a $3000 check for Seiko watches is categorized to US Stock. A similar check the same day for $2250 for Bulova watches is charged to the Svetoch project. .Both of these checks are annotated on the checks for Omega Designs, for which there are no QuickBooks categories. (These checks are provided in Appendix P.)

We also identified that in late 2006 and 2007, $4,578.14 of jewelry purchases by Archdeacon Klimitchev were categorized as iconography expenses of the Olyphant Iconography Project. This appears to the committee as an attempt to hide jewelry purchases.

We found that Metropolitan Herman and Archdeacon Klimitchev signed the following checks, amounting to $36,200, which Archdeacon Klimitchev received as cash:

5/15/2007 Community 7005 $7000
5/15/2007 HNB-SP 1119 $7000
5/15/2007 Wayne 2440 $5000
6/11/2007 Community 7013 $6000
6/19/2007 Community 7021 $1200
12/5/2007 Wayne 2602 $9000

Both Metropolitan Herman and Archdeacon Klimitchev were able to recall that some of the cash was for purchases in Russia and some for payment of Svetoch contractors. However, we found no record documenting that the cash was used for legitimate purpose and no system that Metropolitan Herman required for such documentation.

Another example of improper control deals with finance and late charges. Starting in August 2007, Archdeacon Klimitchev began paying only the minimum balance for credit card charges. As a result, $3831.63 of unnecessary finance charges were accumulated between August 2007 and December 2008. In 2007/2008, $3077.32 of additional unnecessary late charges were accumulated for Posel Management, the real estate management company for the Philadelphia store. In addition, during this period, we identified $710 of bank charges for insufficient funds. These charges add to over $7500 of unnecessary expense for the St. Tikhon’s Bookstore due to improper control and management by Archdeacon Klimitchev .”

Of all the discrepancies, the Report picked two to focus on:

“A smaller but clear example of improper control concerns costs for satellite radios. In mid-2007, we identified two credit card charges for satellite radio service of $359.64 and $346.69. These were paid from St. Tikhon Bookstore accounts with checks signed by Archdeacon Klimitchev and Metropolitan Herman. When asked what bookstore purpose was served by the expenses, Archdeacon Klimitchev stated they were incurred because the bookstore vehicles had satellite radios. We believe this small example demonstrates Archdeacon Klimitchev’s failure to exercise proper judgment with regard to the use of bookstore money, and Metropolitan Herman’s failure to implement appropriate control and supervision methods to assure the appropriateness of expenses.”

Door #9: Construction Billing

Of larger concern and more significance were the billing discrepancies regarding the various construction projects undertaken by Metropolitan Herman, some for the benefit of Archdeacon Klimitchev. Call this Door #9. The Report states:

In early spring of 2003, Metropolitan Herman made the decision to construct the bookstore/museum (see Section 4.4). Many of the interviewees stated they were perplexed by this decision. Honesdale National Bank financed this project and Ron Franks’ Builders was the contractor. In Section 4.4, we described an unexplained and un-invoiced $40,000 payment to Franks’ Builders related to the bookstore/museum.

Two other building projects were being constructed by Franks’ Builders concurrently with the bookstore/museum project. Mr. Franks was building the Jacewicz home on Orphanage property (see Section 4.6); and building Archdeacon Klimitchev’s personal home on land formerly owned by Metropolitan Herman and given as a gift to Archdeacon Klimitchev.

We have examined invoices from Ron Franks Builders that show that the Jacewicz home cost $208,030.00 to construct. Mr. Franks was paid in six installments totaling this amount. The last invoice was dated December 9, 2003.”

The Monastery Pays for Klimitchev's House

It appears that Metropolitan Herman paid $15,965 for Archdeacon Klimitchev’s personal home from monastery funds. A Franks’ Builders billing to the monastery dated September 10, 2003 for the Jacewicz house included a line item for $31,400 for “Alex house balance not included in bank loan.”

A later October 1, 2003 Franks’ bill has an adjustment for a $31,400 amount that appears to be the same $31,400 billed in September. Various allowances are identified, leaving a balance of $15,965. This bill has a notation in Metropolitan Herman’s handwriting that half was paid with monastery funds. We believe the second payment would have been made from monastery funds, and we did not find records that the amount was reimbursed by either Metropolitan Herman or Archdeacon Klimitchev.

Regarding the billing for the Klimitchev house, Mr. Franks, could not give a reason why the monastery would be billed over $15,000 for the construction of a house that it did not own.

Unexplained Payment to “Alex”

In an undated billing from Mr. Franks to Metropolitan Herman, a 2nd payment request for the Bookstore-Museum building was made for $85,000.00. Mr. Frank’s broke down this payment as follows: a) a check to Ed Kurtz for $1000.00 for tree removal; b) a check to Ron Franks for $4000.00 for ½ Alex pay; and c) a check to Ron Franks Builders for $80,000. Notations in Metropolitan Herman’s handwriting indicate these amounts were paid by checks from monastery funds on December 15, 2003.

Our interest is in the payment of $4,000 to “½ Alex pay. It appears that someone named Alex is being paid to work on the Bookstore-Monastery project. We showed the invoice to Mr. Ron Franks, but he could give no answer as to why the name of Alex appears on his billing invoice. He said that he was not aware that Archdeacon Klimitchev was being paid for the Bookstore- Museum project. He also stated that he does not have anyone on his company payroll named Alex.”

The Report observes:

1. Metropolitan Herman’s failure, as de-facto sole director of the nonprofit corporation, to develop documentation for the basis of major decisions appears not to conform to 15 Pa. C.S. §5508 that requires that every nonprofit corporation keep minutes of its Board of Directors meetings, and accurate books or records of account.

2. Metropolitan Herman’s failure to create annual financial statements showing assets and liabilities of the monastery and bookstore appears not to conform to 15 Pa. C.S. §5553 that establishes the requirement for an annual financial report presented by the board of directors and filed with the minutes of the annual meeting of either the members or the board.

3. Metropolitan Herman signed two statements under oath that were misleading in order to authorize his execution of loan documents from Honesdale National Bank, for loans of $1,250,000 and $152,000, respectively, regarding “duly called meetings of the governing authorities of St. Tikhon’s Orthodox Monastery”.

4. Metropolitan Herman authorized undocumented cash withdrawals for Archdeacon Klimitchev amounting to at least $36,200. Similarly, Archdeacon Klimitchev failed to document the proper use of this amount received as cash.

5. Metropolitan Herman appears to have failed to exercise his moral, financial, and fiduciary responsibilities in accordance with 15 PA C.S. §571252 as de-facto sole director of the nonprofit corporation by not implementing controls and accountability systems to ensure St. Tikhon’s bookstore was managed in the best interests of the corporation.

6. Archdeacon Klimitchev’s management of the bookstore was detrimental to the profitable operation of the bookstore. He engaged in practices that squandered bookstore resources. Metropolitan Herman failed to supervise Archdeacon Klimitchev’s management practices, allowing prolonged losses.

7. We found three questionable instances of Franks’ Builders payments that suggest that Metropolitan Herman and Archdeacon Klimitchev may have engaged in improper use of monastery funds that may have resulted in improper self-benefit.”


After 53 pages of investigative findings and observations, having opened nine doors, the Committee is ready to summarize its findings. This is not to be confused with its Executive Summary which was included at the beginning of the Final Report, and published by the OCA separately here.

Speaking of +Herman, the Report concludes:

“Metropolitan Herman has been the dominant figure at St. Tikhon’s for 38 years, dating back to 1970 when he was tonsured a monk. Following the repose of Archbishop Kiprian in December 1980, Metropolitan Herman directly controlled activities at St. Tikhon’s until his retirement in September 2008...

“...Metropolitan Herman was adept at handling finances. He was a meticulous record keeper with an impressive grasp of diverse financial aspects. Interviewees told us of his close control of finances during the early and mid-term periods of his tenure, demanding accountability of every dollar. In order to fund his accomplishments, Metropolitan Herman became adept at acquiring loans as described in Section 4.2”

The committee identified negative aspects of Metropolitan Herman’s tenure that balance, and ultimately outweigh, his accomplishments. Most prominently, Metropolitan Herman left the monastery with over $1.5 million in debt, with monastery property mortgaged with an $13,000 per month payment, and a $1.1 million balloon payment due in 2014. This is a crushing financial burden for the monastics, interfering with the spiritual life and work of the monastery.

In addition we found that Metropolitan Herman left the monastery quarters in a deplorable condition, with mold in evidence in living quarters. Interviewees told us that Metropolitan Herman infrequently visited the monastery spaces. While building the million dollar bookstore/museum, he allowed the monastery quarters to degrade to slum-like conditions.”

The old Monastery quarters are infested with black mold.

The Report continues:

Many interviewees spoke of the total control that Metropolitan Herman exerted over the St. Tikhon’s complex. His control was somewhat mitigated at the seminary, when Fr. Dahulich became Dean and successfully negotiated the steps for accreditation. But his control over financial and developmental aspects of the monastery and bookstore was absolute. This absolute control had a number of detrimental aspects.

When becoming Bishop of Philadelphia and Eastern Pennsylvania in March 1981, Metropolitan Herman maneuvered to continue control at St. Tikhon’s, despite its being a stavropegial institution under the Metropolitan and primate. In July 1981, he created a Resolution with the Local Functioning Committee of the Executive Board of the St. Tikhon’s Russian Orthodox Children’s Home (formerly St. Tikhon’s Russian Orthodox Orphanage) that granted permission to construct the Diocesan Center as a permanent residence for the ruling Bishop of the Diocese of Eastern Pennsylvania on orphanage property (see Appendix I). Our committee regards the location of the Eastern Pennsylvania Diocesan Center on the St. Tikhon’s premises as a negative occurrence.”

Controlling, But Not Attentive

“Metropolitan Herman was even unwilling to give up his controlling presence at St. Tikhon’s when he became Metropolitan and primate in July 2002, refusing to reside at Orthodox Church in America headquarters in Syosset. On the one hand, he insisted on control at St. Tikhon’s when he should have devoted attention to the Church at-large as Metropolitan. On the other hand, his duties for the Church at-large prevented him from providing proper attention to St. Tikhon’s, resulting in misuse of funds, corner-cutting, and ill-advised expenses.

As the controlling presence at St. Tikhon’s, Metropolitan Herman functioned as de-facto sole director for the monastery nonprofit corporation (see Section 4.1.1). In performing this sole function, Metropolitan Herman violated the 1905 nonprofit corporation charter that required five directors. He may have violated Pennsylvania nonprofit law by not keeping records of decision-making processes and maintaining proper financial records (see Section 4.10).”

Negligence That Cost Money

During the later stages of his tenure, Metropolitan Herman’s management was negligent in a number of ways. He did not implement or require the use of the most basic cost accounting mechanisms. He authorized withdrawal of large amounts of cash with no documentation system to validate its use for legitimate purposes. He allowed Archdeacon Klimitchev to make jewelry and watch purchases with no process to demonstrate recovery of expenses. He proceeded with the Philadelphia bookstore with no system to monitor its expenses and income to test the health of the business venture. He did not exercise reasonably expected supervision of Archdeacon Klimitchev. Metropolitan Herman’s negligence cost the monastery and bookstore an undetermined, but large, amount of money.”

Favoritism That Resulted in Losses

“Interviewees identified a practice of Metropolitan Herman to develop favorites and to give special consideration to them. Metropolitan Herman gave Archdeacon Klimitchev the land that his house now occupies. He appointed Archdeacon Klimitchev to occupy the managing director position in the bookstore without adequate qualifications, training, and supervision. Archdeacon Klimitchev subsequently cost the St. Tikhon’s bookstore thousands of dollars through poor management. Metropolitan Herman gave Archdeacon Klimitchev free reign in developing the Philadelphia bookstore, resulting again in the loss of thousands of dollars.”

Loss of Morale & Degredation of Physical Plant

While the loss of thousands of dollars through Archdeacon Klimitchev’s improper management was adverse, the loss of morale in the St. Tikhon’s community from Metropolitan Herman’s favoritism for Archdeacon Klimitchev was worse. Archdeacon Klimitchev drove around in an expensive vehicle, paid for by the bookstore, while the monastery quarters degraded to unacceptable conditions.”

Disregard for Procedures & Misrepresentation

Our investigation revealed Metropolitan Herman’s disregard for formality or procedure if it suited his purpose. One example is the unilateral mortgaging of monastery property. Proper procedure would have been to gain approval of the Metropolitan Council. Instead, Metropolitan Herman collaborated on two occasions with the former Protopresbyter Kondratick to represent to banks that he had authority to mortgage property (see Section 4.2). He misrepresented to banks that there were “duly called meetings” of the monastery nonprofit corporation (see Section 4.2). In another case, he changed an estimate from contractor Ron Franks in his own handwriting and represented it to the bank as Franks’ estimate (see Section 4.4). He allowed an air of secrecy to surround the establishment of the Philadelphia bookstore (see Section 4.7) and a misleading financial report was submitted at the time of his responsibility to the All-American Council regarding Philadelphia bookstore costs (see Section 4.8).”

Only One Case of Inappropriately of Taking Funds For Personal Benefit..

“We also found examples of this disregard for procedure in certain financial transactions. An amount of $40,000 was summarily sent to Russia without documentation, from bookstore funds, at Metropolitan Herman’s singular request (see Section 4.5). Another $40,000 was paid to contractor Ron Franks without an invoice and without documentation. An amount of over $15,000 was apparently paid, on the Jacewicz house account, for construction costs for Archdeacon Klimitchev’s house. While the committee could not determine for certain, these examples may be overt misappropriations of funds.

With the exception of the Jacewicz Agreement (see Section 4.6), the committee did not find that Metropolitan Herman took funds for his personal benefit in an inappropriate manner (see Section 4.3). In the Jacewicz Agreement, Metropolitan Herman improperly accepted a donation to his own benefit that would give him lifetime rights to live on the St. Tikhon’s premises.”

Considering the Losses, His Presence is Detrimental

Considering the great amount of monastery debt, the loss of thousands for dollars of monastery money through improper supervision, the favoritism shown to Archdeacon Klimitchev, and the high loss of morale from these actions, the committee believes that Metropolitan Herman’s continued presence at the St. Tikhon’s complex is detrimental to the St. Tikhon’s community.”

The Verdict on Archdeacon Klimitchev

The Report then turns to Archdeacon Klimitchev:

“In our investigation, we found that Archdeacon Klimitchev took advantage from his earliest time at seminary of Metropolitan Herman’s trait to give special attention to favorites. Archdeacon Klimitchev parlayed this special attention into becoming an archdeacon in the Church, taking Metropolitan Herman’s former land as a gift, living in a very nice house, driving an expensive vehicle, accepting a salary and benefits from the bookstore while managing poorly, using the Philadelphia bookstore to gain experience to open his own jewelry store."

Entitlement & Inappropriate Trust

"Interviewees said that they thought that Metropolitan Herman looked upon Archdeacon Klimitchev as a son. Because of the entitlement that Metropolitan Herman felt he had as the absolute authority with the monastery, he put Archdeacon Klimitchev in the prominent position of managing director of the bookstore and granted him an undeserved and inappropriate level of trust."

Missing Monies

"An example of this inappropriate trust is that Archdeacon Klimitchev took $36,200 in cash through checks countersigned by Metropolitan Herman from March to December 2007. Both Archdeacon Klimitchev and Metropolitan Herman have a reason for why the various checks were used for legitimate purposes. The fact remains that there is no receipt system that documents and validates the use of this cash. In addition, Archdeacon Klimitchev charged large amounts to the St. Tikhon’s Bookstore credit card in 2007. There was no system to account for and justify personal expenses.

In a letter of December 14, 2009, we asked Archdeacon Klimitchev to explain $16,679.09 of credit card charges54, and as of the date of this report, we have not received a reply. (See Appendix Q.)

Another example of taking advantage of this inappropriate trust concerns the purchase of jewelry and watches for the Omega Designs portion of the Philadelphia store. Archdeacon Klimitchev purchased at least $34,849.48 of jewelry and watches with the St. Tikhon’s Bookstore American Express Card. The credit card bills were paid by Archdeacon Klimitchev with St. Tikhon’s Bookstore checks countersigned by Metropolitan Herman. Following the purchases, there was no tracking or accounting that the jewelry and watches were used for the benefit St. Tikhon’s bookstore.”

No Explanations

Metropolitan Herman, during his interview, could not explain the invoices for Archdeacon Klimitchev’s jewelry purchases (See Appendix P.) Only afterward did he send word to the committee that the jewelry/watch purchases were done with his approval. Now both Metropolitan Herman and Archdeacon Klimitchev say the receipts from jewelry and watch sales were returned to St. Tikhon’s Bookstore with Svetoch deposits. However, there is no record that this happened. Archdeacon Klimitchev claimed that jewelry and watches were sold through the Svetoch computer. Archdeacon Klimitchev also took advantage of Metropolitan Herman’s almost complete lack of supervision with regard to the Philadelphia store. He spent at least $228,276.51 while returning approximately $26,708.90 to St. Tikhon’s as income.

We were told in an interview that Archdeacon Klimitchev, with no supervision from Metropolitan Herman, specifically organized the transfer of receipts from Svetoch to the St. Tikhon’s Bookstore with no records. Thus we have an approximate $29,000 discrepancy between sales revenue from the Svetoch computer and revenue received, as shown in the St. Tikhon’s Bookstore QuickBooks record. have not received a reply. (See Appendix Q.)”


“As a result of Archdeacon Klimitchev’s jewelry and watch purchases, and other unsupervised St. Tikhon’s American Express Card expenditures, funds were not available to pay the credit card bill and to make other scheduled payments. Archdeacon Klimitchev accrued unnecessary finance charges for late payments of over $7500 in 2007-2008.”


We found these discrepancies in Archdeacon Klimitchev’s statements:

• He stated there was no special bank account for Omega Designs Philadelphia revenues. Another interviewee suggested that there was such an account.

• He stated he did not prepare the misleading St. Tikhon’s Bookstore report for the November 2008 All-American Council. However, it appears he was the only one that had access to the QuickBooks file from which the report was prepared in July 2008.”

Impeding the Investigation

“Finally, Archdeacon Klimitchev attempted to impede our investigation by contacting one or more jewelry companies from which he had purchased jewelry with the St. Tikhon’s American Express Card in order to prevent the committee from receiving invoices for those purchases.”

The Report’s Recommendations

On Page 58 the Committee begins its official Recommendations:

1. Metropolitan Herman improperly executed the self-benefiting Jacewicz Agreement while in sole and absolute control of monastery activities. This agreement gave him and/or Martin Paluch lifetime use of the Jacewicz House following the sisters’death. We have noted that the Jacewicz Agreement does not specify this lifetime use is rent-free.

2. The Jacewicz Agreement was improperly executed in that the Jacewicz House was constructed on orphanage land without authorization of a properly constituted orphanage board. An agreement with the monastery cannot convey perpetual use of land it does not own.

3. Metropolitan Herman’s failure to properly exercise his fiduciary duty in supervising activities over which he had sole control led to the loss of or unaccountability for thousands of dollars of monastery money, including:

• Checks written to cash with no receipts $36,200
• Klimitchev Jewelry/Watch purchases with no justification $34,849.48
• Losses for Philadelphia store operation $175,000 -$200,000
• Unnecessary bookstore finance charges 2007-2008 $7000
• Unaccounted payment to Ron Franks $40,000
• Monastery payment for Klimitchev House $15,965

4. Metropolitan Herman is a controversial figure at St. Tikhon’s. There are those who remember his past accomplishments positively and hold him in high esteem. There are also those who regard the negative aspects of his tenure, particularly his favoritism toward Archdeacon Klimitchev, the amounts of unaccounted money, and the burdensome debt left for the monastery. On balance, we conclude that his presence is detrimental to the morale and progress of the St. Tikhon’s communities.

5. We note that, among our Orthodox clergy, most priests understand they should remain clear of parishes their former parishes when they are transferred or retire in order to let the new priest become established. Because of the absolute control that Metropolitan Herman exercised at St. Tikhon’s for many years, the committee believes it imperative that he remain clear to let the new monastery Abbot and seminary dean establish themselves.

6. Considering the above, we recommend the Holy Synod, through appropriate designees, ask Metropolitan Herman to relocate under mutually agreeable, negotiated conditions. Such negotiated conditions should consider 1) the invalid nature of the Jacewicz Agreement with the house on orphanage property, 2) to fact the Jacewicz Agreement does not specify use rent-free, 3) the value of legitimate interest that Metropolitan Herman and Martin Paluch may have, 4) Metropolitan Herman’s many years of service to the Church and St. Tikhon’s, 5) the burdensome debt left for the monastery to pay for many years into the future, and 6) unaccounted and lost money from the bookstore and monastery. The relocation agreement should be approved by the Holy Synod and Metropolitan Council.

7. Failing a negotiated agreement to relocate, it is recommended that the Holy Synod take whatever steps it feels appropriate to resolve the discrepancies with the Jacewicz Agreement and Metropolitan Herman’s presence at St. Tikhon’s.”

In short, the Report recommends “exile” for Metropolitan Herman.

The Verdict on Klimitchev

“We have the following recommendations with regard to Archdeacon Klimitchev:

1. Archdeacon Klimitchev should be required to provide receipts for the $36,200 of checks identified in Section 4.10, and return to St. Tikhon’s Bookstore any amounts for which he does not have receipts.

2. Archdeacon Klimitchev should be required to provide an accounting of each jewelry and watch item purchased with $34,849.48 of St. Tikhon’s Bookstore money and not already returned, including purchase price, sale price, date of sale, and record that the sales revenue was transferred to St. Tikhon’s Bookstore. He should return to the bookstore any amounts that cannot be accounted for.

3. Archdeacon Klimitchev should be required to provide explanation for the seventeen credit card items, amounting to $16,679.09 (see Appendix T), and return to the St. Tikhon bookstore the cost for any items that are not legitimate bookstore expenses.

4. We find conflicts between the statements of Archdeacon Klimitchev and others, and inconsistencies and omissions within Archdeacon Klimitchev’s statements. These facts,

? the opening of the Honesdale jewelry store close upon the closing of the Philadelphia store,
? the lack of accounting regarding which items were taken from Philadelphia to Honesdale, and
? the lack of an accounting for the jewelry and watches purchased with St. Tikhon’s Bookstore funds for sale by Omega Designs,raise the question of whether or not Archdeacon Klimitchev may have become personally enriched from the jewelry and watches he purchased with bookstore funds.

5. The committee had only limited power of investigation. We are aware that Archdeacon Klimitchev’s income from Church sources from January 2007 to September 2008 was:

St. Tikhon’s Bookstore --- $1500.00 monthly health insurance (family plan) --- $500.00 monthly for housing.
St. Tikhon’s Seminary --- $2000.00 monthly salary;
Orthodox Church in America --- $900.00 monthly.

During this period, the following amounts are not properly accounted for in St. Tikhon Bookstore accounts:

$36,200 undocumented cash withdrawals
$34,849.48 non-receipted jewelry and watch purchases
$29,000 discrepancy between sales revenue and money received from the Philadelphia store

We believe a more detailed investigation with the power to acquire and review Archdeacon Klimitchev’s personal and business bank records, perhaps by Pennsylvania law enforcement officials, could assist to resolve these questions.

Archdeacon Klimitchev is currently suspended from his clergy position. The committee believes this suspension should remain in effect pending resolution of these recommendations. Depending upon Archdeacon Klimitchev’s response to these questions, he should be referred to Metropolitan Jonah and the Holy Synod of Bishops for discipline. Resolution of these issues should be accomplished in a timely manner.”

In short, the Report recommends “Discipline” - and that certain matters be referred to the civil authorities.

Nine Doors

“Our investigation was begun upon suggestions of financial improprieties at St. Tikhon’s. Major questions existed regarding the satellite bookstore in Philadelphia that was combined with Archdeacon Klimitchev’s jewelry store. There were also questions regarding the status and propriety of mortgages of monastery property.
As focus fell upon St. Tikhon’s, other concerns emerged. There was interest in the corporate structure of the St. Tikhon’s complex, property ownership, the overall debt of St. Tikhon’s entities, checks and balances for financial activities, and issues associated with the iconography restoration project for All Saints Church in Olyphant, PA.

The committee investigated all of these concerns. Within the sections of this report, we provide investigation details, observations, and recommendations in all of these areas.”

The Door Not Opened

A major area of concern at the outset was the suggestion of criminal activity. Our review did not find direct evidence of criminal activity. We were hindered by a system of shoddy record keeping that we identify within the report. The primary individuals involved, Metropolitan Herman and Archdeacon Klimitchev, offered plausibly sounding explanations for questionable or suspicious activities. In some instances, these explanations could neither be verified nor disproved. Therefore, we cannot make a conclusion regarding criminal activity. “

The Final Word

We can, however, conclude with confidence that management of responsibilities was poor on the part of both Metropolitan Herman and Archdeacon Klimitchev. Overall, we believe this report provides an accurate account of historical activities, and will be useful to the whole Church in understanding the status of the St. Tikhon’s complex.”

- Mark Stokoe


•  (Editor's note: for purposes of this news summary, the 63 footnotes and citations found throughout the original text have been omitted. Many of them contain important clarifications.  We encourage everyone to request a full copy of the text from the OCA by emailing

In the same manner, we have not included the Appendices in this summary. Here, however, is the list of Appendices as contained in the Table of  Contents:

"Table of Contents

Appendices                                               ............................................. 2
Executive Summary  ............................................................................ 3
1. Appointment of the committee ........................................................ 9
2. Scope and method of investigation ................................................ 11
3. History of St. Tikhon?s.................................................................. 13
4. Investigative Results ..................................................................... 15
4.1 Corporate Structure and Real Estate.......................................... 15
4.1.1 Corporate Structure     ........................................................... 15
4.1.2 Real Estate.............................................................................. 18
4.2 Loans and mortgages .............................................................. 25
4.3 Gifts and Endowments ............................................................ 29
4.4 New Bookstore Building ........................................................... 30
4.5 Money to Russia from Line of Credit and Museum/Bookstore Loan ... 32
4.6 The Jacewicz House .................................................................... 34
4.7 The Philadelphia Bookstore ........................................................ 36
4.8 Misleading Report to All-American Council................................ 40
4.9 The Olyphant Iconography Project.............................................. 42
4.10 Controls and Documentation .................................................... 44
4.11 Summary with regard to Metropolitan Herman .......................... 50
4.12 Summary with regard to Archdeacon Klimitchev........................ 52
5. Recommendations . ........................................................................ 55
5.1 Corporate and Real Estate .......................................................... 55
5.2 Management Checks and Balances.............................................. 56
5.3 Regarding Metropolitan Herman .................................................. 59
5.4 Regarding Archdeacon Klimitchev................................................ 60
6. Conclusions . .................................................................................. 63


A. Memorandum – Re: Cursory Review of St. Tikhon?s Bookstore” by Priest Michael Tassos, dated February 10, 2009.

B. 1905 Nonprofit Corporation Incorporation Papers: “Court of Common Plea to St. Tikhons Greek Russian Orthodox Church,” December 2, 1905.

C. Status Update Request, email by Faith Skordinski, June 16, 2009.

D. Memorandum from Metropolitan Jonah to the members of the St. Tikhon Investigation Committee, July 2, 2009.

E. Individuals Interviewed by the Committee.

F. St. Tikhon Russian Orthodox Orphanage Articles of Incorporation, August 20. 1939 and May 20, 1940.

G. St. Tikhon?s Orthodox Theological Seminary Incorporation Papers, 1953, 1967, and amendment of 1989.

H. St. Tikhon?s Bookstore LLC Formation Papers, 2006 and amendment of 2007.

I. St. Tikhon?s Children?s Home, Resolution, July 2, 1981.

J. Loan History.

K. Resolution by Protopresbyter Robert Kondratick, fax dated September 23, 2003.

L. Certificate of Borrowing Resolution by Protopresbyter Robert Kondratick, dated “this (blank) day of August, 1996.”

M. Affidavit of Borrower by Metropolitan Herman, June 17, 2008, and June 25, 2008.

N. Documents related to money transferred to Russia and $40,000 payment to Franks? Builders, by Metropolitan Herman, November 18 and 19, 2003.

O. The Jacewicz Agreement, between Anna Dziamba and Julia Fedorko, and St. Tikhon?s Orthodox Monastery, an Institution of the Orthodox Church in America, February 18, 2004.

P. Archdeacon Klimitchev jewelry and watch purchases: Invoices from A.V. Diamonds, Inc., and Rio Grande; Checks for Seiko and Bulova Watches.

Q. Committee Letter to Archdeacon Klimitchev, December 14, 2009.

R. St. Tikhon?s Bookstore Profit & Loss, January through December 2007, printed July 11, 2008 (Presented to the Nov 2008 All-American Council).

S. St. Tikhon?s Bookstore Profit & Loss, January through December 2007, from current QuickBooks record.

T. List of Seventeen Questioned Credit Card Charges.





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