Pastor: ‘Unauthorized charges’ appeared on credit card issued to fired St. Vincent principal

When St. Vincent de Paul High School’s principal was abruptly let go in late August, the Rev. William Donahue, school pastor and president, asked the school’s tight-knit community to “refrain from speculating” on the reason for the dismissal.

But a little over a week later, Donahue sent a letter to school families explaining that Principal Patrick Daly was let go after tens of thousands of dollars in unauthorized charges were made to a school credit card issued to Daly.

“I know that many of you were, and remain, shell-shocked and bewildered after the recent change in school leadership,” Donahue wrote in an email sent Friday to the St. Vincent de Paul school community. “As I have said, personnel privacy rights preclude me from disclosing details about any such decision. However, since donors and parents pay tuition and fund school operations, I can disclose to you information that I recently learned and which causes me great concern.”

Donahue went on to say that “We are investigating these charges further, as well as the school’s other financial records.”

Petaluma police were notified late last week of the alleged unauthorized financial transactions, according to Lt. Jeremy Walsh. Police are now in the preliminary stages of investigating whether any crimes occurred, he said.

Daly, who ran the school for six years, denied using school money inappropriately, telling the Argus-Courier that there was another side to the story, though he declined to elaborate until he could receive further legal advice.

“As far as I’m concerned, the truth will ultimately come out,” he said, adding that he’s never “touched anything with the (school’s) bank accounts” during his tenure as a principal.

Daly was beloved by some students, parents and staff, who referred to him as a “father figure” and “the ultimate leader.” However, others were critical of his focus on athletics, as well as a perceived lack of commitment to diversity.

The high school of nearly 200 students, along with St. Vincent de Paul Elementary School and St. Vincent de Paul Church in downtown Petaluma, is overseen by the Catholic Diocese of Santa Rosa, which filed for chapter 11 bankruptcy in March. Messages to the diocese were not returned on Tuesday.

According to Donahue, a school credit card with a limit of $5,000 was increased to a $50,000 limit without Donahue’s approval. After that, “Unauthorized charges appear to exceed $100,000 and possibly more,” he wrote, including “charges which could not possibly have been school-related.”

Donahue listed a number of charges for a variety of non-school-related expenses, including:

• $52,000 in unauthorized cash advances
• $3,000 in pet-related expenses
• $3,700 in AAA life insurance premiums
• $800 in AAA membership dues
• $4,000 in car-related expenses
• $5,000 in health-related expenses
• $3,500 charged at the San Leandro Marina
• An undisclosed amount spent at Brooks Brothers clothing stores
• Over $3,500 to the California Franchise Tax Board

“These aforementioned charges are by no means complete, but merely examples,” Donahue said in the email.

“I remain committed to the financial integrity and transparency of the school to the extent possible by law. I am committed to the school’s existence to the extent made possible by parents, alumni and donors, but will depend above all on your united, substantial, ongoing and increased support, both financial and moral,” he said.

Multiple messages to Donahue and the school were not returned.

Daly said he received notice of his termination on Aug. 25 by Donahue. Two days later, students and parents received an email stating the principal would no longer be working at the school.

On Aug. 28, students walked out after a school-wide meeting with administrators and made their way to the St. Vincent de Paul Catholic Church, less than a mile from the high school.

Numerous students and parents spoke highly of the former principal, and said they were left confused by the sudden departure.

“I’ve stood on my hard work and that’s it,” Daly told the Argus-Courier. “I never encouraged the parents or families or students” to protest his departure. “It is wonderful there’s support, but I didn’t encourage any of it.”

A graduate of Sacred Heart High School in San Francisco, Daly began his career in education as a teacher and coach at Cardinal Newman High School. Later, he served as athletic director at Marin Catholic High School in Kentfield, where he grew the athletic program to 27 interscholastic sports with state rankings in football, baseball and basketball.

He then became principal and president at St. Bernard’s Academy in Eureka for 10 years, followed by Archbishop Riordan High School in San Francisco, where he was president and director of development.

Daly, whose son still attends St. Vincent, said he received the email Friday like other parents – and added that he disagreed with Donahue’s decision to publicly disclose those details. He said he would likely speak more on the matter in coming weeks.

“All I do is wish Father Donahue, the school and the families the very best,” he said. “The school is very important to the community and there were a lot of great things done in the last six years. I wish all of them the very best.”

You can reach Staff Writer Jennifer Sawhney at 707-521-5346 or jennifer.sawhney@pressdemocrat.com. On Twitter @sawhney_media.