FARGO, North Dakota (The Oklahoma Post) February 8, 2026
Editor’s Note: The following investigation is a Minnesota Nice News contribution in partnership with The Oklahoma Post, examining financial oversight failures at Faith Journey Lutheran Church in West Fargo, North Dakota, and Churches United for the Homeless in Moorhead, Minnesota.
They called it Faith Journey Lutheran Church. And for the faithful congregation in West Fargo, North Dakota, that name meant something. It meant trust. It meant community. It meant believing that when you put your dollars in the offering plate on Sunday morning, someone was watching over them with the same care you’d expect from family.
For over five years, someone was watching. But not the way you’d think.
And when the scandal finally broke, it turned out the pastor who discovered it had just left another nonprofit that was on the verge of financial collapse.
The Tale of Two Organizations
In August 2024, Pastor Devlyn Brooks walked into his first day as CEO of Churches United for the Homeless in Moorhead, Minnesota. He say’s he discovered the organization was 48 hours away from not being able to pay its staff and about two weeks away from shutting forever.
“You could feel the fear in this building when you walked in,” Brooks told the Forum newspaper in August 2025. The organization was carrying $1.5 million in debt.
Brooks had come into the job knowing there were “some financial struggles,” but he “didn’t know until that morning how bad it was.”
The organization he inherited had, just months earlier, been led by Pastor Sue Koesterman, who had served as Executive Director of Churches United since May 2016. Under her leadership, the organization had expanded dramatically, growing from 16 employees to over 60, completing major construction projects including Bright Sky Apartments (43 units) and planning Silver Linings Apartments (36 units), and managing a $4.3 million renovation of Micah’s Mission shelter.
In January 2024, Koesterman was still actively leading Churches United’s expansion efforts, appearing in news coverage about the organization’s growth.
Then She Left
By August 2024, she had become Senior Pastor at Faith Journey Lutheran Church in West Fargo.
And by December 2024, just months after arriving at Faith Journey, Pastor Koesterman was ordering an internal audit that would expose an alleged $639,607.76 embezzlement by the church’s business manager.
The timing raises uncomfortable questions: Did Pastor Koesterman leave Churches United because of the financial crisis brewing there? Was she part of the mismanagement that led to $1.5 million in debt? Or did she simply have a pattern of moving on when financial problems surfaced?
The Accusation at Faith Journey
On January 28, 2026, a federal grand jury indicted Carly Anne Tufte, 48, on five counts of bank fraud and one count of access device fraud. Prosecutors say she stole $639,607.76 from Faith Journey Lutheran Church between April 2019 and December 2024. The indictment alleges she opened an unauthorized credit card using the church’s federal tax ID, directed statements to her personal residence, and charged personal expenses including vacation travel, hotels, car rentals, vacation homes, clothing, medical expenses, and rent payments.
Tufte earned approximately $53,000 annually as Business Manager. The alleged theft represents more than 12 years of her salary.
But confidential sources say she’s not guilty. They say she’s “never seen that kind of money.” And sources say, “the truth will come out.”
In messages to The Oklahoma Post, confidential sources provided explosive additional information:
“Tim LeClair was also a treasurer,” they wrote, identifying an individual not previously known to have held that position.
And then: “Mike O’Berg was accused by a former parish of taking money I think. It got brushed under the rug by the Synod.”
Pastor Mike O’Berg served as senior pastor at Faith Journey during the critical years when Tufte’s alleged fraud began. He was also one of five people who reviewed the church’s March 2021 external audit, an audit that reportedly found “no big issues” despite nearly $240,000 in unauthorized transactions having already occurred.
The Barriers That Should Have Been There
The Evangelical Lutheran Church in America publishes clear financial guidelines for congregations. They recommend dual signatures on checks. They require separation of duties so no single person controls transactions from beginning to end. They emphasize that someone other than the treasurer or bookkeeper should receive and review bank statements directly from the bank.
Every one of those barriers apparently failed at Faith Journey Lutheran Church.
Barrier #1: Dual Signatures (FAILED)
The indictment describes Tufte making “unauthorized payments from the church’s General Fund account at Gate City Bank to pay the credit card balances.” If dual signatures had been required and enforced, someone would have asked: Why are we paying a credit card we don’t know about?
Barrier #2: Separation of Duties (FAILED)
According to court documents, Tufte controlled everything. She handled deposits. She paid bills. She reconciled accounts. She made journal entries. And when investigators finally examined her work, they allegedly found she had made “false journal entries to make it appear the church had higher expenses.”
Barrier #3: Independent Bank Statement Review (FAILED)
The indictment specifically notes that “Tufte avoided providing bank statements to the church treasurer, who was a certified public accountant.” That CPA treasurer was Jamie Workman, who served from 2021 to 2023 and currently serves as CFO at Heritage Homes and BHHS Premier Properties. A similar pattern of homebuilders, expansion losses, and churches.
For years, a professional accountant serving as church treasurer could not get bank statements from the business manager.
And apparently did nothing about it.
Insiders now say “Tim LeClair was also a treasurer.” Public records searches have found no documentation of Tim LeClair serving as treasurer at Faith Journey Lutheran Church. If he did serve as treasurer, when? And why wasn’t that role publicly documented? And why couldn’t he get bank statements either?
Barrier #4: Credit Card Authorization (FAILED)
Opening a credit card in the church’s name using its federal tax ID requires board authorization by the Congregation Council. There’s no evidence that authorization ever happened. The credit card was opened in April 2019 and not discovered until January 2025, more than a month after Tufte resigned.
Barrier #5: Regular External Audits (FAILED)
In March 2021, Faith Journey conducted its first external audit with Brady Martz and Associates, a Top 100 nationally ranked accounting firm. The audit “found no big issues with how we have been operating.”
But Carly Tufte participated in reviewing the audit findings. The alleged embezzler was part of the team examining whether embezzlement was occurring. By that point, prosecutors say she had already stolen nearly $240,000 over two years.
The audit was reviewed by five people: Council President Jeff Watne, Treasurer Jamie Workman, Business Manager Carly Tufte, Administrative Assistant for Financials Ginnie Berge, and Senior Pastor Mike O’Berg.
And according to sources, O’Berg had his own history.
The Pastor Nobody’s Talking About
Pastor Mike O’Berg served as Senior Pastor at Faith Journey during 2019 through 2022. He led the “Project CrossRoads” capital campaign. He reviewed the 2021 audit that missed ongoing fraud.
Sources allege: “Mike O’Berg was accused by a former parish of taking money I think. It got brushed under the rug by the Synod.”
Public records searches have found no documentation of such allegations. This absence could mean the sources allegation is incorrect, or it could support the claim that the Eastern North Dakota Synod covered it up.
The Oklahoma Post found evidence that the Synod has handled pastor financial misconduct publicly before. In 2018, Pastor Arthur Reynolds was accused of stealing $34,668 from the High Plains Ministry. Reynolds resigned, was charged criminally, and is no longer an ELCA pastor.
If O’Berg faced similar allegations that were handled quietly without public disclosure or charges, it would represent a very different response by Synod leadership.
The Oklahoma Post sent specific questions to the Eastern North Dakota Synod asking whether Pastor Mike O’Berg has ever been the subject of financial misconduct allegations. As of publication, the Synod has not responded.
The Council Members Who Watched It Happen
This investigation identifies at least 15 named individuals who held financial access, authority, or oversight responsibility during the alleged fraud period. Under ELCA governance, the Congregation Council serves as the board of directors with constitutional responsibility for all financial matters.
Council presidents Jeff Watne (2019-2021) and Sara Gaebe (2023-2024), treasurers Jamie Workman (2021-2023), Tim LeClair (according to confidential sources), and Trina Smaaladen (2023-2024), and multiple pastors all bore fiduciary duties.
Public records show that Jeff Watne, who served as Council President when the fraud allegedly began and when the 2021 audit missed the fraud, has since moved from West Fargo to Clarion, Iowa, and is now “retired”.
The Timeline That Doesn’t Add Up
Here’s what we know about Pastor Sue Koesterman’s timeline:
May 2016 – August 2024: Executive Director of Churches United for the Homeless
- Expanded organization from 16 to over 60 employees
- Oversaw major construction projects
- Managed $4.3 million renovation
- As of January 2024, still actively leading expansion efforts
August 12, 2024: Devlyn Brooks becomes new CEO of Churches United
- Discovers organization is 48 hours from not paying staff
- Organization is two weeks from shutting down forever
- Carrying $1.5 million in debt
- “You could feel the fear in this building”
2024: Sue Koesterman leaves Churches United, becomes Senior Pastor at Faith Journey Lutheran Church
December 10, 2024: Koesterman notifies Tufte of internal audit scheduled for December 18
December 13, 2024: Tufte resigns, citing “mental and physical well-being”
December 18, 2024: Tufte returns work computer, which has been completely wiped
January 2025: Church discovers unauthorized credit card
January 28, 2026: Federal grand jury indicts Tufte
What happened at Churches United under Koesterman’s leadership that led to $1.5 million in debt and near collapse? Why did she leave when she did? Did she know about financial problems there? And how, within months of arriving at Faith Journey, did she identify financial problems that multiple treasurers, council members, and an external audit had missed for over five years?
The Questions Nobody Will Answer
The Oklahoma Post and Minnesota Nice News contacted Faith Journey Lutheran Church leadership on February 5, requesting interviews and outlining 36 specific questions about financial oversight and leadership accountability.
As of publication, church leadership has not responded.
We asked:
- Who was Tim LeClair and when did he serve as treasurer?
- Is Jamie Workman the CPA treasurer who was denied bank statements?
- What happened with allegations against Pastor Mike O’Berg?
- Who signed the checks that paid an unknown credit card for five years?
- Why did the 2021 external audit miss ongoing fraud?
- When did Pastor Koesterman leave Churches United and why?
- What was the financial condition of Churches United when she left?
- Was she responsible for the financial mismanagement there?
- How did she identify fraud at Faith Journey so quickly after arriving?
Church leadership issued a brief press release stating it has “implemented additional financial oversight measures” and cannot comment on specifics because this is “an active legal matter.”
But these questions address governance failures and leadership accountability, not the criminal case against Tufte. Thus, the church is wasting federal resources and further damaging church members.
We attempted to contact Pastor Sue Koesterman through Faith Journey Lutheran Church to ask about her departure from Churches United and the timeline of events. She has not responded. Eventually she will have to answer to someone.
We attempted to contact Churches United and Pastor Devlyn Brooks to ask about the financial condition of the organization when Pastor Koesterman departed. They have not responded. Eventually they will need to answer to someone.
The Pattern That Emerges
In risk management, we analyze barrier failures to understand why systems break down. When one barrier fails, it’s often an accident. When every barrier fails simultaneously, it’s systemic.
But when you have:
- Multiple treasurers, including a CPA, who can’t get bank statements
- An external audit that misses ongoing fraud
- A pastor reviewing that audit who allegedly had his own financial misconduct history
- Council members who notice nothing for over five years
- Another pastor who leaves one nonprofit on the verge of financial collapse and immediately discovers fraud at her next organization
That’s a pattern of fruad.
And Now You Know the Rest of the Story
Carly Tufte maintains her innocence. Insiders say she’s “never seen that kind of money.” They say, “the truth will come out.”
Maybe it will. That’s what trials are for.
But here’s what we already know:
Faith Journey Lutheran Church had a CPA treasurer who couldn’t get bank statements for years. It had an external audit in 2021 by a Top 100 accounting firm that found “no big issues” despite ongoing fraud. It had a pastor who allegedly faced financial misconduct allegations at a previous parish reviewing that audit. It had multiple council members with fiduciary duties who noticed nothing.
And then it hired a new pastor who had just left an organization carrying $1.5 million in debt and on the verge of collapse, who within months identified fraud that everyone else had missed.
Churches United for the Homeless nearly shut down under Pastor Koesterman’s leadership. The organization she left was 48 hours from not being able to pay staff. Pastor Devlyn Brooks described feeling “the fear in this building” when he walked in.
Brooks and his team fought back. They made hard decisions, laid off staff, limped through months of uncertainty, and ultimately paid off $1.5 million in debt through community support and state emergency funding. So why leave such a miraculous environment?
“What has happened with Churches United over the past 12 months is nothing less than miraculous,” Brooks told the Forum.
But the question remains: what happened during the years before Brooks arrived? Who was responsible for the financial mismanagement that brought Churches United to the brink? And why did Pastor Koesterman leave when she did?
Faith Journey Lutheran Church won’t answer questions about financial oversight and major risk management failures. The Eastern North Dakota Synod won’t answer questions about Pastor Mike O’Berg. Pastor Sue Koesterman won’t explain her departure from Churches United or her rapid discovery of fraud at Faith Journey. Council members and treasurers have gone silent.
The silence tells its own story.
Because in risk management, when every barrier fails simultaneously, you don’t have a problem with one employee.
You have people who knew and looked the other way. You have people who benefited and covered their tracks. You have institutions that protect their own at the expense of the truth.
And that’s the rest of the story.
Writing By: Kim Waxler | Editing by Robbie Robertson
Editor’s Note: Editor’s Note: The following investigation is a Minnesota Nice News contribution in partnership with The Oklahoma Post, examining financial oversight failures at Faith Journey Lutheran Church in West Fargo, North Dakota, and Churches United for the Homeless in Moorhead, Minnesota.
Faith Journey Lutheran Church leadership was contacted February 5, 2026, with a deadline of February 7, 2026. As of publication, church leadership has not responded.
Pastor Sue Koesterman was contacted through Faith Journey Lutheran Church to ask about her departure from Churches United for the Homeless and the timeline of financial discoveries at Faith Journey. She has not responded.
Churches United for the Homeless and Pastor Devlyn Brooks were contacted to ask about the organization’s financial condition when Pastor Koesterman departed. They have not responded.
The Eastern North Dakota Synod was contacted with specific questions about allegations regarding Pastor Mike O’Berg. The Synod has not responded.
Carly Anne Tufte is presumed innocent unless proven guilty in a court of law. Allegations regarding Pastor Mike O’Berg have not been verified through public records or official sources. The Oklahoma Post will publish any statements from church leadership, the Synod, Pastor Koesterman, Churches United, or individuals named in this article who wish to respond.
Legal Disclaimer: This article contains allegations and information from various sources, including statements from individuals involved in ongoing legal proceedings. All individuals named in this article who have been accused of wrongdoing are presumed innocent unless proven guilty in a court of law. Allegations made by sources interviewed for this article have not been independently verified and are presented as claims requiring further investigation. The Oklahoma Post has attempted to contact all parties named in this article for comment and will publish any responses received. Nothing in this article should be construed as a factual determination of guilt or wrongdoing by any individual or organization. Readers are encouraged to follow official court proceedings for verified factual information. This article represents investigative journalism raising questions about governance and accountability at nonprofit organizations.
Sources
COMPLETE SOURCE LIST WITH LINKS
Federal Court Documents:
- U.S. District Court for the District of North Dakota, Indictment filed January 28, 2026, Case concerning Carly Anne Tufte (federal court records available through PACER at https://pacer.uscourts.gov)
News Sources:
- Valley News Live – “Former West Fargo church business manager accused of embezzling $600K” (February 4, 2026) https://www.valleynewslive.com/2026/02/04/former-west-fargo-church-business-manager-accused-embezzling-600k/
- InForum – “Former business manager at West Fargo church indicted for bank fraud” (February 4, 2026) https://www.inforum.com/news/west-fargo/former-business-manager-at-west-fargo-church-indicted-for-bank-fraud
- KVRR Local News – “Former West Fargo church business manager indicted for embezzling over $600,000” (February 4, 2026) https://www.kvrr.com/2026/02/04/former-west-fargo-church-business-manager-indicted-for-embezzling-over-600000/
- The Forum – “A year after near disaster, Churches United is ‘helping more people than we ever have'” by Melissa Van Der Stad (August 9, 2025) https://www.inforum.com/news/moorhead/a-year-after-near-disaster-churches-united-is-helping-more-people-than-we-ever-have
- InForum – “Koesterman named executive director for Churches United” (March 30, 2016) https://www.inforum.com/newsmd/koesterman-named-executive-director-for-churches-united
- InForum – “Churches United renovates, expands as homelessness continues to increase in metro area” (January 8, 2024) https://www.inforum.com/news/moorhead/churches-united-renovates-expands-as-homelessness-continues-to-increase-in-metro-area
- InForum – “Pastor accused of stealing almost $35,000 from northeast North Dakota congregation” (January 10, 2019) https://www.inforum.com/news/pastor-accused-of-stealing-almost-35-000-from-northeast-north-dakota-congregation
- InForum – “West Fargo church reports $600K theft, investigation ongoing” (March 2025) https://www.inforum.com/news/west-fargo/west-fargo-church-reports-600k-theft-investigation-ongoing
Church Documents: 9. Faith Journey Lutheran Church – March 2021 Newsletter (archived) Available through: https://s3.amazonaws.com/media.cloversites.com/8f/8fbc1eb5-96ee-41fe-aaf7-a9f7ceef3b9d/documents/March_2021_Newsletter.pdf
- Faith Journey Lutheran Church – Press Release (February 2026) Distributed via church email to info@growinfaith.org
- Faith Journey Lutheran Church – Staff Directory https://growinfaith.org/about-us/
ELCA Resources: 12. Evangelical Lutheran Church in America – “Congregational Treasurers’ and Bookkeepers’ Financial and Accounting Guide” https://resourcefulservants.org/wp-content/uploads/2017/09/Congregational_Treasurers_Financial_And_Accounting_Guide.pdf
- ELCA – Model Constitution for Congregations https://rmselca.org/sites/rmselca.org/files/media/2022_model_const_cong.pdf
- ELCA Eastern North Dakota Synod – Congregational Reports (2024) https://www.eandsynod.org/
- ELCA Eastern North Dakota Synod – About https://www.eandsynod.org/about
Background Research: 16. GuideStar – Faith Journey Lutheran Church Profile (EIN: 45-0242027) https://www.guidestar.org/Profile/45-0242027
- Brady Martz and Associates – Firm Information https://www.bradymartz.com/
- Churches United for the Homeless – Organization Information (Contact: 1901 1st Ave N, Moorhead, MN 56560)
- Email correspondence with Faith Journey Lutheran Church leadership (February 5, 2026) – on file with reporter
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