Priest Stephen Gutgsell murdered in Nebraska rectory had a troubled past including an arrest for ste

A Nebraska Catholic priest who was brutally stabbed to death in his rectory on Sunday had a previous conviction for embezzling $125,000 from his parishioners, it has been revealed.

Stephen Gutgsell was arrested in 2007 for stealing from his Omaha congregation. He reached a deal in the case that saw him sentenced to probation instead of 20 years in prison. He was also forced to pay $40,000 in restitution. 

Years later, Gutgsell, 65, was violently attacked at the St. John the Baptist rectory in Fort Calhoun. He had called 911 to report a break-in moments before he was found fatally wounded.

Kierre L. Williams, 43, of Sioux County, Iowa, was subsequently arrested and charged with homicide and use of a weapon to commit a felony. 

Police have not released a motive in the case.  

Nebraska Catholic priest Stephen Gutgsell who was stabbed to death in his rectory had a troubled past including an arrest for stealing $125K

Gutgsell, 65, was taken to an Omaha hospital on Sunday, where he died from his stab injuries, church officials said

Police have not stated whether the men were known to each other prior to the murder.

'He is not from the area. He is not from Fort Calhoun or even Nebraska as far as we know about,' sheriff's officials said of Williams.

In 2007, Gutgsell was arrested and charged with stealing more than $125,000 over three years from his Omaha parish, The Pillar reports.

The religious leader had racked up massive credit card debts that he turned to theft to cover, according to court records. 

But there is scant detail available on the crime, as Omaha police have refused to release several pages of  'investigatory' material, citing Nebraska's records statutes.

Reporting from KETV at the time states that Gutgsell resigned from St Patrick's parish and was placed on administrative leave during the investigation.

He turned himself in to police in February 2007 after reaching a deal with prosecutors. His attorney Jim Schaeffer said the priest was 'ashamed of his conduct.' 

Kierre L. Williams, 43, of Sioux County, Iowa, was arrested for killing Gutgsell during an invasion at the rectory of St. John the Baptist Catholic Church

Before joining St. John the Baptist (pictured) in Fort Calhoun, Gutgsell oversaw a Omaha church where he stole from the congregation 

 The clergyman racked up massive credit card debts which he resorted to theft to pay before parishioners got wise to the scheme and he was forced to resign from his post. Years later, he joined the Fort Calhoun church (pictured) where he was stabbed to death

'He knows he was wrong and he's asking forgiveness from his parishioners and the church,' Schaeffer said. 

Rather than face up to 20 years in prison, Gutgsell was instead placed on probation for five years, ordered to carry out 500 hours of community service and sent to Canada for a residential treatment program for religious offenders.

He was also ordered to pay the Archdiocese of Omaha around $40,000 in restitution.

At the end of his probation in 2012, he had almost $13,000 left to pay but remained on good terms with the church.

The Archdiocese of Omaha told court officials the priest had 'agreed to continue making payments' on the amount owed and had no objections to his probation ending.

In an online comment, a former parishioner named Joe Coliano claimed to have known Gutgsell before and after his arrest.

He described him as 'a good priest who, in a weak moment, made some bad decisions 15 years ago' but said he owned up, 'got help' and remained in good standing with the diocese.

Earlier this year, Gutgsell's brother Fr. Michael Gutgsell reached a plea deal with prosecutors after being charged with stealing nearly $200,000 from an elderly priest.

Gutgsell avoided a 20-year prison term and a $25,000 fine and was instead ordered to do 500 hours community service, pay $40,000 in restitution to the Archdiocese of Omaha and was placed on probation for five years

Police have not released a motive for the Sunday slaying in Fort Calhoun, Nebraska 

Court documents state that Fr. Michael managed to steal the money after obtaining power of attorney for 'vulnerable' Fr. Ted Richling, who he was accused of exploiting.

He was also accused of stealing at least $94,000 from St. Joseph Church in Springfield, Nebraska, where he was serving as a priest.

This charge was later dropped in March 2022 after he repaid the money.

In another bizarre twist, Fr. Michael then gave the money he stole to homeless man Michael Barrett, who he met while priest of Omaha's cathedral in 2013.

The clergyman allegedly believed Barrett would pay him back, court documents state. 

He was suspended from ministry pending the charges and it is not clear when or if he will be reinstated.

Mike Fitzgerald, a parishioner at St. John the Baptist, said the regular 8:30am service at Gutgsell's church was canceled. He told Omaha World Herald: 'Father Gutgsell has been here 11 years, and I thought he was a very holy man.

'He did a lot of things for the community. He always made sure that the (church) bulletin had everything in it that we needed to know about things going on at the church.'

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