Two American nuns have admitted embezzling about $500,000 (£380,000) which they used to pay for Las Vegas gambling trips.

Sister Mary Kreuper and Sister Lana Chang of St James Catholic School in the Californian city of Torrance used money from tuition, fees and donations, which they deposited in a separate bank account not used by the school.

The pair, who are said to be best friends, and both recently retired, have apologised and intend to pay back the money in full, according to their order, the Congregation of Sisters of Saint Joseph of Carondelet.

“They’re taking away the money from kids in school, from kids that need the money. To do that, it’s terrible,” Francis Grimes of St James Catholic Church told ABC’s Eyewitness News.

The theft was reportedly discovered during a routine audit of the school’s funds.

But the sum represents only what auditors have been able to trace from bank records from the last six years, and also excludes any cash transactions, the Archdiocese of Los Angeles told parents whose children attend the school.

The pair are believed to have largely spent the money on gambling and travel to Las Vegas.

“This matter came to our attention during financial reviews in connection with the change in leadership at our School. Other staff persons were not implicated or responsible,” the parish’s pastor said in a statement.

Sister Kreuper had been the school principal for 29 years, while Sister Chang had been a teacher for over 20 years.

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“The Sisters of St Joseph of Carondelet have had the privilege of serving the families of St James School and Parish since 1918,” the order said in a statement.

“Our community is concerned and saddened by this situation and regret any injury to our long relationship with the families of the school. The Sisters of St Joseph both desire and intend to make complete restitution to St James School.”

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