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The final years of Metr. Herman's tenure were marred by financial and other scandals. In the autumn of 2005, the OCA administration was publicly accused of financial misconduct by its former treasurer, Protodeacon Eric Wheeler. On September 3, 2008, the Special Investigative Committee of the OCA released its 32 page report on this scandal. The report was presented to the Holy Synod and Metropolitan Council. The report "held the whole OCA administrative structure responsible for failure". It also recommended "discipline" for 5 individuals. Among them are the former Metropolitan Theodosius and the Metropolitan Herman. It recommended that the Metropolitan Herman resign, retire or be defrocked. Shortly before public release of the document, Metropolitan Herman requested medical leave of absence for nine months. The Metropolitan Council requested that the Holy Synod deny the Metropolitan's request for a leave of absence. On September 4, 2008 Metropolitan Herman voluntarily retired from his position as Metropolitan of the Orthodox Church in America.
A subsequent formal investigation, chaired by Bishop Nikon (Liolin) of Boston, examined St. Tikhon's Monastery, Seminary, and Bookstore, all of which were presided over by Met. Herman as bishop of Eastern Pennsylvania for several decades. Formally released to the public in March, 2010, it concluded that "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." and The investigative committee recommended his Met. Herman's removal from the vicinityof St. Tikhon's Monastery and Seminary: "Considering the great amount of monastery debt, the loss of thousands for dollars of monastery money through improper supervision... 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.”
