Diocese, Lawyers Ordered to Explain New Bank Accounts
NBC Sandiego
April 10, 2007
http://www.nbcsandiego.com/news/11603426/detail.html
San Diego — A federal judge threatened to cite attorneys and church officials for contempt for allegedly trying to shelter money from the Dioceses of San Diego's bankruptcy, according to a published report.
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| A federal judge threatened to cite attorneys and church officials for contempt for allegedly trying to shelter money from the Dioceses of San Diego's bankruptcy, according to a published report. |
Judge Louise DeCarl Adler ordered Susan Boswell, the lead bankruptcy lawyer for the diocese, and diocese officials to appear in court Wednesday. She ordered them to explain why they should not be sanctioned for allegedly conspiring to illegally create new bank accounts separate from the diocese, according to the San Diego Union-Tribune.
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| Adler said church officials sent a memo to 98 parishes in San Diego and Imperial counties. |
Adler said church officials sent a memo to 98 parishes in San Diego and Imperial counties, which falsely stated that she authorized them to move their funds to the new accounts, the paper reported.
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| She said the memo falsely stated that she authorized them to move their funds to the new accounts, the paper reported. |
The diocese filed for Chapter 11 bankruptcy protection Feb. 27. The bankruptcy filing came after settlement talks broke down between the church and 27 people who are suing the diocese for alleged sexual abuse by priests. Bishop Robert Brom has said the diocese filed for bankruptcy in an effort to continue the church's ministry while fairly compensating abuse victims.
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| The bankruptcy filing came after settlement talks broke down between the church and 27 people who are suing the diocese for alleged sexual abuse by priests. |
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