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	Expert to Examine Diocese's 'Byzantine' Accounting Books By Sandi Dolbee The Union-Tribune May 1, 2007 http://www.signonsandiego.com/news/metro/20070501-9999-1m1diocese.html San Diego – An accountant and former FBI agent was tapped yesterday to try to unravel hundreds of bank accounts in the San Diego Catholic diocese for a bankruptcy judge who has described its finances as "the most Byzantine accounting system I've ever seen." R. Todd Neilson, a veteran bankruptcy expert who works as a consultant in Los Angeles, was given until July 10 to investigate and analyze the diocese's finances. His fees will be paid by the diocese. In her order, federal Judge Louise DeCarl Adler asked for an examination of all financial accounts listed under the diocese's taxpayer identification number – including those held by parishes, parochial schools, missions, convents, cemeteries and other sites. The order also covers accounts in which Bishop Robert Brom "is an officer, director, member, shareholder or partner" and asks Neilson to track any accounts that were closed or changed after the diocese filed for Chapter 11 bankruptcy reorganization Feb. 27. "This is a sweeping and broad order," said Orange County attorney John Manly, who represents several of the 150 victims alleging they were sexually abused as minors by clergy. "It gives wide power to the appointed auditor to find out the truth." But Susan Boswell, a Tucson bankruptcy attorney who is the lead counsel for the diocese, said the church welcomed this examination and would "comply and cooperate in all respects." "I have no concerns with respect to somebody independently appointed by the court coming in to look at the transactions and the manner in which the diocese has conducted its business," Boswell said. This marks the first time in the five Catholic bankruptcy cases across the country in which a judge has appointed a financial expert to do such an examination. As with the four others, San Diego's diocese filed for bankruptcy protection as a way of dealing with scores of sex-abuse lawsuits. Adler announced last month that she would appoint an outside expert. "It's time that somebody independent explains to me the way the cash management system works and the cash flow works between the diocese and the parishes," the judge said at an April 11 hearing, during which she ordered the diocese to file an amended financial disclosure statement to include 770 accounts held by the 98 parishes. The bankruptcy case has been a contentious one, with alleged victims' attorneys repeatedly accusing the diocese of not being forthcoming about its finances and the diocese arguing that it simply does not know its net worth. Both sides, however, agreed on Neilson for this appointment, citing, as one attorney put it, his "extensive background in complex financial investigation and auditing." Neilson could not be reached for comment, but according to published reports and resumes on the Web, his background is eclectic. A one-time FBI agent, he is a former partner with Arthur Andersen, the accounting firm whose client list included Enron. He ran unsuccessfully for Congress in Utah in the 1990s. A certified public accountant, Neilson has served as a court-appointed trustee in several bankruptcy cases. He works in Los Angeles for LECG, a firm that provides experts and analysts for companies, law firms and governments. Sandi Dolbee: (619) 293-2082; sandi.dolbee@uniontrib.com
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