Judge Shields Milw. Archdiocese Cemetery Funds from Creditors

By Trisha Bee
WITI
July 30, 2013

http://fox6now.com/2013/07/30/judge-shields-milw-archdiocese-cemetery-funds-from-creditors/


On Tuesday, July 30th a U.S. District Court Judge ruled that the Archdiocese’s practice of putting a portion of the money received from cemetery lot and mausoleum sales into a trust could not be undone for the benefit of claimants in bankruptcy proceedings.

The judge ruled that removing some or all of these funds from the trust and placing them in the bankruptcy estate would undoubtedly put “substantial pressure” on Archbishop Listecki to “modify [his] behavior” and “violate [his] beliefs”.

This ruling comes on the heels of allegations of fraud against Cardinal Timothy Dolan, who was Milwaukee’s Archbishop when he told deposers he, with the Vatican’s permission, in 2007 transferred $57 million in Archdiocese funds into a cemetery trust.

The Milwaukee Archdiocese says the money was always designated for cemeteries, and in 2007, it was formalized into a trust.

Meanwhile, SNAP, the Survivor’s Network for Those Abused by Priests, claim Cardinal Dolan set up a cemetery trust to shield assets.

“Cardinal Timothy Dolan, when he was in Milwaukee, who was to be the pastor and shepard of the Archdiocese of Milwaukee and especially — especially to victims of childhood sexual abuse, to whom he made to us direct promises that he was going to be truthful, that he was going to bring healing to this Archdiocese — today`s documents, especially the letter he wrote to the Vatican shows he set up a cemetery trust to shield those assets,” Peter Isley with SNAP said.

The Archdiocese of Milwaukee released the following statement after Tuesday’s ruling:

“An important decision on the separation of church and state was issued today by United States District Court Judge Rudolph Randa. Randa ruled that the decades old practice of putting a portion of the money received from cemetery lot and mausoleum sales into trust for the perpetual care of those cemetery sites could not be undone for the benefit of claimants in bankruptcy proceedings.

Because these funds were held in trust as prescribed by Canon Law, they were independent of the general assets and could only be used for their intended and pledged purpose – to care for the resting places of the departed as sacred places under Canon law. As the Judge said, “removing some or all of these funds from the trust and placing them in the bankruptcy estate would undoubtedly put “substantial pressure” on Archbishop Listecki to “modify [his] behavior” and “violate [his] beliefs”.

In ruling that the Religious Freedom Restoration Act and the First Amendment of the Constitution prevent the appropriation of cemetery trust funds, Judge Randa decided that actions and requirements of the federal government must not substantially burden the free exercise of religion. While this decision confirms how cemetery trust funds must be used, it could have far reaching impact on how the federal government must respect religious practices.

The Archdiocese of Milwaukee recognizes the hurt and pain of abuse survivors and Judge Randa’s decision does not change the archdiocese’s commitment to providing resources to help heal their pain. Going forward, the archdiocese will develop a plan of reorganization that allows the archdiocese to continue providing the essential ministries and services to parishioners, parishes, schools, charities and others who rely upon the Church for assistance.”

SNAP, the Survivors Network of Those Abused by Priests released the following statement late Tuesday:

“In a stunning written decision released (Tuesday), Milwaukee Federal Judge Rudolph T. Randa has ruled that Catholic “canon law”, including beliefs in the “resurrection of the body,” are a sufficient basis to shield religious organizations from US civil judicial law.

Randa’s decision, which could have far reaching public policy implications beyond the issue of sexually abusive clergy, was a reversal of an earlier ruling by Bankruptcy Judge Susan V Kelley. Kelley ruled the archdiocese could not use 1st amendment protections to stop the court from examining the possibly fraudulent creation of a 57 million dollar “cemetery trust” by former Archbishop Timothy Dolan now Cardinal of New York.

Dolan created the trust before the archdiocese filed for federal bankruptcy protection in 2011. In a letter made public through the bankruptcy court earlier this month, Dolan wrote the Vatican to receive permission to transfer tens of millions of dollars into the newly created trust in order to keep the assets from victim/survivors, a criminal act under US Bankruptcy Law.

Randa, who makes no mention of the transfer or Dolan’s letter in today’s decision, much less of the 575 victims that have filed cases in the court, seems mostly concerned that scrutiny of the fund could create difficulties for the current Milwaukee Archbishop Jerome Listecki with the Vatican. “The Archbishop as Trustee may well face discipline and a religious penalty from the Church…if the Trust is legally compelled to cede all or part of the funds to the Estate…neither the debtor nor the Trust will be able to fulfill their obligations . . .consistent with Catholic doctrine and canon law.”

Yet, Dolan himself, in a statement this month responding to charges that the transfer was fraudulent, claims that he created the trust because of requirements under Wisconsin law, which had nothing to do with religious practices.

Randa, in his decision, astonishingly, makes the exact opposite argument for Dolan.

One of the core issues of the child sex abuse and cover up crisis is that private and unregulated organizations working with children, for so called religious reasons, have been allowed to conceal and transfer child sex offenders, with no accountability to the law. Randa’s decision will likely allow them to continue to do so.

Randa’s decision will allow these organizations to continue to evade responsibility, transparency and accountability for criminal acts against children and cover ups and, if not overturned, could seriously set back the painful path of reform and place countless children at risk.”