UPDATE: Former Manchester diocese official ordered to repay $288,000

By Mark Hayward
New Hampshire UniLeader
April 23, 2014

http://www.unionleader.com/article/20140423/NEWS03/140429669

EDWARD ARSENAULT

MANCHESTER — The right-hand man to former Manchester Bishop John McCormack was in a Manchester courtroom this morning and sentenced for stealing thousands of dollars from the Catholic church diocese, Catholic Medical Center and the estate of a fellow priest.
His sentence calls for the Rev. Msgr. Edward J. Arsenault III to serve four years in prison and pay restitution of $184,240 to the Diocese of Manchester and $104,000 to Catholic Medical Center.
As he was led away in handcuffs, Arsenault said, "I am truly and sincerely sorry for what I did."

Arsenault III had indicated he would plead guilty to the three felonies, and his lawyer and prosecutors agreed to ask Superior Court Judge Diane Nicolosi for a four-year prison sentence.

Last May, the Diocese of Manchester announced that it had suspended Arsenault from his priestly duties, citing both illegal financial transactions and an "inappropriate adult relationship."

Prosecutor Jane Young said the CMC theft involved a $200-an-hour consulting contract that Arsenault signed with former hospital president Alyson Pitman Giles.

A investigation into the CMC charge is continuing. 

Bishop Peter Libasci has called a meeting for 2:30 p.m. today with any priest who wants to ask questions or voice concerns.

"Once the sentencing takes place, I will be in a position to share information about the investigation," Libasci wrote to priests in a letter earlier this month.

Through much of the 2000s, Arsenault served as the right-hand man to McCormack, a role that put him before cameras and also involved the investigation and removal of abusive priests.

He left the diocese in 2009 for a $170,000-a-year job — running St. Luke's Institute in Maryland, a clinic for troubled priests. The following year, the Vatican named Arsenault a monsignor at McCormack's urging. Arsenault's court file contains nearly two dozen letters from people vouching on his behalf, including former Attorney General Tom Rath, Portsmouth lawyer Peter Loughlin and the sister of the Rev. Msgr. John E. Molan, whose estate Arsenault stole from.

In a hand-written letter, Katherine Molan DeCourt said she has forgiven Arsenault. "Father Edward Arsenault is a good man and a very spiritual priest," she wrote.

Others came from psychologists at St. Luke's, nuns, New Hampshire Catholics, and employees of the Diocese. No letters were submitted by New Hampshire priests.

At least two writers stressed that Arsenault was under tremendous pressure as the priest-child sexual abuse scandal unfolded.

Sister Sheila Garvey of Hudson said Arsenault was met with criticism from the press and detractors of McCormack, who turned their anger and cynicism toward him.

The psychological burden "resulted in a burn-out that contributed, if not caused, his inappropriate behavior and criminal actions," Garvey wrote.