Tuesday, April 10, 2007

Attorneys and pastors threatened with contempt for plan to shift funds in bankruptcy case

San Diego Union Tribune reports:
In a highly unusual move, a federal judge yesterday ordered attorneys and pastors involved in the Diocese of San Diego's bankruptcy to explain why they should not be sanctioned for attempting to shift funds without authorization.



Judge Louise DeCarl Adler's sternly worded order states that Susan Boswell of Tucson, Ariz., lead bankruptcy attorney for the Roman Catholic diocese, and church officials appear to have “conspired with parishes” to illegally create new bank accounts separate from the diocese.

Adler also noted that the diocese's newly formed Organization of Parishes misrepresented in a memo that she had authorized the 98 San Diego and Imperial county parishes to move their funds to new accounts.

Can you say real estate sales coming?