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	Diocese Attorneys Threatened with Contempt of Court Associated Press, carried in The Press-Enterprise April 11, 2007 http://www.pe.com/ap_news/California/CA_Church_Abuse_Bankruptcy_282879C.shtml Six weeks after filing for Chapter 11 bankruptcy protection, lawyers for the Roman Catholic Diocese of San Diego are accused of moving to improperly transfer funds to parishes in an attempt to shield assets from any potential settlements with victims of clergy sexual abuse. Judge Louise DeCarl Adler ordered the lead attorney in the case to U.S. Bankruptcy Court Wednesday to explain why she and her colleagues should not be sanctioned for their alleged actions. In a sternly worded order issued Monday, Adler said attorneys Susan Boswell, Jeffry Davis and Victor Vilaplana, as well as two priests, appear to have "conspired with parishes" to create new bank accounts separate from the diocese. The judge wrote that the attorneys appeared to have misrepresented facts and may have violated court orders and bankruptcy laws. The Diocese of San Diego filed for bankruptcy protection in late February in the face of lawsuits by more than 140 people who claim they were sexually abused by priests. Among the misrepresentations, Adler cited a March 29 letter sent by a diocese parish organization to pastors urging them to get new taxpayer identification numbers and transfer funds to new accounts. The judge said any post-bankruptcy transfers between the diocese and parishes outside of normal cash operations violate her ruling against shifting the diocese's assets while the bankruptcy case is pending. She said any transfers require court approval. Boswell wrote in court documents Tuesday no intentional misrepresentations or misstatements had been made. She said the diocese has "no access or control" over money in more than 770 bank accounts opened by parishes and parochial schools under the diocese's taxpayer identification number. Davis wrote in court papers he thought comments Adler made in an earlier court hearing suggested that parishes should obtain their own taxpayer identification numbers for clarity in the bankruptcy case. Attorneys for the alleged victims of sexual abuse have repeatedly accused the church of trying to hide assets to reduce the overall sum available for potential settlements. They estimate that a fair settlement would total about $200 million. In March, the diocese proposed a $95 million settlement schedule for victims that would pay 83 plaintiffs who say they were forced to have sex as much as $800,000 each, while others were offered between $10,000 and $575,000. With nearly 1 million Catholics and holdings throughout San Diego County, the diocese here is by far the largest and, by all accounts, the wealthiest of the five U.S. dioceses to have filed for Chapter 11 bankruptcy protection under the shadow of civil claims over sexual abuse. San Diego was the fifth U.S. diocese to file for bankruptcy. The other dioceses that have filed for bankruptcy protection are Davenport, Iowa; Portland, Ore.; Spokane, Wash.; and Tucson, Ariz. Tucson has emerged from bankruptcy protection, while proposed settlements are awaiting final approval in Portland and Spokane.
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