Dolan 2007 Letter to Vatican Is “smoking Gun” Proving He Committed Federal Bankruptcy Fraud, Victims Say

SNAP Wisconsin
July 1, 2013

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Dolan 2007 letter to Vatican is “smoking gun” proving he committed federal bankruptcy fraud, victims say

New York Cardinal conspired with Vatican while in Milwaukee to transfer nearly $57 million into new corporation for the “protection” of funds “from any legal claim and liability”

Milwaukee Archdiocese filed for bankruptcy in January 2011 not claiming Dolan’s transferred funds as assets

Survivors asking US attorney to investigate Dolan for criminal charges of “fraudulent conveyance”

Statement by Peter Isely, SNAP Midwest Director (Milwaukee)

CONTACT: 414.429.7259

Dolan letter to Vatican at this link:

On June 4, 2007, then Archbishop Timothy Dolan of Milwaukee, now Cardinal of New York, sent a letter to the Vatican requesting permission to transfer nearly $57 million dollars from the assets of the archdiocese into a new “autonomous pious foundation” called a “Cemetery Perpetual Care Trust.”

While this was occurring the Milwaukee Archdiocese was facing a growing number of potential claims for fraud in concealing and transferring known child sex offenders. Dolan had considered bankruptcy for the archdiocese as early as 2004.

According to the letter to Cardinal Claudio Hummes, Prefect of the powerful Congregation of the Clergy in Rome, Dolan said he had already established the Trust on May 4, 2007, after “extensive study and consultation” and was seeking permission from the Vatican to make the transfer.

Dolan then clearly states his intent for creating the Trust: “By transferring these assets to the Trust, they will be protected by any legal claim and liability.”

On July 1, 2007 the Wisconsin Supreme Court ruled unanimously that civil cases for fraud against the Milwaukee Archdiocese could proceed.

Two weeks later, on July 18, 2007 Dolan got his approval from Rome and the money, presumably, was then transferred.

Two and half years later Dolan left for New York and the Archdiocese soon filed for Federal Bankruptcy Protection, the nearly 57 million dollars conveniently and fraudulently off the books and not among the archdiocese assets.

For any CEO or Fiscal Director that transfers money out of a corporation, knowing they will likely file for bankruptcy protection, and then claims it cannot pay its debts—and let’s remember in this case, most of the “creditors” are child sex abuse victims—it is a crime called “Fraudulent Conveyance” punishable by fines, prison time or both.

In February, 2011 when evidence about the existence of the Trust surfaced, Dolan called any assertion about hiding money “malarkey, ridiculous and groundless gossip”

This is virtually the same response Dolan gave when he was caught lying about paying out predator priests with archdiocesan assets to quietly leave the priesthood and settle in unsuspecting communities. In 2007, he called such a charge “completely false, preposterous and unjust.” But documents in court last year showed that is exactly what he did. And with today’s new document release, even more secret payouts are detailed.

Today’s release of thousands of pages of documentation prove the systematic, wide spread and continuing pattern of deceit, cover up and fraud by Dolan, his successor Jerome Listecki and both of their predecessor, Rembert Weakland.

The time for a federal investigation is now long overdue.

SNAP, the Survivors Network of those Abused by Priests, is the world’s oldest and largest support group for clergy abuse victims. We’ve been around for 23 years and have more than 10,000 members. Despite the word “priest” in our title, we have members who were molested by religious figures of all denominations, including nuns, rabbis, bishops, and Protestant ministers. Visit us at SNAPwisconsin.com and SNAPnetwork.org.