Dolan's Defense of Fraudulent Transfer in Milwaukee Bankruptcy Is " Malarkey"

By Peter Isely
SNAP Wisconsin
July 2, 2013

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A letter that surfaced today in the Milwaukee Federal Bankruptcy Court proves that Cardinal Timothy Dolan of New York transferred millions of dollars into a bogus Trust to prevent assets of the Archdiocese of Milwaukee from being accessed by survivors of clergy sexual abuse.

In a written response Dolan claims that he was forced to set up the Trust by Wisconsin state law. In a favorite word of Cardinal Dolan: “Malarkey”.

No such ridiculous requirement is found in Wisconsin law.

As today’s letter shows, the decision to establish the bogus trust was the decision of Cardinal Dolan.  Under Federal Bankruptcy law it’s called “Fraudulent Conveyance” or “Transfer” and is illegal and punishable by fines, prison time, or both.

In fact, as the New York Times reported today, Dolan used his favorite word when first confronted with his fraud trust scheme in February of 2011.  At the time he told the press that charges that he hid money was “terribly irresponsible, malarkey, and ridiculous and groundless gossip.”

This is virtually the same language that Dolan tried to use when he was caught in Milwaukee in 2007 paying off pedophile priests to quietly leave the priesthood so they could settle into new jobs in unsuspecting communities.  He called such claims, “false, preposterous and unjust.” Bankruptcy documents now prove that was a lot of “malarkey” too.  Dolan we now know secretly paid out at least nine priests.

In 2011, with the cemetery trust charge, Dolan “invited law enforcement to speak with him about his time in Milwaukee”.

With today’s letter to the Vatican, that time has surely come.

(See attached SNAP 7-1 request for investigation to US Attorney for the Eastern District of Wisconsin, James Santelle.)

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. 

VIA EMAIL AND U.S. MAIL 

July 1, 2013

Attorney James L. Santelle

U.S. Attorney’s Office

Eastern District of Wisconsin

517 E. Wisconsin Avenue

Milwaukee, WI   53202

RE:  Criminal Charges for Fraud within Federal Bankruptcy Court 

Dear Mr. Santelle:

I write this letter on behalf of survivor/creditors in Federal Case No. 11-20059.  I am requesting a formal investigation into the transfer of Archdiocese assets in anticipation of their bankruptcy filing.

In the documents released by the Archdiocese of Milwaukee today, there is a letter dated June 4, 2007, from then Archbishop Timothy Dolan to the Cardinal Claudio Hummes of the Congregation of the Clergy in Rome.  A copy of that letter is enclosed for your reference.   In the letter, Archbishop Dolan specifically requests approval from the Vatican to move nearly $57 million of assets from the Archdiocese of Milwaukee into an “autonomous pious foundation” set up as a “Cemetery Perpetual Care Trust.”  By Dolan’s own admission, the Trust had been set up on May 4, 2007.  In that letter Dolan clearly states his intent in moving the assets is for the protection of the funds “from any legal claim and liability.”

On July 1, 2007, the Wisconsin Supreme Court ruled that civil cases filed by clergy abuse survivors based on fraud, were allowed to proceed.  On July 18, 2007, the Vatican sent authorization for the transfer of those assets.  The Archdiocese of Milwaukee filed for federal bankruptcy protection and reorganization under Chapter 11.

It is clear that these assets were diverted from creditors in the bankruptcy action intentionally.  I believe that the amount of the diverted assets rises to the level of criminal prosecution.  Accordingly, I respectfully request that you investigate this matter further.

Your anticipated cooperation in this matter is appreciated.  If I can be of any assistance, please contact me.