Ex-mississippi Priest Vargas Indicted. Affidavit Accuses Diocese of Lying to Parishioners

Mississippi Clarion Ledger
July 17, 2020

https://www.clarionledger.com/story/news/2020/07/16/lenin-vargas-indicted-bishop-kopacz-affidavit-catholic-diocese-of-jackson/5447329002/

A former Mississippi priest, accused of lying about having cancer, concealing an HIV diagnosis and advocating a fictitious orphanage in Mexico in an attempt to defraud parishioners, has been indicted on 10 counts of wire fraud.

Additionally, an affidavit filed by Homeland Security Investigations in federal court against the Catholic Diocese of Jackson alleges the church allowed parishioners to be defrauded for years. When questioned by a parishioner who had given money to the priest, the affidavit alleges Bishop Joseph Kopacz lied repeatedly. However, the U.S. Attorney's Office has entered into a deferred prosecution agreement with the diocese.

Lenin Vargas, a former priest with the Jackson diocese and pastor at St. Joseph's in Starkville and Corpus Christi in Macon, was indicted on 10 counts of wire fraud on Feb. 26 in the Northern District of Mississippi, according to newly available court documents.

During the course of the investigation and before the indictment, Vargas, a Mexican national, fled to Mexico, according to the U.S. Attorney's Office.

Wednesday, an affidavit was filed in U.S. District Court for the Northern District of Mississippi, Oxford Division in the United States of America v. The Catholic Diocese of Jackson.

The affidavit, filed by Homeland Security Investigations, states that, in February of 2015, "the diocese knew that Vargas had an HIV diagnosis and that Vargas did not have a cancer diagnosis.

"By March of 2015, the diocese knew that Vargas had represented to parishioners he suffered from cancer and sought monetary contributions based on that representation... the diocesan representatives concealed the truth from some parishioners by providing incomplete and misleading responses and information. As a result..the parishioners were prevented from acquiring material information, thus allowing the scheme to defraud to continue for years."

According to a statement issued by the U.S. Attorney's Office Wednesday, the deferred prosecution agreement is based on the alleged inaction of the Diocese. "The Deferred Prosecution Agreement, which is to be in effect for 12 months, includes a number of remedial measures designed to help ensure that there are no future violations such as those alleged in the affidavit."

The Catholic Diocese of Jackson issued a statement Wednesday afternoon, saying the diocese "has entered into an agreement with federal prosecutors to tighten financial controls and bring to a conclusion an investigation stemming from the actions of one of its former pastors."

In the statement released Wednesday, Kopacz said, "During the course of the investigation, the Diocese has worked to bring forth the truth that would lead to a just resolution and reconciliation throughout our Catholic community."

However, before the investigation, in March of 2015, Kopacz visited Corpus Christi Parish in Macon to inform them Vargas "would be leaving for a few months," according to the affidavit. Vargas had been sent by the church to seek counseling but Kopacz did not share this information with parishioners.

While visiting Corpus Christi, Kopacz was questioned by a parishioner who had given $1,000 to Vargas for medical expenses. The diocese covers all medical expenses for clergy and the parishioner asked why Vargas would need donations.

Kopacz reportedly responded, "That's just the way the church is," according to the affidavit. When further questioned by the parishioner about a co-pay and the expense, Kopacz again stated, "it's just the way the church is set up," according to the affidavit.

That parishioner then donated another $2,000 to Vargas that November, "based on the Bishop's assurances," the affidavit said.

Affidavit points to bishop's own statements

According to the affidavit, after law enforcement executed a warrant on the diocese office in Jackson, Kopacz spoke to St. Joe parishioners with the "purpose" of giving parishioners "the diocese's perspective on the investigation."

During those instances, the affidavit states, Kopacz "acknowledged that Vargas' actions were in the same category as sexual abuse of a minor and that his continued fundraising for medical expenses was criminal."

"The Bishop's own statements confirm that the diocese was aware in March 2015 that Vargas was lying to parishioners about his medical condition and that the diocese was aware in March 2015 that Vargas was lying to parishioners to raise money for a medical condition he did not have," the affidavit states.

During that meeting, Kopacz was confronted by the parishioner who had donated $3,000. Kopacz, according to the affidavit, told the parishioner "that he didn't understand, that he wouldn't have known what a co-pay was and that he wouldn't have been able to tell (him) what a co-pay was."

'The scheme continued for years'

The affidavit also lists an instance where the diocese was questioned by a Knights of Columbus member regarding Vargas' mention of being out $20,000 for medical expenses and an article published in Mississippi Catholic in March 2015 stating, "Prayers are requested for Father Lenin Vargas as he undergoes treatment for cancer."

According to the affidavit, "The diocese of Jackson never corrected the Mississippi Catholic article. The scheme continued for years."

According to the affidavit, Kopacz was repeatedly informed that Vargas was defrauding parishioners. During that time, the affidavit states, a parishioner gave $3,000 to Vargas because he claimed to have the same kind of cancer her husband died from.

In December 2015, according to the affidavit, Kopacz was sent an email from a concerned parishioner who states they know Vargas "lied to us last spring about having cancer." The email informs Kopacz that Vargas was again soliciting money, this time for an orphanage, saying, "I don't know how many know the truth, perhaps very few do. But if Fr. Lenin is collecting money again fraudulently, you may have a very big problem on your hands."

According to the affidavit, however, when the search warrant was executed in November 2018, Kopacz said he did not know Vargas continued to solicit money for medical expenses and that he only began receiving complaints about Vargas in October 2017.

The affidavit further lays out claims that the diocese not only knew about the fraud but covered it up to protect the church. According to the affidavit, the diocese was aware of the following fraudulent activity in 2015:

The GoFundMe fundraising campaign for Vargas' cancer expenses;

Parishioner No. 1's donation to Vargas to cover his cancer expenses;

Vargas' attempt to raise $20,000 from the Knights of Columbus;

Parishioner No. 4's letter expressing concern over Vargas defrauding parishioners;

Southdown's notification to the Bishop that Vargas was receiving money from parishioners for cancer expenses. Southdown is the Canadian facility Vargas previously went to for treatment.

The affidavit "respectfully asserts that the Mississippi Catholic article was published to prevent parishioners from knowing when the diocese actually learned of Vargas' fraudulent conduct, and to protect the reputation of the church."

According to Wednesday's statement from the diocese, "Bishop Kopacz expressed 'deep regret for all who have been hurt by Lenin Vargas’s actions. We still invite anyone to come forward with claims, and we will work to seek a just resolution with them. We hope in Christ for new life and peace.'"

Deferred prosecution agreement: What it means

According to the diocese, the deferred prosecution agreement has multiple requirements:

Return of donations related to alleged fraudulent activities against parishioners;

Undertake staff changes in the Accounting and Chancery Offices;

Make improvements in accounting for donations and priest spending;

Form of a new review board focusing on ethical conduct;

Establish a fraud prevention hotline;

Revise collection policies;

Initiate formal penal process for Vargas.

Upon successful completion of the deferred prosecution agreement, all

charges against the Catholic Diocese of Jackson will be dismissed.

The diocese has reimbursed identified victims of the alleged fraudulent scheme, according to the U.S. Attorney's Office.

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Contact Sarah Fowler at 601-961-7303 or sfowler@gannett.com. Follow her on Facebook and Twitter.