MILWAUKEE (WI)
Milwaukee Journal Sentinel
By Annysa Johnson of the Journal Sentinel
Lawyers for creditors in the Archdiocese of Milwaukee bankruptcy on Friday threatened to sue to recover $35 million it says the archdiocese fraudulently transferred to a parish trust before filing for Chapter 11 and asked the judge to appoint a mediator as a first step toward a settlement of the 14-month-old case.
Meanwhile, the attorney for 350 victims in the bankruptcy filed a state court lawsuit against a Caledonia parish, putting the archdiocese on notice that if parishes are separate legal entities as it argues in the bankruptcy, then they, too, will be sued.
“This is forced by the position the archdiocese has taken. They leave us no choice,” said attorney Jeffrey Anderson.
Daryl Diesing, one of several attorneys representing the archdiocese, said he had not yet spoken to his client but denied unequivocally that any funds were sheltered to keep them from being tapped for a sex abuse settlement.
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