VATICAN CITY
The Daily Beast

by Barbie Latza Nadeau
Feb 22, 2013

Of all the rumors floating around about just why Pope Benedict XVI is hanging up his camauro, one has taken on a life of its own. According to several well-placed vaticanisti–or Vatican experts–in Rome, Benedict is resigning after being handed a secret red-covered dossier that included details about a network of gay priests who work inside the Vatican, but who play in secular Rome. The priests, it seems, are allegedly being blackmailed by a network of male prostitutes who worked at a sauna in Rome’s Quarto Miglio district, a health spa in the city center, and a private residence once entrusted to a prominent archbishop. The evidence reportedly includes compromising photos and videos of the prelates–sometimes caught on film in drag, and, in some cases, caught ‘in the act’.

Revelations about the alleged network are the…