6 News Investigates: Who’s paying for clergy abuse settlements?

PENNSYLVANIA
WJAC

BY KODY LEIBOWITZ TUESDAY, NOVEMBER 15TH 2016

HOLLIDAYSBURG — It was reported for years that the Diocese of Altoona-Johnstown paid for settlements and fees involving alleged clergy abuse through insurance and investment profits.

The Associated Press reported in May 2004 that “the diocese said it will continue discussions with various insurance companies to recover the cost” of a 21-person settlement that cost the diocese millions.

“To provide for immediate payment, however, it will use the surplus from the Mutual Aid Plan, the deposit and loan fund for parish savings accounts,” wrote the AP. “None of the parish deposits [or] interests will be use, just the investment profits that are owned by the diocese, according to the diocese’ news release.”

The release came in 2004 after the diocese settled with 21 people who claimed sexual abuse at the hands of clergy for $3.7 million.

The diocese acknowledged “there were minors who have been harmed and are entitled to be compensated,” in a released statement.

“The settlement,” the statement at the time read reported on by the AP, “reflects our deep desire both to aid the healing of victims of clergy abuse and to not incur the inordinate financial burden of lengthy litigation.”

Since the release of the Diocese of Altoona-Johnstown grand jury report in March, 6 News Investigates began digging into past settlements of our local catholic church and looking into how the catholic church covers costs for child sex abuse allegations.

Note: This is an Abuse Tracker excerpt. Click the title to view the full text of the original article. If the original article is no longer available, see our News Archive.