PROVIDENCE (RI)
GoLocalProv
June 21, 2018
The very idea that the Diocese of Providence could file for bankruptcy seems absurd as it historically has been one of the most influential and wealthy institutions in Rhode Island. If it did file for bankruptcy it would not be the first Diocese in the United States to file for bankruptcy to avoid financial claims.
Today, the Diocese of Providence is facing a massive lawsuit by the receiver for the St. Joseph pension fund — a lawsuit that alleges, in part, that Bishop Thomas Tobin and other top Diocesan leaders perpetrated a massive fraud. If the lawsuit is proven to be true then the Catholic Church will have major exposure. The pension fund is underfunded by an estimated $118 million and the 2,700 plus plan members face an uncertain financial future and the potential of as much as 40 percent cuts to their benefits.
The lawsuit crafted by Max Wistow, the attorney who recovered more than $60 million in the 38 Studios case, names not just the Diocese of Providence, but 15 other defendants as well.
Tobin did not respond to questions for this article.
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