Abuse survivors call trusts ‘fraudulent’

Albuquerque Journal

September 5, 2020

By Colleen Heild

Survivors of clergy sexual abuse are seeking permission from a federal bankruptcy judge to file lawsuits alleging the Archdiocese of Santa Fe engaged in a “massive and fraudulent” scheme to divert up to $246 million in assets to avoid bigger payouts to hundreds of victims.

The request comes as efforts to mediate a resolution have stalled in the 18-month-old Chapter 11 bankruptcy reorganization of the state’s largest Catholic archdiocese.

“Rather than fulfilling its fiduciary duty to maximize the assets of the estate for the benefit of creditors, the Archdiocese of Santa Fe’s primary goal is to protect the asset protection scheme it designed and implemented to put its assets out of the reach of the Survivors,” victims’ lawyers said in a court filing.

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