Latest news with #Archdiocese
The Guardian
2 days ago
- Business
- The Guardian
New Orleans archdiocese bond investors accuse church of ‘securities fraud'
The Roman Catholic archdiocese of New Orleans is planning to default on paying a nearly $1m interest payment on more than $41m in bonds it sold in 2017, leading lawyers for the people who purchased the church's debt to allege in open court that it had engaged in 'the definition of securities fraud'. An attorney for the archdiocese countered that the allegation is 'an extreme stretch'. But whatever the case, the dispute pitting the US's second-oldest Catholic diocese against the holders of revenue bonds refinancing debt that the New Orleans church took on to rebuild after Hurricane Katrina could complicate efforts to settle a federal financial reorganization that is otherwise largely centered on more than 600 clergy abuse claimants. Lawyers for investors who purchased the church's debts on the bond market made the securities fraud accusations in front of US bankruptcy judge Meredith Grabill on Friday. Bondholder attorney Colleen Murphy said various archdiocesan representatives – including archbishop Gregory Aymond, vicar of finance Patrick Carr and church-hired bankruptcy lawyer Lisa Futrell – had said in the press and on calls with bondholders that the archdiocese would 'pay 100%' of its debts despite filing for chapter 11 protections. Murphy added that the archdiocese reassured bondholders by citing its obligation to comply with canon, or church, law to 'pay all your debts in full when they come due'. Yet on 6 June, on the official website for municipal securities data and documents, the archdiocese notified its revenue bond holders – who are investors in public securities – that the organization would not make a $930,206.25 interest payment due on 1 July. The notice mentioned a proposed bankruptcy settlement – which had not gained approval at the time of Friday's hearing – and how the archdiocese did 'not intend to seek the reinstatement of the bonds' in light of the settlement proposal. In its own notice on the same municipal securities website on Tuesday, Murphy's office told bondholders that the church would try to lower lower the value of their investment through the settlement – though how much 'remains unclear'. Murphy's colleague, Christopher Marks, on Friday told Grabill that he was worried the archdiocese might try to argue it is insolvent. Marks said that would create several issues. He didn't elaborate, but – because the archdiocese is technically a nonprofit– Grabill has previously said she can't force the group into liquidation, which would involve shutting the organization down and selling off its assets to pay back its debts. As part of required financial disclosures, the archdiocese in November estimated its liquidation value would be $315m, with $158m of that already obligated – leaving only $122m available for abuse survivors and others owed by the church. The notice from Murphy's office said her side had 'retained a law firm to advise it on potential causes of action related to possible violations of securities laws against the archdiocese and other parties'. Murphy was more blunt when speaking with Grabill, saying: 'I'm here to tell you that's the definition of securities fraud.' She suggested in other contexts it was OK to attribute a reneged promise to 'wishful thinking' that collapsed under the weight of reality – 'but you say that to the bond market, [and] it's securities fraud'. Marks echoed her in his own remarks to Grabill, saying: 'Statements … have been made throughout this case … directly to bond holders, to the public, to the market … that their claims will be paid in full. 'We're talking about securities fraud.' Murphy said many of the bond buyers who stand to be affected by the church's decision to halt the 1 July interest payment are Louisiana citizens. 'They're almost definitely … parishioners,' Murphy said. 'These are the people they've cut off.' In court, a bankruptcy attorney representing the archdiocese, Mark Mintz, accused Marks and Murphy of 'kind of randomly … spouting out accusations'. He called their claims 'an extreme stretch that really has no basis'. A statement from the archdiocese added in part that the church 'strongly disagrees with the inflammatory statements made by the [bondholders'] attorneys in court'. Sign up to Headlines US Get the most important US headlines and highlights emailed direct to you every morning after newsletter promotion Noel Boeke, a bankruptcy attorney based in Tampa, Florida, who is not involved in the New Orleans case, said the dispute over the bond debt may be little more than 'posturing' as the church and its creditors try to confirm a settlement to end a contentious bankruptcy that started in May 2020. 'It would not be unusual for an entity in bankruptcy to have difficulty paying its bond obligations,' Boeke said. 'These kinds of pre-confirmation skirmishes are everyday meat and potatoes stuff in bankruptcy court.' He said the biggest hurdle for the archdiocese is to get a final agreement with abuse survivors, which, if the currently proposed plan is approved by two-thirds of the claimants, would pay them $180m. The outstanding bond debt – which stood at $37.9m when the archdiocese filed for bankruptcy protection – is smaller by comparison, and Boeke said he would be surprised if that held up a final settlement deal. Another potential stumbling block: a November 2020 agreement for the church to continue paying interest to bondholders despite the bankruptcy's being unresolved does not allow the church to sell more than $20m in real estate assets – a provision meant to ensure there was enough collateral in case the archdiocese defaulted on the debt. The proposed bankruptcy settlement calls for selling a collection of apartment complexes that had previously received an offer of about $150m from a prospective buyer. The offer was not accepted at the time. New Orleans's archdiocese filed for bankruptcy protection in an attempt to limit its financial exposure in connection with the worldwide Catholic church's decades-old clergy molestation scandal. But the church doesn't only owe payments to abuse survivors once its financial reorganization is complete – it also owes other creditors like the bondholders. At the time of the church's bankruptcy filing, Louisiana – which includes New Orleans – generally prohibited molestation survivors from pursuing civil damages for long-ago abuse. Yet the state removed that prohibition with a law which took effect in August 2021 and was upheld as constitutional by Louisiana's supreme court in June 2024. Meanwhile, in a sworn statement filed in criminal court in April 2024, Louisiana state police revealed that they were investigating whether the New Orleans archdiocese ran a child sex trafficking ring responsible for the 'widespread … abuse of minors dating back decades' that was hidden from authorities for many years. A bloc of attorneys representing hundreds of clergy abuse survivors have expressed opposition to the pending settlement agreement, saying their clients deserve in the neighborhood of $300m. The settlement proposal is expected to be discussed at a hearing in Grabill's courtroom scheduled for 26 June.
Yahoo
3 days ago
- Yahoo
Bishop Miege president restricted from all ministry amid allegations
KANSAS CITY, Mo. — The Archdiocese of Kansas City in Kansas announced that Bishop Miege High School president Phil Baniewicz has been restricted from all active ministry due to allegations of inappropriate behavior with a minor. Earlier this month, Archbishop Shawn McKnight announced that the executive committee of Bishop Miege High School's Board of Trustees decided to place Baniewicz on administrative leave amid reports 'concerning his ability to oversee a safe environment.' The archbishop said he supported the committee's decision 'for the well-being of the school.' Bishop Miege High School president placed on leave amid safety concerns Following the announcement on June 6, Baniewicz was placed on administrative leave at Bishop Miege High School. The Archdiocese of KCK would not do an interview with FOX4 Tuesday. 'This is not being transparent,' Missouri Volunteer Leader of the Survivors Network of Those Abused By Priests (SNAP) David Clohessy said in an interview with FOX4. 'To use these kinds of words that are misleading and minimizing. First of all… it rubs salt into the wounds of people who've already been victimized, and secondly, it leads to complacency.' The Archdiocese of Kansas City in Kansas said it received previously undisclosed information that has not been made public. Civil authorities have been notified of this information. As of June 17, Baniewicz has been prohibited from engaging in youth ministry and volunteer work in any Catholic parish, school, institution or event in the Archdiocese of Kansas City in Kansas. The Archdiocese said he is no longer allowed to represent the Church in any official, volunteer, ministerial or leadership role. Baniewicz has signed an 'archdiocesan safety plan,' which states he agrees not to contact anyone known to have made an accusation of abuse or misconduct against him or who may be a witness known to him, the Archdiocese said. Download WDAF+ for Roku, Fire TV, Apple TV Archbishop McKnight said it is important to protect young people in the congregation. 'Each of us has a responsibility to ensure a safe environment that protects the dignity of our vulnerable sisters and brothers, especially children and youth,' he said. 'Please continue to pray for those impacted by this situation, especially those who have experienced harm. May Mary, Mother of the Church, protect and guide us as we strive to follow her son.' Joe Schramp is now serving as the interim president of Bishop Miege High School. 'Time and time again, church officials make an offhanded remark, 'If you know something or saw something, call us,'' Clohessy said. 'That's wrong. These are criminal matters or at least potentially criminal matters, and they should be reported to civil authorities, not church figures.' Tuesday's Archdiocese release does say that any abuse should first be reported to civil authorities like the Kansas Department of Children and Families through their Kansas Protection Report Center phone number. 'We collaborate with local municipalities or county municipalities such as, perhaps a sheriff's office if they have jurisdiction, but yes, we would be civil or public government authority,' Deputy Secretary of the Kansas Department for Children and Families (DCF) Tanya Keys said. The Johnson County Sheriff's Office confirmed they're not handling the Baniewicz investigation. They recommended we reach out to the Roeland Park Police Department since that's where the school's located. That department told FOX4 they're not investigating Baniewicz either. Woman was 35+ weeks pregnant with boy when she died on Christmas Eve 2023, affidavit reveals 'Certainly, for certain types of alleged abuse or neglect or harm, we have policies and procedures that we follow,' Keys added. 'Sometimes, depending on the circumstances, law enforcement and DCF are required to jointly investigate, so some of that is set forth in state law in terms of roles and responsibilities.' Keys said the number for the Kansas Protection Report Center is 1-800-922-5330. Anyone with concerns is asked to call or text the Office for Protection and Care at 913-276-8703 or visit Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Chicago Tribune
3 days ago
- Business
- Chicago Tribune
Landmarking advances for Pilsen's St. Adalbert Catholic Church, Polish advocates left frustrated
A late compromise helped landmark status for Pilsen's St. Adalbert Catholic Church finally move ahead Tuesday, a decisive step in a fierce preservation battle. The City Council's Zoning Committee unanimously approved a plan to give the shuttered church a landmark designation, teeing up a final vote Wednesday. But the Polish parishioners who long sought the preservation status left City Hall infuriated by what they described as a last-second 'backroom deal' that sets up the sale of the Archdiocese of Chicago land to a nondenominational church. 'It's what our ancestors sacrificed for. We're talking about poor farmers,' said Julie Sawicki, president of the Society of St. Adalbert group fighting for the church to reopen as a Catholic sacred space. 'You think that they did all that so that one day this could be just treated like a real estate broker, like bargaining chips? No, this was intended for perpetuity.' Previous landmarking proposals included each building on the 2-acre plot, highlighted by the Renaissance Revival church. On Tuesday, Ald. Byron Sigcho-Lopez, 25th, presented a substitute plan that only granted the church building the landmark status, but left out the former rectory, convent and school. That narrowed preservation plan came with the support of Preservation Chicago, a leading local preservation advocate. It also won approval from the Archdiocese, which closed St. Adalbert's in 2019 and has since fought the landmarking push. The Archdiocese has argued it must sell the St. Adalbert complex to avoid costly upkeep costs and fund the active St. Paul Parish nearby, a transaction potentially harmed by landmarking. Aldermen also had to deal with a deadline: If they did not vote on the Commission on Chicago Landmarks' preservation recommendation this month, the entire complex would have been automatically landmarked. Archdiocesan leaders feared that sweeping designation would prevent a planned sale of the property to People Church, a nondenominational Christian ministry that currently holds services at Roberto Clemente Community Academy. 'We have worked transparently with all stakeholders throughout this process and are grateful to those in city leadership who support limited landmarking,' the Archdiocese wrote in a statement before the vote. The towering church building — currently covered in scaffolding the Archdiocese says is needed to prevent ongoing decay — is the 'crown jewel' of the property, Preservation Chicago Executive Director Ward Miller said after the vote. The new status will preserve the exterior of the building, but allow for changes to be made for its new owners inside and on other parts of the property, he said. 'We're very pleased that we came to a compromise here. The most important of the buildings has been landmarked,' Miller said. Sigcho-Lopez defended the more-tailored designation as a 'win for the community' that came after public meetings and open conversations. He previously pushed for the broader landmark designation last year, but lost when his Zoning Committee colleagues decided to delay consideration in a 10-to-4 September vote. 'We did justice to what we heard from the community, a landmark designation that protects the use of the building,' Sigcho-Lopez said. 'That is a fair compromise.' Sigcho-Lopez said he has not yet heard how People Church plans to develop the land, and People Church did not immediately respond to a request for comment Tuesday afternoon. The alderman acknowledged the frustration of the dogged former parishioners who want St. Adalbert's to reopen as a Catholic church. 'I don't have jurisdiction over that,' he said. But many of the Polish former St. Adalbert's parishioners pinned blame on the Pilsen alderman for failing to preserve the entire church complex. After the vote, Sawicki criticized Sigcho-Lopez for not effectively working with other aldermen and said advocates backing the full-property preservation were not made aware of the compromise. 'This was not done with community input,' she said. The Society of St. Adalbert group has long fought for St. Adalbert's to reopen as a Catholic sacred space funded by the use of the church complex's many buildings, including as a potential retreat center. In their bid to save the church, activists have attended raucous and insult-ridden City Hall hearings, stormed into other parishes in protest and even, in the case of one 73-year-old woman, been arrested for trespassing while opposing the removal of stained glass windows and art. The fight continued Tuesday, when dozens again donned the red and white of the Polish flag and filled the seats inside City Council chambers. Sawicki criticized the Archdiocese for deciding to sell instead of using St. Adalbert's to grow its Catholic ranks. The church complex could still be used to respond to a coming wave of Catholic tourism tied to the May election of Pope Leo XVI, of Dolton, she said. 'It's ridiculous, it's short-sighted, it's misguided,' Sawicki said. 'They are dumping millions of dollars into shutting churches, merging them. Why don't you use that brain power and money instead to figure out ways of bringing people back.' The group supports landmarking moving forward tomorrow because the church building will otherwise not be protected, but it now plans to push separately for the landmarking of the other buildings, Sawicki said.
Los Angeles Times
5 days ago
- Sport
- Los Angeles Times
Pope Leo XIV sends message of hope to Chicago and U.S. during White Sox broadcast
In his first words directed specifically to Americans, Pope Leo XIV told young people on Saturday how to find hope and meaning in their lives through God and in service to others. 'So many people who suffer from different experiences of depression or sadness — they can discover that the love of God is truly healing, that it brings hope,' the first American pope said in a video broadcast on the giant screen at Rate Field, the White Sox baseball stadium on Chicago's South Side. The event — set in Leo's hometown and at the home stadium of his favorite major league team — was organized by the Archdiocese of Chicago in honor of his recent election as pope. Leo seized the opportunity to speak directly to young people, tying his message to the Roman Catholic Church's ongoing Jubilee year of hope that was declared by Pope Francis. In Saturday's message, Leo urged those listening in the stadium and online to be beacons of hope capable of inspiring others. 'To share that message of hope with one another — in outreach, in service, in looking for ways to make our world a better place — gives true life to all of us, and is a sign of hope for the whole world,' he said. The afternoon program, emceed by Chicago Bulls announcer Chuck Swirsky, highlighted Leo's roots, including music by the city's Leo Catholic High School Choir and a musician from Peru, where Leo lived and worked for years. There was also a discussion featuring a former teacher of the future pope as well as a high school classmate and fellow Augustinian. The event also celebrated the mixing of Catholicism and baseball, including a special invitation from the team for Leo to throw out a ceremonial first pitch at a future White Sox game. Leo, formerly Robert Prevost, was elected May 8, becoming the first American pope in the 2,000-year history of the church. Leo, 69, spent his career serving as an Augustinian missionary and ministering in Peru before taking over the Vatican's powerful office of bishops. He succeeded Pope Francis, who died April 21. 'When I see each and every one of you, when I see how people gather together to celebrate their faith, I discover myself how much hope there is in the world,' Leo said in the video message. The program was followed by a Mass celebrated by Cardinal Blase Cupich, the archbishop of Chicago who was part of the conclave that elected Leo. Meyer writes for the Associated Press.
GMA Network
6 days ago
- Politics
- GMA Network
Pope Leo, from Chicago, makes his first US pitch at White Sox Park
Pope Leo XIV delivers a video message during a public celebration hosted by the Chicago White Sox and the Archdiocese of Chicago for the election of Pope Leo XIV, featuring a mass at Rate Field in Chicago, Illinois, US, June 14, 2025. REUTERS/Carlos Osorio CHICAGO - Pope Leo, a native of Chicago's south side and a long-time fan of his beloved but beleaguered White Sox, sent a video message on Saturday to a sellout crowd attending Catholic Mass in his honor at their hometown ballpark. The pontiff, the first leader of the global Catholic Church from the United States, appeared for about seven minutes on Rate Field's jumbotron during the event, organized by the Chicago archdiocese and featuring several other local personalities, including Bulls announcer Chuck Swirsky. "It's a pleasure for me to greet all of you gathered together at White Sox Park on this great celebration," the pope said in the video message, his first public address to the US since his election on May 8 to replace the late Pope Francis. The new pope called on Chicagoans to put aside "egotistical ways" in order to spread hope and work to build community in their hometown. "We have to look for ways of coming together and promoting a message of hope," he said, speaking in English with a slight Chicago accent. Hours before the event at Rate Field started, people had gathered around the stadium, including kids in White Sox jerseys, hawkers selling "Da Pope" baseball hats, nuns in white and blue habits and priests in their collars. Saturday's event, led by Chicago Cardinal Blase Cupich, took place as demonstrations were held in cities across the US, including at Chicago's Daley Plaza, to protest President Donald Trump's crackdown on undocumented immigrants, and in Washington, DC, ahead of the president celebrating his 79th birthday with a military parade. The pope did not mention politics, and instead offered a message of encouragement to young people. Sister Barbara Reid, president of the Catholic Theological Union in Chicago, where the pope attended seminary in the 1980s, told Reuters she hoped his message could help unite the US. "A celebration that's centered on hope and possibility and unity is needed now more than ever before," she said. "Hopefully this can be a catalyst to bring us together." Leo, the former Cardinal Robert Prevost, was born in Dolton, on the outskirts of the city's south side, and has spent most of his career as a priest outside the US. He is a member of the Augustinian religious order, and spent decades in Peru as a missionary and bishop, before first taking up a senior Vatican role in 2023. In a nod to Leo's close ties to the South American country, his celebration in Chicago on Saturday began with a performance of Peru's national anthem. The US national anthem followed, performed by Leo High School's choir, which was a contestant on "America's Got Talent." The pope's family, including a brother who still lives in a Chicago suburb, has spoken about the pontiff's enthusiasm for the White Sox, even as the rival Chicago Cubs also tried to claim him. Leo briefly donned the trademark black-and-white Sox cap offered by a pilgrim during his weekly audience in St. Peter's Square on Wednesday. Tickets resell for more than $1,200 On the first day that tickets became available for Saturday's event, more than 10,000 tickets were sold in the first 15 minutes, the White Sox said. Tickets, which sold for $5 apiece, hit resale sites like StubHub for more than $1,200 just hours after they were released, according to the Chicago Sun-Times. While Catholic parishes across the city, including the one where the Prevost family attended Mass, have shuttered amid waning church attendance, Chicago's identity is still very much entwined with the Catholic Church. When meeting strangers, Chicagoans sometimes identify their neighborhood by the name of the closest parish. "A lot of people in Chicago just have great pride that the new pope is from Chicago," said Rev. Tom McCarthy, a popular preacher from the city who is also an Augustinian. "They want to celebrate it together." The White Sox (39-121) set the modern-day record for most losses in a single season in 2024. This year, the team has the worst record in the American League so far. Fans pray the Mass gives the team a divine boost. "We need all the help we can get," said McCarthy, a lifelong Sox fan. "If the field is going to be blessed by this event, hopefully it will go right through to the players." —Reuters
