This page has been archived and commenting is disabled.

Catholic Diocese Of Stockton Files Bankruptcy; Priest Sexual-Abuse Scandal Blamed

Tyler Durden's picture




 

Between lack of cash flows, insurmountable liabilities, an untenable pension funding, even insider fraud, we thought we had seen all the various reasons for filing for Chapter 11 bankruptcy protection. And then along came the Catholic Diocese of Stockton which announced that it would join its host city and seek bankruptcy protection "in the wake of the church's sexual-abuse scandal." As WSJ reported, Bishop Stephen E. Blaire said in a news release Monday that the diocese would seek bankruptcy protection Wednesday, explaining that reorganization was the only option for dealing with mounting legal costs related to abuse by priests. The bishop said the diocese has spent $14 million in legal settlements and judgments over the past 20 years dealing with abuse allegations, and doesn't have funds available to settle pending lawsuits or address future allegations. The punchline: "Very simply, we are in this situation because of those priests in our diocese who perpetrated grave, evil acts of child sexual abuse."

In the Stockton diocesan bankruptcy, the parties will likely agree on a figure that the diocese would pay, in addition to potentially pulling in funds from insurers. However, the diocese says it holds "relatively little property and assets." Other holdings, including schools, parishes and several parcels of land, are incorporated separately.

And so the Stockton Catholics became the 10th US Diocese after Milwaukee; San Diego; Spokane, Wash.; Davenport, Iowa; Portland, Ore.; Tucson, Ariz.; Fairbanks, Alaska; Wilmington, Del.; and Gallup, N.M. to file bankruptcy.  In addition, the Christian Brothers Institute, which operates Catholic schools and orphanages, also filed because of sexual abuse liabilities.

The Chapter 11 filing would halt pending litigation against the diocese and likely would ultimately allow it to discharge liabilities stemming from sexual-abuse allegations by setting up a trust to compensate victims. The diocese said it hopes to arrive at a resolution with victims and insurers through the process.

 

Joelle Casteix, western regional director of the Survivors Network of those Abused by Priests, called the bankruptcy "problematic on a lot of different levels," noting that it would let the diocese avoid future civil cases.

However, while the local catholics' financial woes may be put on temporary hold, their civil troubles are only starting:

Separately, a grand jury Monday indicted a former priest with the diocese, Michael Eugene Kelly, and a warrant for his arrest has been issued. Calaveras County authorities are seeking Mr. Kelly's extradition from Ireland to face charges of three counts of lewd and lascivious conduct on a child, and one count of oral copulation with a child. Mr. Kelly faces 14 years in prison if convicted.

Not surprisingly, the Catholic church which itself is embroiled in numerous financial scandals recently, was unable to come to the Diocese's rescue even though it has already paid out an estimated $2.2 billion to cover settlements, therapy for victims, support for offenders, attorney fees and other costs, according to a report by the U.S. Conference of Catholic Bishops.

And with this filing, we are fairly confident we have seen every possible bankruptcy filing reason.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/15/2014 - 14:06 | 4334493 corporatewhore
corporatewhore's picture

where did all the young sons and daughters go when they didn't get married? into the church.  it's been a great hiding ground for all the misfits and neerdowells and gays/lesbians.  People just didn't talk about those things in prior generations.  They were there.  They were moved around and those who came forward were trashed legally, spiritually and financially.  It wasn't a problem because the Church had much more power than it has now.  Remember the Legion of Decency and the ridiculous influence they had over movies--twin beds, etc.

 

Wed, 01/15/2014 - 16:29 | 4335115 Buckaroo Banzai
Buckaroo Banzai's picture

Mostly, that's bullshit.

Wed, 01/15/2014 - 13:58 | 4334465 Emergency Ward
Emergency Ward's picture

The man in confession confessed to getting drunk and cheating on his wife.  Father John said, say ten Hail Marys and for penance give $100 to the first person you see on the street.  After saying his Hail Marys the man walked down the street and held out $100 to the first person he met, a woman in a mini-skirt standing on the corner.

He said, "Father John told me to give you $100."  She replied, "No it's $100 for Father John, $200 for everybody else!"

Wed, 01/15/2014 - 12:45 | 4334157 slightlyskeptical
slightlyskeptical's picture

How did the Catholic Nun get pregnant?

 

She disguised herself as an Altar Boy.

 

Edit: See this was already posted. Bad jokes travel fast.

 

 

 

Wed, 01/15/2014 - 12:41 | 4334185 Blazed
Blazed's picture

Somehow synagogues can afford their raping Rabbis, must be their ethnic connections to the banking cartels, corporate media, and SCOTUS.

http://iamthewitness.com/listeners/Jewish.child.molesters.that.are.never.on.the.NEWS-WHY.htm

The Talmud

Sanhedrin 55b. A Jew may marry a three year old girl (specifically, three years "and a day" old).

Sanhedrin 54b. A Jew may have sex with a child as long as the child is less than nine years old.

Kethuboth 11b. "When a grown-up man has intercourse with a little girl it is nothing."

http://www.revisionisthistory.org/talmudtruth.html

Wed, 01/15/2014 - 12:42 | 4334196 Colonel Klink
Colonel Klink's picture

Gotta love those teachings!  Much more permissive than Catholic ones.  Now I can see the appeal! /sarc

Wed, 01/15/2014 - 13:00 | 4334268 Blazed
Blazed's picture

The Rabbi Child-Raping Assembly Line.

"Ben Hirsch, director of Survivors for Justice, a Brooklyn organization that advocates for Orthodox sex abuse victims, thinks the real number is higher. “From anecdotal evidence, we’re looking at over 50 percent. It has almost become a rite of passage.”

http://www.vice.com/read/the-child-rape-assembly-line-0000141-v20n11

Wed, 01/15/2014 - 13:16 | 4334323 Colonel Klink
Colonel Klink's picture

Well no wonder a large portion of them have no problem fucking everyone else in the ass!  They're pissed off and butt hurt.

Wed, 01/15/2014 - 12:44 | 4334198 Save_America1st
Save_America1st's picture

I'm not a religious guy...I wasn't raised with it because my family members all pretty much left the Catholic church before I was born 42 years ago. 

They said it was just as corrupt with evil, viscious, scumbags and hypocrits then as it is today.  I would say it's much worse now, but who really knows how deep the rabit hole goes with these pedophiles and other scum who have infiltrated all of religion in order to prey on and abuse other people.  It was probabaly just as bad years ago as it is now, but we just have the advantage over them now with more media and the internet, etc. 

I'm not against Christianity...but at this point in my life I find it impossible that I or anyone needs to give any time, money, or power to these churches who are mostly run by sick fucks hiding behind their clown costumes in the name of "God" so that they can destroy people's lives and feed off of people's fears of any kind of religious retribution if they report any of these criminals.

It's a syndicate (or sin-dicate)...it's mostly a scam, and I believe that only very few people in organized religion aren't corrupt and hiding there in order to escape justice and to commit more crimes against weak minded people and their little children.

It's not different than any type of groups that cater to children or that command great power.  Want to find pedophiles?  Easy...and I don't mean this to be a blanket generalization, so not to offend those who aren't scumbags...but just look at where they congregate?  Boyscouts, other sports leagues involving children, coaches, teachers, churches, entertainment (just look at all the scum in entertainment who prey on kids), look at how depraved and corrupt Disney is...full of fags and sexual predators who draw sick shit hidden in their stupid ass cartoons to subliminally corrupt kids...

It goes on and on...look at that fat pedophile fuck from Penn State...gee, he wasn't just a football coach...he was hiding there while voluntarily running, guess what???  A boys home or whatever it was so that he could prey on foster kids and shit like that.  The whole school knew what a monster that guy was and yet they never said a word until after the fact. 

How about that lunatic looking scumbag from England, Saville???  One fucking look into that retards crazy eyes and you could tell he was sick pedophile.  But guess what?  He was the most popular guy in England...friends of all the royalty...and ya know what he was doing?  He voluntarily worked in entertainment with kids so that he could get close and feed on them.

Not only was he doing it, but he was trafficking kids to all the royalty as well...that coven of sick fucks goes very deep...there were hundreds of people in his secret underground group abusing kids and even killing and sacrificing kids.  Royalty as well as political figures, and I'm sure many more who were hiding within the church.

Face it...this world is full of sick freaks, socipaths, psychopaths, pedophiles, murderers, and worse...and those are mostly the people who gravitate or congregate in positions of power, politics, law enforcement, so-called "entertainment", religion, gangs, mafia, you fucking name it. 

But those are the people running and ruining this world, and the good people for some fucking reason are mentally captured and can't seem to break out of their cognitive disonance or normalcy bias in order to wake up and wipe these scumbags off the face of the Earth.

The sick scum are pushing very hard against us now though...you can see how they've really ramped up the pressure over the last 10 years or so with their world agenda and pushing their sickness on us.  They used to stay hidden, but now they're getting bold and pushing their criminality out in the open because they think they've succeeded in dumbing down and corrupting society sufficiently enough to just be out in the open.

Well I think they've miscalculated and crossed the line and people are waking up and fighting back.  Now there are fewer places for these scumbags to hide because they've already come out and showed how evil they are.  That Pandora's Box has been opened and they can't close it now.  They will only push harder and harder against us because they know they now have nowhere to retreat to anymore.

These people have to be run down and wiped out because that's what they do to us and we know they'll never stop.  The freedom of this world is not between Republican or Democrat or whatever political garbage any of you have in your respective countries.  It's a fight between liberty and tyranny.  Good and evil.  Everything else is just a smoke screen that the evil use against us to keep us confused. 

Evil does seem to be ruling the world and it's very powerful.  If privately being religious for yourself gives you peace and strength, then by all means use it any way you can to fight evil.  Use it to wake others up and be a good example for others.  But don't be a part of their organized bullshit any longer.  It's all a big lie and they'll use it against you to corrupt you.  Once enough good people in this world wake up to realize this then we'll finally beat evil.

The only thing necessary for the triumph of evil is for good men to do nothing.  ~ Edmund Burke

Wed, 01/15/2014 - 12:49 | 4334229 Anusocracy
Anusocracy's picture

To me it's just a variant in the behavior of control freaks

And I'm definitely against control freaks.

Wed, 01/15/2014 - 13:37 | 4334401 MisterMousePotato
MisterMousePotato's picture

They're not "pedophiles," Save. They're pedarasts. Big difference.

Wed, 01/15/2014 - 13:21 | 4334346 JLee2027
JLee2027's picture

Good post. True Liberty and the stable morality that Christianity provides go hand in hand. 

Wed, 01/15/2014 - 12:48 | 4334218 orangedrinkandchips
orangedrinkandchips's picture

"oral copulation" on a kid......

 

fucking sick and so wrong. 

 

Throw these deadly people in jail and let out the pot smokers! duh!

Wed, 01/15/2014 - 12:55 | 4334257 corporatewhore
corporatewhore's picture

if you want to watch an incredible, but sickening, movie--get a copy of the movie about "Reverend" Lawrence Murphy of Northern Wisconsin who was buried in his priestly robes despite his raping of deaf boys over his priestly career.  I had the dubious privelege of hearing his sermons many years ago and listening to him practically foam at the mouth about birth control, fornication, etc and going to hell.   His excuses for his behavior were enough to make me vomit.  The guy should have been defrocked years ago and I believe Ratzinger blocked the efforts to do so.

Wed, 01/15/2014 - 13:05 | 4334284 Save_America1st
Save_America1st's picture

defrocked and "de-cocked"...they all need to have their junk chopped off with no medical assistance allowed until they bleed to death.  Or maybe better yet how about a shotgun blast "Pulp Fiction" style. 

Wed, 01/15/2014 - 13:16 | 4334325 Seasmoke
Seasmoke's picture

It's ok to believe in God.

But cut out the middle man and the dick forced in your mouth. (Plus you get to sleep in on Sunday and not be shaken down for $10 each week)

Wed, 01/15/2014 - 14:20 | 4334551 TPTB_r_TBTF
TPTB_r_TBTF's picture

you'll never get a ticket to Heaven at $10 a week.

 

The entrance fee is a minimum 10% income tax (called a tithe).

On top of that you need to provide large offerings to receive absolution. 

A measly $10 offering donT cover for very much Sin.

Wed, 01/15/2014 - 13:23 | 4334352 shermacman
shermacman's picture

The Catholic Church knows what it needs to do to get out from under this, yet they refuse. They continue to hide, shuffle, and cover for these pedophile freaks.
And Bernard Law is still a guest in the Vatican.

Wed, 01/15/2014 - 13:24 | 4334357 Boxed Merlot
Boxed Merlot's picture

Note that it is ALWAYS homosexual child abuse-- NEVER directed at girls, ALWAYS at boys...

 

The current abuse is primarily homosexual in nature, but historically, "sinful" conduct of the laity / church officers may have as much to do with the catholic practice of "confession" as the danger the NSA's practice of data interception has on those performing the task.  I remember a book "50 years in the Church of Rome" where a Canadian priest loathed his task of questioning children, especially the little girls with the battery of terms and concepts the previous innocents had no exposure to before the practice but whose interests and proclivities were aroused and set out to experience before the next "confession".

As a Stocktonian for ~30 years, it's not unique to the catholic church.  We had a well known Germain land developer leave his entire wealth / holdings (including his Porsche) behind when it became evident that his conduct was unacceptable in his newly adopted country.  I don't know what the statute of limitations are but as far as I know, he's never returned.

 

jmo.

Wed, 01/15/2014 - 13:32 | 4334385 grunk
grunk's picture

The Diocese should have blamed the weather for losing all that money.

Wed, 01/15/2014 - 13:41 | 4334416 Basia
Wed, 01/15/2014 - 14:22 | 4334567 Spungo
Spungo's picture

These damn union kids refuse to get fucked in the ass until they are paid.

Wed, 01/15/2014 - 15:11 | 4334797 americanspirit
americanspirit's picture

"Very simply, we are in this situation because of those priests in our diocese who perpetrated grave, evil acts of child sexual abuse."

Actually no. You are in this position because your priests systematically abused kids for years and you did nothing to stop them and. as those found guilty at the Nuremburg trials found out, they were guilty because in their positions of authority they either knew, OR BY VIRTUE OF THEIR POSITIONS SHOULD HAVE KNOWN, of the crimes being committed.

Wed, 01/15/2014 - 16:59 | 4334933 corporatewhore
corporatewhore's picture

truth!

american spirit you are spot on.  They knew. They shut their mouths, lied, obfuscated and played hide the sausage all over the neighborhood.  They hold themselves above the law.  Played legal tricks such as hiding assets under the cemetary fund or using the statute of limits expiration to shield themselves from having to part with their dearly loved cash.

Wed, 01/15/2014 - 15:19 | 4334836 ILikeBoats
ILikeBoats's picture

Right now, under US law, every single diocese or Catholic organization is a "corporation sole" or seperate corporation.  However, once lawyers can prove collusion, they will go after ALL Catholic assets inside the USA, using RICO laws.  I believe that this is the endgame plan for basically stealing all the Catholic wealth in the country.

Wed, 01/15/2014 - 15:44 | 4334918 Dinero D. Profit
Dinero D. Profit's picture

 

Did Shab-rag, Ee-shab, and Abendigo have a pet dog?  No.  Did anybody biblical ever have a pet dog?  I’m not certain.  I don’t recall reading verses on pet dogs, not even a Psalm. In the many verses involving sheppards, no Border Collie is ever mentioned.  I think the closest anyone biblical ever came to having a pet dog was the notorious Noah* and his doomsday ark. 

 

 Maybe pet dogs are too trivial for scripture.

 

Wouldn’t it be great if Jesus had a pet dog?

 

If he had a pet dog, would he have a Jewish Shorthaired Pointer?

 

Sure, why not?

 

Also, I don’t know if anybody biblical knew how to whistle.

 

 Maybe whistling is too trivial for scripture. 

 

Wouldn’t it be great if Jesus** had a pet dog and he knew how to whistle?

 

Imagine Jesus walking around in downtown Jerusalem, a companion from another species at his side, whistling a happy Hebrew lullaby.

 

What a jolly savior~!

 

But none of dogs and whistling is ever mentioned.

 

What are the ramifications, the spiritual ramifications, that is, the effect upon the mainstream of human aspirations, for not mentioning dogs or whistling in the bible?  

 

Think about this.

 

Think hard.

 

 

 

* I have my doubts about Noah.  Did he know the difference between a crane and a stalk?   

 

** Too bad Jesus never had a girlfriend.

 

Wed, 01/15/2014 - 16:31 | 4335117 NoWayJose
NoWayJose's picture

Expect many more of these Catholic bankruptcies.  The dioceses of the Catholic Church, outside of the Vatican, simply have no wealth or great pile of cash that can be tapped into to pay these enormous costs.  None of the people working for a church of ANY faith are highly paid, and most churches fight to break even on their annual budgets.  Those budgets are predominantly covered by donations and contributions from businesses and individuals who are members of the church, but there is no legal obligation for those members to continue their donations.  Thus there is no 'income stream' for judges to award.  The only 'wealth' might be in the church buildings themselves, and who knows how their tax-exempt status plays into all this.  The sad thing here is that excessive awards may be bankrupting the system, meaning that both current and future victims may actually end up with little or nothing.  It would be more meaningful to prosecute the offenders, and provide sustainable treatment and care to all the victims.

Wed, 01/15/2014 - 16:57 | 4335207 pashley1411
pashley1411's picture

Not excusing the diocese, but the bigger picture is that a privte organization is going financial down to the financial demands of the state; in this case the judicial system, but its simply another branch of the hydra.  

The end-game is the same as the end game that established feudalism; the only way to live was to sign up under the permanent servitude of the local authorities, who would then offer protection from the rapicious demands of the higher governmnt.

Wed, 01/15/2014 - 17:21 | 4335283 Greenskeeper_Carl
Greenskeeper_Carl's picture

The sooner this whole institution is gone the better. We had to get married in the Catholic Church to make my wife's family happy, and it sickened me. I refused to give them any money, and her mom paid for the stupid classes we had to take because I refused. It infuriated me to be in the room with this priest questioning me, and now we have to get him fucking baptized. It old her she can take him to church, which I will not be participating in, but that under no circumstances will he ever be allowed to be alone with any member of the catholic clergy. It still kills me that otherwise intelligent and rational people still believe in this magical sky fairy that grants wishes. And people, including family members of mine, still give money to this disgusting institution that has done far more harm than good, not justo leering children. These sick fuckers claim to represent some benevolent god, and use their position of power to hurt children. Even these priests can't be too worried about this hell they speak of if they do shit like this.

Wed, 01/15/2014 - 17:59 | 4335403 Griffin
Griffin's picture

There was a avalanche of abuse related  scandals in Iceland shortly after the crash in 08.

It was not just the catholic church but almost every type of religious group you could imagine.  This caused a lot of anger and a strong reaction from the public. For example the state church was kicked out of elementary schools, the bishop resigned and there were large numbers of people leaving the church and considerably less interest in religion among lots of people.

The church is supposed to be a safe haven, a place where often vulnerable or broken people can go to feel safe and get help.

Its not just the children who are defenceless against those who are within the churches who are abusive and those who protect the abusers.

We now have a woman Bishop in Iceland, for the first time ever. http://en.wikipedia.org/wiki/Agnes_M._Sigurðardóttir

She is the highest ranking priest in the church. She has promised to screen all individuals who work for the church, to try to rebuild peoples trust in the church. 

I think it could be a good idea for churches to try to fix this problem and try to remember that they are supposed to be servants, not some elite that can be have like they live on another planet.

 

 

Wed, 01/15/2014 - 20:31 | 4335982 Fíréan
Fíréan's picture

Just the other week I read of the phoney rabbi from New York , a man of previous hugh esteem who had escaped prosecution, who was being attacked in public in Isreal where he had fled some years ago and lives as a free man. Avrohom Mondrowitz.

Some person's estimate of his offenses was in the number of 300 children.

Thu, 01/16/2014 - 00:47 | 4336880 cornflakesdisease
cornflakesdisease's picture

1 Timothy 4:1 However, the inspired utterance says definitely that in later periods of time some will fall away from the faith, paying attention to misleading inspired utterances and teachings of demons, 2?by the hypocrisy of men who speak lies, marked in their conscience as with a branding iron; 3?forbidding to marry, commanding to abstain from foods which God created to be partaken of with thanksgiving by those who have faith and accurately know the truth.

Forbiding to marry.

Do NOT follow this link or you will be banned from the site!