SAN DIEGO — A federal bankruptcy judge Wednesday ordered an external audit of the Roman Catholic Diocese of San Diego, chastising church lawyers for a lack of transparency in court filings.
U.S. Bankruptcy Judge Louise DeCarl Adler grilled attorneys representing both the diocese and a parish organization, as well as two pastors who had sent letters the judge said misrepresented comments made from the bench during an earlier hearing.
Adler criticized church attorneys on the omission of 770 parish accounts from bankruptcy documents. "This is the most Byzantine accounting system I've ever seen," Adler said. "I am mystified."
In a sternly worded order issued Monday, Adler said attorneys Susan Boswell, Jeffry Davis and Victor Vilaplana, as well as two priests, appeared to have "conspired with parishes" to create new bank accounts separate from the diocese. The judge wrote that the attorneys may have violated court orders and bankruptcy laws.
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Boswell apologized and said she had misinterpreted the judge's comments at a March 1 hearing concerning how the parishes should go about protecting their cash flow through the bankruptcy process.
Attorneys representing people who have sued the diocese claiming sexual abuse by priests accuse the diocese of attempting to shield assets from any potential settlement.
