The Sisters of St Joseph of Carondelet say the Archdiocese of Los Angeles has filed a criminal complaint against two sisters - Mary Margaret Kreuper and Lana Chang - for misappropriating funds from St James School.

Kreuper and Chang are alleged to have misappropriated about $500,000 from the school, diverting it into their own bank accounts.

They were caught during an audit begun earlier this year. Krueper is a former principal of the school and Chang a teacher.

The pair is thought to have used the money for gambling, trips to Las Vegas and other personal expenses.

The Sisters of St Joseph say they intend to make restitution to the school when the exact amount of money misappropriated is known.

"As a religious community, we will not defend the actions of our Sisters. What happened is wrong. Our Sisters take full responsibility for the choices they made and are subject to the law.

In addition, Msgr Michael Meyers of St James Parish says the sisters' congregation is "imposing appropriate penalties and sanctions on each of the sisters in accordance with the policies of the Order."

The order also has confirmed "canonical restrictions" have been imposed on Kreuper and Chang.

"The two sisters are removed from their residence and placed in a religious house under the supervision of community leadership. They are also removed from all public ministry."

Krueper and Chang have reportedly expressed remorse for their actions.

Source

• Catholic News Agency
• Catholic Herald
• Image: Jacqui Ford Law

Italian prosecutors are reportedly investigating Cardinal Domenico Calcagno over an alleged misappropriation of funds in his former diocese.

The matter concerns funds at an institute to support the clergy in Liguira and real estate investments.

Cardinal Calcagno is the current president of the Administration of the Patrimony of the Holy See.

The cardinal reportedly said he is "serene" over the investigation.

Continue reading

According to German tabloid Bild Zeitung, approval was given for 15 million euros to be transferred from the Vatican bank to an Italian television production company, later identified as Lux Vide.

The company is owned by Cardinal Bertone's friend Ettore Bernabei, a former director general of Italian state broadcaster Rai.

A Vatican official, who asked not to be named, confirmed that the senior prelate was instrumental in approving what the Financial Times called a "convertible loan".

The transfer was approved when Cardinal Bertone headed an oversight committee overseeing the Vatican bank, formally known as the Institute for the Works of Religion (IOR).

The funds were moved in a December 2012, despite resistance from the Vatican bank, Bild reported.

The head of the Vatican's Financial Information Authority(AIF), Renè Bruelhart, told Bild he could "neither confirm nor deny" reports about a Bertone investigation.

The Vatican press office issued a statement countering the Bild report.

"There is currently no investigation of a criminal nature" involving Cardinal Bertone, the statement said.

Cardinal Bertone has denied the Bild report.

The cardinal told the ADNKronos agency that the transfer was approved by a board that supervises the Vatican bank.

He added that the minutes of the board's meetings would confirm this and that the transaction had been carried out "regularly".

In January, Pope Francis shook up the administration of the scandal-plagued bank, replacing four members of the five-cardinal oversight committee.

Cardinal Bertone was among those ousted after less than a year of his five-year term.

Meanwhile, the AIF has reported a steep rise in suspicious transaction reports, which grew from six in 2012 to 202 last year.

Mr Bruelhart said this means reporting systems at the Vatican are working.

Most of the suspicious activities reported involved transactions carried out through the IOR.

Five have been deemed worthy of further investigation and possible criminal charges, and have been handed over to the judicial offices of the Vatican City State.

Sources

• National Catholic Reporter
• Catholic World News
• Catholic Herald
• Financial Times
• Image: Bishop Accountability