Tag Archives: Catholic Diocese of Buffalo

Buffalo Diocese files for bankruptcy after hundreds of sex abuse claims

Buffalo Diocese files for bankruptcy after hundreds of sex abuse claims. Albany Bishop Edward B. Scharfenberger has led the diocese since December.
By Cayla Harris
https://www.timesunion.com/news/article/Buffalo-Diocese-files-for-bankruptcy-after-hundred-15091849.php

The Buffalo Diocese, temporarily headed by Albany Bishop Edward B. Scharfenberger, filed for bankruptcy Friday morning as it grapples with hundreds of lawsuits alleging decades of child sexual abuse and cover-ups.

It is the second New York diocese to file for Chapter 11 bankruptcy – which allows for reorganization of assets instead of liquidation. The Diocese of Rochester filed for bankruptcy in September. The decision was largely anticipated as the Buffalo diocese, facing more than 250 lawsuits over the past six months alleging sexual abuse, has emerged as the most-named defendant in all Child Victims Act cases.

The state’s Child Victims Act in August opened a one-year window temporarily eliminating the statute of limitations for civil cases involving sex crimes. Since then, more than 1,600 cases have been filed statewide, many of them resurfacing decades-old allegations.

In a filing in the U.S. Bankruptcy Court in the Western District of New York – first reported by The Buffalo News – the Buffalo Diocese identified $10 million to $50 million in assets and $50 million to $100 million in liabilities. In court filings, Scharfenberger asserted that the filing was necessary “in order to respond to claims stemming from the Child Victims Act in an equitable and comprehensive manner, and to reorganize the financial affairs of the Diocese in order to permit it to continue to fulfill its ministries to the Catholic faithful of the Diocese.”

“We have no more urgent work than to bring about justice and healing for those harmed by the scourge of sexual abuse,” Scharfenberger said in a Friday statement.

The decision puts all lawsuits against the diocese on pause as leaders determine how best to address the allegations and compensate accusers. It does not affect the daily operations of local parishes.

Scharfenberger, who is temporarily leading the Buffalo Diocese after the resignation of its former Bishop Richard Malone in December, will address the media in Buffalo at a 1 p.m. news conference. He had been weighing the decision for months, repeatedly telling reporters that a decision would come “soon.”

“Whatever we do has to be done in a way that puts victims first,” Scharfenberger told Albany reporters in December, acknowledging that bankruptcy could freeze litigation but may also offer more equal payouts to survivors who have filed claims. “We want to look at all of those things, and then that might be the best way to go.”

He said at the time that the Albany Diocese is not considering a bankruptcy filing, and likely would not for “the next year or so.” The Albany Diocese has also faced its share of Child Victims Act cases, though far fewer, at about 65. The Albany Diocese serves about half the number of Catholics as the Buffalo Diocese.

“The decision in Buffalo does not affect the Diocese of Albany in any way,” Albany Diocese spokeswoman Mary DeTurris-Poust said in an email. “Until we know the full financial scope of the CVA as it relates to the Diocese of Albany, we cannot and will not make any decisions. We have nothing to announce, other than that we continue to respond in justice to survivors of abuse and urge anyone who has suffered such abuse to come forward.”

Survivors and attorneys, reacting to Friday’s filing, criticized the decision as a roundabout way of denying victims their day in court. They noted that bankruptcy allows the diocese to avoid releasing certain information and files about priests and clergy accused of abusing children – documents that would typically be unearthed during the discovery process.

Manhattan-based attorney Jeff Anderson, who represents dozens of survivors suing the Buffalo Diocese, said the diocese “is using bankruptcy to continue to conceal the truth about predator priests.”

State Sen. Brad Hoylman, D-Manhattan, a sponsor of the Child Victims Act, said the filing could help reveal “how deep the pockets are of the institution” – but at the expense of preventing survivors from speaking out in front of a judge in a public courtroom.

“It’s despicable that an institution that was responsible for the abuse of thousands of young people across the state of New York would try to hide behind the bankruptcy laws to prevent these individuals from receiving the entirety of the claim due to them,” he said.

The Pedophile Priests of St Thomas More parish in Durham NH are Fathers Joseph Desmond, Paul McHugh and Leon Gaulin.
St Thomas More Parish
6 Madbury Road
Durham New Hampshire 03824-0620
1-603-868-2666


https://www.stmdurham.org/

https://www.facebook.com/stmdurham/

https://atheistmilitantsrising.home.blog/2021/04/28/the-pedophile-priests-of-st-thomas-more-parish-in-durham-nh/

https://www.catholicnh.org/

https://atheistmilitantsrising.home.blog/2021/04/27/bishop-peter-a-libasci-new-hampshire-diocese/

Judge dismisses Buffalo Diocese’s attempt to get $1.7M Covid-19 loan

Judge dismisses Buffalo Diocese’s attempt to get $1.7M Covid-19 loan
By Jay Tokasz
https://buffalonews.com/business/local/judge-dismisses-buffalo-dioceses-attempt-to-get-1-7m-covid-19-loan/article_c01d9be2-8123-5dc4-a4ae-9e3a7e1f7a49.html

A federal judge in Rochester has ruled against the Buffalo Diocese’s efforts to secure a $1.7 million loan through the Small Business Administration’s national Paycheck Protection Program.

U.S. District Court Judge Elizabeth A. Wolford on Wednesday dismissed the diocese’s lawsuit against the federal agency that runs the loan program and refused to grant a preliminary injunction that would have forced the SBA into considering the diocese’s loan request.

Wolford said in a written summary judgment the “SBA did not exceed its statutory authority” in adopting a policy that excluded entities in bankruptcy from qualifying for the loans.

The diocese’s lawyers had argued that the SBA illegally excluded the diocese from applying for a share of the $659 billion Congress made available to businesses that keep employees on their payrolls during social distancing shutdown measures prompted by the coronavirus pandemic.

The Buffalo Diocese joined with the Rochester Diocese in asking the U.S. District Court for a preliminary injunction that would prohibit the SBA from denying the loan based on their bankruptcy statuses.

The Rochester Diocese sought $1.1 million from the SBA’s Paycheck Protection Program and was ineligible because it filed for Chapter 11 bankruptcy protection last September. The Buffalo Diocese filed for bankruptcy in February.

Government lawyers explained in court that the SBA adopted the bankruptcy exclusion to speed up loan processing and to ensure lenders that it wasn’t approving unacceptably high-risk loans.

Without the PPP loans, the dioceses argued that they “will be forced to lay off or furlough essential employees which will have a permanent effect” on how their Chapter 11 bankruptcy cases are administered.

The Buffalo Diocese in March eliminated the jobs of 21 employees, a fifth of its workforce, due in part to the “anticipated financial impact of the pandemic.” The cutbacks followed a 2019 fiscal year loss of $5 million for the diocese.

With Catholic Masses suspended during the pandemic, area parishes have been unable to bring in offertory collections. In turn, the parishes have been unable to meet their financial obligations to the diocese, the diocese’s lawyers said in court papers.

With stay at home directives in effect, the diocese “will struggle to continue making payroll payments,” which is the main eligibility requirement for the Paycheck Protection Program, lawyers argued.

Wolford said in her ruling that she was not convinced. She called the diocese’s explanations about the financial impact of the pandemic ban on church gatherings “vague.”

The diocese’s lawyers “point out that offerings have dropped off precipitously, but they do not state what percentage of their funding comes from parish assessments versus other sources,” Wolford wrote. “Plaintiffs further have not claimed that they need PPP funds in order to make payroll—indeed, there is no indication in plaintiffs’ papers that they have not paid their employees’ salaries or that failure to obtain PPP funds would somehow cause Plaintiffs to cease to operate.”

Lawyers for the dioceses also said that the SBA added the bankruptcy rule arbitrarily, even though nothing in the CARES Act passed by Congress and signed by President Trump limits the diocese’s eligibility for the funds.

Wolford’s decision said the CARES Act was “silent regarding the eligibility of debtors in bankruptcy to participate in the PPP” and nothing in the legislation required a bankrupt debtor be eligible.

“This detail was left by Congress for determination by the SBA,” she wrote.

Small businesses and other entities – including churches and religious organizations – that employ up to 500 people are eligible for the Paycheck Protection Program, which provides loans to cover payroll costs, rent, mortgages and utilities.

The loan, which requires no fees or collateral, is fully forgiven as long as at least 60% of it is used for payroll. If that requirement isn’t met, the loan must be repaid over five years at a 1% interest rate.

Several other dioceses around the country and some Catholic parishes in Western New York have applied for and received loans through the Paycheck Protection Program.

The Pedophile Priests of St Thomas More parish in Durham NH are Fathers Joseph Desmond, Paul McHugh and Leon Gaulin.
St Thomas More Parish
6 Madbury Road
Durham New Hampshire 03824-0620
1-603-868-2666


https://www.stmdurham.org/

https://www.facebook.com/stmdurham/

https://atheistmilitantsrising.home.blog/2021/04/28/the-pedophile-priests-of-st-thomas-more-parish-in-durham-nh/

https://www.catholicnh.org/

https://atheistmilitantsrising.home.blog/2021/04/27/bishop-peter-a-libasci-new-hampshire-diocese/

Buffalo Diocese facing backlash for seeking federal funds, relief in CVA cases

Buffalo Diocese facing backlash for seeking federal funds, relief in CVA cases
By Cayla Harris
https://www.timesunion.com/news/article/Buffalo-Diocese-facing-backlash-for-seeking-15251143.php

Advocates for survivors of sexual abuse are denouncing the Buffalo Diocese this week after the institution, temporarily headed by Albany Bishop Edward B. Scharfenberger, moved forward with two legal filings that activists say diminish victims’ experiences and could allow the diocese to dodge consequences for decades of alleged abuse and cover-up.

The most recent filing on Tuesday was a lawsuit against the federal Small Business Administration for denying the diocese’s application for relief under the CARES Act because of its ongoing bankruptcy proceedings. It followed a separate legal action on Saturday in bankruptcy court, in which the diocese argued that all cases filed against the institution under the state’s Child Victims Act, including those that also name local parishes and schools, should be permanently suspended.

Last summer, the act opened a one-year “look-back” window allowing survivors of sexual abuse to pursue previously time-barred cases against their alleged offenders. The Buffalo Diocese, the most-named defendant in claims filed under the act, is facing more than 250 actions.

“The Buffalo Diocese should not use the current pandemic as an excuse to evade responsibility for the decades-long abuse of children,” said Michael Polenberg, the vice president of government affairs for the victims advocacy group Safe Horizon. “Every survivor of childhood sexual abuse deserves to hold offenders – including negligent institutions – responsible for their actions. That is the promise of the Child Victims Act … and that’s what survivors deserve.”

All lawsuits lodged against the diocese have been frozen since February, when the institution filed for Chapter 11 bankruptcy, which allows for reorganization of assets instead of liquidation. Some cases that also name separate Catholic entities where the abuse allegedly occurred would typically be allowed to move to trial at a later date – a move the diocese said would open the door to a cumbersome and costly discovery process.

Buffalo Diocese spokesman Greg Tucker declined to make Scharfenberger, who took the helm of the scandal-plagued diocese in December, available for an interview on either topic.

On the federal stimulus funds, Tucker said the institution decided to sue the SBA because it “exceeded its authority” in denying money to an organization moving through bankruptcy proceedings. The CARES Act “makes no reference to disqualifying applications on the basis of an entity in Chapter 11 reorganization,” he said.

State Sen. Brad Hoylman, a Manhattan Democrat and CVA sponsor, said in a statement Tuesday that the lawsuit “is just the latest example of the church failing to take responsibility for decades of egregious misconduct. They should be ashamed of themselves.”

In reference to the proceeding in bankruptcy court, Tucker said suspending all cases would allow the diocese to negotiate settlements “without the distraction of piecemeal litigation” and would also make the payouts more equitable for all survivors, not just those who filed first.

“While the process continues, any lawsuits against the diocese are halted to allow the diocese and its creditors to come to agreement on settlement terms,” he said. “The action that the diocese recently filed is intended to provide the same ‘breathing spell’ for parishes, schools and other Catholic entities in the hopes of achieving a global resolution.”

Stacey Benson, an attorney with the Manhattan-based law firm Jeff Anderson & Associates that represents several plaintiffs suing the Buffalo Diocese, said the filing was an “unnecessary legal tactic (that) is insensitive to survivors of child sexual abuse who have already been deeply harmed by the abuse they suffered, as well as by the actions and inactions of top diocesan officials.”

The Pedophile Priests of St Thomas More parish in Durham NH are Fathers Joseph Desmond, Paul McHugh and Leon Gaulin.
St Thomas More Parish
6 Madbury Road
Durham New Hampshire 03824-0620
1-603-868-2666


https://www.stmdurham.org/

https://www.facebook.com/stmdurham/

https://atheistmilitantsrising.home.blog/2021/04/28/the-pedophile-priests-of-st-thomas-more-parish-in-durham-nh/

https://www.catholicnh.org/

https://atheistmilitantsrising.home.blog/2021/04/27/bishop-peter-a-libasci-new-hampshire-diocese/

FBI ramping up its Buffalo Diocese investigation

FBI ramping up its Buffalo Diocese investigation
Interviews sex abuse victim in another state
By Charlie Specht
https://www.wkbw.com/news/i-team/fbi-ramping-up-its-buffalo-diocese-investigation

The FBI is pursuing a “wide-ranging” investigation of the Catholic Diocese of Buffalo and its role in covering up clergy sexual abuse over decades, according to news reports and three sources who have spoken to federal agents.

The Buffalo News first reported Friday that agents have spoken with multiple victims of clergy sexual abuse in Buffalo, even though many of the alleged sex crimes happened decades ago. The victims said agents are interested in proving historical and ongoing cover-ups perpetuated by Buffalo Diocese leaders, according to The News.

“They’re really looking for proof of a cover-up,” Nicole Delisio Wright, an advocate for victims of clergy abuse, told The News. “Any type of proof that there’s a widespread cover-up.”

Wright previously confirmed to 7 Eyewitness News that she was interviewed by federal agents. Two other sources also confirmed that they were interviewed by agents from the bureau, who asked about specific cases of sexual abuse and the way the diocese handled them.

Stephanie McIntyre, a victim of alleged sexual abuse by Fr. Fabian Maryanski, recently spoke with federal agents from her home in another state, she also confirmed Friday. McIntyre has been offered a $400,000 settlement from the diocese for the alleged abuse.

“With the encouragement of others who are helping to fight for justice, along with lots of prayer, I realized that I had both a moral and civil obligation to do this,” McIntyre told 7 Eyewitness News of her interview with the FBI. “I believe I was able to offer them information that will be very instrumental. I continue to pray that my suffering, my story, will help others to be able to obtain the transformational justice that they need and deserve in order to pick up the pieces of their lives and move forward.”

FBI spokeswoman Maureen P. Dempsey said, “The FBI cannot confirm or deny any matter that may fall under its investigative purview unless and until it is made public through a court filing or press announcement.”

Buffalo Diocese spokeswoman Kathy Spangler did not immediately respond to a request for comment.

7 Eyewitness News featured McIntyre’s story in September in Part 3 of its investigation into Bishop Malone. Maryanski first met McIntyre in 1984 when he was the pastor at St. Patrick’s Church in Barker. The Buffalo News reported her story in May, when Maryanski was still in active ministry at Nativity church in Clarence despite the allegations.

McIntyre, in a letter she sent to Bishop Malone in April, said the priest abused her for seven years, beginning when she was 15 years old. Maryanski maintains she was in her 20s at the time.

“My abuser not only robbed me of my youthful innocence,” she wrote, “but he destroyed my family.”

McIntyre hired a lawyer and reported the abuse to the diocese in 1995 but said she “was not offered one iota of help to deal with the fallout from Fr. Maryanski’s actions.”

Church documents show the diocese considered placing Maryanski on the list of 42 accused priests in March but officials concluded, “We did not remove him from ministry despite full knowledge of the case, and so including him on list might require explanation.”

The diocese withheld Maryanski’s name from the list and has still not included him on a list of credibly accused priests.

KEY LINKS IN THE BUFFALO DIOCESE SEX ABUSE SCANDAL:

Part 1 of the 7 Eyewitness News I-Team investigation revealed that Malone returned Fr. Art Smith to ministry despite allegations of inappropriate contact with a child. Malone returned the accused priests to ministry after a previous bishop suspended him, documents obtained by the 7 Eyewitness News I-Team show.

Part 2 revealed that Malone allowed Fr. Robert Yetter to remain pastor of St. Mary’s in Swormville despite multiple sexual harassment allegations by young men. 

Part 3 cited church records that showed more than 100 priests in the diocese were accused of sexual abuse or misconduct. Malone in March released a list of only 42 priests “who were removed from ministry, were retired, or left ministry after allegations of sexual abuse of a minor.”

The investigative series sparked Buffalo civic leaders to call for Malone’s resignation and Catholics have mounted weekly protests in front of the Diocese of Buffalo Chancery. Malone in August held a news conference and refused to resign as Buffalo bishop.

In September, the State Attorney General launched a statewide investigation into sexual abuse in the Catholic Church and last week, it was revealed the FBI has launched its own criminal investigation into the diocese.

In October, “60 Minutes” aired a national investigative story on Bishop Malone and the Diocese of Buffalo. 

In November, I-Team Chief Investigator Charlie Specht traveled to Portland, Maine. Malone served as bishop there before coming to Buffalo. There, Charlie spoke with advocates for victims of sexual abuse about how Malone had been accused of mishandling sex abuse cases. The I-Team also obtained new documents surrounding the cases which paint a much different picture of the bishop’s past.

Facing 250 sex abuse lawsuits, Diocese of Buffalo declares bankruptcy

Facing 250 sex abuse lawsuits, Diocese of Buffalo declares bankruptcy
Second diocese in New York to file
By Charlie Specht and Eileen Buckley
https://www.wkbw.com/news/i-team/facing-250-sex-abuse-lawsuits-diocese-of-buffalo-declares-bankruptcy

BUFFALO, N.Y. (WKBW) — The Catholic Diocese of Buffalo, which is facing nearly 250 lawsuits involving clergy sexual abuse, has declared bankruptcy.

Aside from the obvious financial implications, the diocese’s formal Chapter 11 bankruptcy filing means that many of the victims of clergy sexual abuse may not anytime soon get the answers that have long been hidden in secret diocesan archives regarding pedophile priests.

But there is still a chance that those hidden files could be forced as part of a bankruptcy settlement, as has happened in other dioceses.

Because the cases will soon be shifted from state civil court to U.S. Bankruptcy Court, survivors of clergy sexual abuse are likely to receive compensation, though it is unclear how much per case the diocese would be required to pay out.

According to bankruptcy documents, filed in federal court, the Buffalo Diocese is facing between $50 million and $100 million in estimated liability.

Apostolic Administrator Bishop Edward Scharfenberger appeared in U.S. Bankruptcy Court in Buffalo Friday morning just hours after filing for Chapter 11 protection for the Diocese of Buffalo.

Scharfenberger later appeared at a news conference at the diocese with attorneys.

“I’m careful not to use the word bankruptcy, even though we are in a bankruptcy court, because a lot of people are under the impression that the diocese is running out of money – we can’t meet our obligations to our employees – which is not true,” Scharfenberger told reporters.

According to the court filing the diocese owes $3.5 million to a list of 20 top creditors. M&T Bank tops the list at $1.6 million, but the other 19 are victims who filed child sexual abuse lawsuits against the diocese. But there are actually more tahn 250 cases filed against the diocese.

U.S. Bankruptcy Court Judge Carl Bucki held what he called an “emergency hearing” hours after the filing.

Bucki called the bankruptcy an “extraordinary process”.

The judge asked if priests with substantiated allegations against them are being paid by the diocese.

7 Eyewitness Nee asked that question at the news conference with attorney Steve Donato responding.

“To the extent that there is a claim owned to a clergy on substantiated abuse list, which is on the website, to the extend that there were any funds owed to them as of today due prior to the filing — those will not be paid,” replied Donato.

Bishop Scharfenberger says Catholic schools and parishes are not part of bankruptcy filing.

“The health of the diocese is in the health of it’s parishes and the same with catholic charities and other affiliated agencies – they are not involved in this,” responded Scharfenberger.

The bishop says no parish donations will be touched and remain separate from bankruptcy.

“But not for the purposes of doing settlements — in other words – no money comes out of collections in order to resolve claims,” Scharfenberger remarked.

The bishop says the filing is “not a stunt” to deflect from the lawsuits filed against the church.

The next bankrupcty court hearing is schedueld for March 26th at 10 a.m.

The bankruptcy means the church could be forced to sell properties and to make appeals for more money from parishioners, but it also paves the way for the Catholic Church in Western New York to — after its debts are paid off — emerge from the crisis with its mission and services still intact.

The dramatic move comes after the Diocese of Rochester became the first Roman Catholic diocese in New York State to file for bankruptcy on Sept. 12.

It is no doubt one result of the Child Victims Act, which was passed in January 2019 and allows victims of child sexual abuse in all institutions — not only the Catholic Church — a one-year “window” period in which they can sue the institutions to prove they were responsible for the abuse.

To date, more than 300 Child Victims Act lawsuits have been filed in Western New York.

At least 250 lawsuits allege abuse by clergy or employees in the Diocese of Buffalo, making the diocese the most-sued entity in all of New York State under the new law.

In December, Bishop Richard J. Malone resigned after an investigation of his leadership by the Vatican. Revelations about his behind-the-scenes efforts to conceal sexual misconduct came to light after his two secretaries, Siobhan O’Connor and Fr. Ryszard Biernat, became whistleblowers and provided documents and audio recordings to 7 Eyewitness News.

On Feb. 4, interim bishop Edward B. Scharfenberger announced the closure of Christ the King Seminary, citing financial pressures.

There was growing pressure for Malone to resign since August 2018, when the 7 Eyewitness News I-Team revealed that Malone:

The pressure on Malone intensified in September of last year, when the I-Team published secret audio recordings where Malone attempted to conceal sexual misconduct allegations involving Rev. Jeffrey Nowak. Malone called the priest “dangerous” but allowed him to remain pastor of Our Lady Help of Christians for more than six months with no notification to parishioners.

The diocese is also under investigation by the FBI and the State Attorney General.