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Todd
Neilson, the independent expert appointed by Bankruptcy Judge
Adler to examine the cash accounting system of the SD Diocese
following her contempt of court proceedings involving its
lawyers, and certain priests of the diocese has filed his report
today.
The Nielson Report reveals that Bishop Brom, his lawyers and
consultants, have manipulated bank accounts, failed to adhere to
the financial policy and procedures of the Diocese, and have
made material misrepresentations to governmental agencies, the
general public, and the Bankruptcy Court.
Prior to the filing of the bankruptcy the SD Diocese maintained
what it called the Diocesan Bank. All parishes were required by
the cash management policy of the Diocese to keep on deposit
with this Diocesan Bank funds in excess of two months operating
capital. Bishop Brom had exclusive control over the use of
those funds and was not required to, nor did he, obtain any
permission from any parish as to how he used that money. AFTER
the filing of the bankruptcy, and in keeping with the charade
the Diocese has been promoting in the bankruptcy (that it is a
trustee for the benefit of the “separate” parishes), it changed
the Diocesan Bank to what it now calls the PSDL Trust (Parish
Savings Deposit and Loan) account. NOW the Diocese claims this
Bank is not an ASSET of the Diocese.
YET, Bishop Brom made representations to its auditors, banks,
state agencies and the public, that the funds on deposit with
the Diocesan Bank are an unencumbered ASSET of the
Diocese. Now, Bishop Brom has testified under oath to Judge
Adler that these funds are not an ASSET of the Diocese,
but belong to the parishes. Bishop Brom is either
misrepresenting the facts to Judge Adler or he misrepresented
the facts to his auditors, banks, government agencies and the
public before.
The Nielson Report also reveals that there are substantial
funds unaccounted for, or mischaracterized. $165 Million
Dollars flows through the SD Diocese every year. YET, the
Nielson Report reveals that there is a $19Million dollar
deduction from the Diocesan Bank just prior to the filing of the
bankruptcy that has been eliminated from the financial
statements. The Nielson Report and testimony at the creditor’s
examination reveal that an additional $12Million in excess
earnings between interest paid and interest earned by the
Diocesan Bank has been shifted out of the Diocesan Bank and
booked into a restricted account clearly in an effort to hide
these funds from the sex abuse victims.
These are only a few examples of the contempt that Bishop Brom
and his legal advisors and financial consultants have shown not
only to Judge Adler and the Bankruptcy Court, whose protection
it has sought, but to the legal system generally. The behavior
of Bishop Brom proves that he is not to be trusted, that he is
not in control, and that nothing has changed. This is the same
contempt for the law that allowed children to be raped and
abused with impunity.
Whether Bishop Brom should be trusted to continue to operate
this Diocese as a fiduciary of the creditors is a serious
question. |
