The Oakland Catholic Diocese is accused of concealing $106 million in assets to avoid compensating victims of clergy sexual abuse. After declaring bankruptcy in 2023, following settlements with 330 abuse victims, the diocese allegedly transferred these funds to an inactive nonprofit to shield them from creditors. This tactic, reportedly used to avoid paying victims, involves bundling numerous lawsuits into a single settlement through bankruptcy.
Victims’ lawyers claim the money was moved to the Oakland Parochial Fund, a dormant nonprofit whose status had been suspended since 2017. Critics argue this fund was a mere corporate shell, revived only to hide the assets. SNAP, a victims’ advocacy group, asserts that this move prevents access to the funds for victim compensation.
In response, the diocese denied the allegations, stating they are addressing the claims through legal proceedings. Meanwhile, the fate of the $106 million remains uncertain as a bankruptcy judge has yet to approve the financial reorganization. Victims also contend that the diocese possesses valuable real estate that could be used for compensation.