Skip over global navigation

Jesuits Declare Bankruptcy In Response To Alaska Sex Abuse Lawsuits

BY ANNIE FEIDT

Anchorage, AK  February 18, 2009 3:56 p.m.

More than 60 lawsuits alleging sex abuse by priests are now on hold after the Jesuits of the Oregon Province filed for Chapter 11 bankruptcy Tuesday.

In all, there are 200 known claimants in the five western states covered by the Province. Most are those victims are from Alaska.

The attorney representing many of them -- Ken Roosa of Anchorage -- says he expects more claimants to come forward, even after the bankruptcy.

Ken Roosa: "By the time this is over, it wouldn't surprise me to see that number double. And these all will of course involve childhood molestation by Jesuit priests and brothers, or people who were being supervised by Jesuit priests and brothers."

Roosa was planning to file 40 more lawsuits on behalf of abuse victims next week. Now those cases are expected to be filed as claims in the bankruptcy proceedings.

The Society of Jesus, Oregon Province isn't talking publicly about the bankruptcy filing. In a written statement, the Society says it believes Chapter 11 reorganization was the only way all the claimants can receive a fair settlement.

The Jesuits say they have less than $5 million in assets but their liabilities amount to nearly $62 million. Attorney Roosa says those figures will be a major point of contention during the bankruptcy proceedings.

Ken Roosa: "There will be debates about whether the Jesuits own the universities and high schools, whether those universities and high schools are assets, that can be held accountable or used to pay the claims, all of that will be argued before the bankruptcy judge in litigation there."

Roosa says it may take a few years to resolve the bankruptcy case.

The Jesuit order is separate from the Catholic Archdioceses of Portland and Spokane, which went through their own bankruptcy cases several years ago.

© 2009 OPB

del.icio.usdel.icio.us digg.comdigg newsvinenewsvine

Comments

February 18, 2009
8:51 p.m.
In San Diego the church used this approach to try and minimize the damages raping clergy did here as well. Same things are being said. The church owes more than it's worth. Time for another forensic accountant. Try this one. San Diego, Aug. 1, 2007 (CWNews.com) - A court-appointed investigator has criticized the financial statements submitted by the Diocese of San Diego, California, in its filing for bankruptcy protection. After a thorough perusal of diocesan and parish financial records, accountant R. Todd Neilson issued a 175-page report pointing to inconsistencies in the church records. Neilson, a forensic accountant formerly employed by the FBI, found "openly questionable activities" in some diocesan financial accounts. He charged that some parishes had tried to conceal funds, and diocesan officials were "woefully unaware" of parish financial practices. The court-ordered investigation showed that the San Diego diocese had made contradictory statements about its legal and financial relationship with the parishes. In bankruptcy filing the diocese had said that parish funds do not belong to the diocese but are held in trust for the parishes. But that claim, Neilson observed, was "in direct contradiction" to the claims previously made by diocesan officials in presentations to banks and investors. Michael Webb, a lawyer for the diocese, told reporters that the investigator's report uncovered "a small number of problems, all of which have been corrected or are in the process of being corrected." Irwin Zalkin, a lawyer for sex-abuse victims who have sued the diocese, took a much harder line, saying that Nielson's report revealed diocesan officials' "utter contempt for the bankruptcy court and the legal system." Neilson's report will now be examined by Jude Louise DeCarl Adler, who is supervising the bankruptcy case for the San Diego diocese. Judge Adler will decide whether the problems uncovered in the report have any material bearing on the bankruptcy case.

— Posted by Dunkshowtj


Post a Comment

You must be logged in to post.

Login or register to set up an account.

© 2009, Oregon Public Broadcasting.

Search · Inside OPB · Report Reception Problems · Privacy Policy · Terms of Use · Contact Us · Pressroom · Employment · Community · Audio Streams · RSS Feeds


PBSNPRPRIBBC