About a month before filing for bankruptcy last year, attorneys representing the interests of clergy sex abuse survivors allege the Diocese of Oakland transferred $106 million into a non-profit called the Oakland Parochial Fund that hadn’t been active for years.
The victims and their attorneys are slamming the transfer as a blatant attempt to shield the church’s assets in the ongoing bankruptcy case. The money, they say, should be available to victims as compensation for the abuse they endured by various East Bay priests, many of whom never faced jail time for their crimes.
“I think any bankruptcy judge would recognize that you can’t take $100 million out of the debtor and then say, ‘my pockets are empty,’” said Rick Simons, an attorney representing alleged child sexual abuse victims currently suing the Diocese in state court.
The revelation came out in a recent court filing objecting to the Bishop’s proposed reorganization plan, alleging the transfer is part of a broader effort to mislead abuse survivors, undervalue their civil claims, and hide funds that could go towards a potential settlement. Attorneys representing survivors recently filed a complaint with the court in an effort to force a reversal of the transfer.