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Abused church victims group alleges Milwaukee Archdiocese committed bank fraud

MILWAUKEE, WI (WTAQ) - The U.S. attorney’s office in Milwaukee will not say whether it’s investigating alleged bankruptcy fraud, in the transfer of $57-million in Catholic church money to a trust fund.

The Survivors Network of Those Abused by Priests said the Milwaukee Archdiocese may have committed bankruptcy fraud, by trying to keep church cemetery funds away from sex abuse victims in settlements.

The group asked for a federal investigation, and the Milwaukee office refuses to confirm-or-deny such a probe.

According to documents released Monday, former Milwaukee Archbishop Tim Dolan received permission from the Vatican to transfer the money in 2007.

It was during the aftermath of the Catholic Church sex abuse scandal, and four years before the Milwaukee Archdiocese filed for bankruptcy.

Dolan wrote about protecting the funds, but both he and the church deny they were trying to hide the money from potential priest abuse settlements.