Judge orders study into diocese’s finances

A federal bankruptcy judge Wednesday ordered an outside auditor to examine the financial books of the San Diego Roman Catholic Diocese after expressing anger at what she said appeared to be improper shifting of funds.

But Judge Louise DeCarl Adler did not follow through on a threat to find three lawyers and two priests in contempt. Diocese lawyers asserted that the shifting was the result of a misunderstanding, not a defiance of the judge’s orders. The diocese filed for bankruptcy protection in the face of lawsuits by more than 150 people who allege that they were sexually abused by priests. Lawyers for the claimants allege the diocese is trying to “hide” money to avoid paying settlements.