Bankrupt in Buffalo Catholic diocese latest to submit after sex scandals
The embattled Roman Catholic Diocese of Buffalo filed for bankruptcy protection Friday, taking another major step in its effort to recover from a clergy sex-misconduct scandal that has been the basis for hundreds of lawsuits, Vatican intervention and the resignation of its bishop.
With its filing in U.S. Bankruptcy Court, the western New York diocese became the second in the state to file for Chapter 11 reorganization, and one of more than 20 dioceses to seek bankruptcy protection nationwide. Most recently, the Roman Catholic Diocese of Harrisburg, Pa., filed Feb. 19.
The Buffalo diocese has faced particular turmoil in recent months, culminating in the Dec. 4 resignation of Bishop Richard Malone following a Vatican-mandated investigation. Malone had faced intense pressure from members of his staff, clergy and the public to step down amid criticism that he withheld the names of dozens of credibly accused priests and mishandled reports of misconduct against others.
Albany Bishop Edward Scharfenberger called the bankruptcy filing “a path forward to healing.”
“My hope is that, going forward, regardless of the mistakes we have made, regardless of the suspicions that may rightfully have been raised about the way things were done, going forward, we’re going to see a lot of action that will result in very fair resolutions as much as we can,” Scharfenberger, who is temporarily overseeing the Buffalo diocese, said at a news conference.
Scharfenberger said the process, expected to take more than a year, will enable the highest possible number of victims to be compensated while allowing the work of the diocese to continue. The diocese includes 163 parishes and missions across eight western New York counties.
The Chapter 11 filing estimates between $10 million and $50 million in assets and between $50 million and $100 million in liabilities. The number of creditors is estimated at between 200 and 999.
The diocese already has paid out about $18 million — including $1.5 million from the sale of the bishop’s mansion — to more than 100 victims under an independent compensation program established in 2018. It faces more than 250 new lawsuits filed since August, when the New York’s Child Victims Act suspended the statute of limitations to give victims of childhood abuse one year to pursue even decades-old allegations. The number of suits is expected to grow to more than 400, financial director Charles Mendolera said in a court filing.
The diocese reported a $5 million loss in 2019.