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Parish Trusts Under Fire in Vermont Diocese Bankruptcy

Parish Trusts Under Fire in Vermont Diocese Bankruptcy

Published 1 day, 15 hours ago
Description

Survivors of clergy abuse are fighting to seize $500 million in assets held by Vermont’s Catholic parishes, arguing the diocese secretly moved funds into trusts in 2006 to dodge responsibility. Despite paying $34.5 million in settlements, the diocese still faces over 100 pending claims. Lawyers say the move was a deliberate shield against survivor lawsuits, citing the former bishop’s defense of “unbridled, unjust” litigation. The case now hinges on whether these transfers violated Vermont’s fraudulent deeds law — a decision that could reshape the diocese’s financial future.

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