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Vatican bank scrutinized in money-laundering case $30 million in assets seized

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Vatican bank scrutinized in money-laundering case

$30 million in assets seized

By Victor L. Simpson and Nicole Winfield

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Italian financier Roberto Calvi headed the Banco Ambrosiano, which collapsed in one of Italy's largest fraud cases.

VATICAN CITY | This is no ordinary bank: The ATMs are in Latin. Priests use a private entrance. A life-size portrait of Pope Benedict XVI hangs on the wall.

Nevertheless, the Institute for Religious Works is a bank, and it's under harsh new scrutiny in a case involving money-laundering allegations that led police to seize $30 million in Vatican assets in September. Critics say the case shows that the "Vatican Bank" has never shed its penchant for secrecy and scandal.

The Vatican calls the seizure of assets a "misunderstanding" and expresses optimism it will be quickly cleared up. But court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws "with the aim of hiding the ownership, destination and origin of the capital." The documents also reveal investigators' suspicions that clergy may have acted as fronts for corrupt businessmen and the Mafia.

The documents pinpoint two transactions that have not been reported: one in 2009 involving the use of a false name, and another in 2010 in which the Vatican Bank withdrew $860,000 from an Italian bank account but ignored bank requests to disclose where the money was headed.

The allegations of financial impropriety could not come at a worse time for the Vatican, already hit by revelations that it sheltered pedophile priests. The corruption probe has given new hope to Holocaust survivors who tried unsuccessfully to sue in the United States, alleging that Nazi loot was stored in the Vatican Bank.

Yet the scandal is hardly the first for the centuries-old bank.

In 1986, a Vatican financial adviser died after drinking cyanide-laced coffee in prison. Another was found dangling from a rope under London's Blackfriars Bridge in 1982, his pockets stuffed with money and stones. The incidents blackened the bank's reputation, raised suspicions of ties with the Mafia, and cost the Vatican hundreds of millions of dollars in legal clashes with Italian authorities.

On Sept. 21, financial police seized assets from a Vatican Bank account at the Rome branch of Credito Artigiano SpA. Investigators said the Vatican had failed to furnish information on the origin or destination of the funds as required by Italian law.

The bulk of the money, $26 million, was destined for JP Morgan in Frankfurt, with the remainder going to Banca del Fucino.

Prosecutors alleged the Vatican ignored regulations that foreign banks must communicate to Italian financial authorities where their money has come from.

All banks have declined to comment.

In another case, financial police in Sicily said in late October that they uncovered money laundering involving the use of a Vatican Bank account by a priest in Rome whose uncle was convicted of Mafia association.

Authorities say some $331,000, illegally obtained from the regional government of Sicily for a fish-breeding company, was sent to the priest by his father as a "charitable donation," then sent back to Sicily from a Vatican Bank account using a series of home banking operations to make it difficult to trace.

The prosecutors' office stated in court papers last month that while the bank has expressed a "generic and stated will" to conform to international standards, "there is no sign that the institutions of the Catholic church are moving in that direction."

It said its investigation had found "exactly the opposite."

Legal waters are murky because of the Vatican's special status as an independent state within Italy. This time, Italian investigators were able to move against the Vatican Bank because the Bank of Italy classifies it as a foreign financial institution operating in Italy.

However, in one of the 1980s scandals, prosecutors could not arrest then-bank head Paul Marcinkus, an American archbishop, because Italy's highest court ruled he had immunity.

Archbishop Marcinkus, who died in 2006 and always proclaimed his innocence, was the inspiration for Francis Ford Coppola's character Archbishop Gilday in "Godfather III."

The Vatican has pledged to comply with EU financial standards and create a watchdog authority.

Gianluigi Nuzzi, author of "Vatican SpA," a 2009 book outlining the bank's shady dealings, said it's possible the Vatican is serious about coming clean, but he isn't optimistic.

"I don't trust them," he said. "After the previous big scandals, they said 'we'll change' and they didn't. It's happened too many times."

He said the structure and culture of the institution is such that powerful account holders can exert pressure on management, and some managers are simply resistant to change.

The list of account-holders is secret, though bank officials say there are some 40,000 to 45,000 among religious congregations, clergy, Vatican officials and lay people with Vatican connections.

The bank chairman is Ettore Gotti Tedeschi, also chairman of Banco Santander's Italian operations, who was brought in last year to bring the Vatican Bank in line with Italian and international regulations.

Mr. Gotti Tedeschi has been on a very public speaking tour extolling the benefits of a morality-based financial system.

"He went to sell the new image ... not knowing that inside, the same things were still happening," Mr. Nuzzi said. "They continued to do these transfers without the names, not necessarily in bad faith, but out of habit."

It doesn't help that Mr. Gotti Tedeschi himself and the bank's No. 2 official, Paolo Cipriani, are under investigation for alleged violations of money-laundering laws. They were both questioned by Rome prosecutors on Sept. 30, although no charges have been filed.

In his testimony, Mr. Gotti Tedeschi said he knew next to nothing about the bank's day-to-day operations, noting that he had been on the job less than a year and only works at the bank two full days a week.

According to the prosecutors' interrogation transcripts obtained by AP, Mr. Gotti Tedeschi deflected most questions about the suspect transactions to Mr. Cipriani. In turn, Mr. Cipriani said that when the Holy See transferred money without identifying the sender, it was the Vatican's own money, not a client's.

Mr. Gotti Tedeschi declined a request for an interview but said by e-mail that he questioned the motivations of prosecutors.

The Vatican Bank was founded in 1942 by Pope Pius XII to manage assets destined for religious or charitable works. The bank, located in the tower of Niccolo V, is not open to the public.

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Irish Investigators: Vatican Protected Rapist


Irish Investigators: Vatican Protected Rapist

This article comes from the Irish Times.
Scale of Walsh cover-up by church breathtaking
Mary Raftery





THE SCALE of the cover-up by the Catholic Church of the crimes of Fr Tony Walsh, as finally revealed in chapter 19 of the Murphy report, is breathtaking. It is more extensive than any other single case dealt with in the main body of the report.



Archbishops, bishops, chancellors, vicars general, parish priests – the list of senior clerics who knew of Walsh’s serial sexual abuse of children is virtually endless. From the very first complaints brought to the archdiocese, a bare two days after Walsh’s ordination in 1978, and for the succeeding 17 years, these pillars of the church sat on their detailed knowledge of Walsh’s abominable predations on children, shielding him from the law, deliberately deciding to keep his crimes hidden from the civil authorities. In the course of those 17 years, until the archdiocese finally decided in 1995 to co-operate with Garda investigations, Walsh abused well over 100 children according to the chapter published yesterday. Here we find out that archbishops Dermot Ryan, Kevin McNamara and Desmond Connell all had detailed knowledge of Walsh’s criminal activities.



Chapter 19 is full of references to discussions about Walsh at the monthly meetings of the Dublin bishops – during the years in question, they include auxiliary bishops Donal Murray, Dermot O’Mahony, James Kavanagh and Eamonn Walsh, together with Brendan Comiskey, Laurence Forristal, James Moriarty, Joseph Carroll, Patrick Dunne and Desmond Williams.

Of these, most are retired or deceased. bishops Murray and Moriarty resigned on foot of the publication of the substantive Murphy report last year. In fact, the only one still in office is Bishop Eamonn Walsh.



He and fellow auxiliary Ray Field famously tendered their resignations – with great reluctance – on Christmas Eve 2009. It emerged several months later the Vatican had refused to accept them and the two bishops remain in situ.



Bishop Walsh defended himself last December by claiming that “as far back as 1990, I wasn’t a month in the job as a bishop, and I stood up at a meeting and I said that not alone should the police, who were already informed about an individual, but we should say where he was living and the number of his car, because I felt he was a danger”.



That individual was Tony Walsh and this incident does indeed appear in chapter 19 of the Murphy report, where it is described as “the first time that the possibility of reporting to the gardaí was raised”. The suggestion was shot down by the archdiocese’s leading canon lawyer at the time, Msgr Gerard Sheehy, who described it as “an outrageous suggestion”. Also present at that meeting were archbishop Connell and bishops Kavanagh, O’Mahony and Murray.



Two key points emerge: first, that Bishop Eamonn Walsh (a trained barrister, incidentally) was sufficiently well-aware of the criminal nature of Walsh’s activities to know that he should be reported to the Garda; and second, that Bishop Walsh did not report him, and nor of course did any of his fellow bishops. It consequently shows an extraordinary detachment from reality for Bishop Walsh to have claimed last year that merely suggesting that gardaí be informed of crimes committed in some way excuses or exonerates him from responsibility for his part in the culture of cover-up in the Dublin archdiocese. The only other serving bishop involved in the Walsh case is John McAreavey of Dromore. While still a priest, he was one of the judges who sat on the internal tribunal in 1992 which decided to laicise Walsh.



Neither he nor his fellow judge, the now retired bishop of Killaloe Willie Walsh, saw fit to report to gardaí their knowledge of the crimes of Walsh.



Although Bishop McAreavey is not specifically named or criticised in chapter 19, it will be interesting to see if he can continue to maintain his stony silence on the matter.



And what are we to make of another senior cleric’s matter-of-fact reporting that he “evaded” questions from a garda? This was the chancellor or chief administrator of the archdiocese, Msgr Alex Stenson, recording his conversation with a garda about Walsh in 1991. A parent had contacted the garda, concerned about Walsh but with no hard evidence of a crime committed. Msgr Stenson had heard that the garda was asking around and rang him to find out how much he knew. In the course of the conversation, the garda asked Msgr Stenson if Walsh had a past record. “I evaded that,” recorded Msgr Stenson in his 1991 memo.



The chancellor’s evasion meant that the Garda Síochána remained in the dark about Walsh and his crimes. There is at the very least an argument to be made that this amounts to an obstruction of justice.



After all, who knows better than a cleric that a sin of omission is every bit as serious as one of commission? And lying (by omission) to the police should rank high on anyone’s scale of wrongdoing, even more so where the safety of children is concerned.



The gardaí themselves also stand condemned in chapter 19 for their failure to pursue investigations of Walsh in 1991 and 1992 on foot of concerns expressed by parents about contact between the priest and their children. In their defence, the Murphy report points out that there was no specific evidence of crime brought to their attention at this stage, and further that the archdiocese did not share any of its extensive information on Walsh.



Nonetheless, it is profoundly disturbing to read, for instance, that Msgr Stenson records in 1991 that a garda “assured me that there was ‘no question of prosecution’ ”. This same garda gave evidence at the internal church tribunal hearings on the laicisation of Walsh, and had dealings with the then Fr Willie Walsh (later of course bishop of Killaloe), when he arrived at Whitehall Garda station “stating that he had been appointed to carry out an internal investigation into the paedophile activities of Fr [Walsh]”.



It is clear that the Garda should now extend its own internal inquiries to include the Walsh case among the others unearthed by the Murphy commission where Garda investigations into clerical child abuse were inadequate. The results of these inquiries should be published in full.



It is vital for public confidence in the force that its past failures in this area be thoroughly exposed, and that rigorous procedures be in place to detect and guard against shielding either institutions or individuals from the full force of the law.
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The Inquisition is coming again.Believe it or not. Are you a heretic ?

Yes, Yes I am!


The Inquisition is coming again.Believe it or not. Are you a heretic ?

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Pope's call for worship welcomed

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Associated Press



Pope John Paul II reminds Catholics that Sunday is a day of worship.



By Mark Puls and Charles Hurt / The Detroit News



Maryann Schreiber, a devout Catholic, works the late, late shift Saturday night and Sunday morning at a hotel.

She has to make a living, but the Hamtramck woman does so at the cost of mounting guilt over missing church Sunday mornings.

"I want to go back to the old ways where Sunday was the Lord's day," Schreiber said. "I agree with the pope. I want that life again."

In a day when computer modems are never fast enough and no one seems to have enough time for a full night's rest, Pope John Paul II is issuing a stern warning to Catholics that they should set aside Sunday for worship -- not errands or their free time.

"This really is an extraordinary move," said Jay McNally, executive director of Call to Holiness, a Metro Detroit lay group that promotes traditional Catholic teachings. "This appears to be the strongest words the pope has issued. Period."

The pontiff used his weekly address Sunday from his window over St. Peter's Square to urge church members to make time to keep the Sabbath holy. And today, the Vatican is expected to issue an Apostolic letter from the pope further stressing the Third Commandment. Apostolic letters are incorporated into church rules.

Sundays have come to be "felt and lived only as a weekend," John Paul lamented Sunday. "It (should be) the weekly day in which the church celebrates the resurrection of Christ. In obedience to the Third Commandment, Sunday must be sanctified, above all, by participation in Holy Mass."

In his letter, the pope goes on to say a violator should be "punished as a heretic," said McNally, who read an unofficial English translation of the letter on a Vatican Web site.

"A lot of families are ruined by this Sunday stuff," McNally said, referring to the loss of spirituality on that day. "It really has fallen apart."

Family togetherness on Sundays, more and more, is giving way to soccer practice, globe trotting and going to the tanning salon.

"You have things you have to do," said Tina Mueller of Hamtramck. "You can't just set aside a day for prayer and reflection."

And when folks show up for church, they often forget to slow down enough to commune with God.

"Some people now are coming to church in shorts and can't wait to hit the pools after the service," Lillian Swierczyski of Hamtramck said. "That's wrong."

She supports a return to the days of the Blue Laws that closed bars, stores and amusement establishments Sundays.

"That would get people to church in a hurry."
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Senate Republicans Block Dream Act

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Senate Republicans Block Dream Act


WASHINGTON (AP) — Senate Republicans have blocked a bill to grant hundreds of thousands of illegal immigrants brought to the United States as children a chance to gain legal status if they enroll in college or join the military.

Sponsors of what they call the Dream Act needed 60 Senate votes for it, but fell five short. The House passed the bill last week. It was a last-ditch effort to enact it before it Republicans take control of the House from Democrats in January.

Immigrant advocates viewed the measure as a step toward providing a path to legal status for up to 12 million illegal immigrants by focusing on the most sympathetic among them first. Critics called it a back-door grant of amnesty that would encourage more illegal immigration.

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Government Gov’t Proposes Ban on Cell Phones in Commercial Trucks

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Government Gov’t Proposes Ban on Cell Phones in Commercial Trucks

Jonathon M. Seidl


WASHINGTON (AP) — The government is proposing to ban commercial truck and bus drivers from using hand-held cell phones from behind the wheel.


The Transportation Department says the proposal would prevent interstate truck and bus drivers from reaching for, holding or dialing a cell phone while operating their vehicle.


Bus and trucking companies and their drivers could face fines and drivers who rack up multiple offenses could lose their licenses.


Nearly 5,500 people were killed and half a million were injured in 2009 in crashes involving a distracted driver.


The government estimates 4 million commercial drivers would be affected by the proposal. Already this year the government banned text messaging while operating a commercial motor vehicle.



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Mysterious Pyramid Baffles Chinese Scientists

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Mysterious Pyramid Baffles Chinese Scientists

In die illa erit altare Domino in medio terrae Aegypti, et titulus iuxta terminum eius Domini. (Isaiah 19:19)

Weird Asia News reports local legends claim the mysterious pyramid that sits atop Mount Baigong in western China is an alien UFO launch tower.

Nine scientists form the team that will travel to the western province of Qinghai and the mouth of this 165-198 foot tall structure known as the "ET Relics".

"The pyramid has three caves with openings shaped like triangles on its façade and is filled with red-hued pipes leading into the mountain and a nearby salt water lake", says China’s state-run Xinhua agency.

To add to the mystery, iron debris, and unusually shaped stones are scattered about the desolate area.

"The theory that the pyramid was created by extraterrestrials is “understandable and worth looking into…but scientific means must be employed to prove whether or not it is true", says Yang Ji, a researcher at the Chinese Academy of Social Sciences.

The site in question with its high altitude and thin, crisp air has long been considered an ideal astronomical location.

Two of the three caves at the foot of the mountain have collapsed and are inaccessible.

The remaining middle one, which is the largest, stands with its floor about 6 feet above the ground and its top about 9 feet above the surface.

Inside the cave, there is s a half-pipe about 40 centimeters in diameter tilting from the top to the inside of the cave.

Another pipe of the same diameter goes into the earth with only its top visible above the ground. Dozens of strange pipes surround the opening with diameters ranging from 10 to 40 centimeters.

Their structures indicate a highly advanced and completely unknown construction technique.

It is also bizarre with all the iron pipes on the beach at nearby Toson lake and in the lake itself.

From the flat computers that were found in the crashed alien spacecraft at Rosswell in New Mexico, we know the writing of many of these aliens reminds of Chinese.

Egypt was the real superpower on Earth during more than 3.000 years, but lost its supreme place because it went against Moses and Israel.

Egypt is a great example of what happens to a basically European country, when striving against Israel.

But China is a mighty country often forgotten or neglected by the West.

Maybe China has the keys to our forgotten past and of our encounters in historic times with the extraterrestrials?

"An nescitis quoniam membre vestra templum est Spiritus Sancti, qui in vobis est, quem habetis a Deo, et non estis vestri? Empti enim estis pretio magno! Glorificate et portate Deum in corpore vestro", 1 Corinthians 6:19 - 20.
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Self Absorbed: Obama Reads His Own Book To Second Grade Class in Arlington Virginia

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Obama Reads His Own Book To Second Grade Class in Arlington Virginia

Obama reads 'Of Thee I Sing' to the children, I'm just glad there were cameras there or he might have pulled out Alinsky's Rules for Radicals...
AP: Usually, big-name authors plug their books on a nationwide book tour. President Barack Obama took a lower-key approach Friday, reading selections from his new children's book to a group of delighted second-graders in suburban Virginia
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THE TRUTH AND THE TRUTH ALONE: Catholic Power vs. American Freedom its biblical and its coming.


Obama: Dream Act Vote 'Incredibly Disappointing'

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Obama: Dream Act Vote 'Incredibly Disappointing'


WASHINGTON (AP) — President Barack Obama says it is "incredibly disappointing" that Senate Republicans blocked a bill to grant some illegal immigrants a chance to gain legal status.

In a statement, Obama says the Dream Act is the right thing to do for the county, and important for economic competitiveness, military readiness and law enforcement efforts. He says there was "simply no reason" not to pass the legislation.

The measure fell five votes short of the 60 needed to move forward Saturday. The bill would allow illegal immigrants brought to the U.S. as children a chance to gain legal status if they enroll in college or join the military.

Critics called the measure a back-door grant of amnesty that would encourage more illegal immigration.

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LWF Leader Invites Pope to Plan for Reformation Anniversary

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LWF Leader Invites Pope to Plan for Reformation Anniversary

By Audrey Barrick|Christian Post Reporter

The Lutheran World Federation has invited the pope to work together in preparing for the 500th anniversary of the Protestant Reformation.

In a message Thursday to Pope Benedict XVI, LWF President Bishop Dr. Munib A. Younan said the anniversary in 2017 will not only be a time of celebrating the liberating power of the Gospel but also a time to reflect on ecumenical progress.

He called the anniversary a "test case" for ecumenical relations.

"[W]e intend our anniversary to be ecumenically accountable: to recognize both damaging aspects of the Reformation and ecumenical progress since the last major Reformation anniversary," Younan said. "But we cannot achieve this ecumenical accountability on our own, without your help.

"We are called, both Lutherans and Catholics, to our common vocation of witnessing to the world for the sake of Christ’s kingdom."

Younan led a seven-member delegation in a private audience with the pope.

As they approach the Reformation anniversary in a few years, Pope Benedict said "Catholics and Lutherans are called to reflect anew on where our journey towards unity has led us and to implore the Lord's guidance and help for the future."

Leaders from the LWF and the Roman Catholic Church have been in dialogue for decades. Some of the key issues discussed between the two global church bodies include the Eucharist, unity and justification.

Ecumenical relations between the two bodies reached a historic point when they signed the Joint Declaration on the Doctrine of Justification in 1999. The doctrine of justification had divided Protestants and Catholics for hundreds of years, as those from the Lutheran tradition broke from the Roman Catholic Church and gave rise to the Protestant Reformation.

"From the Reformation perspective, justification was the crux of all the disputes," the joint declaration states.

Justification deals with salvation and the forgiveness of sins. Part of the declaration reads, "We ... share the conviction that the message of justification directs us in a special way towards the heart of the New Testament witness to God’s saving action in Christ: it tells us that as sinners our new life is solely due to the forgiving and renewing mercy that God imparts as a gift and we receive in faith, and never can merit in any way."

Stressing the progress Lutherans and Catholics have made, Younan expressed joy over the new levels of theological understanding and agreement and noted that "the climate of relations" between the two "has warmed dramatically."

The LWF president reaffirmed to the pope the Lutheran body's commitment to their ecumenical relationship.

He also expressed solidarity with the Roman Catholic Church in supporting a two-state solution to the Israel-Palestine conflict.

Looking to more progress, Younan said, "While we rejoice in each small step which brings us closer together, we do not want to be content with these steps."

Younan was elected president of LWF in July. He was joined in his visit with the pope by leaders representing every LWF region. LWF has 145 member churches in 79 countries, representing over 70 million Christians.

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