Vatican Convicts Ex-bank Chief In Property Embezzlement Scam

ROME (AP) — The Vatican’s criminal tribunal on Thursday convicted the former head of the Vatican bank and his lawyer of embezzling millions of euros in proceeds from the sales of Holy See-owned real estate, and sentenced them to nearly nine years in prison each. The court also awarded the bank, known as the Institute of Religious Works, some 23 million euros in restitution from money seized from the suspects' Swiss and Vatican bank accounts that were frozen during the investigation. Prosecutors had accused former bank chief Angelo Caloia, 81, and his 97-year-old lawyer, Gabriele Liuzzo, of embezzlement, misappropriation of funds and money-laundering between 2001 and 2008, when the bank sold off a sizeable chunk of its real estate assets. The scam allegedly involved the suspects selling 29 different properties in Rome and elsewhere at under-value prices to offshore companies that then resold them at market rates, with the suspects pocketing the difference. Court-appointed experts estimated the bank lost some 34 million euros in potential revenue due to the under-valuing of the sales, and determined the suspects siphoned off 19 million euros for themselves, the Vatican press office said. Caloia's lawyers, Domenico Pulitanò and Rosa Palavera, said they would appeal and noted that their client had been acquitted of the most serious accusations concerning “the majority of the properties.Read more on NewsOK.com