Diocese of Providence Issues Statement in Response to Fraud Lawsuit
Sunday, June 24, 2018
Finally, days after the receiver for the failed St. Joseph Pension fund filed massive lawsuits in both State and Federal Court, the Diocese of Providence issued a statement late on Friday.
The lawsuit filed alleges that the Diocese was a key player in a fraud that now leaves the pension fund with a gap of an estimated $118 million.
The Diocese of Providence Statement Reads:
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAs you know, the ongoing dispute about the status of the pension funds of St. Joseph Health Services of Rhode Island (the former operator of St. Joseph Hospital and Fatima Hospital) has emerged in the news once again with the filing of a class action lawsuit. The suit names corporations related to the Diocese of Providence along with approximately 12 other defendants. Although some litigation about this matter was expected, we are surprised and disappointed that the Diocese is included.
As we have explained before, the Catholic Church ended its administrative role with the hospitals several years before the pension problem developed. In fact, the two legal complaints (each over 100 pages in length) acknowledge and repeat much of what we have said previously. One paragraph references “the diminished or nonexistent roles of Bishop Tobin and the Diocese in SJHSRI’s governance after the 2009 merger” with CharterCare. The next paragraph notes that “Upon the conclusion of the 2014 Asset Sale, the Diocese had no meaningful role in the governance of SJHSRI. To the contrary, the only rights it had concerned the “Catholicity” of SJHSRI’s operation of the hospital and provision of health care.”
The pension fund was in effect “orphaned” when Prospect Medical Holdings, a multi-billion dollar, for-profit corporation, purchased CharterCare which had been previously formed by the combination of St. Joseph Health Services and Roger Williams Medical Center. Prospect assumed responsibility for all aspects of the hospital management – except for the pension fund.
Please keep in mind that these corporate transactions took several years and involved detailed negotiations of boards of directors, hospital administrators, attorneys, actuaries, consultants, and canonists. They were fully vetted and approved by state officials, including the Attorney General and the Department of Health, and were supported and recommended for approval by the nurses’ union.
The litigation is part of the ongoing process which began almost a year ago. The lawsuit is long and very complex and will involve multiple attorneys and corporate entities. It probably will take considerable time to be resolved. The Diocese will be fully engaged in this process and will vigorously respond to the inaccurate claims contained in the lawsuit.
In the meantime, while this unfortunate litigation follows its own discrete path, the work of the Church will continue unabated. We will continue our mission of gathering the faithful for worship, preaching the Gospel, educating children, serving the poor, and advocating for a better and just society. As always, your prayerful and personal support will be important and greatly appreciated. The words of Jesus spoken to his disciples at the Last Supper are as relevant now as ever: “Do not let your hearts be troubled, but have faith in God and faith in me.” (Jn 14:1)
Related Articles
- Diocese, Kilmartin’s Legal Delays Are Increasing Costs to Recover Monies For St. Joseph Pension
- Judge Slams Kilmartin for Delaying Release of Documents in St. Joseph Pension Fund Collapse
- Coming Monday - INVESTIGATION: The Real Cost of the St. Joseph Pension Fund Collapse
- INVESTIGATION: Diocese Underfunded St. Joseph Pension Fund by $100 Million
- Key Trust Document Shows Bishop of Providence Has Oversight of Failed St. Joseph Pension Fund
- Diocese Fights to Quash Subpoena for St. Joseph Pension Fund, Wistow Fires Back
- Kilmartin Tries to Block Release of Records in St. Joseph Pension Fund Collapse
- Wistow Files First Subpoena in St. Joseph Pension Fund Receivership Case
- Former U.S. Attorney Says Hospital Conversion Act Needs Review to Avoid Another St. Joseph’s
- St. Joseph Pensioner Quinn Worked 34-Years and Now Facing Cuts to Her $500 a Month Payment
- Callaci: Memorial Hospital’s Closure & St. Joseph Pension Failure Show State of Healthcare
- LIVE: Whitcomb on Al Franken’s Demise, St. Joseph’s Pension Debacle, and More
- Kilmartin Knew of St. Joseph’s Pension Collapse 10 Days Before Failure
- St. Joseph Pension Plan, UHIP Progress & More: This Week at the State House
- UNAP Issues Statement Following Lawsuit Filed in St. Joseph’s Pension Collapse
- Massive Lawsuits: Lawyers for Failed St. Joseph Pension Fund Sue Catholic Church and CharterCare
- 10 Shocking Elements of the St. Joseph Pension Fund Lawsuit Against the Diocese and Others
- Senate Passes Bill Encouraging Settlements in St. Joseph Pension Fund Collapse
- Feds Issue Subpoenas on St. Joseph Pension Fund Collapse
- Judge Stern Shoots Down Prospect and Attorney General in St. Joseph Pension Fund Collapse
- DelSesto, Receiver for Failed St. Joseph Pension Fund, Unveils Next Steps in Investigation
- 6 Months After The Biggest Pension Collapse in RI - What is the Status of St. Joseph’s Fund?
- Subpoena Issued to RI Foundation on $8.2M Questionable Gift Tied to St. Joseph Pension Fund Collapse
- 900K+ Documents Reviewed in Filing Lawsuits, Says St. Joseph Pension Fund Receiver Del Sesto on LIVE
