ROME – The Vatican has set a trial date on July 27th against 10 people, including a once powerful cardinal and papal candidate, on charges related to the Holy See’s € 350 million investment in a luxury London real estate company.
The 487-page indictment narrowed a two-year investigation into how the Vatican had lost millions of euros – much of it donations from believers – to brokerage fees, bad investments and other questionable expenses. In addition, prosecutors accuse the defendants of various charges, including extortion, embezzlement, abuse of office and corruption.
Here’s a breakdown of the case, allegations, and some of the key players.
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WHAT’S UP?
The State Secretariat of the Vatican decided in 2013 to initially invest 200 million euros in a fund run by the Italian businessman Raffaele Mincione, with half of the money going into the London building and the other half into other investments.
By 2018, Mincione’s Athena Capital fund had lost € 18 million from the Vatican’s original investment, prosecutors say, prompting the Vatican to seek an exit strategy while retaining its stake in the building in London’s swanky Chelsea neighborhood.
Step inside Gianluigi Torzi, another realtor who helped arrange a € 40 million payout from the Vatican to Mincione for shares in the building that the Holy See did not already have.
But prosecutors say Torzi then deceived the Holy See: instead of starting a company to manage the Vatican-controlled building, Torzi added a clause to the contract that gave him full voting rights on the deal, they claim. Prosecutors say Torzi then extorted 15 million euros from the Vatican in order to take control of the building.
Torzi said the charge was a misunderstanding.
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WHO KNOWED IN THE VATICAN?
Prosecutors have confirmed that Pope Francis knew about the deal and even attended a meeting with Torzi in December 2018. A witness said Francis agreed to pay Torzi “fair” compensation for handing over the building.
Other high-ranking officials, including Foreign Minister Cardinal Pietro Parolin and his deputy, Archbishop Edgar Pena Parra, also knew about the deal with Torzi and agreed to it. Documents show that Pena Parra authorized one of his deputies to sign the contract with Torzi, which gives him full voting rights.
None of them have been charged. Prosecutors say they failed to understand Torzi’s amendment to the contract, were kept in the dark about Torzi and Mincione’s dealings, their previous relationship, and alleged commissions others were involved in the deal.
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WHO IS CARDINAL BECCIU AND HOW IS HE RELATED TO THIS PROCESS?
Cardinal Angelo Becciu is the only cardinal charged and will be the first cardinal to be prosecuted by the tribunal after Pope Francis amended Vatican law to allow lay people to judge cardinals. Becciu has denied any wrongdoing.
Becciu was once one of the most powerful prelates in the Vatican and would have been a candidate for a future Pope before Francis dismissed him from his position as head of the Holy See last year.
Francis asked him to resign in September and deprived him of his rights and privileges as cardinal, citing a € 100,000 donation that Becciu made with funds from the Vatican to a diocesan charity run by his brother. At the time of the donation, Becciu was number 3 in the State Secretariat and had decision-making authority over the office’s extensive portfolio of assets.
Becciu is linked to another defendant, Cecilia Marogna, in the case. She is accused of embezzling Holy See funds that Becciu approved for her intelligence work, allegedly to free Catholic priests and nuns who were held hostage in hostile parts of the world. Prosecutors say she spent the money on luxury goods instead.
Marogna has denied wrongdoing and says she has a full account of how the money was spent.
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WHAT DOES VATICAN CRIMINAL PROCEEDINGS LOOK LIKE?
The Vatican City State Criminal Code is based on the Italian Code of 1889 as well as elements of the canon law of the universal Catholic Church. In recent years, the Pope has updated the Code with a number of financial crimes to specifically address the types of wrongdoing alleged in Saturday’s indictment.
The Vatican tribunal has come under pressure to prosecute financial crimes as part of the Holy See’s involvement in the Council of Europe’s Moneyval process, which aims to help countries fight money laundering and terrorist financing.
The Vatican entered the Moneyval evaluation program over a decade ago to shake off its image as a seedy offshore tax haven.
The Vatican has set up a new courtroom in part of the Vatican Museums for the upcoming trial as its usual criminal court will be too small for the defendants and their lawyers. If convicted, the accused face jail sentences, fines, or both.