Financial accountability

The latest from Jason Berry (with some suggestions from a reader below):

The Legion of Christ drew $2.19 million last year from a $28 million charitable trust that it controls, thanks to Gabrielle Mee, a wealthy widow who spent her final years as a consecrated woman in Regnum Christi, the order's lay wing. An orthodox Catholic, she was unaware that Marcial Maciel Degollado, the founder of the Legion, had out-of-wedlock children or that the Vatican had banished him from ministry.

The Timothy J. Mee Charitable Trust -- established by the late husband of Gabrielle Mee, who died in 2008 -- paid the scandal-battered Legion $2.19 million in contributions, gifts and grants last year, according to the trust's 990 form, a public record that private foundations file with the IRS.

The Timothy Mee trust's $28.27 million net value is slightly less than half of the $60 million at issue in a lawsuit filed by Gabrielle Mee's niece against the Legion, Fr. Anthony Bannon and Bank of America, which manages the Timothy Mee trust with the Legion.

The niece, Mary Lou Dauray, sought to revoke the will and retrieve the assets, on grounds that her late aunt was deceived.

In a Sept. 7 summary judgment, Rhode Island Superior Court Judge Michael Silverstein ruled that Dauray did not have legal standing to sue because she had no direct material interest in the outcome. Her stated intent was to apply any recovered funds to charities consistent with her aunt's religious beliefs.

But Silverstein's decision showed striking sympathy to Dauray's argument. The "transfer of millions of dollars worth of assets," the judge wrote in a lengthy ruling, "from a steadfastly spiritual, elderly woman to her trusted but clandestinely dubious spiritual leaders raises a red flag to this Court." Silverstein cited extensive information from discovery documents unavailable to the public.

Dauray is prohibited from giving interviews under the protective order the Legion requested and the court previously approved.

Tuesday afternoon, NCR joined The Associated Press, The New York Times and The Providence Journal in a petition to the court requesting that the protective order be lifted, which would allow the release of depositions and documents in the long-running dispute. A final decision on that could take weeks.

Dauray's Rhode Island attorney, Bernard Jackvony, told NCR last month that she was considering an appeal. None as yet has been filed.

The same court order prohibits Jackvony, a Republican and former lieutenant governor of the state, from discussing evidence under seal. That barrier does not exist for a public document like the 990.

"The Legion used Mrs. Mee's money and the trust of her late husband to fund ongoing operations of the order in North America," Jackvony told NCR. "On average those funds came to $2 million a year, which was a major infusion to cover the cost of operations, from 1991 until her death in 2008."

Silverstein's order opens a window on the Legion's secretive finances. In November 1991, the widow joined the lay movement and gave $3 million to the Legion. "Father Maciel wrote to Mrs. Mee," writes the judge, "and encouraged her to submit a monthly budget to Fathers Bannon and Alonso in order to fulfill her promise of poverty as a consecrated woman in Regnum Christi."

"Mr. and Mrs. Mee never had any children, although Mrs. Mee had seen a Catholic doctor about pregnancy and fertility issues," the judge wrote, citing Gabrielle Mee's deposition from a legal proceeding in which Fleet Bank, of which Timothy Mee was a founder, resisted the Legion's attempt at seizing his charitable trust, which Fleet managed as a trustee. With Gabrielle Mee in its corner, the Legion's litigation caused the bank to settle, ceding revenues from the trust to the Legion.

Silverstein wrote: "When Mrs. Mee moved into the Regnum Christi facility and became a consecrated woman, in her own words, 'God's promise to the childless wife that she would be given a home and children to gladden her heart was fulfilled!' Mrs. Mee considered herself the grandmother [to] the young, consecrated women."

A 1999 amendment to the Gabrielle D. Mee Charitable Trust specified that the bank, as trustee, should invest only in companies and business whose products were "consistent with Catholic moral teaching and in accordance with the investment guidelines of the Legion of Christ, Inc." The amendment further provided that "no assets of the Trust be invested in companies in the liquor industry, health care or pharmaceutical companies that perform abortions or develop artificial contraceptives."

Several companies in the 31-page investment list of the Timothy Mee trust 990 form appear to conflict with Gabrielle Mee's specification:

• Bristol Myers Squibb, which paid the trust $5,171, sponsored a 2010 clinical trial for an oral contraceptive, according the National institutes of Health.
• Anheuser-Busch Inbev, which netted $496 to the trust, is a multinational beer and beverage company.
• Heineken NV, which also does beer brewing, paid $80.
• LMVH, for Louis Vuitton Moët Hennessy, includes fine wines and beverages among its products. The trust received $465 from the investment.
• A small stake in Molson Coors Brewing netted $211.

In his decision, Silverstein spotlights the role of Bannon, who held Gabrielle Mee's power of attorney "to represent her in any discussions with the Bank." Her 2000 will left all assets to the Legion with Bannon as executor of her estate.

Silverstein draws a bead on the May 2006 Vatican ruling that Maciel renounced ministry after the long-standing allegations of sexual abuse of minor seminarians. Gabrielle Mee knew nothing of that. "In December of 2006, Mrs. Mee made a $1,210,000 gift from her personal bank account to the Legion of Christ," writes the judge.

"In August of 2007, Mrs. Mee made a gift of $590,000 to the Legion of Christ from her personal bank account," the ruling states. "On May 12, 2008, just four days before Mrs. Mee's death, Father Bannon wrote to the Bank and requested a $400,000 gift be made to the Legion of Christ from Mrs. Mee's personal bank account. ... The Bank complied with Father Bannon's request and made the transfer on May 14, 2008. Mrs. Mee passed away two days later on May 16, 2008."

AnonObserv ponders the financial realities:

2 million in annual income is drawn from the Trust for the LC empire. This is a totally separate source of funding from all the non-stop fundraising appeals pleading poverty and starvation.

Much has been said about needing to provide restitution to victims... but if I could also add to my wish list for what the LC should pay:

They should back-pay into Social Security (or their country's national equivalent) all the 3GF (i.e. women's branch) who had 2+ more years in the group, along with pension rights for those 15+ years, commensurate with years of service.

They should stop forcing local LCs to beg for health care for their own aged and sickly members in 3rd world countries, and provide for their needs.

I suppose the list could go on-- but I am sure it will never happen. All this money remains only for the ambitions and sustenance of the nomenklatura.

Comments

[les]

With each new piece of bad news about the Legion, there are new reasons for members to leave. Maybe for some, taking advantage of an elderly rich widow is the hot button that causes them to walk away in disgust. Who can read this and accuse the judge of evil intent?

The "transfer of millions of dollars worth of assets," the judge wrote in a lengthy ruling, "from a steadfastly spiritual, elderly woman to her trusted but clandestinely dubious spiritual leaders raises a red flag to this Court." Silverstein cited extensive information from discovery documents unavailable to the public.

[Dilbert]

I think there have been more than enough reasons for people to leave (assuming that enough of the truth filters through - it didn't to Mrs Mee).
I think that many are trapped through a deliberate program of instilling fears of leaving, being institutionalized, cut off from family and outside friends for so long and being totally impoverished. Instead of the Church assisting people who are trapped and giving them an opportunity to make a free will choice, I think that Cardinal DePaolis has shown he wants to keep as many of them as possible now that he is in charge. He does not seem to acknowledge that the 3gf's have been victimized.

Mrs Mee and her family were defrauded. The other 3gf's have been defrauded as well and now the Church is party to defrauding new recruits and taking money from benefactors who think they are donating money for religious purposes just as the 3gf's thought they were dedicating their lives to serve religious purposes.

As part of the reform, they should consider doing a financial audit to ensure that every dollar goes to what it was intended for.

[les]

I agree, Dilbert, there has been more than enough reasons for people to leave. But I know someone for whom the Thomas Williams lovechild revelation was the last straw. Maybe that was the last bit of institutional deception for them, I don't know. I left pronto fast in Feb '09, but I guess everyone is different? Maybe taking advantage of an old lady (especially with the presumably objective and scathing comments of the judge quoted above - "clandestinely dubious spiritual leaders" - great turn of phrase) is just too much finally for some.

I know a lot of members were very devoted to Fr Bannon, just as a lot were very devoted to Fr Thomas Williams. (He's so holy!!) Fr Bannon's relationship with Mrs. Mee, and his withdrawal of huge sums of money from her account just days before her death, looks very bad. Mrs. Mee was deceived about MM's double life, because the Legion just wanted her money. Ends justify means. Shame on you Bannon.

[AnonObserv]

Dilbert:

Your comment on the moral coercion in the DePaolis- LC reform reminds me of that plea that George Weigel made at the onset of the delegates arrival. Clearly DePaolis was not interested in Weigel's suggestion:

========================================

2. At the beginning of his work, the delegate ought to consider informing the members of the Legionaries of Christ and Regnum Christi that, as they gave themselves to these institutions without knowing the pathologies of their founder, they are free to leave these institutions without sin, guilt, shame, or remorse.

Such a statement is essential to stop the moral blackmail that (according to credible reports from the families of Legionary seminarians and students in Regnum Christi schools) continues today: “Since you came to us it is clearly God’s will for you to be here, and you will be turning your back on God’s will and sinning if you leave . . .”

Procedures for the fast-track exclaustration of vowed members of the Legion who wish to join another religious congregation or incardinate in a diocese as regular clergy should be devised. This will make clear that what is to be salvaged from the current debacle are priestly vocations (many of them impressive and of great value to the Church), not necessarily Legionary vocations. Similar procedures for assisting lay members of Regnum Christi to leave without any pressure or stigma are essential to the authentic reform of that movement.

http://www.firstthings.com/onthesquare/2010/05/next-acts-in-the-legionary-drama

[reid]

Why hasn't De Paolis addressed the things mentioned by les or Dilbert or AnonObserv quoting Weigel? Is it to protect the reputations of certain Church shepherds and avoid confronting the fact that various Church shepherds were lax in the performance of their duties – preferring Vatican business, with the wink-wink and extended palm, to be conducted as usual? Or is it to avoid admitting that Church shepherds were all too human and plain wrong about the mm cult, because they chose to judge by appearances and ignore the storm warnings?

How can De Paolis, in good conscience, call this a reform when the full story about l/r is kept from its members? When justice owed to the victims of l/r is withheld? People deserve the truth. Once they have that, they can make up their own minds whether to go or to stay.

[Maria G.]

Thank you, AnonObserv, for the reminder about George Weigel's suggestion. Even after having been out of RC for quite some time now, hearing those words from the Holy Father would help me, a former rank and file RC member who wasn't even a member for very long, to heal. Even now, I wonder why the Holy Father does not insist that Cardinal De Paolis follow G.W.'s suggestion.

[Estatua]

Just a comment about the financial of the Institution.

According to an insider, the LC is spending between 13,000,000 and 17,000,000 ¡Euros! in SAP (SAP is the market and technology leader in business management software, solutions, services for improving business process).

Group Integer changed its name but continues to lead the business development of the LC.

[AnonObserv]

Estatua:

Most of the LC operational centralization was the brainchild of really only a few people who made all the decisions about it from software to hardware, but also what authoritative control would take place in the name of dependence and the will of God over many areas of informational, financial and apostolic management, to guess what else? They were the same ones who approved all the budgets, including their own! They could spend whatever they wanted, and keep anyone else from spending what they wanted, and without anyone knowing about it. Yes I believe their cost could easily hit 22 million dollars for a black hole like SAP, and all with no review from rank and file members of the order anywhere at any level... Pre 2009 those men would have been: Luis Garza, Gabriel Sotres, Evaristo Sada.

Perhaps today the names have changed but I have seen no sign that this operational structure a)Has been made known to all the members showing the financial excesses b) is being dismantled to give broader membership deliberation over how the major assets of the order are spent, with an ability to contest from below abuses of leadership.

[Ohh]

While the public face of maciel's creation may have changed it's a safe bet that those pulling the strings behind the curtin remain the same.

[Estatua]

AnonObserv:

What about somebody called Albert Siman from a wealthy family like Garza?

He's running the budgets and supposedly he's in charge, after Luis Garza.

Why need a religious order software like SAP?

[AnonObserv]

SAP is just another place where the anti-charism shows itself as being alive and well in the LC. Whether its Albert Siman or another, the disease is now all over the body. Personages from MM to Garza have infused their own operational personality into the group fossilizing it into a way of being.

Its core is the heretical founding of the efficacy of the Gospel on human efficiency and centralization of operations, RATHER than on a witness of life. The work with the elite was lauded unwittingly by DePaolis when he began, and he also considered the DG/Integer attempt to give a 'Fortune 500 multinational' feel to Evangelization an LC novelty.

There is a 'charge' one gets from the thought of it,i.e. giving the Gospel over to powerful worldly means... It is an illusion the zealots at the time of Jesus tried to get others to buy into. It is not long as you use and think according to such means of the world that you do not end up joining its spirit, that you go back to that which you promised by vow to leave. It shows a tremendous lack of faith to not believe in the seed imagery of the Gospel, that it has its own power and depends on nothing from this world for its ultimate influence. What the LC touts as a bold Xaverian witness of faith, is nothing more than an immature child pretending to be superman as he plays with his toys.

[Corcerned Father]

why did Mrs Mee's family get involved before she signed over her money.It said 60 Million dollars somewhere I read

[Dingledore]

The Legionaries of Crust and its members are blood sucking vultures. They don't pray over people, they prey on them!

[Frank I]

Concerned Father:

While I do not have any insight into the thoughts or opinions of Mrs. Mees' family, perhaps this comment from one of Mrs. Mees' relatives on the NCR website can shed some light. You can find this quote in the comments section after the Jason Berry article referenced by Giselle:

"I am a legal heir at law to Gabrielle Dauray Mee. Please read the book on Amazon Kindle "The Jeanne of the Ditch" Read the first 20 pages for free to obtain the information on the dymanics of the Dauray family, all legal documents, thru depositions from Gabrielle Mee Dauray herself, and the fortune. The Legionaires of Christ took advantage of my elderly aunt while my family was actively looking for her when they hid her for the last 10 years of her life. The fortune was stolen from an elderly woman and I pray this does not happen to another unsuspecting family again. The truth is there for the public to read and see what has happened in this case.

"Thank You, Monique Dauray"

[Dilbert]

Dingledore
I think that the label of blood sucking vultures is accurate for the select few leaders, who benefit from the free labor that comes from their in-house victims such as Mrs Mee and from all the volunteers. I believe that the ordinary members and 3gf's have been mind controlled into genuinely believing that they are serving God's Kingdom and not fully understanding that they are only serving MM's kingdom.
The mind control of the majority has taken away critical thinking ability, so I don't think all members can be painted with the same brush.

[Dingledore]

Everyone has a conscience and knows right from wrong. When I realized that they were using me to network, I knew right away what their motives were. They would not help any friends who needed spiritual advice if they were either going through a divorce, weren't wealthy enough, or not pleasing to the eye. I don't care how brainwashed one is. They make it pretty obvious so it's up to the individual. I do think that a lot of information is purposely withheld from members so that only good news is circulated. Can you spell C-U-L-T?!!!

[les]

Update on a related legal battle -

http://www.boston.com/news/local/rhode-island/2012/11/05/judge-hears-legion-christ-documents-case/ma5QfqR1eZ3c6ndMwXD4gK/story.html

Joseph Cavanagh, attorney for the media organizations, told Silverstein that there was no justification to seal the documents, which he said could shed light on the Legion’s operations. He said the religious order was attempting to use the courts to avoid publicity.
‘‘This jury argument is a fake argument,’’ Cavanagh told Silverstein. ‘‘There’s a public interest argument here which clearly outweighs it. It shouldn’t be kept from the public.’’

[no longer shocked]

Speaking of financial accountability, this sounds like a good use for a lot of $$ - a big RC party! Why support the poor, the homeless, unwed mothers, hurricane victims, when you can put months of planning and $$ into a great big party?

http://regnumchristichicago.com/news/dont-miss-the-rc-event-of-the-year/

[les]

The Legion faces another similar lawsuit, and this time, I believe the plaintiff has legal standing.

http://www.courthousenews.com/2012/11/15/52280.htm

[giselle]

Thanks:

http://www.life-after-rc.com/2012/11/undue-influence-20.html