SD Diocese lying about finances?

More from the Annals of Clergy Sex Abuse:

A federal judge in San Diego wants to know if the diocese hid assets when it declared bankruptcy in February. From my parents' paper, the U-T:

An apparent attempt to transfer church funds without a federal judge's permission was called a misunderstanding in declarations filed in bankruptcy court yesterday by attorneys representing the Roman Catholic Diocese of San Diego.

The lawyers were responding to federal Judge Louise DeCarl Adler's “order to show cause” why they and certain pastors should not be held in contempt and face sanctions.

The diocese sought Chapter 11 bankruptcy protection Feb. 27 in the face of numerous lawsuits alleging sexual abuse by priests in the diocese dating back decades.

At issue is what the judge said was an apparent conspiracy by church officials and their attorneys to create new bank accounts, separate from diocese accounts, without her permission.

Church attorneys and officials insisted it was a "misunderstanding."