Bishop Tobin should be arrested for pension fraud
http://www.golocalprov.com/news/issues-piling-up-for-bishop-tobin-receivership-lawsuits-and-ties-to-priest
Tuesday, August 21, 2018
GoLocalProv News Team
One of Bishop Thomas Tobin’s prized mementos is a photo of Tobin meeting Pope John Paul II. Tobin’s audience was a result of Tobin being named the Auxiliary Bishop of Pittsburgh.
The meeting was facilitated by then-Pittsburgh Bishop Donald Wuerl — now Cardinal Wuerl of Washington, D.C., who is at the center of the storm of the 1,000 sexual abuse cases in Pennsylvania.
Wuerl was Tobin’s mentor. Today, many are calling for his removal as Cardinal.
The photo is available for purchase on the Diocese of Providence’s website and is available as a mouse pad or playing cards.
Multiple Issues Facing the Diocese of Providence and Tobin
For Tobin, the sexual abuse crimes tied to Wuerl is just the latest issue. In August 2017, the St. Joseph Pension Fund collapsed. In June, the receiver for the fund named the Diocese of Providence in a massive fraud lawsuit on behalf of the more than 2,700 plan members.
In June, GoLocal unveiled a new major controversy for the Diocese, which is that the pension plan for the teachers and staff of the Catholic schools is in massive financial distress.
“The unfunded liability of the Lay Employees’ Retirement Plan will continue to grow and will become untenable in the near future,” stated a recent Diocesan document.
…
St. Joseph Lawsuit — Now Pending in Both Federal and State Courts
Two related massive lawsuits have been filed simultaneously in state and federal court by the receiver in the collapsed St. Joseph pension fund - the largest pension failure in Rhode Island history.
The suit alleges massive fraud in the case which has created a hole in pension assets estimated to be in excess of $115 million. The suit was filed by the receiver Stephen Del Sesto of Pierce Atwood and was prepared by the special investigator Max Wistow and his law associates Stephen Sheehan and Benjamin Ledsham.
Tobin has repeatedly denied any wrongdoing or responsibility for the financial failure of the fund.
Federal, State Fraud Lawsuits Against the Diocese
The Federal Court complaint is 136 pages and includes a 21 count complaint filed against 14 defendants. Similarly, the state court complaint is 101 pages and includes 16 count complaint against same defendants.
The defendants include the Diocese of Providence, CharterCare, CharterCare’s parent company Prospect, Angela Pension Group, and a range of other related healthcare and diocesan entities tied to the sale of the St; Joseph Hospital first in 2009 by the Diocese to Roger Williams Medical Center which created CharterCare and then the sale of CharterCare to Prospect of California in 2014.
The litigation is expected to continue for years.
Lay Employees Retirement Fund Near Financial Collapse
Tobin’s Diocese also faces the potential financial collapse of a second pension fund – the retirement fund for Diocesan teachers and staff.
Documents secured by GoLocal, which was prepared by the Diocese top financial officers – Monsignor Raymond Bastia and Chief Financial Officer Michael Sabatino – was considered by top Diocesan officials at a meeting held in June with Tobin.
The document, dated June 19, 2018, and marked “immediate action," called for drastic cuts to beneficiaries of the fund. Also considered at the meeting was the aforementioned October 2017 recommendation document and the plan outlined is to be considered for action.
Another dire statement in the report says, "Even with the revised more realistic assumptions, if we make these changes, it will still take 30-35 years to fully fund the Plan."
Since GoLocal secured those documents and unveiled the fund’s fragile financial condition, the Diocese has begun to slash pension benefits for some eligible members.
On August 14, GoLocal unveiled copies of Diocese of Providence documents that show that the benefits of many teachers and staff in Lay Employees Retirement Fund will be frozen and for others, they will no longer be eligible for the “Lay Teacher’s Retirement Fund” at the end of the year.
The implications are profound, as potentially thousands of Catholic school teachers and staff will lose the contributions to the pension fund. They will receive nothing.
Tobin is rarely available to press inquiries today.
Tobin, who was once a “media darling” and available to all press inquiries is now non-responsive to most press calls.
In 2015, Tobin sat down with GoLocal for a sweeping interview on a range of issues.
It was just one of many times Tobin made himself available to discuss local, national and global issues, but now Tobin has retreated from Twitter — closing his account and claimed that it was an “obstacle” to a spiritual life.