February meeting on abuse to have ‘synodal dimension,’ child protection expert says

Vatican City, Dec 17, 2019 / 01:50 pm (CNA).- Two investment funds used by Vatican dicasteries were also used by a major Italian bank to conceal illegal investments for which the bank was eventually closed.

On Friday, Matlese media reported that the IOR, or Vatican Bank, is suing Optimum Asset Management over 230 million euros in losses through a fund under its management. The IOR is being sued in turn by Optimum for breach of contract; the firm claims the Vatican’s bank owes an additional 24 million euros as an already agreed-upon investment in another of its funds.

Optimum was in 2015 identified by Italian authorities, as a fund manager through which Banca Popolare di Vincenza fraudulently funneled money meant for outside investments back into investment in the bank itself.

While the bank was required by European law to maintain a diversified investment portfolio as a hedge against risk, it was found to have used Optimum to fraudulently invest in itself instead, leaving the accounts and investments of customers at a high degree of risk.

The bank used the same tactic, channeling investment funds back into itself, through the Athena Global Fund, run by Raffaele Mincione.

Italian media have estimated that the fraud involved hundreds of millions of euros in bank funds.

Mincione’s Athena Global Fund was also used by the Holy See’s Secretariat of State to invest hundreds of millions of Church funds, most notably through the purchase of a luxury property development in London from his own holding company, Time & Life SA.

Through dedicated funds created by Athena in which the Vatican and Banca Popolare were the exclusive investors, Mincione also used funds from both to buy unrated, non-recourse bonds in Time & Life – essentially using investor funds to make no-strings-attached loans to his own holding company.

Time & Life used some of the money raised this way to buy shares in Banca Popolare – meaning that Mincione was returning bank invested funds to the bank through the back door.

By using its own investment funds to purchase its own shares indirectly through Optimum and Mincione’s holding company, Banca Popolare secretly consolidated its ownership and evaded regulatory requirements to raise additional equity capital. The scheme inflated the bank’s financial returns and concealed its portfolio’s exposure to risk at the same time.

When the scheme was discovered by Italian authorities, Banca Popolare was fined, and then closed by a forced sale to Intesa San Paolo, one of Italy’s largest lenders, in 2017. 

Mincione and Optimum were paid millions of euros in management fees for redirecting the bank’s investment back into itself, while also benefiting by directing the remainder of the bank’s investment funds.

According to filings made on the Irish Stock Exchange in 2012 and 2013, Mincione also borrowed tens of millions of euros from his own company Time & Life, in which the Vatican’s Secretariat of State was heavily invested, through low-interest loans made to a trust, of which he was the beneficiary, based in the Isle of Jersey – a well-known European tax haven. 
 
These funds were in turn used by Mincione for other investments in high-risk ventures.

In 2015, Mincione bought a 5% stake in EZTD Ltd, an Israeli-based company providing an online options trading platform to American investors. That investment lost 90% of its value after a 2016 SEC finding that the company had misled investors and violated both the Securities Act and the Securities and Exchanges Act. The SEC found that fewer than three percent of the company’s 4,000 U.S. account holders made a profit investing through the company.

While the Vatican spent hundreds of millions buying control of the London property development from Mincione, he also cleared an additional 60 million euros in management and transaction fees, on top of his profits from actually selling shares of the building to the Secretariat of State.

The Holy See’s Secretary of State, Cardinal Pietro Parolin, has said that the Vatican’s London investment must be investigated, but has not yet indicated what parties are responsible for the investment, or whether internal investment policies have been violated. Pope Francis said last month that some involved in the investment have done things that seem, to him, “not clean.”

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Vatican City, Oct 21, 2018 / 04:00 am (CNA).- St. John Paul II used the occasion of his first homily as pope to offer a fervent prayer that God would make him, first and foremost, a servant.

The former Cardinal Karol Wojtyla delivered the first homily of his 26-year pontificate before a packed assembly in St. Peter’s Square on Sunday, Oct. 22, 1978— 40 years ago this week.

His election was a few days before, on Oct. 16.

John Paul II began his homily by reaffirming the words that had once been uttered by the apostle Peter in the presence of Jesus: “You are the Christ, the Son of the living God.”

“Yes, Brothers and sons and daughters, these words first of all,” the newly-elected pope said. “He who is infinite, inscrutable, ineffable, has come close to us in Jesus Christ, the only-begotten Son of God, born of the Virgin Mary in the stable at Bethlehem.”

The pope exhorted those seeking God, those who already believe, and those struggling with doubt to pay attention to Peter’s profession of faith in Jesus. Peter’s faith and obedience to a higher calling led him to leave his simple way of life as a fisherman and journey to Rome.

“What else but obedience to the inspiration received from the Lord guided him and brought him to this city, the heart of the Empire?” the pope said. “Perhaps the fisherman of Galilee did not want to come here. Perhaps he would have preferred to stay there, on the shores of the Lake of Genesareth, with his boat and his nets. But guided by the Lord, obedient to his inspiration, he came here!”

“Son of Poland”

On the day he began his new mission as Bishop of Rome, Pope John Paul admitted he was “a bishop full of trepidation, conscious of his unworthiness.”

As a self-proclaimed “son of Poland,” John Paul was the first non-Italian pope in more than 400 years. In this moment, as he took over the See of Peter, he proclaimed that the unbroken tradition of the papacy had made him a Roman, too.

“Inscrutable is the design of Divine Providence!” he said. “How could one not tremble before the greatness of this call and before the universal mission of this See of Rome!”

To his fellow Polish Bishops and to the many Polish pilgrims present, John Paul II said:

“Everything that I could say would fade into insignificance compared with what my heart feels, and your hearts feel, at this moment. So let us leave aside words. Let there remain just great silence before God, the silence that becomes prayer…Remember me today and always in your prayers!”

Humility and service

John Paul II chose not to wear a papal tiara, or crown; the last pope to be crowned was Paul VI in 1963. He said he didn’t want to return to “an object considered, wrongly, to be a symbol of the temporal power of the Popes,” but rather to immerse himself in “humble and devout meditation on the mystery of the supreme power of Christ himself.”

The “power” exercised by the popes is service, John Paul II said; service to help all the people of God share in the mission of Jesus as Priest, Prophet, and King. This power expressed itself in “charity and truth” rather than in “the language of force.”

“Brothers and sisters, do not be afraid to welcome Christ and accept his power,” the saint said. “Help the Pope and all those who wish to serve Christ and with Christ’s power to serve the human person and the whole of mankind.”

“Do not be afraid. Open wide the doors for Christ. To his saving power open the boundaries of States, economic and political systems, the vast fields of culture, civilization and development. Do not be afraid.”

Though his homily was in Italian, John Paul II— a famous polyglot— also offered greetings to pilgrims in French, English,German, Spanish, Portuguese, Czechoslovakian, Russian, Ukrainian and Lithuanian, asking all of them for prayers.

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Vatican City, Oct 3, 2019 / 09:00 am (CNA).- Pope Francis met with Secretary of State Mike Pompeo to discuss the preservation of Christian communities in the Middle East and the promotion of religious freedom on Thursday.

According to State Department… […]