Greek prosecutors charge Catholic clerics, civilians in 3 million euro embezzlement case

CNA Newsroom, Aug 21, 2025 / 10:51 am (CNA).

Prosecutors on the Greek island of Syros have filed felony charges against two Catholic clerics and six civilians in connection with the alleged embezzlement and money laundering of more than 3 million euros ($3.3 million) in diocesan funds.

The indictments this month follow an investigation that began in late 2024 when Greece’s Anti-Money Laundering Authority uncovered suspicious financial transfers from the Catholic Diocese of Syros to accounts linked to nightclub operations, Greek newspaper Kathimerini reported.

The probe discovered that church funds had allegedly been diverted to businesses involved in prostitution, drugs, and protection schemes over eight years, according to ProtoThema.

Prosecutors have charged two Catholic priests along with six civilians in connection with embezzlement exceeding 120,000 euros, complicity in embezzlement, and money laundering.

Central to the case is a 53-year-old nightclub owner from Patra. According to investigators, the businessman allegedly used church funds to sublet nightclub operations, serving as what prosecutors consider the “mastermind” of the scheme.

The financial misconduct prompted swift action from the Vatican.

Pope Francis accepted Bishop Petros Stefanou’s resignation in April and appointed Archbishop Sevastianos Rossolatos, emeritus of Athens, as apostolic administrator of the diocese pending a permanent replacement.

The scandal affects one of the smallest Catholic communities in predominantly Eastern Orthodox Greece, where Catholics represent only about 50,000 of Greece’s 10.7 million people.

Located in the Cyclades island chain in the Aegean Sea, about 78 nautical miles southeast of Athens, Syros serves as the administrative center for the Catholic Diocese of Syros with Milos and Santorini.

The Anti-Money Laundering Authority’s investigation resulted in the freezing of bank accounts belonging to the accused civilians. Notably, the Catholic Church foundations’ accounts themselves were not frozen during the probe, ProtoThema reported.

The scandal has drawn particular attention due to its apparent connection to organized crime elements and the significant duration of the alleged financial misconduct.

Greek authorities traced suspicious transactions back eight years, with the most recent transfer of 50,000 euros occurring shortly before the investigation became public in late 2024, according to Euronews.

Following the Anti-Money Laundering Authority’s findings, Aegean Appellate Prosecutor Odysseas Tsormpatzoglou ordered a preliminary criminal investigation and summoned all accused parties to provide testimony before investigating judges on Syros, ProtoThema reported.

The Catholic Church in Greece initially stated it was unaware of the priests’ alleged actions when the scandal first emerged, Euronews reported.