(AP/Reuters) — Pope Leo XIV has accepted the resignation of a bishop serving the Chaldean Catholic community in the San Diego area after authorities accused him of embezzling hundreds of thousands of dollars from his parish.
The Vatican disclosed Tuesday that Emanuel Hana Shaleta, who oversaw a small Eastern Rite Catholic diocese in Southern California, stepped down following allegations that he diverted church funds for personal use.
Shaleta, 69, pleaded not guilty Monday to 16 felony counts, including embezzlement and money laundering, during a court appearance in California, according to local media accounts cited by Reuters and The Associated Press.
Authorities arrested Shaleta on March 5 at San Diego International Airport while he was preparing to leave the United States, the San Diego County Sheriff’s Office said in a statement.
Investigators allege the bishop diverted funds belonging to St. Peter Chaldean Catholic Cathedral, located east of San Diego in the city of El Cajon.
Prosecutors say the suspected financial misconduct occurred in 2024, after irregularities surfaced in church accounts.
According to Joel Madero, the alleged thefts involved monthly rental payments of more than $30,000 from a tenant using the church’s social hall.
Those funds were expected to be deposited in parish accounts but allegedly went missing.
Madero told the court that Shaleta offered “completely unreasonable tales” about where the money had gone, a claim detailed in reporting by The Associated Press.
The case began when a church employee provided documentation last August suggesting that parish funds might have been misappropriated, authorities said.
Investigators later determined that approximately $250,000 to $270,000 in church funds could not be accounted for.
Shaleta faces the possibility of up to 15 years in prison if convicted on all charges, according to the district attorney’s office.
A judge set bail at $125,000 and ordered the bishop’s passport confiscated after prosecutors argued he posed a potential flight risk.
Shaleta’s attorney, Sharon Appelbaum, said the trip he was preparing to take had been planned in advance and was not an attempt to flee.
Although the Vatican formally announced the resignation this week, officials indicated that Pope Leo XIV accepted Shaleta’s request to step down in February.
The Holy See delayed publicly confirming the decision to avoid interfering with the ongoing criminal investigation, the Vatican embassy in Washington explained.
The resignation was processed under canon law governing Eastern Catholic Churches, which allows a bishop to request retirement subject to papal approval.
Following Shaleta’s departure, the Vatican named Saad Hanna Sirop as the temporary administrator of the local Chaldean Catholic diocese.
Before his arrest, Shaleta publicly rejected the accusations during a Mass held on Feb. 22.
“I have never abused any penny of the church money,” he said, insisting he had worked to protect parish donations.
“On the contrary, I have done my best to preserve and manage the donations of the church properly.”
His attorney has indicated the defense will seek to demonstrate that the allegations are unfounded.
Meanwhile, priests within the Chaldean Catholic Eparchy of St. Peter the Apostle released a statement expressing solidarity with Shaleta.
The Chaldean Catholic Church is one of the Eastern Catholic churches that recognizes the authority of the pope while maintaining its own liturgical traditions rooted in ancient Christian communities of the Middle East.
The church traces its heritage to Aramaic-speaking Christian populations primarily from Iraq.
Globally, the Chaldean Catholic Church counts more than one million members.
In the United States, the Chaldean Community Foundation estimates the population at roughly 500,000, with major concentrations in Detroit, California and Arizona.
In the San Diego region alone, Vatican statistics estimate roughly 71,000 Chaldean Catholics.
Shaleta himself was ordained as a priest in Detroit in 1984 before being appointed to lead the San Diego-area diocese in 2017.
The Vatican announcement Tuesday also revealed that Louis Sako, the patriarch who leads the global Chaldean Catholic Church, has retired at age 76.
Sako said he decided to step down voluntarily in order to focus on “prayer, writing and simple service.”
His retirement was described as unrelated to the legal case involving Shaleta.
The patriarch had occasionally clashed with political leaders in Iraq during his tenure, particularly over the protection and rights of Christian minorities.
The resignation of a bishop under criminal investigation represents a significant moment for the Chaldean Catholic community, particularly because it is a relatively small but tightly knit diaspora population.
Religious leaders in Eastern Catholic churches often serve not only as spiritual authorities but also as cultural anchors for immigrant communities.
As a result, scandals involving clergy can reverberate deeply among parishioners.
Experts on Eastern Catholicism say the case may generate tension and uncertainty within the diocese while the legal proceedings unfold.
The Rev. Mark Morozowich, director of the Center for Ukrainian Church Studies at the Catholic University of America, said a bishop occupies a unique role as the “spiritual father” of a community.
When a leader faces serious criminal accusations, he said, the repercussions often extend far beyond the immediate parish.
At the same time, the Vatican’s decision to accept Shaleta’s resignation before publicly announcing it suggests an effort to maintain distance between church governance and the criminal justice process.
The immediate impact of the controversy has been felt locally.
When reporters visited St. Peter Chaldean Catholic Cathedral following the Vatican announcement, the church doors were closed and the parking lot largely empty.
For many parishioners, the case has introduced uncertainty about the leadership of their community and the future of the diocese.
A preliminary court hearing is scheduled for April 27, when prosecutors are expected to present additional evidence related to the alleged embezzlement.
Until then, the case will continue to draw attention not only because of its legal implications but also because of its broader impact on a global Christian community that has historically endured displacement, persecution and political upheaval.
