Corruption in the Vatican | Inside a Financial Scandal | A Tale of Greed and Betrayal

Vatican Scandals: A Personal Account

Introduction to the Vatican Experience

• The speaker recounts their first visit to the Vatican on March 9, 1993, describing it as a significant moment for a Catholic.

• Friends humorously referred to the speaker as the "banker of God," highlighting their long-standing role in managing finances related to the Vatican.

Trust Issues with the Pope

• The speaker expresses shock at losing trust from Pope Francis after years of loyalty and service.

• They mention that an investigation into financial dealings could lead to serious scandals within the Vatican, particularly regarding a major property acquisition in London.

Investigative Actions and Corruption Allegations

• The speaker notes that searches were conducted by Vatican authorities, indicating a significant internal investigation had begun.

• It is suggested that such actions required approval from Pope Francis, implying high-level awareness of potential corruption.

Financial Misconduct and Ethical Concerns

• An internal auditor raised concerns about financial irregularities, leading to formal investigations into possible corruption.

• The narrative shifts to Monsignor Angelo Bichu's involvement in an oil investment deal in Angola, which raises ethical questions about using church funds for speculative investments.

Investment Details and Fund Management

• Discussion centers around a proposed $200 million investment in an oil field deemed ethically questionable by some involved parties.

• The Secretariat of State manages substantial funds derived from charitable donations (Peter's Pence), intended for supporting the poor and church operations.

Misuse of Charitable Funds

• Peter's Pence is described metaphorically as an "ATM" for immediate funding needs but raises concerns when linked to speculative investments.

• Accusations arise regarding misappropriation of charitable funds for non-charitable purposes, implicating key figures like Enrico Craso in disguising these transactions.

Feasibility of an Oil Deal in the Vatican

Initial Steps and Expert Consultation

• Enrico Crasso was tasked with verifying the feasibility of a deal but lacked experience in the oil sector, prompting him to seek expert advice.

• He communicated his financial expertise to Cardinal Angelo Bichu, indicating he would discreetly consult his bank for technical insights.

• Credit Suisse recommended contacting a group of experts in London, leading to an introduction to Rafael Michon, an international financier.

Introduction of Rafael Michon

• Rafael Michon presented himself as knowledgeable and boasted connections with the ENI group, which reassured Crasso about his credibility.

• After receiving approval from Cardinal Bichu, Crasso and Michon began assessing the investment's technical and financial feasibility. However, after a year of evaluations, they advised against proceeding with the deal.

Unrest and Investigations

• On June 7th, 2013, concerns arose regarding Rafael Michon's integrity following a report from Lugano that questioned his financial dealings.

• The report indicated that Italian deputies were investigating opacity in financial flows related to Michon's company. This raised questions about whether any investigations had been conducted by the Secretariat of State.

Strengthening Ties Despite Concerns

• Despite suspicions surrounding Michon’s operations, contacts between him and the Secretariat strengthened; he proposed another investment opportunity which was accepted.

• In July 2014, interest shifted from investing in oil wells to purchasing a building in London (the old Harrods department store), endorsed by key figures within the Vatican's Secretariat of State.

Investment Details and Consequences

• The purchase was framed as advantageous due to its below-market price; $200 million was allocated for this investment through Michon's Athena fund.

• The Vatican did not directly own the building but held shares; however, significant losses occurred due to poor management decisions made by Michon involving speculative investments linked to himself.

Investigation into Financial Misconduct in the Vatican

The Case of Mishon and the Holy See

• Investigators suspect Mishon as a key figure who could exploit financial misadventures involving the Holy See, prompting a desire to hear his perspective.

• The housekeeper reveals that Mishon has diverted millions, highlighting the challenge of conveying such vast sums to readers unfamiliar with these figures.

• There is a betrayal of both donor intentions and papal will, as Pope Francis aims to recover lost funds and hold accountable those responsible within the Vatican.

Cardinal Bichu's Promotion: A Strategic Move?

• In May 2018, Pope Francis elevated Archbishop Angelo Bichu to cardinal, ostensibly distancing him from the secretariat amid growing embarrassment over financial losses.

• Attempts to interview Bichu about his investment decisions were met with refusal, raising questions about transparency regarding funds donated by faithful followers.

Attempts at Resolution and New Players

• Following Bichu's departure in November 2018, discussions began on how to address investments made through Rafal Non’s fund without reaching an agreement with financiers.

• Mr. Torsy emerged as a new broker aiming to resolve issues related to property ownership for the secretariat of state amidst pressing financial concerns.

Negotiations and Financial Discrepancies

• Torsy claimed he could persuade Michon to sell property back to the Vatican; however, skepticism arose regarding his financing relationship with Michon.

• An agreement was reached for Michon's building at $40 million despite previous payments totaling $200 million for a property burdened by significant debt.

Surprising Developments in Property Dealings

• The Vatican's expenditure on properties raises eyebrows given prior investments; it appears they paid significantly more than what was initially spent by Michon six years earlier.

• Despite initial surprise at how quickly negotiations concluded (within days), there remains concern over whether this resolution truly mitigated damage or simply masked deeper issues.

Background on Jan Luigi Torsy

• Torsy's background includes failed family businesses leading him into high-stakes finance; his rapid ascent raises questions about merit versus connections in achieving success.

• His journey from small-town Italy involved navigating complex markets rather than traditional paths often taken by immigrants seeking work abroad.

The Controversial Case of Jin Luigi Torsi

Connections to the Vatican

• The community's strong ties to the Vatican are highlighted, particularly through connections with Communion and Liberation.

• Jin Luigi Torsi is introduced as a controversial figure involved in a legal dispute regarding a London building.

The Verona Family's Downfall

• The economic crisis in 2010 led the Verona family to partner with Torsi for a tourist village project, leveraging their seaside villa.

• Torsi proposed a fraudulent scheme involving a fictitious bill of sale to minimize taxes, which ultimately resulted in the family's financial ruin.

Legal Troubles and Complaints

• The Verona family lost their villa when the promised construction never materialized; they filed complaints with financial authorities.

• A police officer revealed that numerous complaints against Torsi existed, indicating his troubled history even before entering Vatican dealings.

Seeking Justice

• The family's plea for justice included writing directly to the Pope about their situation, feeling betrayed by Torsi’s initial friendly approach.

• They realized they had been manipulated under the guise of assistance during their economic struggles.

Meeting with the Pope

• An extraordinary event occurred on Boxing Day 2018 when Torsi was granted a private audience with the Pope, raising questions about their discussion.

• It is suggested that someone close to the Pope misrepresented Torsi as beneficial for resolving issues related to church property.

Contractual Issues and Misunderstandings

• Despite solving one problem, Torsi created new complications regarding ownership rights over properties intended for Vatican use.

• Concerns arose over voting shares remaining with Torsi despite agreements suggesting otherwise; this raised doubts about whether Vatican officials were aware of these terms.

Allegations of Naivety or Malfeasance

• Questions emerged regarding whether those who signed contracts with Torsi were naive or acted in bad faith due to significant financial implications.

• An anonymous high-ranking official confirmed that contract terms were known but questioned if proper legal counsel was sought before signing.

Vatican Financial Scandal: The London Property Deal

Overview of the Situation

• In November 2018, Edgar Penapera replaced Angelo Bichu and endorsed a controversial operation regarding a property deal that would soon be deemed a colossal mistake.

• Jen Luigi Tozi gained control over the Vatican building without any initial investment, leveraging shares to demand payment from the Vatican for their return.

Extortion Allegations

• Initial extortion demands from Tozi were reported at €20 million, later negotiated down to €15 million, raising questions about the legitimacy of these payments.

• The negotiation was framed as compensation for management rights taken from Tozi, suggesting that the payment might not solely stem from extortion but rather an acknowledgment of his previous involvement.

Financial Maneuvering

• Penapera faced pressure to authorize payments to Tozi despite advice against it; this led to a search for funds within the Pope's discretionary account held in Switzerland.

• Monsignor Palaska proposed using funds from this account to satisfy Tozi’s demands, indicating potential misuse of papal resources.

Transfer of Funds

• Instructions were sent to withdraw £20 million from UBS in Lugano, with specific directives on how much should be used immediately and how much could be overdrafted.

• Evidence suggests that £15 million was transferred to Tozi through Vatican lawyers in London amidst ongoing investigations into these transactions.

Investigative Developments

• There are suspicions that Tozi may not have acted alone; recordings indicate discussions involving bribes and kickbacks related to the share negotiations.

• Investigators are probing whether part of the money went towards corrupt practices within the Vatican itself, highlighting concerns over internal corruption linked to external financiers.

Consequences and Legal Actions

• By September 2020, Angelo Bichu faced scrutiny due to allegations of embezzlement and lost trust with Pope Francis after being informed about judicial reports against him.

• The investigation encompasses serious charges including corruption and money laundering against multiple individuals involved in the scandal.

This markdown file encapsulates key moments and insights regarding a significant financial scandal involving the Vatican's dealings with Jen Luigi Tozi over a London property. Each bullet point is linked directly back to its corresponding timestamp for easy reference.

Vatican's Financial Turmoil

The Impact of Scandal on Personal Life

• A significant financial scandal involving 50 million euros has emerged in the Vatican, leading to a crime story that reflects dark times for the institution often referred to as the "banker of God."

• The speaker expresses concern about the implications of this situation, particularly regarding its impact on his family, including his children and grandchildren.

• There is an emotional weight to the speaker's words, highlighting feelings of worry but also a lack of fear regarding personal repercussions.

• The speaker hopes that his grandchildren will not remember him for this scandalous event, indicating a desire for a legacy beyond controversy.

• The narrative suggests a sense of betrayal or disappointment akin to working alongside someone who ultimately causes harm or distress.