The leadership of the Catholic Church has been shaken after the Vatican removed a California bishop following explosive allegations that he diverted church funds and frequented a brothel in Mexico.
Pope Leo XIV accepted the resignation of Emanuel Hana Shaleta, who served as bishop of the Saint Peter the Apostle of San Diego of the Chaldeans in the United States.
The decision was announced Tuesday in an official Vatican statement confirming that the pope had accepted Shaleta’s resignation from his pastoral duties.
The controversy intensified after Shaleta was arrested at San Diego International Airport while attempting to travel to Germany.
Authorities said he was carrying more than $9,000 in cash at the time of his arrest.
He was later released from custody after posting $125,000 bail, according to reports by the New York Post.
Investigators said the arrest followed a tip received by the San Diego County Sheriff’s Office from a church official in August last year, alleging suspicious financial activities linked to the bishop.
Prosecutors have charged the former bishop with 15 felony counts, including embezzlement, money laundering and financial crime enhancements.
Investigators believe Shaleta diverted church funds for personal use and allegedly attempted to conceal the transactions by using charity resources.
Authorities say financial reviews uncovered at least $427,000 missing from church accounts, though the total amount involved could climb to nearly $1 million.
The alleged misappropriation reportedly came from properties and financial resources belonging to the church.
The scandal deepened after a private investigator reported that the bishop was a regular patron at the Hong Kong Gentleman’s Club, a well-known venue in the red-light district of Tijuana in Mexico’s Zona Norte area.
The claims have drawn significant public attention due to the contradiction between the alleged activities and the moral expectations traditionally associated with senior clergy members.
Despite the charges and investigations, Shaleta has strongly denied wrongdoing.
“I have never, in my episcopal life, used any penny of the church money,” he said while addressing the allegations.
“On the contrary, I have done my best to preserve and manage the donations.”
The former bishop had already submitted his resignation letter to the pope in January, weeks before the Vatican formally announced its acceptance.
Although the Vatican has now removed him from his leadership position, the criminal proceedings against Shaleta are expected to continue in the United States judicial system.
With multiple felony charges pending and investigators still reviewing financial records, the case could develop further as authorities determine the full extent of the alleged financial misconduct.
