Wednesday, June 4, 2008

Episcopal church claims deposed bishop transferred money

The Episcopal Diocese of San Joaquin has expanded its lawsuit against a deposed bishop who led a secession prompted by the church's ordination of women and gays.

Diocese officials say John-David Schofield transferred up to $5 million in church money to outside accounts he formed this spring.

In its lawsuit filed Monday in Fresno County Superior Court, the diocese says started transferring investment funds and other accounts held by Merrill Lynch to a new holding company in April. A diocese spokeswoman says Merrill Lynch froze the accounts on Tuesday.

National church leaders removed Schofield as the head of the Fresno-based diocese in March, after he led parishioners to align themselves with the conservative Province of the Southern Cone, an Argentina-based member of the worldwide Anglican Communion.

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