Franciscan Order on Verge of Bankruptcy After Financial Fraud is Uncovered

VATICAN CITY- One of the largest Franciscan religious orders, the Order of Friars Minor, founded on the teachings of St. Francis of Assisi more than 800 years ago, announced it is on the brink of bankruptcy after admitting some of its monks embezzled funds from its accounts.

The Italian news magazine Panorama on Friday (Dec. 19) reported that tens of millions of dollars were missing from the Order of Friars Minor and had been invested in offshore companies.

Panorama claimed Swiss prosecutors had seized Franciscan accounts in Switzerland because the account holders had allegedly invested in illegal operations that could include arms and drug trafficking.

Brother Michael Perry, the American head of the order, said an internal inquiry was begun in September and revealed "a number of questionable financial activities that were conducted by friars entrusted with the care of the patrimony of the order."

In a letter posted on the order's website, Perry said the order was in "grave, and I underscore grave, financial difficulty, with a significant burden of debt."

The letter, addressed to all friars and published in both English and Italian, said the order's general treasurer Father Giancarlo Lati had resigned but gave no further details.

The Order of Friars Minor is one of several branches of the Franciscan order founded by St. Francis in the Italian town of Assisi in 1209.

It is active in 110 countries and had more than 14,000 members.