An Eastern Catholic bishop in California has submitted his
resignation amid a Vatican-ordered investigation into allegations of
substantial embezzlement and sexual misconduct.But the
resignation of Chaldean Catholic Bishop Emanuel Shaleta has not yet been
accepted by the Vatican, and sources say Chaldean Patriarch Cardinal
Louis Sako is aiming to see the bishop retain a place in Church
leadership.
According to documents reviewed by The Pillar,
parish finance council members at St. Peter’s Chaldean Cathedral in El
Cajon, California, noticed in November 2024 an unusual banking pattern
that indicated the possibility of embezzlement.
The parish
owns a social hall which is leased to an outside management firm for
some $33,990 monthly. Rent was typically paid to the parish by the
outside management company with a check. But in November 2024, the rent
check deposited into the parish bank account came from a different bank
account.
Records show that the rent for the hall that month was
paid to the parish, not from an external source, but from another
parish-based bank account, kept separately as a fund for financial
assistance to the poor.
Records reviewed by The Pillar
indicate that when parish leaders asked Shaleta about it, the bishop
said he had instructed the management company to pay him the full amount
in cash, so that he could distribute money to needy families directly,
and that he had “reimbursed” the parish with money from the financial
assistance account.
When finance council members checked past bank records — which have also been reviewed by The Pillar —
they discovered that eight months worth of rent checks had been written
to the parish from its own financial assistance account, all of them
signed by Shaleta.
For all of those eight months, the rent had been paid in cash, directly to Shaleta, at Shaleta’s direction.
An
audit of records for both parish accounts found other transactions in
which Shaleta seems to have accepted cash on behalf of the parish for
activity fees or services, and then “reimbursed” the parish from the
charity assistance account.
In total, at least $427,345 in cash
was appropriated by Shaleta — with corresponding “reimbursement checks”
drawn from the parish charity account and all signed by the bishop.
There were also checks written to other entities from the charity
account, including a $7,500 check signed by Shaleta to the Fogo de Chao
steakhouse.
And sources told The Pillar that
other questionable transactions added up to the possibility of up to $1
million embezzled from the parish, which also functions practically as
the eparchial curia.
Among the other transactions
discovered was $30,000 in cash Shaleta seems to have accepted from
parishioners for perpetual Mass enrollments offered for their deceased
family members, with “reimbursement” to the parish again coming from its
charity account, through a check signed by the bishop.
In documents reviewed by The Pillar,
Shaleta claimed the cash he took had been distributed for charity in
both the U.S. and several other countries, but the bishop did not have
substantiating paperwork confirming distributions, nor demonstrate why
he hadn’t simply withdrawn funds directly from the charity account for
charitable purposes.
According
to sources close to the Vatican’s Dicastery for Eastern Churches, the
possibility of financial fraud was reported in 2025 by parish leaders
both to U.S. apostolic nuncio Cardinal Christophe Pierre and to the San
Diego County Sheriff’s Department.
The Pillar has
confirmed that a sheriff’s investigation is currently underway in the
case, with forensic accountants reportedly reviewing the bishop’s
financial history before the possibility of criminal charges. The San
Diego County Sheriff’s Department did not respond to a request for
comment from The Pillar.
In addition to a criminal investigation, The Pillar obtained
documents confirming a Vatican-ordered investigation into Shaleta,
which was delegated in July 2025 to Los Angeles Archbishop Jose Gomez.
As
part of that investigation, attorneys and canonists from the
Archdiocese of Los Angeles interviewed last year Chaldean Catholics with
knowledge of the allegations, and reviewed financial records.
In
addition to banking records indicating the prospect of embezzlement, the
investigation’s dossier includes evidence of other unusual or improper
conduct on the part of Shaleta, including allegations of sexual
misconduct.
Among the allegations reported to the Vatican by
Chaldean Catholics is that Shaleta regularly crossed the border from San
Diego to Tijuana, Mexico during late night hours to visit a large strip
club where prostitution is regularly practiced.
A private
investigator’s report submitted to the Dicastery for Eastern Catholic
Churches reported the allegation that Shaleta made late-night border
crossings more than one dozen times in a single month, and only
decreased that practice to a “couple times a week” after the bishop was
questioned about it directly.
The investigation report
confirms that a private detective observed Shaleta parking his car in a
remote lot “specifically reserved for people going to Hong Kong
Gentlemen’s Club” — an establishment regularly referred to in local media and in online reviews as a brothel, and flagged by human rights journalists as “a brothel where trafficked women and girls are forced to work in the sex trade.”
From
the parking lot, the private investigator noted, the bishop boarded a
shuttle vehicle “exclusive to visitors going to the Hong Kong Club.”
The private detective, Wade Dudley, is a retired FBI special agent. He spoke with The Pillar about his investigation, after receiving permission from the clients who commissioned his report.
Dudley emphasized to The Pillar that he is “a
retired FBI agent with 20 years in the private investigative world. We
don’t provide our opinions. We provide facts and observations.”
“Having
said that, we saw his car park in a parking lot that was exclusively
for patrons of Hong Kong, and we’ve seen him walking to the border and
across the border, and we have seen him get picked up by a third-party
ride share that exclusively takes customers to that establishment,” he
said.
Dudley’s report noted another unusual and longstanding situation in Shaleta’s life.
The
investigator reported that Shaleta has held for years a joint personal
bank account with a woman who was the parish secretary when Shaleta was a
pastor in Michigan.
In 2025 the bank account’s balance was in excess of $40,000, and appeared to receive regular deposits from Shaleta.
When
Shaleta became in 2015 the eparch for Chaldean Catholics in Canada, the
woman “started making frequent visits to Toronto, staying either at a
nearby hotel or at his house,” the private detective noted.
In 2017, Shaleta was appointed to lead the Chaldean Eparchy of Saint Peter the Apostle of San Diego.
The bishop relocated to San Diego in August 2017, and the woman “immediately moved to San Diego,” the detective’s report said.
Dudley
documented that “Shaleta has unfettered access to the [woman’s] home” —
entering regularly by using the garage door code, and visiting during
the day several times each week.
In turn, the woman “has keys to [his] home… and has been observed using her keys to open the door.”
She had, the detective reported, “visited [Shaleta’s] home for a prolonged period of time on multiple occasions.”
The
detective also noted that the bishop had also been observed “spend[ing]
a great deal of time with [the woman’s] children,” often without the
woman present.
“He has been observed and documented taking the
children to his home, to a park, buying them food, playing with them at
their home, allowing the children free reign in his car, and tossing
them into the air. Often times, he has been observed taking only one
child. This activity is much like what a parent would do,” Dudley wrote.
In
sum, the investigator noted that Shaleta’s “life is full of
questionable and suspicious behavior,” which “seem inappropriate for a
person of his stature.”
In addition to the behavior included in the report, Chaldean sources told The Pillar that
some of Shaleta’s other conduct has raised other concerns in the
Chaldean community. Sources recounted that during a pilgrimage with
laity, Shaleta told a group of pilgrims that he had learned as a
seminarian to read palms, and indeed purported to read the future of one
pilgrim by examining his palm.
Asked whether Shaleta was joking, a source with direct knowledge of the situation said the bishop was “perfectly serious.”
The
Catechism of the Catholic Church says that palm reading, as a form of
divination, is to be “rejected,” and that it “contradict[s] the honor,
respect, and loving fear that we owe to God alone.”
In 2018, Pope Francis called palm reading an “idolatry of our times.”
At the conclusion of the Vatican-ordered investigation, sources close to the case told The Pillar that Shaleta submitted his resignation at the request of the Dicastery for Eastern Churches.
However,
while Shaleta told Chaldeans he’d resigned in January, a resignation
has not been accepted by the Vatican, leading to confusion among
Chaldean clergy in Iraq and among the close-knit Chaldean diaspora in
the U.S., Europe, and Australia.
But sources close to the Chaldean Church’s patriarch in Iraq, Cardinal Louis Sako, told The Pillar
that the cardinal had objected strongly to the Vatican request for
Shaleta’s resignation and has been attempting to rally support for the
bishop in Rome.
Sources close to the cardinal told The Pillar that
Sako had a long-standing friendship with Shaleta, personally selected
him for the San Diego post, and has relied on contributions from
Shaleta’s eparchy to support the patriarchate’s ministry in Iraq.
According
to several sources close to the patriarch, Sako has complained that the
allegations regarding financial misconduct reflect an unfair distrust
in the bishop, and American attitudes of “puritanism” regarding
financial administration. The patriarch has reportedly dismissed the
allegations of personal misconduct as an attempt to discredit the
bishop.
Several sources close to the patriarch say that Sako has
solicited letters of support for Shaleta from a group of Chaldean
bishops, and has floated to other bishops the idea that if Shaleta
cannot be retained in his San Diego post, he could be appointed
secretary of the patriarchate, in Baghdad.
The cardinal did not answer questions emailed to him by The Pillar on Thursday.
However, Sako attempted to forward The Pillar’s
questions to Shaleta, with instructions not to respond to media
requests “at the moment.” But rather than successfully forward the
email, Sako replied to The Pillar.
In
a subsequent email, the cardinal confirmed that he had attempted to
instruct Shaleta not to respond to questions “because there is an
investigation.”
Sako did not respond to follow-up questions.
Meanwhile,
sources say that Shaleta has also solicited priests of his eparchy to
send to the Vatican letters attesting to his character, and has acted
retributively toward local Catholics he believes to be whistleblowers.
Shaleta, 69, was ordained a priest in 1984, and after obtaining a doctorate in Biblical theology, he moved to the U.S. in 1987.
He
became eparch of Canada’s Chaldean Catholics in 2015, and — amid a
fractious leadership struggle in the Chaldean Church — was appointed
eparch of the Chaldean Catholic Eparchy of Saint Peter the Apostle of
San Diego on August 9, 2017.
The eparchy is one of two Chaldean
Catholic eparchies, or dioceses, in the United States. Its territory
encompasses 19 western states.
The eparchy includes more than 70,000 Catholics, and roughly 20 priests.
The Chaldean Catholic Church is a sui iuris Eastern
Catholic Church of more 600,000 members, almost all of whom are Iraqi,
residing either in Iraq or in diaspora communities around the world.