Thursday, January 15, 2026

Public excluded in trial on Eichstätter financial scandal

The process of the financial scandal in the diocese of Eichstätt is not quite getting underway. 

Also on the second day of the trial, one of two defendants, a U.S. real estate developer, did not appear before the District Court of Munich II. 

The accused had already been missing last Thursday at the start of the trial – according to his defense lawyer, because he is in a clinic for treatment. 

The court now listened to two treating doctors of the man and excluded the public, as a judicial spokesman of the Catholic News Agency (KNA) announced. It is currently open how the process will proceed. 

This also applies to the court decision on a request from the public prosecutor's office. This had demanded because of the absence of the real estate developer at the start of the trial an arrest warrant against the man.

The financial scandal is about investments from diocese assets in U.S. real estate projects from 2014 to 2016. 

Reserves of almost 60 million US dollars had been invested highly risky. Two accused are made various accusations in this context: In addition to the US real estate developer, this concerns a former senior employee in the finance department of the diocese. Both of the accused are not clergy. 

The 10th. Criminal Chamber of the District Court of Munich II has scheduled 59 days of proceedings for the trial – up to 20. August. The former Bishop of Eichstätten, Gregory Maria Hanke (71), is scheduled to take place on 5. March will be heard as a witness. 

The former diocesan employee is accused of infidelity in 22 cases, bribery in 24 cases as well as tax evasion. The property developer is charged with 25 cases of bribery, 24 cases of incitement to infidelity and, in addition, five cases of infidelity.

The two accused were in custody in the meantime. 

The diocese has also brought civil action against the real estate developer before the regional court in Ingolstadt. 

However, this civil case is currently suspended because of the Munich criminal proceedings. The financial scandal was made public by the then Eichstätter Bishop Hanke in early 2018, who has been retired since Pentecost 2025. 

In the summer of 2017, Hanke had involved external auditors and lawyers and filed a complaint. 

At times, Hanke himself was also in the sights of the investigators; however, the proceedings were terminated by the public prosecutor's office. 

As a result of the scandal, the diocese revised its investment guidelines. 

Today, external service providers take care of the investments. 

So far, the diocese has recovered roughly half of the investment.