Bishop Emanuel Hana Shaleta, leader of the Chaldean Catholic Eparchy of St. Peter the Apostle in San Diego, California, was arrested last week on charges of embezzling hundreds of thousands of dollars from his parish and laundering the money through church accounts.
Pope Leo XIV accepted his resignation on Mar. 10, 2026, days after authorities took him into custody at San Diego International Airport as he prepared to board a flight to Rome. Shaleta, 69, pleaded not guilty during an arraignment in California Superior Court in El Cajon on March 9.
Prosecutors say he faces 16 felony counts in total, including eight counts of embezzlement, eight counts of money laundering, and an aggravated white‑collar crime enhancement. Bail was set at $125,000, with a court order requiring proof that any bail funds do not come from illegal activity, according to Fox News.
The San Diego County Sheriff's Fraud Unit opened its investigation in August 2025 after a representative of St. Peter Chaldean Cathedral in El Cajon raised concerns about missing funds. Documents provided to investigators pointed to suspicious handling of rental payments for the parish's social hall.
According to investigators, the hall was leased to an outside company for about $34,000 per month, but at least one month's rent was allegedly diverted from an account designated for charity. Authorities say Shaleta then signed reimbursement checks back to the parish, moving the money through different church accounts.
Read more: Arkansas Priest Accused of Drowning Cats After Tip Led Police to Find Horrific Setup At His Home
Media reports, citing investigative records, say the total allegedly siphoned from parish and related accounts may exceed $400,000, higher than early estimates tied only to hall rental income. The case remains under review by financial crimes specialists as they analyze additional records, Pillar Catholic reported.
Separate from the financial charges, a Vatican‑ordered inquiry documented Shaleta making more than a dozen visits in one month to the Hong Kong Gentlemen's Club, a Tijuana brothel linked in reports to human trafficking concerns. A private investigator said Shaleta used a shuttle reserved for brothel patrons during late‑night trips across the border.
The same report described a joint bank account that Shaleta shared with a former parish secretary that held more than $40,000 and said he had extensive access to her home and family. Church and civil authorities have not announced any separate criminal charges related to those claims.
In previous homilies and statements, Shaleta insisted he did not misuse church funds and said the money in question was intended "for the poor." He also complained that Vatican officials advanced their investigation without properly informing him, as per the Daily Mail.
