Statement of the Diocese of Bridgeport in response to the filing of Bethany D'Erario v. St. John Roman Catholic Church, et. al.

BRIDGEPORT, Sunday, March 30, 2008, 12:30 p.m. - In response to the filing of Bethany D'Erario v. St. John's Roman Catholic Church, et. al., the Diocese of Bridgeport has issued the following statement:

"The complaint, Bethany D'Erario v. St. John's Roman Catholic Church, et. al., is without merit.

Bethany D'Erario first threatened to sue St. John's Roman Catholic Church and the Diocese of Bridgeport in January of this year, approximately 17 months after she had voluntarily resigned from her position as the business manager and bookkeeper of St. John's Parish. We reviewed the complaint that had been mailed to us by Ms. D'Erario's attorney and determined that it contained numerous inaccurate allegations.

"Accordingly, our attorney sent a letter [published below] to Ms. D'Erario's attorney, a copy of which is attached hereto, noting some of the significant factual and legal inaccuracies in the complaint and discouraging Ms. D'Erario from proceeding with her meritless complaint.

"Unfortunately, Ms. D'Erario has decided to file a lawsuit against the Parish and the Diocese in an apparent effort to seek money to which she is not entitled. Although it is not practical to point out all of the false and inaccurate assertions in Ms. D'Erario's complaint, some of the more important truthful facts in this matter are set forth below:

Fact: Ms. D'Erario had been aware of Jude Fay's financial wrongdoing and other improper conduct for approximately three years before it was reported to the Diocese.

Fact: Almost immediately after Father Michael Madden reported to Bishop William Lori his suspicions regarding Jude Fay, Ms. D'Erario went on vacation and was absent from work for one week.

Fact: The Diocese promptly investigated the allegations regarding Jude Fay, and it was the Diocese, not Ms. D'Erario, that first reported Jude Fay's wrongdoing to the authorities.

Fact: St. John's and the Diocese requested that numerous individuals, including but not limited to Ms. D'Erario, cooperate with the investigations being conducted by the FBI and Deloitte.

Fact: St. John's and the Diocese cooperated fully in the investigations and subsequent prosecution of Jude Fay; and therefore had no reason to retaliate against Ms. D'Erario or the many other witnesses who were interviewed as part of those investigations.

Fact: At the time Ms. D'Erario voluntarily resigned her employment on August 1, 2006, her written employment contract automatically had been renewed for the upcoming year.

Fact: Father Frank McGrath has been an ordained priest since 1970 and has devoted his best efforts to assisting and serving the parishioners of St. John's since his appointment to that Parish after the resignation of Jude Fay.

Fact: Father McGrath never asked Ms. D'Erario to resign and always treated her fairly.

Fact: Ms. D'Erario chose to inform the Parish of her resignation by publishing her resignation letter in the St. John's Sunday Bulletin. In that resignation letter, Ms. D'Erario wrote "I have decided that it is time to move on" and closed her letter by stating "I wish you [Father McGrath] and the parishioners of St. John Church every good fortune." To view the letter in Adobe PDF, click here.

"For the reasons stated above and in the February 1, 2008, letter to Ms. D'Erario's attorney, the Diocese of Bridgeport and Saint John Parish will vigorously defend themselves against this complaint."

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Father Frank C. McGrath, Pastor of Saint John Roman Catholic Church in Darien, has also issued a statement in reponse to Bethany D'Erario v. St. John's Roman Catholic Church, et. al.:

"I was saddened to learn of Bethany D'Erario's decision to file a lawsuit against St. John's Church and the Diocese of Bridgeport. Mrs. D'Erario resigned from her position as the Church's business manager and bookkeeper in August of 2006, more than one and a half years ago. I had only served as the pastor at St. John's for a short time when she announced her resignation and I was surprised by it. At that time, she informed me that she had decided to move on and she never provided me with any other reason for her resignation. I wished her well and told her that I had appreciated her assistance after my appointment as the pastor of St. John's. I was surprised by her decision to resign and I always did my best to treat her fairly and professionally. I do not know why she has chosen to attack me in her complaint, but I do know that I never acted improperly or unfairly toward her and her claims regarding my actions and statements are not accurate.

"Mrs. D'Erario's lawsuit also is disappointing because it threatens to re-open the wounds inflicted upon the Parish by Jude Fay's conduct. With the recent sentencing of Jude Fay, it was my hope that this chapter had been closed and that the Parish could complete its healing process. Mrs. D'Erario's lawsuit seems likely, however, to lead to more allegations about Jude Fay's actions and whether Mrs. D'Erario or others at the Parish could have or should have done more to prevent his misconduct. I do not think such allegations are in the best interests of Mrs. D'Erario or St. John's Parish, but we have no choice other than to allow the legal system to take its course."

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Letter mailed on February 1, 2008, by Attorney Daniel L. Schwartz of Day Pitney LLP,
to Attorney Mark Sherman
regarding Bethany D'Erario v. Saint John's Roman Catholic Church, et al.

February 1, 2008

Mark Sherman, Esq.
Law Offices of Mark Sherman, LLC
29 Fifth Street
Stamford, CT 06905

Re: Bethany D'Erario v. Saint John's Roman Catholic Church, et al.

Dear Attorney Sherman:

As I previously informed you, Day Pitney LLP represents Saint John's Roman Catholic Church in Darien ("St. John's") and the Bridgeport Roman Catholic Diocesan Corporation (the "Diocese") in the above-referenced matter. I have had an opportunity to review the complaint that you mailed to St. John's and to the Diocese and to review the factual record regarding Bethany D'Erario's employment and resignation from employment at St. John's. Based upon my review of the factual record, it is apparent that your proposed complaint contains numerous inaccurate statements and false assertions. Some of the more significant factual errors in your complaint are briefly summarized below.

1. In the complaint, you allege that Mrs. D'Erario was forced in August 2006 to resign from her position as St. John's business manager/bookkeeper. In reality, however, no one at St. John's or the Diocese ever sought or requested Mrs. D'Erario's resignation. Mrs. D'Erario decided on her own to resign and she also chose to publish her letter of resignation in St. John's church bulletin. A copy of that bulletin is enclosed and, as you will note, it does not suggest in any way that she was forced to resign. To the contrary, Mrs. D'Erario closes her letter of resignation to the pastor of St. John's, Father McGrath, by writing "I wish you and the parishioners of St. John's Church every good fortune."

2. In the complaint, you allege that St. John's and the Diocese retaliated against Mrs. D'Erario because she (and Father Madden) hired a private investigator who subsequently reported Jude Fay's wrongdoing to the Darien Police Department. In reality, however, the Diocese, through its counsel, already had contacted the United States Attorney's Office in Connecticut to report its concerns regarding Jude Fay prior to the private investigator's meeting with the Darien Police Department. Neither St. John's nor the Diocese had any reason or motive to retaliate against Mrs. D'Erario for her alleged activities as a "whistleblower." [1] To the contrary, as has been thoroughly documented by the United States Attorney's Office, the FBI and the independent report issued by Deloitte Financial Advisory Services LLP ("Deloitte"), St. John's and the Diocese cooperated fully in the investigation and subsequent prosecution of Jude Fay.

[1] As a legal matter, Mrs. D'Erario may not be defined as a "whistleblower" under Connecticut law because she reported her allegations of wrongdoing to a private investigator, rather than to a "public body", as required by the applicable statute. See Conn. Gen. Stat. § 31-51m.

3. In the complaint, you allege that Father McGrath maliciously spread false rumors about Mrs. D'Erario having an affair with Father Madden, repeatedly harassed and attempted to intimidate Mrs. D'Erario, and refused to renew her employment contract. In reality, however, Father McGrath never spread any rumors regarding Mrs. D'Erario, nor did he harass or attempt to intimidate her. Although Mrs. D'Erario only briefly worked under Father McGrath's supervision before she decided to resign, at no time did Father McGrath ever criticize her work performance or express an intent to replace her. There was no need for a written renewal of Mrs. D'Erario's employment contract because her contract expressly provided that "This contract is automatically renewed for the next fiscal year if not cancelled or modified by either party in writing." Accordingly, Mrs. D'Erario's contract already automatically had been renewed for fiscal year 2007 (July 1, 2006-June 30, 2007), which Mrs. D'Erario acknowledged in her resignation letter. A copy of her contract is enclosed for your review.

4. In the complaint, you imply that the Diocese did not act expeditiously to remove Jude Fay and that Mrs. D'Erario was instrumental to the investigation. Neither allegation is accurate. The first time that Diocesan officials received a report concerning alleged financial misconduct by Jude Fay occurred on April 27, 2006 and that report occurred at a meeting between Father Madden and Bishop Lori. Mrs. D'Erario did not attend that meeting. In fact, within a day or two of that meeting, while Diocesan officials were commencing their investigation of St. John's finances, Mrs. D'Erario left for a vacation in the Bahamas and did not return to work for approximately one week. Although her absence made it more difficult for the Diocese to investigate the financial records of St. John's, the Diocese proceeded with its investigation and promptly removed Jude Fay from having any control over parish accounts and parish funds. As a result of the investigation, Bishop Lori directed Jude Fay to return to Connecticut from Florida and, on May 9th, Diocesan officials began meeting with Jude Fay and seeking explanations with respect to multiple financial issues. Approximately one week later, on May 17, 2006, at Bishop Lori's request, Jude Fay resigned as the pastor of St. John's. The chronology of the actions taken by the Diocese to investigate these matters, safeguard parish funds and obtain Jude Fay's resignation are set forth in detail in Deloitte's report.

In addition to the numerous factual errors in your complaint, I am concerned by the salacious and immoral nature of many of your allegations. The complaint contains multiple, graphic allegations regarding Jude Fay's alleged sexual conduct. These allegations are completely irrelevant to Mrs. D'Erario's legal claims because: (i) Mrs. D'Erario does not allege that she reported such sexual activities to the Darien Police Department, the FBI or any other public body; and (ii) Mrs. D'Erario does not allege that Jude Fay retaliated against her or forced her to resign from her job. Indeed, Jude Fay resigned as pastor of St. John's approximately ten weeks prior to Mrs. D'Erario's resignation. Hence, your allegations regarding Jude Fay's sexual conduct appear to be primarily for the purpose of stimulating prurient interest and attempting to embarrass the individuals who allegedly had relationships with Jude Fay, their families and the parishioners of St. John's. Such allegations could be quite harmful to third parties with no involvement in this matter and seem unnecessary, ill-intended, and potentially defamatory.

Before proceeding further with this matter, I urge you to speak with Mrs. D'Erario about the potential consequences of her actions. At the time of her resignation in August of 2006, Mrs. D'Erario indicated to the New York Times and others that she had no plans to sue anyone. Similarly, at that time, St. John's and the Diocese made a decision not to further investigate or file any claims against Mrs. D'Erario. If Mrs. D'Erario insists on re-opening this matter though, St. John's and the Diocese will seek to hold her accountable for any omissions, negligence, misrepresentations and/or malfeasance. As you should be aware, there is considerable evidence that Mrs. D'Erario had knowledge for several years regarding Jude Fay's financial and other wrongdoings, but did not report them to Diocesan officials. There also is evidence that Mrs. D'Erario's husband personally engaged in financial transactions with Jude Fay, which may have constituted a conflict of interest in light of Mrs. D'Erario's position as the Parish's business manager/bookkeeper. Indeed, Mrs. D'Erario's dereliction of her duties and her failure to report Jude Fay's financial wrongdoings in an effective manner resulted in losses at St. John's in excess of $1,000,000.

Moreover, some of the allegations in your complaint appear to contradict information that Mrs. D'Erario provided to the Diocese, Deloitte and/or the FBI during their respective investigations. As you know, contradictory statements in civil litigation can create credibility issues; such contradictions in the context of a criminal investigation are even more problematic. According to your complaint, Mrs. D'Erario claims to have copies of financial records of St. John's, some or all of which she may have failed to provide to the Diocese, Deloitte or the FBI at the time of their respective investigations. If Mrs. D'Erario withheld such information and documentation from investigators, her omissions could have serious consequences.

For the reasons set forth above, Mrs. D'Erario's complaint is without merit. She knows that she was not forced to resign and she knows that neither St. John's nor the Diocese or any of their representatives retaliated against her for allegedly being a "whistleblower." We understand that Mrs. D'Erario currently is going through a divorce and may be experiencing a difficult time in her personal life. The answer to such problems, however, is not to file a lawsuit that will expose her to counterclaims and that will negatively impact the parishioners of St. John's, who are in the process of recovering from the trauma experienced by the Parish. We would ask that Mrs. D'Erario consider the emotional and spiritual well-being of the parishioners and remember the farewell message she included in the Sunday Bulletin - "As I hope my actions have shown, I care deeply for this parish and all of you, and I wish St John's much healing and peace."

Please carefully consider the information set forth herein and contact me if you have any questions regarding it or would like to further discuss this matter.

Very truly yours,

Daniel L. Schwartz

Attorney at Law
Day Pitney LLP
One Canterbury Green
Stamford, CT 06901


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